Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior and year-ago quarters, yet free cash flow turned negative due to a sharp decline in operating cash flow and higher capital expenditure. The conversion gap widened significantly.
- Operating cash flow was a small fraction of revenue, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow. The free cash flow margin fell sharply from positive levels in both comparison periods.
- Compared to the immediately preceding quarter, revenue was slightly higher but operating cash flow was substantially lower, while capital expenditure grew moderately. Versus the same quarter one year earlier, revenue was also slightly higher; operating cash flow and free cash flow both weakened, though capital expenditure was somewhat lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$122.0M
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
-0.2%
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 | $2.5B | $841.0M | $132.0M | $709.0M | 28.2% |
| 2023-06-30 | $2.5B | $601.0M | $113.0M | $488.0M | 19.2% |
| 2023-09-30 | $2.5B | $862.0M | $85.0M | $777.0M | 31.1% |
| 2023-12-31 | $2.6B | $122.0M | $126.0M | -$4.0M | -0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -0.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sharply weaker operating cash flow
Operating cash flow declined compared to both the prior quarter and the year-ago quarter, despite a slight increase in revenue. This drop was the primary factor behind the swing to negative free cash flow.
The free cash flow margin moved from strongly positive to near zero, signaling a significant weakening in cash generation efficiency.
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, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow. The free cash flow margin fell sharply from positive levels in both comparison periods.
Compared to the immediately preceding quarter, revenue was slightly higher but operating cash flow was substantially lower, while capital expenditure grew moderately. Versus the same quarter one year earlier, revenue was also slightly higher; operating cash flow and free cash flow both weakened, though capital expenditure was somewhat lower.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure exceeded operating cash flow for the quarter.