Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative as capital expenditure exceeded operating cash flow. Revenue declined from both the prior quarter and the same quarter last year, while the free cash flow margin weakened.
- Operating cash flow improved compared to the same quarter last year but was lower than the prior quarter. Capital expenditure increased year over year, resulting in a larger free cash flow deficit and a more negative margin.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure decreased. Versus the same quarter last year, revenue was lower, operating cash flow was higher, and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$218.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$123.0M
Cash generated by operations before capital spending.
CapEx
$341.0M
Capital spending and related asset purchases.
FCF margin
-23.9%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.1B | $185.0M | $323.0M | -$138.0M | -12.2% |
| 2022-12-31 | $1.1B | $1.0M | $611.0M | -$610.0M | -57.7% |
| 2023-03-31 | $1.1B | $188.0M | $417.0M | -$229.0M | -21.3% |
| 2023-06-30 | $912.0M | $123.0M | $341.0M | -$218.0M | -23.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -136.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure increased compared to the same quarter last year, contributing to a larger free cash flow deficit despite higher operating cash flow. The filing references investments in solar generation and battery storage projects.
Higher capital spending pressured free cash flow and margin, which remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved compared to the same quarter last year but was lower than the prior quarter. Capital expenditure increased year over year, resulting in a larger free cash flow deficit and a more negative margin.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure decreased. Versus the same quarter last year, revenue was lower, operating cash flow was higher, and capital expenditure increased.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened year over year.