Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative as capital expenditure exceeded operating cash flow. Revenue declined from both the prior quarter and the same quarter last year, while free cash flow improved compared to the year-ago period but weakened sequentially.
- Operating cash flow was positive but insufficient to cover capital expenditure, resulting in negative free cash flow and a negative margin. The cash conversion reflects a significant investment in capital assets.
- Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, leading to a more negative free cash flow and a weakened margin. Relative to the same quarter one year earlier, operating cash flow was higher while capital expenditure was similar, resulting in a less negative free cash flow and an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$653.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$484.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$238.2M
Cash generated by operations before capital spending.
CapEx
$722.5M
Capital spending and related asset purchases.
FCF margin
-82.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.5B | $188.9M | $795.7M | -$606.8M | -40.9% |
| 2023-03-31 | $1.5B | $2.7B | $619.7M | $2.1B | 135.2% |
| 2023-06-30 | $662.7M | $328.8M | $668.1M | -$339.3M | -51.2% |
| 2023-09-30 | $587.6M | $238.2M | $722.5M | -$484.3M | -82.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -408.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 122.9% | 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 Change
Operating cash flow was higher compared to the same quarter last year, which helped narrow the free cash flow deficit despite similar capital expenditure levels. However, operating cash flow decreased from the prior quarter, contributing to a sequential worsening.
The year-over-year increase in operating cash flow was the most notable factor behind the reduction in negative free cash flow, while the sequential decline drove the weakening.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive but insufficient to cover capital expenditure, resulting in negative free cash flow and a negative margin. The cash conversion reflects a significant investment in capital assets.
Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, leading to a more negative free cash flow and a weakened margin. Relative to the same quarter one year earlier, operating cash flow was higher while capital expenditure was similar, resulting in a less negative free cash flow and an improved margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it determines the magnitude of free cash flow.