Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved year over year but weakened sequentially, with free cash flow remaining negative. Revenue was stable across both comparisons.
- Revenue was unchanged, while operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was slightly lower year over year and stable sequentially, resulting in free cash flow that was less negative year over year but more negative sequentially; the free cash flow margin followed the same pattern.
- Compared to the same quarter one year earlier, operating cash flow was higher and capital expenditure was lower, leading to a less negative free cash flow and an improved margin. Versus the immediately preceding quarter, operating cash flow was lower while capital expenditure was stable, resulting in a more negative free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$477.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$587.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-25.6%
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 | $2.7B | $485.0M | $1.3B | -$855.0M | -32.0% |
| 2023-03-31 | $2.8B | $1.7B | $1.1B | $590.0M | 21.4% |
| 2023-06-30 | $1.9B | $769.0M | $1.1B | -$367.0M | -19.6% |
| 2023-09-30 | $1.9B | $587.0M | $1.1B | -$477.0M | -25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -169.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 57.1% | 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.
Year-over-Year Operating Cash Flow Improvement
Operating cash flow was higher than the same quarter last year, which was the main factor behind the reduction in negative free cash flow. Capital expenditure was slightly lower, providing additional support.
The higher operating cash flow drove a meaningful year-over-year improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged, while operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was slightly lower year over year and stable sequentially, resulting in free cash flow that was less negative year over year but more negative sequentially; the free cash flow margin followed the same pattern.
Compared to the same quarter one year earlier, operating cash flow was higher and capital expenditure was lower, leading to a less negative free cash flow and an improved margin. Versus the immediately preceding quarter, operating cash flow was lower while capital expenditure was stable, resulting in a more negative free cash flow and a weakened margin.
Monitor operating cash flow trends, as they are the primary variable influencing free cash flow changes.