Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened as free cash flow turned negative despite stable revenue. The filing notes that operating cash flow for the first six months decreased compared to the prior year period, primarily due to lower net income.
- Revenue was stable compared to the prior quarter, while operating cash flow was slightly lower. Capital expenditure increased substantially, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue was stable, operating cash flow was lower, and capital expenditure was higher, causing free cash flow to shift from positive to negative. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, and capital expenditure was significantly higher, resulting in a negative free cash flow versus a positive one.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$345.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$185.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$749.2M
Cash generated by operations before capital spending.
CapEx
$934.5M
Capital spending and related asset purchases.
FCF margin
-4.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $4.4B | $749.2M | $934.5M | -$185.4M | -4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -79.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$795.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, outpacing operating cash flow growth.
This shift was the primary factor turning free cash flow negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow was slightly lower. Capital expenditure increased substantially, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue was stable, operating cash flow was lower, and capital expenditure was higher, causing free cash flow to shift from positive to negative. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, and capital expenditure was significantly higher, resulting in a negative free cash flow versus a positive one.
Monitor capital expenditure levels, as they exceeded operating cash flow and drove the negative free cash flow.