Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Free cash flow was deeply negative, driven by negative operating cash flow that more than offset capital expenditure at a lower level than the prior quarter.
- Operating cash flow was negative, and after subtracting capital expenditure, free cash flow turned even more negative, yielding a negative free cash flow margin. Revenue was not sufficient to generate positive cash conversion in this quarter.
- Compared with the immediately preceding quarter, operating cash flow shifted from positive to negative and free cash flow turned from positive to deeply negative, with margin dropping from positive to negative. Versus the same quarter a year earlier, free cash flow and margin were slightly improved but remained negative, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$827.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$703.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$408.0M
Cash generated by operations before capital spending.
CapEx
$295.0M
Capital spending and related asset purchases.
FCF margin
-20.0%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $4.6B | $1.4B | $267.0M | $1.1B | 24.5% |
| 2023-03-31 | $3.8B | $266.0M | $233.0M | $33.0M | 0.9% |
| 2023-06-30 | $3.6B | $714.0M | $351.0M | $363.0M | 10.1% |
| 2023-09-30 | $3.5B | -$408.0M | $295.0M | -$703.0M | -20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1952.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | 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.
Negative Operating Cash Flow
Operating cash flow was negative for the current quarter. This is the primary factor behind the large negative free cash flow, as capital expenditure was lower than the prior quarter.
A sustained negative swing in operating cash flow would pressure liquidity, though the company notes cash on hand, existing credit lines, and market access as sources of funds.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after subtracting capital expenditure, free cash flow turned even more negative, yielding a negative free cash flow margin. Revenue was not sufficient to generate positive cash conversion in this quarter.
Compared with the immediately preceding quarter, operating cash flow shifted from positive to negative and free cash flow turned from positive to deeply negative, with margin dropping from positive to negative. Versus the same quarter a year earlier, free cash flow and margin were slightly improved but remained negative, while capital expenditure was higher.
Monitor the trajectory of operating cash flow, which was negative in this quarter and the year-ago quarter but positive in the prior quarter.