Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue turned negative this quarter, yet operating cash flow and free cash flow remained positive, resulting in a negative free cash flow margin. Free cash flow improved compared to both the prior quarter and the same quarter one year ago.
- Despite negative revenue, the company generated positive operating cash flow and free cash flow, reflecting a cash conversion pattern that is decoupled from revenue direction. Capital expenditure was relatively low, contributing to the positive free cash flow.
- Compared to the prior quarter, revenue shifted from positive to negative while operating cash flow improved and capital expenditure decreased, leading to higher free cash flow. Versus the same quarter last year, revenue also turned negative, operating cash flow was slightly lower, capital expenditure was significantly lower, and free cash flow was modestly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$441.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$446.8M
Cash generated by operations before capital spending.
CapEx
$4.9M
Capital spending and related asset purchases.
FCF margin
-77.8%
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 | $1.5B | $174.4M | $24.8M | $149.6M | 10.2% |
| 2023-06-30 | $1.5B | $321.0M | $21.0M | $300.0M | 19.7% |
| 2023-09-29 | $1.5B | $411.4M | $27.9M | $383.5M | 25.7% |
| 2023-12-31 | -$567.7M | $446.8M | $4.9M | $441.9M | -77.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 166.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Significantly Lower Capital Expenditure
Capital expenditure dropped substantially from both the prior quarter and the year-ago quarter, providing a direct lift to free cash flow. This reduction was the most prominent observable factor supporting cash generation.
Lower capital expenditure helped maintain positive free cash flow despite negative revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite negative revenue, the company generated positive operating cash flow and free cash flow, reflecting a cash conversion pattern that is decoupled from revenue direction. Capital expenditure was relatively low, contributing to the positive free cash flow.
Compared to the prior quarter, revenue shifted from positive to negative while operating cash flow improved and capital expenditure decreased, leading to higher free cash flow. Versus the same quarter last year, revenue also turned negative, operating cash flow was slightly lower, capital expenditure was significantly lower, and free cash flow was modestly higher.
Monitor the reason for negative revenue and whether it reverses in subsequent quarters.