Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, driving a significant swing from negative to positive free cash flow. The free cash flow margin turned positive, though it was lower than the same quarter one year earlier.
- Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but remained modest relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved from negative to positive, leading to a large increase in free cash flow. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was lower, as operating cash flow grew less than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$233.0M
Capital spending and related asset purchases.
FCF margin
109.7%
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 | $3.2B | $1.6B | $159.0M | $1.5B | 46.2% |
| 2022-09-30 | $3.6B | -$997.0M | $170.0M | -$1.2B | -32.2% |
| 2022-12-31 | $2.6B | -$182.0M | $177.0M | -$359.0M | -13.7% |
| 2023-03-31 | $2.7B | $3.2B | $233.0M | $2.9B | 109.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2016.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$339.0M | 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 Strength
Operating cash flow was the strongest observable driver, as it turned positive and exceeded revenue, directly enabling the large free cash flow. This improvement occurred despite an operating loss reported in the filing.
The swing in operating cash flow was the primary factor behind the positive free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but remained modest relative to operating cash flow.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow improved from negative to positive, leading to a large increase in free cash flow. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was lower, as operating cash flow grew less than revenue.
Monitor whether operating cash flow can sustain its level relative to revenue in future quarters.