Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter, driven by a large operating cash outflow and elevated capital spending. Revenue was slightly higher than a year ago, but the cash conversion weakened substantially.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. This marks a sharp reversal from the positive cash conversion a year earlier.
- Compared to the prior quarter, operating cash flow improved (less negative) and free cash flow also improved, though both remained negative. Versus the same quarter last year, operating cash flow and free cash flow both weakened, turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$934.0M
Cash generated by operations before capital spending.
CapEx
$660.0M
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.5B | -$88.0M | $390.0M | -$478.0M | -8.7% |
| 2022-09-30 | $6.1B | -$1.2B | $290.0M | -$1.5B | -24.5% |
| 2022-12-31 | $4.5B | -$2.4B | $599.0M | -$3.0B | -67.7% |
| 2023-03-31 | $5.8B | -$934.0M | $660.0M | -$1.6B | -27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1562.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.3% | 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 Swing
Operating cash flow shifted from positive a year ago to negative this quarter, the strongest observable driver of the free cash flow decline. Revenue was relatively stable, so the cash conversion efficiency dropped markedly.
The negative operating cash flow was the primary factor behind the large negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. This marks a sharp reversal from the positive cash conversion a year earlier.
Compared to the prior quarter, operating cash flow improved (less negative) and free cash flow also improved, though both remained negative. Versus the same quarter last year, operating cash flow and free cash flow both weakened, turning from positive to negative.
Monitor whether operating cash flow can return to positive territory in upcoming quarters.