Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter but was lower than the same quarter last year. Free cash flow turned more negative as operating cash flow decreased and capital expenditure increased substantially.
- Cash conversion weakened as operating cash flow declined while revenue was unchanged, and capital expenditure rose, resulting in a more negative free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, deepening the free cash flow deficit. Versus the same quarter one year earlier, operating cash flow was also lower and capital expenditure was much higher, leading to a significantly larger negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$818.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$626.6M
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-27.3%
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 | $3.2B | $719.3M | $834.2M | -$114.9M | -3.6% |
| 2023-03-31 | $3.2B | $638.7M | $1.0B | -$368.2M | -11.5% |
| 2023-06-30 | $3.0B | $845.4M | $1.3B | -$477.0M | -15.7% |
| 2023-12-31 | $3.0B | $626.6M | $1.4B | -$818.9M | -27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -134.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 48.2% | 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 factor behind the larger free cash flow deficit.
The elevated capital expenditure, paired with lower operating cash flow, caused free cash flow to become more negative than in either comparative period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow declined while revenue was unchanged, and capital expenditure rose, resulting in a more negative free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, deepening the free cash flow deficit. Versus the same quarter one year earlier, operating cash flow was also lower and capital expenditure was much higher, leading to a significantly larger negative free cash flow.
Monitor the magnitude of capital expenditure relative to operating cash flow, as it has become the primary factor driving free cash flow deeper into negative territory.