Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative as capital expenditure exceeded operating cash flow. However, the deficit narrowed compared to the same quarter a year ago.
- Revenue was stable, while operating cash flow was higher year over year but slightly lower quarter over quarter. Capital expenditure was lower than a year earlier but higher than the prior quarter, resulting in a free cash flow margin that improved compared to the prior year but weakened sequentially.
- Compared to the previous quarter, operating cash flow decreased marginally and capital expenditure increased, leading to a larger free cash flow deficit. Compared to the prior year quarter, operating cash flow improved and capital expenditure declined, yielding a smaller free cash flow shortfall.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$226.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$224.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$352.3M
Cash generated by operations before capital spending.
CapEx
$576.5M
Capital spending and related asset purchases.
FCF margin
-17.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.8B | $888.8M | $498.2M | $390.6M | 21.2% |
| 2022-12-31 | $1.2B | $324.2M | $551.9M | -$227.7M | -18.5% |
| 2023-03-31 | $1.2B | $362.9M | $527.7M | -$164.8M | -13.2% |
| 2023-06-30 | $1.3B | $352.3M | $576.5M | -$224.2M | -17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -127.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 44.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Free Cash Flow Improvement
Operating cash flow was higher and capital expenditure was lower compared to the same quarter a year ago. This combination reduced the free cash flow deficit.
If sustained, the trend could strengthen the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow was higher year over year but slightly lower quarter over quarter. Capital expenditure was lower than a year earlier but higher than the prior quarter, resulting in a free cash flow margin that improved compared to the prior year but weakened sequentially.
Compared to the previous quarter, operating cash flow decreased marginally and capital expenditure increased, leading to a larger free cash flow deficit. Compared to the prior year quarter, operating cash flow improved and capital expenditure declined, yielding a smaller free cash flow shortfall.
Monitor the trajectory of capital expenditure, as its sequential increase was the primary factor behind the weaker quarter-over-quarter free cash flow.