Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but substantially lower than a year earlier. Free cash flow remained negative, with a large capital expenditure relative to operating cash flow.
- Operating cash flow was very low relative to revenue, while capital expenditure remained elevated, resulting in a deeply negative free cash flow margin.
- Compared to the prior quarter, free cash flow improved slightly as capital expenditure decreased, though operating cash flow weakened. Versus the same quarter last year, all metrics were significantly lower, with free cash flow turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.0M
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-41.0%
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 |
|---|---|---|---|---|---|
| 2022-09-01 | $6.6B | $3.8B | $3.6B | $164.0M | 2.5% |
| 2022-12-01 | $4.1B | $943.0M | $2.4B | -$1.5B | -36.9% |
| 2023-03-02 | $3.7B | $343.0M | $2.2B | -$1.9B | -50.4% |
| 2023-06-01 | $3.8B | $24.0M | $1.6B | -$1.5B | -41.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 41.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | 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 remains high
Capital expenditure, though lower than the prior quarter, still exceeded operating cash flow by a wide margin, driving the negative free cash flow.
This sustained high spending level is the primary observable factor behind the continued negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was very low relative to revenue, while capital expenditure remained elevated, resulting in a deeply negative free cash flow margin.
Compared to the prior quarter, free cash flow improved slightly as capital expenditure decreased, though operating cash flow weakened. Versus the same quarter last year, all metrics were significantly lower, with free cash flow turning from positive to negative.
Monitor whether capital expenditure can be reduced further to narrow the gap between operating cash flow and free cash flow.