Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by a significant negative operating cash flow. Revenue increased compared to both the prior quarter and the same quarter one year earlier, but cash conversion weakened.
- Revenue was higher, but operating cash flow turned negative, leading to negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue improved while operating cash flow and free cash flow both fell from positive to negative. Relative to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were 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
-$994.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$892.2M
Cash generated by operations before capital spending.
CapEx
$102.4M
Capital spending and related asset purchases.
FCF margin
-12.2%
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 | $4.3B | $906.7M | $141.2M | $765.5M | 17.8% |
| 2023-03-31 | $3.1B | $1.2B | $116.9M | $1.0B | 33.3% |
| 2023-06-30 | $5.6B | $491.0M | $85.6M | $405.4M | 7.2% |
| 2023-09-30 | $8.2B | -$892.2M | $102.4M | -$994.6M | -12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -190.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 reversal
Operating cash flow turned negative despite higher revenue, causing free cash flow to be negative. This reversal was the strongest observable driver of the quarter's free cash flow.
The reversal in operating cash flow was the primary factor behind the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow turned negative, leading to negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue improved while operating cash flow and free cash flow both fell from positive to negative. Relative to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were more negative.
Monitor the trend in operating cash flow given the swing from positive to negative between the prior quarter and the current quarter.