Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative but improved sequentially due to lower capital expenditure, while weakening compared to a year ago. Revenue decreased from the prior quarter but increased year-over-year.
- Operating cash flow remained stable year-over-year but declined from the prior quarter, while capital expenditure decreased both sequentially and annually, resulting in a mixed free cash flow performance.
- Compared to the prior quarter, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow was less negative. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$144.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$56.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-6.7%
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 | $3.3B | $1.3B | $1.1B | $199.0M | 6.0% |
| 2023-03-31 | $3.3B | $939.0M | $870.0M | $69.0M | 2.1% |
| 2023-06-30 | -$1.6B | $1.3B | $1.4B | -$68.0M | 4.2% |
| 2023-09-30 | $842.0M | $1.1B | $1.1B | -$56.0M | -6.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -8.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 132.8% | 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.
Lower Capital Expenditure
Capital expenditure decreased from both the prior quarter and the year-ago period, which helped reduce the negative free cash flow gap sequentially.
The reduction in capital expenditure was the primary factor improving free cash flow on a sequential basis.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow remained stable year-over-year but declined from the prior quarter, while capital expenditure decreased both sequentially and annually, resulting in a mixed free cash flow performance.
Compared to the prior quarter, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow was less negative. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was more negative.
Monitor the trajectory of operating cash flow given its sequential decline despite stable year-over-year performance.