Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter a year ago, but was sharply lower than the prior quarter. The margin improved from negative to positive year-over-year, yet weakened sequentially.
- Revenue was slightly lower than the prior quarter and the year-ago period. Operating cash flow decreased compared to the prior quarter, while capital expenditure also declined. The resulting free cash flow was positive, yielding a thin margin.
- Sequentially, free cash flow and margin both weakened sharply. Compared to the same quarter a year ago, free cash flow improved from a deficit to a surplus, and the margin turned positive. The filing attributed the operating cash flow decline from the year-ago period to changes in net income.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$602.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$23.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$789.9M
Cash generated by operations before capital spending.
CapEx
$766.3M
Capital spending and related asset purchases.
FCF margin
0.5%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | -$3.8B | $147.3M | $75.8M | $71.5M | -1.9% |
| 2022-09-30 | $497.4M | $91.7M | $61.5M | $30.2M | 6.1% |
| 2022-12-31 | $4.5B | $3.3B | $2.8B | $476.8M | 10.5% |
| 2023-03-31 | $4.4B | $789.9M | $766.3M | $23.7M | 0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 8.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$576.9M | 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 Margin Narrow
The free cash flow margin turned positive compared to the year-ago quarter, but the sequential decline in operating cash flow kept the margin minimal.
The narrow margin limits financial flexibility in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago period. Operating cash flow decreased compared to the prior quarter, while capital expenditure also declined. The resulting free cash flow was positive, yielding a thin margin.
Sequentially, free cash flow and margin both weakened sharply. Compared to the same quarter a year ago, free cash flow improved from a deficit to a surplus, and the margin turned positive. The filing attributed the operating cash flow decline from the year-ago period to changes in net income.
Monitor the relationship between operating cash flow and capital expenditure, as the margin remained thin.