Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago, while free cash flow remained negative. Operating cash outflows widened sequentially, leading to a weaker free cash flow margin.
- Revenue was unchanged from the prior quarter, but operating cash flow turned more negative, and capital expenditure increased, resulting in a larger free cash outflow and a lower free cash flow margin.
- Compared to the prior quarter, revenue was stable, but operating cash flow weakened and capital expenditure rose, causing free cash flow to be more negative and the margin to decline. Versus the same quarter last year, revenue improved, operating cash flow was less negative, capital expenditure was similar, and free cash flow was less negative with a higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.1B
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
-106.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $1.3B | -$1.1B | $298.0M | -$1.4B | -106.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.4B | 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 Deterioration
Operating cash flow was more negative than the prior quarter even though revenue was unchanged, and capital expenditure increased. This combination drove a larger free cash outflow and a lower margin.
The sequential weakening in cash conversion from operations was the strongest observable factor in the quarter's free cash flow decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow turned more negative, and capital expenditure increased, resulting in a larger free cash outflow and a lower free cash flow margin.
Compared to the prior quarter, revenue was stable, but operating cash flow weakened and capital expenditure rose, causing free cash flow to be more negative and the margin to decline. Versus the same quarter last year, revenue improved, operating cash flow was less negative, capital expenditure was similar, and free cash flow was less negative with a higher margin.
Monitor the trajectory of operating cash flow, which turned more negative sequentially despite stable revenue.