Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was negative while operating cash flow remained positive, resulting in a negative free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow despite negative revenue. The free cash flow margin turned negative due to the revenue figure being negative, while operating cash flow as a proportion of revenue was not meaningful.
- Compared to the prior quarter, operating cash flow improved and capital expenditure decreased, leading to higher free cash flow. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$788.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$420.9M
Capital spending and related asset purchases.
FCF margin
-37.2%
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 | $220.6M | $932.3M | $459.2M | $473.1M | 214.5% |
| 2022-12-31 | $193.8M | $1.2B | $658.2M | $526.8M | 271.8% |
| 2023-03-31 | $2.5B | $1.1B | $461.9M | $608.6M | 24.1% |
| 2023-06-30 | -$2.1B | $1.2B | $420.9M | $788.5M | -37.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -19.9% | 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.
Operating Cash Flow Strength
Operating cash flow increased sequentially and year-over-year, providing the primary support for free cash flow generation. This occurred even as revenue was negative, indicating that cash collections from operations remained robust.
Higher operating cash flow drove free cash flow higher compared to both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow despite negative revenue. The free cash flow margin turned negative due to the revenue figure being negative, while operating cash flow as a proportion of revenue was not meaningful.
Compared to the prior quarter, operating cash flow improved and capital expenditure decreased, leading to higher free cash flow. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was also higher.
Monitor the trajectory of revenue, as it turned negative this quarter, which directly impacts the free cash flow margin calculation.