Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative but improved from the prior quarter, driven by a narrower operating cash outflow. Revenue decreased from the preceding quarter while remaining slightly above the year-ago level.
- Revenue declined from the prior quarter, while operating cash flow improved, resulting in a less negative free cash flow. Capital expenditure remained stable, leading to a weaker cash conversion from revenue to free cash flow compared with the year-ago quarter.
- Compared with the preceding quarter, free cash flow improved significantly as operating cash flow strengthened, despite lower revenue. Versus the same quarter one year earlier, free cash flow weakened slightly, with a slightly wider deficit relative to revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$415.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$238.0M
Cash generated by operations before capital spending.
CapEx
$177.0M
Capital spending and related asset purchases.
FCF margin
-14.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $2.7B | $3.2B | $233.0M | $2.9B | 109.7% |
| 2023-06-30 | $3.4B | $1.1B | $223.0M | $923.0M | 27.5% |
| 2023-09-30 | $3.9B | -$1.4B | $213.0M | -$1.6B | -40.4% |
| 2023-12-31 | $2.9B | -$238.0M | $177.0M | -$415.0M | -14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -314.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 improved markedly from the prior quarter, reducing the free cash flow deficit despite lower revenue. This was the primary factor behind the stronger free cash flow margin.
The improvement in operating cash flow drove a narrower free cash flow shortfall, though still negative, and a higher free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, while operating cash flow improved, resulting in a less negative free cash flow. Capital expenditure remained stable, leading to a weaker cash conversion from revenue to free cash flow compared with the year-ago quarter.
Compared with the preceding quarter, free cash flow improved significantly as operating cash flow strengthened, despite lower revenue. Versus the same quarter one year earlier, free cash flow weakened slightly, with a slightly wider deficit relative to revenue.
Monitor whether operating cash flow can turn positive, given the ongoing negative free cash flow supported by stable capital expenditure.