Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was negative and capital expenditure remained elevated, resulting in a negative free cash flow and a weakened free cash flow margin compared to the prior quarter. Versus the same quarter last year, free cash flow improved slightly while the margin turned less negative.
- Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, producing a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was more negative, capital expenditure was lower, and free cash flow was more negative with a weakened margin. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was less negative, capital expenditure was higher, and free cash flow was less negative with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$993.0M
Cash generated by operations before capital spending.
CapEx
$399.0M
Capital spending and related asset purchases.
FCF margin
-26.2%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $4.5B | -$2.4B | $599.0M | -$3.0B | -67.7% |
| 2023-03-31 | $5.8B | -$934.0M | $660.0M | -$1.6B | -27.3% |
| 2023-06-30 | $4.7B | -$192.0M | $676.0M | -$868.0M | -18.5% |
| 2023-09-30 | $5.3B | -$993.0M | $399.0M | -$1.4B | -26.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -190.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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 Deterioration
Operating cash flow was negative and worsened from the prior quarter, while capital expenditure decreased. The combination drove free cash flow more negative and the margin weaker.
The more negative operating cash flow was the strongest observable driver of the weakened free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, producing a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was more negative, capital expenditure was lower, and free cash flow was more negative with a weakened margin. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was less negative, capital expenditure was higher, and free cash flow was less negative with an improved margin.
Monitor the trajectory of operating cash flow, which turned more negative sequentially despite higher revenue.