Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by operating cash flow that was lower than capital expenditure. Revenue increased compared to both the prior quarter and the same quarter last year.
- Operating cash flow was insufficient to cover capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue was higher while operating cash flow was lower, leading to a less negative free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow was substantially lower, resulting in a much more negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$484.0M
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
-25.1%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.2B | $1.5B | $1.6B | -$127.0M | -3.0% |
| 2022-09-30 | $4.8B | $901.0M | $1.7B | -$771.0M | -15.9% |
| 2022-12-31 | $4.7B | $729.0M | $2.0B | -$1.2B | -26.6% |
| 2023-03-31 | $5.6B | $484.0M | $1.9B | -$1.4B | -25.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -208.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.8% | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, while capital expenditure remained relatively stable. This was the primary observable factor behind the negative free cash flow.
The lower operating cash flow directly weakened free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue was higher while operating cash flow was lower, leading to a less negative free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow was substantially lower, resulting in a much more negative free cash flow.
Monitor the trend in operating cash flow relative to capital expenditure, as the gap widened significantly compared to the same quarter last year.