Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow was negative, driven by operating cash flow that was lower than capital expenditure.
- Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The gap between operating cash flow and capital spending widened versus the prior quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened, while revenue was higher. Versus the same quarter one year earlier, revenue and operating cash flow improved, but capital expenditure increased, leading to a slightly more negative free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$121.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$88.2M
Cash generated by operations before capital spending.
CapEx
$209.9M
Capital spending and related asset purchases.
FCF margin
-2.2%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.9B | $613.4M | $129.5M | $483.9M | 8.2% |
| 2022-09-30 | $6.0B | $639.2M | $174.9M | $464.3M | 7.7% |
| 2022-12-31 | $5.2B | $641.0M | $233.8M | $407.2M | 7.8% |
| 2023-03-31 | $5.4B | $88.2M | $209.9M | -$121.7M | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -25.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Outpacing Operating Cash Flow
Capital expenditure was higher than operating cash flow, causing free cash flow to turn negative. This pattern contrasts with the prior quarter where operating cash flow comfortably exceeded capital spending.
The elevated capital expenditure relative to operating cash flow was the strongest observable factor behind the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The gap between operating cash flow and capital spending widened versus the prior quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened, while revenue was higher. Versus the same quarter one year earlier, revenue and operating cash flow improved, but capital expenditure increased, leading to a slightly more negative free cash flow margin.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's operating cash flow was lower than capital spending.