Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, driving free cash flow deeply negative and compressing the margin. Revenue was higher than both the prior quarter and the same quarter last year, but cash generation weakened sharply.
- Revenue increased, yet operating cash flow shifted from positive to negative, resulting in a negative free cash flow and a negative margin. Capital expenditure was higher than the prior quarter, further reducing free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened from positive to negative, and the margin turned negative. Versus the same quarter one year earlier, all cash metrics were lower, with operating cash flow and free cash flow shifting from strongly positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$274.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$812.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$643.0M
Cash generated by operations before capital spending.
CapEx
$169.0M
Capital spending and related asset purchases.
FCF margin
-19.9%
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 | $3.4B | $418.0M | $59.0M | $359.0M | 10.6% |
| 2023-03-31 | $3.8B | $68.0M | $62.0M | $6.0M | 0.2% |
| 2023-06-30 | $3.9B | $794.0M | $73.0M | $721.0M | 18.3% |
| 2023-09-30 | $4.1B | -$643.0M | $169.0M | -$812.0M | -19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -109.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Operating Cash Flow Swing
Operating cash flow moved from positive in both comparison periods to negative in the current quarter, which is the primary factor behind the negative free cash flow. The filing notes that the company maintains a conservative financial structure and generated substantial operating cash flow for the full year, but the quarter-specific shift is notable.
The negative operating cash flow directly caused free cash flow to turn negative, reversing the positive trend seen in prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, yet operating cash flow shifted from positive to negative, resulting in a negative free cash flow and a negative margin. Capital expenditure was higher than the prior quarter, further reducing free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened from positive to negative, and the margin turned negative. Versus the same quarter one year earlier, all cash metrics were lower, with operating cash flow and free cash flow shifting from strongly positive to negative.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative swing is a significant change from recent history.