Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, leading to a significantly lower free cash flow and a weakened free cash flow margin.
- Despite higher revenue, operating cash flow was negative, which drove free cash flow deeply negative. Capital expenditure was slightly higher than the prior quarter but similar to the year-ago quarter, yet the negative operating cash flow overwhelmed any benefit from revenue growth, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue was higher but operating cash flow shifted from positive to negative, causing free cash flow to turn from positive to negative and the margin to weaken. Compared to the same quarter last year, revenue was higher, operating cash flow worsened from slightly positive to negative, and free cash flow became more negative, with the margin also weakening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$50.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$849.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$797.9M
Cash generated by operations before capital spending.
CapEx
$51.7M
Capital spending and related asset purchases.
FCF margin
-14.7%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $5.0B | $294.4M | $32.3M | $262.1M | 5.3% |
| 2023-06-30 | $5.5B | $113.3M | $29.5M | $83.8M | 1.5% |
| 2023-09-30 | $5.6B | $491.2M | $37.7M | $453.5M | 8.1% |
| 2023-12-31 | $5.8B | -$797.9M | $51.7M | -$849.6M | -14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -831.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $876.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative Operating Cash Flow
Operating cash flow turned negative this quarter, a sharp reversal from the positive levels seen in both the prior quarter and the year-ago quarter. This was the strongest observable driver of the decline in free cash flow.
The negative operating cash flow directly caused free cash flow to be deeply negative, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, which drove free cash flow deeply negative. Capital expenditure was slightly higher than the prior quarter but similar to the year-ago quarter, yet the negative operating cash flow overwhelmed any benefit from revenue growth, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue was higher but operating cash flow shifted from positive to negative, causing free cash flow to turn from positive to negative and the margin to weaken. Compared to the same quarter last year, revenue was higher, operating cash flow worsened from slightly positive to negative, and free cash flow became more negative, with the margin also weakening.
Monitor whether operating cash flow can return to positive levels in the coming quarters, as it is the primary driver of free cash flow.