Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter one year earlier, while operating cash flow improved. Free cash flow remained negative but narrowed from the prior quarter.
- Operating cash flow as a proportion of revenue improved versus both the prior quarter and the year-ago quarter, yet capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin that was slightly wider than the year-ago level but narrower than the prior quarter.
- Compared to the prior quarter, revenue was higher and operating cash flow was significantly higher, while capital expenditure also increased, leading to a less negative free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly more negative.
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
-$132.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$311.0M
Cash generated by operations before capital spending.
CapEx
$443.0M
Capital spending and related asset purchases.
FCF margin
-12.3%
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 | $1.1B | $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% |
| 2023-09-30 | $1.1B | $311.0M | $443.0M | -$132.0M | -12.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -51.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 41.1% | 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.
Operating Cash Flow Improvement
Operating cash flow increased notably from both the prior quarter and the year-ago quarter, supporting a narrower free cash flow deficit despite higher capital expenditure.
The stronger operating cash flow partially offset the elevated capital spending, reducing the free cash outflow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved versus both the prior quarter and the year-ago quarter, yet capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin that was slightly wider than the year-ago level but narrower than the prior quarter.
Compared to the prior quarter, revenue was higher and operating cash flow was significantly higher, while capital expenditure also increased, leading to a less negative free cash flow. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly more negative.
Monitor the trend of capital expenditure relative to operating cash flow, as it continues to exceed operating cash flow and drives the negative free cash flow.