Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved significantly from the prior quarter, driving positive free cash flow despite higher capital expenditure. However, free cash flow and margin weakened compared to the same quarter one year earlier.
- Revenue was stable versus the year-ago quarter and higher than the prior quarter. Operating cash flow rose markedly from the prior quarter, producing a free cash flow margin that turned positive after a negative margin in the previous quarter.
- Compared with the prior quarter, revenue was higher, operating cash flow improved substantially, capital expenditure was lower, and free cash flow reversed from negative to positive. Compared with the year-ago quarter, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow and free cash flow margin both weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$296.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$796.1M
Cash generated by operations before capital spending.
CapEx
$499.4M
Capital spending and related asset purchases.
FCF margin
10.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $2.1B | $685.8M | $645.3M | $40.5M | 1.9% |
| 2022-09-30 | $2.0B | $296.9M | $671.9M | -$375.0M | -18.7% |
| 2022-12-31 | $2.6B | $1.2M | $996.2M | -$995.0M | -38.9% |
| 2023-03-31 | $2.9B | $796.1M | $499.4M | $296.7M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.3% | 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.
Operating Cash Flow Recovery
Operating cash flow increased markedly from the prior quarter, which was the strongest observable driver of the free cash flow improvement. This shift turned free cash flow positive after a substantial negative amount in the prior quarter.
The recovery in operating cash flow was the primary factor that moved free cash flow into positive territory this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the year-ago quarter and higher than the prior quarter. Operating cash flow rose markedly from the prior quarter, producing a free cash flow margin that turned positive after a negative margin in the previous quarter.
Compared with the prior quarter, revenue was higher, operating cash flow improved substantially, capital expenditure was lower, and free cash flow reversed from negative to positive. Compared with the year-ago quarter, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow and free cash flow margin both weakened.
Monitor the level of capital expenditure relative to operating cash flow, as the gap narrowed sequentially but remained wider than the year-ago quarter.