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 significantly compared to the prior quarter, driven by a sharp increase in operating cash flow and reduced capital spending. The free cash flow margin strengthened from the previous period and held roughly stable versus the same quarter last year.
- Revenue was slightly lower than the prior quarter but higher than a year earlier. Operating cash flow turned positive from negative in the prior quarter and exceeded the year-ago level, while capital expenditure decreased sequentially but increased year over year.
- Compared to the immediately preceding quarter, free cash flow improved substantially as operating cash flow swung positive and capital spending declined. Relative to the same quarter one year earlier, free cash flow was slightly more negative, with a very similar margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$530.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$120.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$165.4M
Cash generated by operations before capital spending.
CapEx
$286.2M
Capital spending and related asset purchases.
FCF margin
-15.1%
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 | $1.0B | $795.2M | $326.9M | $468.3M | 46.7% |
| 2023-03-31 | $548.3M | -$34.6M | $371.0M | -$405.6M | -74.0% |
| 2023-06-30 | $810.7M | -$89.7M | $382.7M | -$472.4M | -58.3% |
| 2023-09-30 | $801.1M | $165.4M | $286.2M | -$120.8M | -15.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -45.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $993.5M | 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 Recovery
Operating cash flow rebounded to positive territory from a negative showing in the prior quarter, and was higher than the year-ago period. This recovery, combined with lower capital expenditures, drove the improvement in free cash flow.
The improved cash conversion supports near-term liquidity needs.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year earlier. Operating cash flow turned positive from negative in the prior quarter and exceeded the year-ago level, while capital expenditure decreased sequentially but increased year over year.
Compared to the immediately preceding quarter, free cash flow improved substantially as operating cash flow swung positive and capital spending declined. Relative to the same quarter one year earlier, free cash flow was slightly more negative, with a very similar margin.
Capital expenditure remains elevated; monitor its trajectory and the sustainability of positive operating cash flow.