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. Free cash flow improved significantly, though still negative, alongside higher revenue and lower capital expenditures.
- Operating cash flow improved from the prior quarter and year ago periods. Combined with lower capital expenditures, free cash flow margin strengthened considerably.
- Compared to the prior quarter, revenue was higher, operating cash flow improved, capital expenditures were lower, and free cash flow margin was less negative. Versus the same quarter last year, all metrics showed similar directional improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$877.0M
Cash generated by operations before capital spending.
CapEx
$190.0M
Capital spending and related asset purchases.
FCF margin
-79.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $1.3B | -$877.0M | $190.0M | -$1.1B | -79.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $5.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow was less negative compared to both the prior quarter and the same quarter last year, benefiting from higher revenue and lower capital expenditures. As disclosed in the filing, the company's liquidity was supported by a green convertible note issuance earlier in the year.
This improvement reduced the company's cash burn rate and strengthened its free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from the prior quarter and year ago periods. Combined with lower capital expenditures, free cash flow margin strengthened considerably.
Compared to the prior quarter, revenue was higher, operating cash flow improved, capital expenditures were lower, and free cash flow margin was less negative. Versus the same quarter last year, all metrics showed similar directional improvement.
Monitor the company's liquidity position as free cash flow remains negative despite sequential improvement.