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 improved from the prior quarter. Operating cash flow increased, offsetting higher capital expenditure.
- Operating cash flow grew while capital expenditure also rose, resulting in a smaller negative free cash flow compared to both the prior quarter and the year-ago period.
- Revenue was lower versus the prior quarter and slightly lower than a year ago, but operating cash flow improved in both comparisons, leading to a narrower free cash flow deficit.
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
-$132.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$958.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-4.2%
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 | $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% |
| 2023-12-31 | $3.1B | $958.0M | $1.1B | -$132.0M | -4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -75.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.6% | 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.
Stronger Operating Cash Flow
Operating cash flow increased compared to both the preceding quarter and the year-ago quarter, providing greater internal funding and reducing the free cash flow shortfall.
If operating cash flow can sustain this level, free cash flow could approach break-even despite elevated capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew while capital expenditure also rose, resulting in a smaller negative free cash flow compared to both the prior quarter and the year-ago period.
Revenue was lower versus the prior quarter and slightly lower than a year ago, but operating cash flow improved in both comparisons, leading to a narrower free cash flow deficit.
Monitor whether capital expenditure continues to outpace operating cash flow, as it remains the primary factor keeping free cash flow negative.