Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose sharply from the prior quarter, driving an improvement in free cash flow margin despite continued negative operating cash flow. Compared to the same quarter last year, revenue halved and free cash flow turned deeply negative.
- Operating cash flow remained negative while capital expenditure was moderate, resulting in a free cash flow deficit that absorbed a large portion of revenue, as reflected in the negative margin.
- Compared to the immediately preceding quarter, revenue increased and free cash flow improved significantly, with the margin narrowing from deeply negative to negative. Versus the same quarter one year earlier, revenue was lower and free cash flow weakened sharply from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.6B
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
-95.0%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $5.1B | $1.7B | $92.0M | $1.6B | 30.9% |
| 2023-03-31 | $1.9B | -$1.2B | $113.0M | -$1.3B | -71.9% |
| 2023-06-30 | $344.0M | -$915.0M | $234.0M | -$1.1B | -334.0% |
| 2023-09-30 | $1.8B | -$1.6B | $140.0M | -$1.7B | -95.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | 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.
Revenue-Driven Margin Recovery
The quarter's revenue was substantially higher than the prior quarter, which improved free cash flow margin despite continued negative operating cash flow and capital expenditure. The improvement was observable, but the margin remained negative.
The company needs sustained revenue strength to move free cash flow toward positive territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained negative while capital expenditure was moderate, resulting in a free cash flow deficit that absorbed a large portion of revenue, as reflected in the negative margin.
Compared to the immediately preceding quarter, revenue increased and free cash flow improved significantly, with the margin narrowing from deeply negative to negative. Versus the same quarter one year earlier, revenue was lower and free cash flow weakened sharply from positive to negative.
Monitor whether negative operating cash flow persists as revenue fluctuates.