Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive, and free cash flow was less negative than in either comparison period.
- Operating cash flow was positive while capital expenditure remained substantial, resulting in negative free cash flow. The free cash flow margin was negative but improved from both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow was less negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$687.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-15.5%
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 |
|---|---|---|---|---|---|
| 2022-05-31 | $2.4B | $3.0M | $491.0M | -$488.0M | -20.3% |
| 2022-08-31 | $4.3B | -$344.0M | $538.0M | -$882.0M | -20.5% |
| 2022-11-30 | $3.8B | -$117.0M | $1.2B | -$1.3B | -33.8% |
| 2023-02-28 | $4.4B | $388.0M | $1.1B | -$687.0M | -15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.5B | 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 Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current quarter. This improvement occurred alongside higher revenue and lower capital expenditure.
The positive operating cash flow reduced the free cash flow deficit compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive while capital expenditure remained substantial, resulting in negative free cash flow. The free cash flow margin was negative but improved from both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow was less negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow was less negative.
Monitor whether operating cash flow remains positive in the coming quarter, as it turned from negative in both comparison periods.