Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and the margin weakened compared to both the prior quarter and the same quarter last year. Operating cash flow decreased while capital expenditure increased, driving the cash conversion lower.
- Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow declined from both comparison periods, while capital expenditure rose, resulting in a larger negative free cash flow and a weaker free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$725.0M
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
-57.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $3.2B | $625.0M | $1.6B | -$926.0M | -28.6% |
| 2023-06-30 | $3.0B | $562.0M | $1.8B | -$1.3B | -42.4% |
| 2023-09-30 | $3.4B | $1.1B | $1.9B | -$777.0M | -22.6% |
| 2023-12-31 | $3.0B | $725.0M | $2.4B | -$1.7B | -57.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1812.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 81.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, while operating cash flow declined. This combination was the strongest observable driver of the more negative free cash flow.
The higher capital expenditure outpaced operating cash flow, leading to a weakened 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 than the prior quarter but slightly higher than a year ago. Operating cash flow declined from both comparison periods, while capital expenditure rose, resulting in a larger negative free cash flow and a weaker free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened significantly this quarter.