Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by a large operating cash outflow that more than offset capital spending. Revenue rose compared to both the prior quarter and the same quarter last year, but the cash conversion weakened significantly versus the year-ago period.
- Revenue increased from the prior quarter, yet operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. The cash conversion was poor as operating cash outflows exceeded revenue generation.
- Compared to the immediately preceding quarter, free cash flow improved (less negative) as operating cash flow was a smaller outflow. Versus the same quarter one year earlier, free cash flow shifted from a large positive to a negative figure, a significant weakening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$241.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$188.0M
Cash generated by operations before capital spending.
CapEx
$53.0M
Capital spending and related asset purchases.
FCF margin
-7.3%
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 | $3.0B | -$4.5B | $23.0M | -$4.5B | -150.6% |
| 2022-12-31 | $3.0B | -$3.1B | $27.0M | -$3.2B | -104.5% |
| 2023-03-31 | $3.2B | -$624.0M | $42.0M | -$666.0M | -21.1% |
| 2023-06-30 | $3.3B | -$188.0M | $53.0M | -$241.0M | -7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -65.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Swing
Operating cash flow was negative this quarter, a sharp reversal from the large positive figure in the same quarter last year. This swing is 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.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, yet operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. The cash conversion was poor as operating cash outflows exceeded revenue generation.
Compared to the immediately preceding quarter, free cash flow improved (less negative) as operating cash flow was a smaller outflow. Versus the same quarter one year earlier, free cash flow shifted from a large positive to a negative figure, a significant weakening.
Monitor the magnitude of operating cash flow, as it turned negative this quarter and is the primary driver of free cash flow.