Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved markedly as operating cash flow turned positive, while capital expenditure remained elevated. The free cash flow margin strengthened compared with both the preceding quarter and the same quarter one year earlier.
- Revenue was stable across periods. Operating cash flow shifted from negative in the prior quarter to positive, and capital expenditure was slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow was less negative, and the free cash flow margin improved accordingly.
- Compared with the preceding quarter, operating cash flow was higher and capital expenditure was slightly higher, leading to a less negative free cash flow. Versus the same quarter one year earlier, operating cash flow was higher, capital expenditure was lower, and free cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$585.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$802.0M
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-14.8%
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 | $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% |
| 2023-06-30 | $4.0B | $802.0M | $1.4B | -$585.0M | -14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -143.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$32.1B | 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 Recovery
Operating cash flow turned positive in the current quarter after being negative in the prior quarter, and was also higher than the same quarter one year earlier. This improvement was the primary factor behind the less negative free cash flow.
The recovery in operating cash flow directly reduced the free cash flow deficit and improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable across periods. Operating cash flow shifted from negative in the prior quarter to positive, and capital expenditure was slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow was less negative, and the free cash flow margin improved accordingly.
Compared with the preceding quarter, operating cash flow was higher and capital expenditure was slightly higher, leading to a less negative free cash flow. Versus the same quarter one year earlier, operating cash flow was higher, capital expenditure was lower, and free cash flow improved.
Monitor the trend of capital expenditure relative to operating cash flow, as elevated spending continues to pressure free cash flow.