Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative, but the deficit narrowed from the prior quarter and from the same quarter last year, driven by higher operating cash flow. Cash conversion improved as revenue rose and operating cash flow increased at a faster pace than capital expenditure.
- Revenue increased compared with the prior quarter and the same quarter last year. Operating cash flow also rose, but capital expenditure remained elevated, resulting in negative free cash flow. The free cash flow margin, though negative, improved from both comparison periods.
- Compared with the immediately preceding quarter, revenue and operating cash flow were higher, while capital expenditure was slightly higher, leading to a smaller free cash flow deficit. Versus the same quarter one year earlier, revenue and operating cash flow were also higher, and capital expenditure increased modestly, yet free cash flow improved.
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
-$324.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
-5.4%
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 | $4.7B | $729.0M | $2.0B | -$1.2B | -26.6% |
| 2023-03-31 | $5.6B | $484.0M | $1.9B | -$1.4B | -25.1% |
| 2023-06-30 | $4.8B | $1.3B | $1.8B | -$527.0M | -10.9% |
| 2023-09-30 | $6.0B | $1.5B | $1.9B | -$324.0M | -5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -46.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.0% | 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 Improvement
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary lift to free cash flow. This improvement occurred even as capital expenditure rose, indicating stronger cash generation from operations.
Higher operating cash flow reduced the free cash flow deficit, improving the company's cash conversion profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared with the prior quarter and the same quarter last year. Operating cash flow also rose, but capital expenditure remained elevated, resulting in negative free cash flow. The free cash flow margin, though negative, improved from both comparison periods.
Compared with the immediately preceding quarter, revenue and operating cash flow were higher, while capital expenditure was slightly higher, leading to a smaller free cash flow deficit. Versus the same quarter one year earlier, revenue and operating cash flow were also higher, and capital expenditure increased modestly, yet free cash flow improved.
Monitor the status of the ComEd franchise agreement with the City of Chicago, as its termination could affect future operating rights and capital commitments.