Free Cash Flow

Definitions

1. Cash generated by the business after operating expenses and capital expenditures, showing what remains available for reinvestment, debt service, or distribution. Mature investors care about free cash flow because it is harder to fake than narrative growth.

   In plain English: The cash left after paying for operations and necessary investment spending.

   Example: "The company was not GAAP profitable yet, but free cash flow had turned positive."

Related Terms

• Cost Center
• G&A
• Gross Burn
• Net Burn
• Asset-Light
• Burn Down
• Capital Efficiency
• Capital Expenditure
• Operating Expense