Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was substantially higher than the prior quarter, while operating cash flow remained negative but improved significantly. Free cash flow remained negative but improved markedly compared to the preceding quarter, though it was slightly weaker than the same quarter last year.
- The company generated negative free cash flow due to operating cash outflow and capital expenditure, resulting in a negative free cash flow margin. The margin improved sharply from the prior quarter but remained slightly worse than the year-ago period.
- Compared to the prior quarter, revenue was higher and operating cash flow was less negative, leading to a much improved free cash flow. Versus the same quarter last year, revenue was higher but operating cash flow turned from positive to negative, resulting in a slightly weaker free cash flow.
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
-$242.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$92.0M
Cash generated by operations before capital spending.
CapEx
$150.0M
Capital spending and related asset purchases.
FCF margin
-5.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-29 | $4.6B | -$92.0M | $150.0M | -$242.0M | -5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue improvement
Revenue in the current quarter was substantially higher than the prior quarter, which helped narrow the operating cash outflow despite ongoing capital spending.
The higher revenue drove a significant improvement in free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated negative free cash flow due to operating cash outflow and capital expenditure, resulting in a negative free cash flow margin. The margin improved sharply from the prior quarter but remained slightly worse than the year-ago period.
Compared to the prior quarter, revenue was higher and operating cash flow was less negative, leading to a much improved free cash flow. Versus the same quarter last year, revenue was higher but operating cash flow turned from positive to negative, resulting in a slightly weaker free cash flow.
The filing indicates a remaining tax obligation expected to be paid within the next twelve months, which could affect future cash flows.