Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow turned negative, leading to a larger negative free cash flow compared to both periods.
- Operating cash flow was negative, and capital expenditure remained present, resulting in a negative free cash flow margin. This is a weakened cash conversion compared to the prior quarter's positive margin and a deterioration from the same quarter last year's slightly negative margin. The company's liquidity discussion emphasizes operating cash flow generation through revenue growth, margin expansion, and working capital turnover.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow both turned from positive to negative. Versus the same quarter last year, revenue was higher but operating cash flow deteriorated from slightly positive to negative, and free cash flow became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$977.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$784.0M
Cash generated by operations before capital spending.
CapEx
$193.0M
Capital spending and related asset purchases.
FCF margin
-11.0%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $9.0B | $789.0M | $158.0M | $631.0M | 7.0% |
| 2022-09-30 | $9.0B | $2.1B | $184.0M | $1.9B | 21.2% |
| 2022-12-31 | $9.2B | $2.4B | $241.0M | $2.1B | 23.1% |
| 2023-03-31 | $8.9B | -$784.0M | $193.0M | -$977.0M | -11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -70.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 Swing
Operating cash flow shifted from a large positive amount in the prior quarter to a negative amount, and from a small positive amount a year ago to a negative amount. This was the strongest observable factor affecting free cash flow.
The negative operating cash flow caused free cash flow to be more negative than the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure remained present, resulting in a negative free cash flow margin. This is a weakened cash conversion compared to the prior quarter's positive margin and a deterioration from the same quarter last year's slightly negative margin. The company's liquidity discussion emphasizes operating cash flow generation through revenue growth, margin expansion, and working capital turnover.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow both turned from positive to negative. Versus the same quarter last year, revenue was higher but operating cash flow deteriorated from slightly positive to negative, and free cash flow became more negative.
Monitor the trajectory of operating cash flow, as its negative swing was the primary driver of the free cash flow decline.