Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative, as operating cash flow fell short of elevated capital spending. The current quarter's cash conversion weakened compared with both the prior quarter and the same quarter last year.
- Revenue increased from the prior quarter, but operating cash flow declined, leading to a lower free cash flow and a more negative free cash flow margin. Capital expenditure remained stable at the elevated level of the prior quarter, further compressing cash conversion.
- Compared with the immediately preceding quarter, revenue was higher while operating cash flow was lower, resulting in a larger free cash flow deficit. Compared with the same quarter one year earlier, both revenue and operating cash flow were lower, and capital expenditure was higher, turning a positive free cash flow into a negative one.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$564.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$521.9M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-20.2%
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 | $3.0B | $712.4M | $1.1B | -$376.7M | -12.4% |
| 2023-03-31 | $3.8B | $69.2M | $977.1M | -$908.0M | -23.9% |
| 2023-06-30 | $2.6B | $578.1M | $1.1B | -$484.2M | -18.4% |
| 2023-09-30 | $2.8B | $521.9M | $1.1B | -$564.2M | -20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -165.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 38.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Elevated Capital Spending
Capital expenditure remained at the prior quarter's level, which was higher than a year ago, while operating cash flow declined both sequentially and year over year. This combination is the strongest observable factor behind the negative free cash flow.
The sustained high capital expenditure continues to outpace operating cash flow generation, deepening the free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, but operating cash flow declined, leading to a lower free cash flow and a more negative free cash flow margin. Capital expenditure remained stable at the elevated level of the prior quarter, further compressing cash conversion.
Compared with the immediately preceding quarter, revenue was higher while operating cash flow was lower, resulting in a larger free cash flow deficit. Compared with the same quarter one year earlier, both revenue and operating cash flow were lower, and capital expenditure was higher, turning a positive free cash flow into a negative one.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the persistent gap drives the negative free cash flow.