Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved from the prior quarter and operating cash flow was relatively stable, yet free cash flow remained negative because capital expenditure exceeded operating cash flow. Compared with a year ago, all cash-flow metrics weakened sharply as revenue fell significantly.
- Operating cash flow was higher than the prior quarter but far lower than a year earlier. Capital expenditure was larger than operating cash flow, resulting in negative free cash flow and a negative free cash flow margin, meaning cash conversion did not cover investment spending.
- Compared with the prior quarter, revenue improved while free cash flow was similar and the free cash flow margin was less negative. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all substantially lower, and capital expenditure was moderately higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$49.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$454.6M
Cash generated by operations before capital spending.
CapEx
$504.1M
Capital spending and related asset purchases.
FCF margin
-4.2%
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 | -$2.0B | $1.1B | $353.0M | $710.8M | -34.7% |
| 2023-03-31 | $1.8B | $1.7B | $494.8M | $1.2B | 63.8% |
| 2023-06-30 | $848.3M | $437.1M | $487.0M | -$49.9M | -5.9% |
| 2023-09-30 | $1.2B | $454.6M | $504.1M | -$49.5M | -4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -60.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Outpacing Operating Cash Flow
The strongest observable driver was that capital expenditure was larger than operating cash flow, a relationship that led to negative free cash flow. This gap persisted from the prior quarter but widened compared with a year ago.
Until capital expenditure falls relative to operating cash flow, free cash flow will remain negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but far lower than a year earlier. Capital expenditure was larger than operating cash flow, resulting in negative free cash flow and a negative free cash flow margin, meaning cash conversion did not cover investment spending.
Compared with the prior quarter, revenue improved while free cash flow was similar and the free cash flow margin was less negative. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all substantially lower, and capital expenditure was moderately higher.
Monitor whether capital expenditure remains above operating cash flow, as this directly determines the sign and size of free cash flow.