Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The free cash flow remained deeply negative on higher revenue relative to a year ago, though the margin improved from the prior year as revenue growth significantly outpaced the cash burn rate. Operating cash outflows and capital spending continued to weigh heavily on liquidity.
- Revenue was essentially stable with the prior quarter but operating cash flow worsened to a deeper outflow, resulting in a lower free cash flow margin. The gap between revenue and operating cash flow conversion remained wide, with capital expenditure slightly decreasing from the prior quarter.
- Compared with the immediately preceding quarter, free cash flow outflow increased while revenue was little changed, indicating a weakened cash conversion. Versus the same quarter one year earlier, revenue grew significantly and free cash flow margin improved, but the absolute free cash flow outflow also widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.5B
Cash generated by operations before capital spending.
CapEx
$283.0M
Capital spending and related asset purchases.
FCF margin
-272.9%
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 | $364.0M | -$1.2B | $359.0M | -$1.6B | -429.4% |
| 2022-09-30 | $536.0M | -$1.4B | $298.0M | -$1.7B | -310.8% |
| 2022-12-31 | $663.0M | -$1.4B | $294.0M | -$1.7B | -262.4% |
| 2023-03-31 | $661.0M | -$1.5B | $283.0M | -$1.8B | -272.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $8.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Persistent operating cash outflow
Operating cash flow remained negative and worsened sequentially, while revenue was flat, pointing to a structural gap in cash generation from operations. Capital expenditure was slightly lower than the prior quarter but still substantial.
The persistent negative operating cash flow was the strongest observable driver of the continued free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially stable with the prior quarter but operating cash flow worsened to a deeper outflow, resulting in a lower free cash flow margin. The gap between revenue and operating cash flow conversion remained wide, with capital expenditure slightly decreasing from the prior quarter.
Compared with the immediately preceding quarter, free cash flow outflow increased while revenue was little changed, indicating a weakened cash conversion. Versus the same quarter one year earlier, revenue grew significantly and free cash flow margin improved, but the absolute free cash flow outflow also widened.
Monitor the trajectory of operating cash flow given its widening outflow relative to revenue growth.