Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but declined from the same quarter a year earlier. Free cash flow and margin weakened compared to both periods, driven by higher capital spending.
- Operating cash flow improved sequentially, but capital expenditure rose more sharply, resulting in lower free cash flow and a narrower free cash flow margin. Compared with the year-ago quarter, both operating cash flow and free cash flow were lower, and the margin contracted.
- Revenue was higher than the prior quarter but lower than a year ago; operating cash flow followed a similar pattern. Capital expenditure was significantly higher than both comparison periods, while free cash flow and free cash flow margin were lower in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$449.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$807.8M
Cash generated by operations before capital spending.
CapEx
$358.3M
Capital spending and related asset purchases.
FCF margin
8.8%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $5.7B | $1.5B | $241.2M | $1.3B | 22.2% |
| 2022-12-31 | $4.8B | $1.1B | $344.2M | $799.2M | 16.6% |
| 2023-03-31 | $4.9B | $733.8M | $226.3M | $507.5M | 10.4% |
| 2023-06-30 | $5.1B | $807.8M | $358.3M | $449.5M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 Increase
Capital expenditure rose from both the prior quarter and the year-ago quarter, absorbing a larger portion of operating cash flow. This was the most prominent observable change affecting free cash flow.
Despite higher operating cash flow versus the prior quarter, the elevated capital spending reduced free cash flow and margin relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sequentially, but capital expenditure rose more sharply, resulting in lower free cash flow and a narrower free cash flow margin. Compared with the year-ago quarter, both operating cash flow and free cash flow were lower, and the margin contracted.
Revenue was higher than the prior quarter but lower than a year ago; operating cash flow followed a similar pattern. Capital expenditure was significantly higher than both comparison periods, while free cash flow and free cash flow margin were lower in both comparisons.
Monitor the trajectory of capital expenditure, as its increase was the primary factor weighing on free cash flow generation.