Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to both the prior sequential quarter and the same quarter one year earlier. Operating cash flow remained negative, resulting in negative free cash flow and a weakened margin.
- Revenue was lower, operating cash flow was negative, and capital expenditure was maintained, leading to negative free cash flow and a negative free cash flow margin.
- Compared to the prior sequential quarter, revenue was lower and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$50.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$49.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$35.0M
Cash generated by operations before capital spending.
CapEx
$14.0M
Capital spending and related asset purchases.
FCF margin
-5.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-12-31 | $1.5B | $267.0M | $24.0M | $243.0M | 16.2% |
| 2023-04-01 | $1.4B | -$76.0M | $16.0M | -$92.0M | -6.5% |
| 2023-07-01 | $1.2B | -$34.0M | $18.0M | -$52.0M | -4.3% |
| 2023-09-30 | $956.0M | -$35.0M | $14.0M | -$49.0M | -5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 326.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Declining revenue
Revenue was lower than both the prior sequential quarter and the same quarter one year earlier. Operating cash flow turned negative, contributing to negative free cash flow.
The combination of lower revenue and negative operating cash flow resulted in a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower, operating cash flow was negative, and capital expenditure was maintained, leading to negative free cash flow and a negative free cash flow margin.
Compared to the prior sequential quarter, revenue was lower and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all declined.
Monitor operating cash flow, as it has remained negative for consecutive quarters.