Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow turned negative for the quarter, driven by a large negative operating cash flow. Revenue was stable compared to the same quarter last year, but cash conversion weakened significantly.
- Revenue remained broadly stable relative to the prior-year quarter, yet operating cash flow shifted from positive to negative, resulting in a negative free cash flow and free cash flow margin. Capital expenditure was higher than a year ago but lower than the preceding quarter.
- Compared to the immediately preceding quarter, both operating cash flow and free cash flow weakened sharply from strongly positive to deeply negative. Versus the same quarter one year earlier, the same metrics deteriorated from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.9B
Cash generated by operations before capital spending.
CapEx
$182.0M
Capital spending and related asset purchases.
FCF margin
-98.2%
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 | $3.0B | -$4.1B | $182.0M | -$4.3B | -146.2% |
| 2022-09-30 | $3.0B | $4.5B | $210.0M | $4.3B | 143.9% |
| 2022-12-31 | $3.2B | $7.0B | $204.0M | $6.8B | 216.5% |
| 2023-03-31 | $3.1B | -$2.9B | $182.0M | -$3.0B | -98.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -554.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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 Swing
Operating cash flow moved from a large positive in both prior periods to a large negative in the current quarter. This swing was the strongest observable factor behind the negative free cash flow.
The company's ability to generate positive free cash flow depends on a return to positive operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained broadly stable relative to the prior-year quarter, yet operating cash flow shifted from positive to negative, resulting in a negative free cash flow and free cash flow margin. Capital expenditure was higher than a year ago but lower than the preceding quarter.
Compared to the immediately preceding quarter, both operating cash flow and free cash flow weakened sharply from strongly positive to deeply negative. Versus the same quarter one year earlier, the same metrics deteriorated from positive to negative.
Monitor the direction of operating cash flow in subsequent quarters, as it is the primary driver of free cash flow variability.