Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter, and operating cash flow turned positive, resulting in a positive free cash flow margin. Compared to the same quarter last year, revenue and free cash flow were lower, while capital expenditure was higher.
- The cash conversion from revenue to free cash flow improved significantly from the prior quarter, with operating cash flow moving from negative to positive. The free cash flow margin was positive, though lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher, and free cash flow improved from negative to positive. Compared to the same quarter one year earlier, revenue was lower, and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$402.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$622.0M
Cash generated by operations before capital spending.
CapEx
$220.0M
Capital spending and related asset purchases.
FCF margin
14.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $2.8B | $622.0M | $220.0M | $402.0M | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | 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 Turnaround
Operating cash flow shifted from negative in the prior quarter to positive in the current quarter, driving the free cash flow to positive. This was the primary factor behind the improved cash conversion.
The positive operating cash flow supported a positive free cash flow margin, contrasting with the prior quarter's negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion from revenue to free cash flow improved significantly from the prior quarter, with operating cash flow moving from negative to positive. The free cash flow margin was positive, though lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher, and free cash flow improved from negative to positive. Compared to the same quarter one year earlier, revenue was lower, and free cash flow margin was lower.
The filing indicates a decline in cash and investments; monitor how this trend evolves with future cash flows.