Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was negative, driven by an operating cash outflow and capital spending. Revenue came in lower than the year-ago quarter, but the free cash flow margin improved substantially.
- Operating cash flow was negative, meaning core operations did not generate cash; combined with capital expenditure, free cash flow was also negative. The free cash flow margin remained negative but was much less negative than a year earlier.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened sharply. Versus the same quarter last year, revenue was slightly lower, but operating cash flow and free cash flow both improved, and the free cash flow margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$143.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$267.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$105.0M
Cash generated by operations before capital spending.
CapEx
$162.0M
Capital spending and related asset purchases.
FCF margin
-10.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $3.8B | $3.0B | $145.0M | $2.9B | 75.1% |
| 2023-03-31 | $4.9B | -$3.3B | $151.0M | -$3.5B | -70.9% |
| 2023-06-30 | $6.0B | $812.0M | $99.0M | $713.0M | 11.8% |
| 2023-09-30 | $2.6B | -$105.0M | $162.0M | -$267.0M | -10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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.
Free cash flow swing from year-ago quarter
Free cash flow was negative this quarter, but the year-ago quarter was even more negative. The improvement was driven by a much smaller negative operating cash flow, while capital expenditure was slightly higher.
The strongest observable driver was the improvement in operating cash flow relative to the same quarter last year, which reduced the free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, meaning core operations did not generate cash; combined with capital expenditure, free cash flow was also negative. The free cash flow margin remained negative but was much less negative than a year earlier.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened sharply. Versus the same quarter last year, revenue was slightly lower, but operating cash flow and free cash flow both improved, and the free cash flow margin was less negative.
Monitor whether the sequential decline in operating cash flow and free cash flow represents a seasonal pattern or a broader change.