Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, leading to a negative free cash flow margin for the quarter. Revenue was lower than the prior quarter but slightly higher than the same quarter last year.
- Revenue was insufficient to cover operating cash outflows, resulting in negative free cash flow. Capital expenditure remained relatively stable, so the cash conversion weakness was driven entirely by the operating cash flow shortfall.
- Compared to the prior quarter, operating cash flow and free cash flow both shifted from positive to negative, and the free cash flow margin weakened significantly. Versus the same quarter last year, operating cash flow and free cash flow also turned negative, and the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$201.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$153.4M
Cash generated by operations before capital spending.
CapEx
$47.6M
Capital spending and related asset purchases.
FCF margin
-2.6%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $8.0B | $644.5M | $31.7M | $612.8M | 7.7% |
| 2023-06-30 | $9.7B | $787.5M | $29.1M | $758.4M | 7.8% |
| 2023-09-30 | $10.5B | $2.0B | $40.3M | $2.0B | 19.1% |
| 2023-12-31 | $7.7B | -$153.4M | $47.6M | -$201.0M | -2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -21.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 Swing
Operating cash flow moved from a large positive amount in the prior quarter to a negative amount this quarter, and also declined compared to the same quarter last year. This swing is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to turn negative despite stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was insufficient to cover operating cash outflows, resulting in negative free cash flow. Capital expenditure remained relatively stable, so the cash conversion weakness was driven entirely by the operating cash flow shortfall.
Compared to the prior quarter, operating cash flow and free cash flow both shifted from positive to negative, and the free cash flow margin weakened significantly. Versus the same quarter last year, operating cash flow and free cash flow also turned negative, and the margin declined.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as it is the primary driver of free cash flow.