Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue turned negative while operating cash flow deepened into negative territory, leading to a sharply negative free cash flow and margin. Compared with the prior quarter, all cash flow metrics weakened significantly.
- Negative revenue and a large negative operating cash flow drove free cash flow deeply negative, with the free cash flow margin worsening markedly from the prior period. Capital expenditure decreased slightly, but the cash conversion from revenue to free cash flow was poor.
- Compared to the immediately preceding quarter, revenue moved from positive to negative, operating cash flow weakened from negative to more negative, and free cash flow turned sharply more negative. Versus the same quarter one year earlier, revenue and operating cash flow both deteriorated, while free cash flow became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$750.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$626.0M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
-62.8%
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 |
|---|---|---|---|---|---|
| 2022-12-30 | $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% |
| 2023-09-29 | $1.2B | -$626.0M | $124.0M | -$750.0M | -62.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.6B | 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 Deterioration
Operating cash flow turned substantially negative, far exceeding the negative levels of the prior and year-ago quarters. This was the strongest observable factor pulling free cash flow lower, despite a modest reduction in capital expenditure.
The large negative operating cash flow overwhelmed capital expenditure reductions, causing free cash flow and margin to deteriorate substantially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Negative revenue and a large negative operating cash flow drove free cash flow deeply negative, with the free cash flow margin worsening markedly from the prior period. Capital expenditure decreased slightly, but the cash conversion from revenue to free cash flow was poor.
Compared to the immediately preceding quarter, revenue moved from positive to negative, operating cash flow weakened from negative to more negative, and free cash flow turned sharply more negative. Versus the same quarter one year earlier, revenue and operating cash flow both deteriorated, while free cash flow became more negative.
Monitor operating cash flow trajectory given its large negative swing, as it is the primary driver of free cash flow.