Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter, but operating cash flow was substantially lower, resulting in a negative free cash flow. Compared to the same quarter last year, revenue increased and operating cash flow turned positive, improving free cash flow from a large deficit to near break-even.
- Operating cash flow was a small fraction of revenue, while capital expenditure was slightly higher, leading to a negligible free cash flow margin. This represents a sharp decline from the prior quarter's positive margin.
- Relative to the immediately preceding quarter, revenue remained stable but cash conversion weakened significantly, with free cash flow moving from positive to negative. Versus the year-ago quarter, all metrics improved: revenue was higher, operating cash flow swung from negative to positive, and free cash flow deficit narrowed substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$217.0M
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
-0.0%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $35.0B | $4.3B | $225.0M | $4.0B | 11.6% |
| 2023-06-30 | $34.8B | $2.5B | $215.0M | $2.3B | 6.7% |
| 2023-09-30 | $35.0B | $1.0B | $136.0M | $885.0M | 2.5% |
| 2023-12-31 | $35.3B | $217.0M | $223.0M | -$6.0M | -0.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -13.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$769.0M | 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 decline
Operating cash flow dropped markedly from the prior quarter, driving free cash flow into negative territory despite stable revenue.
Future quarters' operating cash flow trends will determine if this is a temporary fluctuation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a small fraction of revenue, while capital expenditure was slightly higher, leading to a negligible free cash flow margin. This represents a sharp decline from the prior quarter's positive margin.
Relative to the immediately preceding quarter, revenue remained stable but cash conversion weakened significantly, with free cash flow moving from positive to negative. Versus the year-ago quarter, all metrics improved: revenue was higher, operating cash flow swung from negative to positive, and free cash flow deficit narrowed substantially.
Capital expenditure relative to operating cash flow should be monitored, as it exceeded operating cash flow in the current quarter.