Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved from both the prior quarter and the year-ago quarter. Free cash flow margin strengthened significantly, driven by a shift from negative to positive operating cash flow relative to revenue.
- Revenue decreased from both the prior quarter and the year-ago quarter, yet operating cash flow increased, resulting in higher free cash flow and an improved free cash flow margin. Capital expenditure rose compared to both periods, but the growth in operating cash flow more than offset the increase.
- Compared with the prior quarter, revenue shifted from negative to positive, operating cash flow increased, capital expenditure rose, and free cash flow as well as margin improved markedly. Versus the year-ago quarter, revenue was lower, but operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$494.8M
Capital spending and related asset purchases.
FCF margin
63.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.4B | $230.4M | $392.7M | -$162.3M | -4.8% |
| 2022-09-30 | $3.7B | $1.2B | $362.5M | $787.6M | 21.3% |
| 2022-12-31 | -$2.0B | $1.1B | $353.0M | $710.8M | -34.7% |
| 2023-03-31 | $1.8B | $1.7B | $494.8M | $1.2B | 63.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 Strength
Operating cash flow increased from the prior quarter and the year-ago quarter despite lower revenue, indicating a higher proportion of revenue converted to cash.
This directly drove higher free cash flow and a substantial improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from both the prior quarter and the year-ago quarter, yet operating cash flow increased, resulting in higher free cash flow and an improved free cash flow margin. Capital expenditure rose compared to both periods, but the growth in operating cash flow more than offset the increase.
Compared with the prior quarter, revenue shifted from negative to positive, operating cash flow increased, capital expenditure rose, and free cash flow as well as margin improved markedly. Versus the year-ago quarter, revenue was lower, but operating cash flow, free cash flow, and margin were all higher.
Monitor whether capital expenditure continues to rise relative to operating cash flow in future quarters.