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 negative operating cash flow and elevated capital expenditure. Compared to the preceding quarter, free cash flow weakened further; versus the same quarter last year, it turned from positive to negative.
- Despite revenue levels, the company generated negative operating cash flow, which combined with significant capital spending to produce a deeply negative free cash flow margin.
- Operating cash flow improved slightly from the prior quarter but remained negative, while capital expenditure increased, causing free cash flow to weaken. Compared to the year-ago quarter, all cash flow metrics deteriorated sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$870.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$101.0M
Cash generated by operations before capital spending.
CapEx
$769.0M
Capital spending and related asset purchases.
FCF margin
-28.9%
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 | $3.5B | $554.0M | $666.0M | -$112.0M | -3.2% |
| 2022-12-31 | $3.2B | $846.0M | $996.0M | -$150.0M | -4.7% |
| 2023-03-31 | $3.2B | -$112.0M | $649.0M | -$761.0M | -23.6% |
| 2023-06-30 | $3.0B | -$101.0M | $769.0M | -$870.0M | -28.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -400.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.6% | 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.
Capital expenditure and negative operating cash flow
Capital expenditure rose compared to both the preceding quarter and the same quarter last year, while operating cash flow remained negative. Their combination resulted in a widening free cash flow deficit.
Unless operating cash flow improves or capital spending moderates, free cash flow is likely to remain negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue levels, the company generated negative operating cash flow, which combined with significant capital spending to produce a deeply negative free cash flow margin.
Operating cash flow improved slightly from the prior quarter but remained negative, while capital expenditure increased, causing free cash flow to weaken. Compared to the year-ago quarter, all cash flow metrics deteriorated sharply.
Monitor whether operating cash flow can turn positive in coming quarters.