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 negative operating cash flow. Both revenue and cash flow metrics weakened compared to the same quarter last year, but showed sequential improvement from the prior quarter.
- Revenue was lower than the prior quarter, while operating cash flow remained negative but improved. Capital expenditure was stable, leading to a less negative free cash flow margin.
- Compared to the preceding quarter, operating cash flow and free cash flow were less negative, while revenue was slightly lower. Relative to the same quarter a year ago, all metrics were significantly weaker, with operating cash flow turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$5.0B
Cash generated by operations before capital spending.
CapEx
$239.0M
Capital spending and related asset purchases.
FCF margin
-114.0%
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 | $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% |
| 2023-09-30 | $4.6B | -$5.0B | $239.0M | -$5.3B | -114.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -466.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 Trend
Operating cash flow improved from the prior quarter but remained negative, contrasting sharply with the positive cash flow a year ago.
The shift in operating cash flow is the dominant factor affecting free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, while operating cash flow remained negative but improved. Capital expenditure was stable, leading to a less negative free cash flow margin.
Compared to the preceding quarter, operating cash flow and free cash flow were less negative, while revenue was slightly lower. Relative to the same quarter a year ago, all metrics were significantly weaker, with operating cash flow turning from positive to negative.
Monitor the trend of operating cash flow, as it remains the primary driver of free cash flow.