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. However, operating cash flow turned negative, resulting in negative free cash flow and a weakened free cash flow margin.
- Despite higher revenue, operating cash flow was negative, which drove free cash flow negative after capital expenditure. The free cash flow margin turned negative, indicating a significant weakening in cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$350.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$200.0M
Cash generated by operations before capital spending.
CapEx
$150.0M
Capital spending and related asset purchases.
FCF margin
-4.8%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $6.8B | $1.8B | $182.0M | $1.6B | 23.0% |
| 2022-12-31 | $7.4B | $1.6B | $158.0M | $1.4B | 19.4% |
| 2023-03-31 | $7.0B | $1.2B | $170.0M | $1.0B | 14.2% |
| 2023-06-30 | $7.3B | -$200.0M | $150.0M | -$350.0M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -34.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Turned Negative
Operating cash flow shifted from positive in both the prior quarter and the year-ago quarter to negative in the current quarter. This was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative despite higher revenue and lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, which drove free cash flow negative after capital expenditure. The free cash flow margin turned negative, indicating a significant weakening in cash conversion efficiency.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether operating cash flow returns to positive levels in subsequent quarters, as the current negative figure is a significant shift from prior periods.