Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive compared to the same quarter last year, while capital expenditure was higher. Free cash flow remained negative but improved significantly from both the prior quarter and the year-ago period.
- Revenue was stable relative to the prior quarter. Operating cash flow funded a portion of capital expenditure, resulting in a negative free cash flow margin that narrowed from both comparative periods.
- Compared to the prior quarter, operating cash flow was lower but capital expenditure also decreased, leading to a less negative free cash flow. Versus the year-ago quarter, operating cash flow improved from negative to positive, though capital expenditure was higher, and free cash flow improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$400.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
-13.8%
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 | $3.9B | -$313.0M | $1.8B | -$2.1B | -54.7% |
| 2023-03-31 | $5.9B | $2.0B | $1.8B | $150.0M | 2.5% |
| 2023-06-30 | $2.9B | $1.8B | $2.5B | -$695.0M | -24.0% |
| 2023-09-30 | $2.9B | $1.4B | $1.8B | -$400.0M | -13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -54.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 61.9% | 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 Recovery
Operating cash flow shifted from negative in the year-ago quarter to positive in the current quarter, while the prior quarter also had positive operating cash flow. This recovery was the strongest observable factor behind the improved free cash flow.
The positive operating cash flow reduced the reliance on external financing for capital spending compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter. Operating cash flow funded a portion of capital expenditure, resulting in a negative free cash flow margin that narrowed from both comparative periods.
Compared to the prior quarter, operating cash flow was lower but capital expenditure also decreased, leading to a less negative free cash flow. Versus the year-ago quarter, operating cash flow improved from negative to positive, though capital expenditure was higher, and free cash flow improved substantially.
Monitor whether capital expenditure continues to exceed operating cash flow, as this pattern sustains the negative free cash flow.