Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year, yet operating cash flow was lower than a year ago. Free cash flow remained negative, though the margin improved sequentially.
- Operating cash flow was positive but insufficient to cover capital expenditure, resulting in negative free cash flow and a negative margin. Revenue growth outpaced the increase in operating cash flow, widening the conversion gap.
- Compared to the prior quarter, revenue and operating cash flow were higher, free cash flow improved (less negative), and the margin strengthened. Versus the same quarter last year, revenue was higher but operating cash flow was lower, and free cash flow and margin both weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
-17.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.1B | -$22.0M | $2.2B | -$2.3B | -44.0% |
| 2022-09-30 | $5.4B | $1.1B | $2.9B | -$1.8B | -33.4% |
| 2022-12-31 | $5.4B | $1.0B | $2.2B | -$1.2B | -21.7% |
| 2023-03-31 | $6.2B | $1.2B | $2.3B | -$1.1B | -17.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -192.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$51.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth vs cash conversion
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow did not keep pace—especially year-over-year, where it declined. This divergence caused the free cash flow deficit to widen relative to the prior year.
The company's ability to achieve positive free cash flow hinges on improving operating cash flow efficiency relative to its revenue and capital expenditure levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive but insufficient to cover capital expenditure, resulting in negative free cash flow and a negative margin. Revenue growth outpaced the increase in operating cash flow, widening the conversion gap.
Compared to the prior quarter, revenue and operating cash flow were higher, free cash flow improved (less negative), and the margin strengthened. Versus the same quarter last year, revenue was higher but operating cash flow was lower, and free cash flow and margin both weakened.
Monitor the gap between operating cash flow and capital expenditure, as sustained high capital spending relative to cash generation drives the persistent cash deficit.