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 turned negative from positive in the prior quarter and remained negative compared to the year-ago quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased relative to both comparison periods, resulting in a negative free cash flow margin that weakened from the prior quarter and was lower than the year-ago quarter.
- Compared to the prior quarter, revenue improved while operating cash flow weakened sharply, capital expenditure increased, and free cash flow turned from positive to negative. Compared to the same quarter last year, revenue improved, operating cash flow improved, capital expenditure increased, and free cash flow remained negative but was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$962.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$880.0M
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
-6.6%
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 | $12.4B | $1.2B | $2.5B | -$1.4B | -11.1% |
| 2023-03-31 | $11.4B | $3.1B | $1.8B | $1.3B | 11.4% |
| 2023-06-30 | $14.2B | $3.8B | $1.4B | $2.4B | 16.8% |
| 2023-09-30 | $14.5B | $880.0M | $1.8B | -$962.0M | -6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -84.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.1B | 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 compared to both the prior quarter and the same quarter last year, outpacing the increase in operating cash flow and driving free cash flow negative.
The higher capital expenditure was the strongest observable factor behind the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased relative to both comparison periods, resulting in a negative free cash flow margin that weakened from the prior quarter and was lower than the year-ago quarter.
Compared to the prior quarter, revenue improved while operating cash flow weakened sharply, capital expenditure increased, and free cash flow turned from positive to negative. Compared to the same quarter last year, revenue improved, operating cash flow improved, capital expenditure increased, and free cash flow remained negative but was weaker.
Monitor the relationship between operating cash flow and capital expenditure, as the gap widened significantly this quarter.