Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow for the quarter, driven by a large operating cash outflow. Revenue was slightly lower than both the prior quarter and the same quarter last year.
- Operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was present but small relative to the operating cash outflow.
- Compared to the prior quarter, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative. Compared to the same quarter last year, operating cash flow and free cash flow were both negative, though the free cash flow margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$5.2B
Cash generated by operations before capital spending.
CapEx
$239.0M
Capital spending and related asset purchases.
FCF margin
-117.2%
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 | $5.5B | $9.1B | $232.0M | $8.8B | 160.4% |
| 2022-12-31 | $5.5B | -$2.1B | $183.0M | -$2.3B | -41.7% |
| 2023-03-31 | $5.1B | $9.8B | $159.0M | $9.6B | 188.0% |
| 2023-06-30 | $4.7B | -$5.2B | $239.0M | -$5.5B | -117.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -421.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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
The most observable driver was the large negative operating cash flow, which reversed from a positive figure in the prior quarter. This was the primary factor behind the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was present but small relative to the operating cash outflow.
Compared to the prior quarter, operating cash flow shifted from positive to negative, and free cash flow turned from positive to negative. Compared to the same quarter last year, operating cash flow and free cash flow were both negative, though the free cash flow margin was less negative.
Monitor whether operating cash flow returns to positive levels in the coming quarter.