Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative while capital expenditure remained elevated, resulting in a significantly larger free cash flow deficit compared to both the prior quarter and the same quarter last year. The free cash flow margin weakened sharply, reflecting the cash conversion strain.
- Revenue was stable, but operating cash flow shifted from positive to negative, while capital expenditure was lower than the prior quarter yet higher than the year-ago quarter. The combination produced a free cash flow deficit that was larger than both comparison periods, and the free cash flow margin declined substantially.
- Compared to the immediately preceding quarter, operating cash flow turned from positive to negative and free cash flow deficit widened, with the margin weakening. Versus the same quarter one year earlier, operating cash flow also declined and the free cash flow deficit increased, resulting in a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$90.0M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-35.7%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.0B | $446.0M | $1.5B | -$1.1B | -26.3% |
| 2022-09-30 | $5.2B | $874.0M | $1.5B | -$624.0M | -11.9% |
| 2022-12-31 | $4.0B | $1.1B | $1.6B | -$468.0M | -11.7% |
| 2023-03-31 | $4.0B | -$90.0M | $1.3B | -$1.4B | -35.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -387.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.8B | 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 Turned Negative
Operating cash flow shifted from positive in both comparison periods to negative in the current quarter, despite stable revenue. This change was the strongest observable driver of the larger free cash flow deficit.
The negative operating cash flow directly caused the free cash flow deficit to widen substantially relative to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow shifted from positive to negative, while capital expenditure was lower than the prior quarter yet higher than the year-ago quarter. The combination produced a free cash flow deficit that was larger than both comparison periods, and the free cash flow margin declined substantially.
Compared to the immediately preceding quarter, operating cash flow turned from positive to negative and free cash flow deficit widened, with the margin weakening. Versus the same quarter one year earlier, operating cash flow also declined and the free cash flow deficit increased, resulting in a lower margin.
Monitor whether operating cash flow can return to positive levels in subsequent quarters, as the current negative cash flow is the primary factor behind the widened free cash flow deficit.