Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was negative while operating cash flow turned positive, leading to a positive free cash flow despite a negative margin. Compared to the prior quarter, free cash flow improved significantly, and versus a year ago, it also strengthened.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was negative due to negative revenue, but the conversion from operating cash flow to free cash flow was efficient.
- Compared to the prior quarter, revenue turned negative, operating cash flow increased, capital expenditure was higher, and free cash flow improved. Versus the same quarter a year ago, revenue remained negative, operating cash flow was higher, capital expenditure was lower, and free cash flow improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$318.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$402.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$486.9M
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
-71.3%
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 | $88.3M | $332.5M | $123.8M | $208.6M | 236.3% |
| 2022-12-31 | $686.1M | $288.6M | $823.6M | -$535.0M | -78.0% |
| 2023-03-31 | $675.5M | $311.2M | $69.3M | $241.8M | 35.8% |
| 2023-06-30 | -$564.9M | $486.9M | $84.0M | $402.9M | -71.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 197.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -14.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.4B | 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 Strength
Operating cash flow was the strongest observable driver, rising from the prior quarter and from a year ago, which supported the improvement in free cash flow despite negative revenue.
Higher operating cash flow more than offset increased capital expenditure, leading to improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was negative due to negative revenue, but the conversion from operating cash flow to free cash flow was efficient.
Compared to the prior quarter, revenue turned negative, operating cash flow increased, capital expenditure was higher, and free cash flow improved. Versus the same quarter a year ago, revenue remained negative, operating cash flow was higher, capital expenditure was lower, and free cash flow improved.
Monitor the sustainability of positive free cash flow given negative revenue and the associated negative margin.