Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow was negative, though the deficit narrowed compared to the prior quarter and reversed from a positive figure a year ago.
- Operating cash flow was lower than the prior quarter and substantially lower than the same quarter last year. Capital expenditure decreased from both comparison periods, resulting in a negative free cash flow that improved from the prior quarter but weakened from a year ago. The free cash flow margin was negative, reflecting a weaker conversion of revenue into free cash flow compared to the year-ago quarter.
- Compared to the prior quarter, revenue was slightly higher, operating cash flow was lower, capital expenditure was lower, and free cash flow improved (less negative). Compared to the same quarter last year, revenue was lower, operating cash flow was substantially lower, capital expenditure was lower, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$668.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$156.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$411.1M
Cash generated by operations before capital spending.
CapEx
$567.2M
Capital spending and related asset purchases.
FCF margin
-3.7%
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 | $4.4B | $789.9M | $766.3M | $23.7M | 0.5% |
| 2023-06-30 | $4.4B | $749.2M | $934.5M | -$185.4M | -4.3% |
| 2023-09-30 | $4.1B | $482.4M | $832.9M | -$350.5M | -8.5% |
| 2023-12-31 | $4.2B | $411.1M | $567.2M | -$156.1M | -3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.6% | 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.
Capital expenditure reduction
Capital expenditure decreased from both the prior quarter and the same quarter last year. This reduction was the strongest observable factor in the free cash flow improvement relative to the prior quarter.
Lower capital expenditure helped narrow the negative free cash flow compared to the prior quarter, but free cash flow remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and substantially lower than the same quarter last year. Capital expenditure decreased from both comparison periods, resulting in a negative free cash flow that improved from the prior quarter but weakened from a year ago. The free cash flow margin was negative, reflecting a weaker conversion of revenue into free cash flow compared to the year-ago quarter.
Compared to the prior quarter, revenue was slightly higher, operating cash flow was lower, capital expenditure was lower, and free cash flow improved (less negative). Compared to the same quarter last year, revenue was lower, operating cash flow was substantially lower, capital expenditure was lower, and free cash flow turned from positive to negative.
Monitor the trajectory of operating cash flow, which declined from both the prior quarter and the year-ago quarter.