Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive this quarter, sharply improving from the prior quarter's negative level, though capital expenditure also increased. Free cash flow remained negative but the deficit narrowed significantly from the prior quarter.
- Revenue was stable compared with a year ago, while operating cash flow improved relative to both the prior quarter and the same quarter last year. Higher capital expenditure, however, kept free cash flow negative, and the margin remained negative though it improved from the prior quarter.
- Compared with the prior quarter, revenue increased, operating cash flow swung from negative to positive, free cash flow deficit narrowed, and margin improved. Versus the same quarter a year ago, revenue was stable, operating cash flow improved, but higher capital expenditure widened the free cash flow deficit and slightly weakened the margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$206.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$642.0M
Cash generated by operations before capital spending.
CapEx
$848.0M
Capital spending and related asset purchases.
FCF margin
-5.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $3.5B | $642.0M | $848.0M | -$206.0M | -5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -51.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.3% | 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 Turns Positive
Operating cash flow swung from negative in the prior quarter to positive this quarter, coinciding with an increase in revenue.
This improvement significantly reduced the free cash flow deficit compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared with a year ago, while operating cash flow improved relative to both the prior quarter and the same quarter last year. Higher capital expenditure, however, kept free cash flow negative, and the margin remained negative though it improved from the prior quarter.
Compared with the prior quarter, revenue increased, operating cash flow swung from negative to positive, free cash flow deficit narrowed, and margin improved. Versus the same quarter a year ago, revenue was stable, operating cash flow improved, but higher capital expenditure widened the free cash flow deficit and slightly weakened the margin.
Monitor capital expenditure level, which increased from both the prior quarter and the same quarter last year and contributed to the continued negative free cash flow.