Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter and the year-ago quarter, while operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Operating cash flow of the current quarter was positive, converting a portion of revenue into cash, while capital expenditure was higher than both the prior quarter and the year-ago quarter. The resulting free cash flow margin was positive, reflecting a cash conversion rate that improved from the prior quarter but was lower than the year-ago quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow improved from negative to positive, and free cash flow and free cash flow margin also improved. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$388.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$570.0M
Cash generated by operations before capital spending.
CapEx
$182.0M
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $8.4B | -$1.4B | $100.0M | -$1.5B | -18.3% |
| 2022-12-31 | $7.7B | -$1.4B | $117.0M | -$1.5B | -19.8% |
| 2023-03-31 | $7.5B | -$1.6B | $142.0M | -$1.7B | -23.2% |
| 2023-06-30 | $6.2B | $570.0M | $182.0M | $388.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.8B | 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 Recovery
Operating cash flow turned positive in the current quarter after being negative in the prior quarter, which was the strongest observable driver of the improvement in free cash flow. This shift occurred even as revenue was lower than the prior quarter.
The positive operating cash flow directly enabled positive free cash flow and a positive free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was positive, converting a portion of revenue into cash, while capital expenditure was higher than both the prior quarter and the year-ago quarter. The resulting free cash flow margin was positive, reflecting a cash conversion rate that improved from the prior quarter but was lower than the year-ago quarter.
Compared to the prior quarter, revenue was lower, operating cash flow improved from negative to positive, and free cash flow and free cash flow margin also improved. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and free cash flow margin were lower.
Monitor the level of capital expenditure relative to operating cash flow, as it was higher in the current quarter compared to both the prior quarter and the year-ago quarter.