Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased substantially from the prior quarter and the year-ago period, driving a positive free cash flow margin. Capital expenditure remained relatively stable, while revenue was comparable to the prior quarter and slightly lower than a year ago.
- Revenue was stable sequentially but slightly lower year over year. Operating cash flow improved markedly, and after capital expenditure, free cash flow turned positive from a negative position in the prior quarter and increased from the year-ago period.
- Compared to the immediately preceding quarter, free cash flow improved from negative to positive, driven by a higher operating cash flow despite similar capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$423.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$617.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $1.8B | $352.0M | $568.0M | -$216.0M | -11.7% |
| 2022-09-30 | $2.0B | -$392.0M | $650.0M | -$1.0B | -53.3% |
| 2022-12-31 | $2.2B | $188.0M | $636.0M | -$448.0M | -20.3% |
| 2023-03-31 | $2.2B | $1.0B | $617.0M | $423.0M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 207.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.8B | 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 Improvement
Operating cash flow increased significantly compared to both the prior quarter and the year-ago period, providing the primary support for the positive free cash flow.
This improvement was the strongest observable factor in the quarter's cash conversion performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially but slightly lower year over year. Operating cash flow improved markedly, and after capital expenditure, free cash flow turned positive from a negative position in the prior quarter and increased from the year-ago period.
Compared to the immediately preceding quarter, free cash flow improved from negative to positive, driven by a higher operating cash flow despite similar capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
Monitor the relationship between capital expenditure and operating cash flow, as capital spending remained elevated relative to the prior year.