Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the year-ago quarter. Free cash flow remained negative but improved relative to the prior quarter, and the free cash flow margin also showed improvement.
- Operating cash flow was negative, and capital expenditure continued, resulting in negative free cash flow. The free cash flow margin, while still negative, improved compared to the prior quarter and the year-ago quarter.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow was less negative than the prior quarter but more negative than the year-ago quarter. Capital expenditure was lower than both periods. Free cash flow was less negative than the prior quarter and similar to the year-ago quarter.
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
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.4B
Cash generated by operations before capital spending.
CapEx
$255.0M
Capital spending and related asset purchases.
FCF margin
-144.2%
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 | $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% |
| 2023-06-30 | $1.1B | -$1.4B | $255.0M | -$1.6B | -144.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $6.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue
Revenue was higher than the prior quarter and the year-ago quarter. This improvement coincided with a less negative free cash flow margin compared to the prior quarter.
The higher revenue was associated with a less negative free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure continued, resulting in negative free cash flow. The free cash flow margin, while still negative, improved compared to the prior quarter and the year-ago quarter.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow was less negative than the prior quarter but more negative than the year-ago quarter. Capital expenditure was lower than both periods. Free cash flow was less negative than the prior quarter and similar to the year-ago quarter.
Monitor the trajectory of total liquidity, which decreased from the end of the prior fiscal year to the end of the current quarter as reported in the filing.