Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue turned negative for the quarter, while operating cash flow and free cash flow remained negative but improved compared to the prior quarter. Both cash flow measures worsened from the same quarter one year earlier, when they were positive.
- Free cash flow was negative despite a positive free cash flow margin, reflecting the unusual combination of negative revenue and negative free cash flow. Capital expenditure remained similar to the prior quarter, while operating cash flow showed a substantial reduction in cash outflow.
- Compared to the preceding quarter, revenue declined sharply, but operating cash flow and free cash flow both improved by a narrower deficit. Relative to the same quarter one year ago, all cash flow metrics weakened, turning from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$187.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$68.0M
Cash generated by operations before capital spending.
CapEx
$119.0M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $3.7B | $6.0M | $320.0M | -$314.0M | -8.4% |
| 2022-12-30 | $3.1B | $35.0M | $258.0M | -$223.0M | -7.2% |
| 2023-03-31 | $2.8B | -$381.0M | $124.0M | -$505.0M | -18.0% |
| 2023-06-30 | -$3.4B | -$68.0M | $119.0M | -$187.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative Revenue
Revenue was reported as a negative amount, which is the most distinctive change in the period. This directly affected the calculation of free cash flow margin and contributed to the overall negative cash generation.
The negative revenue dominates the cash conversion profile and makes margin comparisons with prior periods non-standard.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was negative despite a positive free cash flow margin, reflecting the unusual combination of negative revenue and negative free cash flow. Capital expenditure remained similar to the prior quarter, while operating cash flow showed a substantial reduction in cash outflow.
Compared to the preceding quarter, revenue declined sharply, but operating cash flow and free cash flow both improved by a narrower deficit. Relative to the same quarter one year ago, all cash flow metrics weakened, turning from positive to negative.
Monitor the anticipated cash outflow related to the resolution of prior-year tax matters, as disclosed in the filing.