Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow improved significantly, but capital expenditure also rose, resulting in a smaller negative free cash flow and a higher (less negative) free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. Higher capital expenditure partially offset this, yielding a negative free cash flow margin that was less negative than in the comparison periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$395.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
-8.4%
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 |
|---|---|---|---|---|---|
| 2023-03-02 | $3.7B | $343.0M | $2.2B | -$1.9B | -50.4% |
| 2023-06-01 | $3.8B | $24.0M | $1.6B | -$1.5B | -41.0% |
| 2023-08-31 | $4.0B | $249.0M | $1.5B | -$1.2B | -30.2% |
| 2023-11-30 | $4.7B | $1.4B | $1.8B | -$395.0M | -8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 38.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | 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 Growth
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, outpacing the growth in capital expenditure.
This improvement is the primary reason free cash flow, while still negative, is substantially less negative than in the comparison periods.
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 was higher than the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. Higher capital expenditure partially offset this, yielding a negative free cash flow margin that was less negative than in the comparison periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow was less negative.
Monitor whether capital expenditure remains at an elevated level relative to operating cash flow, as it directly affects the trajectory of free cash flow.