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. However, operating cash flow declined sharply, leading to negative free cash flow and a weakened free cash flow margin.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow. The free cash flow margin turned negative, reflecting a cash conversion that weakened relative to revenue growth.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, while capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, with free cash flow turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$411.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$38.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.7M
Cash generated by operations before capital spending.
CapEx
$200.0M
Capital spending and related asset purchases.
FCF margin
-1.1%
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 | $3.4B | $297.3M | $164.4M | $132.9M | 3.9% |
| 2023-03-31 | $3.5B | $290.8M | $168.8M | $122.0M | 3.5% |
| 2023-06-30 | $3.5B | $362.9M | $167.9M | $195.0M | 5.5% |
| 2023-09-30 | $3.6B | $161.7M | $200.0M | -$38.3M | -1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -23.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | 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 Decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, despite higher revenue. This was the strongest observable driver of the negative free cash flow.
The decline in operating cash flow was the primary factor behind the shift from positive to 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 lower than capital expenditure, resulting in negative free cash flow. The free cash flow margin turned negative, reflecting a cash conversion that weakened relative to revenue growth.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, while capital expenditure was higher. Versus the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, with free cash flow turning from positive to negative.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's capital expenditure exceeded operating cash flow.