Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved from the prior quarter and the year-ago quarter, but free cash flow remained negative due to elevated capital expenditure. The free cash flow margin weakened compared to the year-ago quarter but improved from the prior quarter.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow increased relative to both comparison periods, yet capital expenditure rose more sharply than operating cash flow, resulting in a negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, free cash flow improved (less negative) and the free cash flow margin strengthened. Compared to the year-ago quarter, free cash flow was slightly more negative and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$276.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$615.0M
Cash generated by operations before capital spending.
CapEx
$891.0M
Capital spending and related asset purchases.
FCF margin
-15.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $2.3B | $727.0M | $899.0M | -$172.0M | -7.5% |
| 2022-12-31 | $2.0B | $664.0M | $914.0M | -$250.0M | -12.2% |
| 2023-03-31 | $2.1B | $496.0M | $931.0M | -$435.0M | -21.1% |
| 2023-06-30 | $1.8B | $615.0M | $891.0M | -$276.0M | -15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -115.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 50.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure was higher than both the prior quarter and the year-ago quarter, outpacing the increase in operating cash flow. This was the strongest observable driver of the negative free cash flow.
The elevated capital expenditure kept free cash flow negative despite improved operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow increased relative to both comparison periods, yet capital expenditure rose more sharply than operating cash flow, resulting in a negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, free cash flow improved (less negative) and the free cash flow margin strengthened. Compared to the year-ago quarter, free cash flow was slightly more negative and the free cash flow margin weakened.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap between them continues to drive negative free cash flow.