Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus both the preceding and year-ago quarters, but free cash flow turned negative as operating cash flow declined and capital expenditure increased. The free cash flow margin weakened significantly.
- Operating cash flow was lower than both prior periods while capital expenditure was higher, resulting in a negative free cash flow. The free cash flow margin dropped from positive levels in both comparison quarters.
- Compared to the prior quarter, revenue improved but operating cash flow weakened and capital expenditure rose, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure increased, and free cash flow turned negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$97.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$304.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$616.0M
Cash generated by operations before capital spending.
CapEx
$920.0M
Capital spending and related asset purchases.
FCF margin
-7.7%
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 | $2.7B | $481.0M | $526.0M | -$45.0M | -1.7% |
| 2023-06-30 | $2.7B | $663.0M | $616.0M | $47.0M | 1.8% |
| 2023-09-30 | $2.5B | $1.0B | $604.0M | $399.0M | 16.0% |
| 2023-12-31 | $4.0B | $616.0M | $920.0M | -$304.0M | -7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | 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 Increase
Capital expenditure rose substantially compared to both the prior quarter and the year-ago period, while operating cash flow contracted. This combination was the strongest observable driver of the negative free cash flow.
The higher capital expenditure outpaced the lower operating cash flow, causing free cash flow to turn negative and margin to decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both prior periods while capital expenditure was higher, resulting in a negative free cash flow. The free cash flow margin dropped from positive levels in both comparison quarters.
Compared to the prior quarter, revenue improved but operating cash flow weakened and capital expenditure rose, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure increased, and free cash flow turned negative.
Monitor the trajectory of operating cash flow relative to capital expenditure, as the current quarter's gap drove negative free cash flow.