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Operating cash flow has turned negative in two of the last three quarters despite reported profits, and free cash flow was -$3.2B in 2026Q1, reflecting a CapEx surge to 18.4% of revenue.
Baidu, Inc. (BIDU) cash flow statement — 23-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 6.54B | -3.01B | 21.23B | 36.62B | 26.17B | 20.12B | 24.2B | 28.46B | 35.97B | 32.88B | 22.26B | 19.42B | 17.94B | 13.79B | 12B | 8.18B | 4.7B | 1.75B | 440.81M | 935.15M | 526.14M | 12.7M | 56.51M | 12.7M |
| Operating CF Margin % | - | -2.33% | 15.95% | 27.2% | 21.16% | 16.16% | 22.6% | 26.49% | 35.17% | 38.77% | 31.55% | 29.26% | 36.57% | 43.18% | 53.78% | 56.4% | 59.39% | 39.26% | 9.91% | 53.61% | 16.45% | 3.98% | 48.11% | 3.98% |
| Operating CF Growth % | 184.58% | -114.19% | -42.01% | 39.91% | 30.06% | -16.85% | -14.96% | -20.88% | 9.39% | 47.72% | 14.6% | 8.28% | 30.05% | 14.98% | 46.67% | 74% | 169.18% | 296.14% | -52.86% | 77.74% | 4042.21% | -77.52% | 344.98% | - |
| Net Income | -3.69B | 5.59B | 24.18B | 21.55B | 7.53B | 7.59B | 19.03B | -2.29B | 22.58B | 18.29B | 11.6B | 32.43B | 12.24B | 10.36B | 10.39B | 6.62B | 3.53B | 1.05B | 301.77M | 628.97M | 301.77M | -8.88M | 12M | -8.88M |
| Depreciation & Amortization | 19.2B | 21.35B | 20.52B | 21.46B | 20.08B | 22.56B | 22.71B | 22.14B | 16.19B | 11.75B | 8.33B | 5.86B | 3.97B | 2.65B | 1.52B | 884.91M | 441.35M | 280.71M | 70.44M | 180.94M | 70.44M | 4.89M | 9.94M | 4.88M |
| Stock-Based Compensation | 3.04B | 3.6B | 4.78B | 6.34B | 6.79B | 7.06B | 6.73B | 5.63B | 4.68B | 3.24B | 1.76B | 1.39B | 962.74M | 514.73M | 212.31M | 152.03M | 93.74M | 83.98M | 48.28M | 39.85M | 48.28M | 5.11M | 0 | 0 |
| Deferred Taxes | 0 | -1.24B | 1.04B | -163M | -99M | -449M | 115M | -696M | -761M | -756M | -13.56M | 2.26B | -693.45M | 330.64M | -59.03M | -64.7M | -74.37M | -13.81M | -3.24M | -10.77M | 2.63M | -5.11M | 0 | 0 |
| Other Non-Cash Items | 26.3B | 8.58B | -1.77B | 494M | 8.62B | 2.06B | -6.18B | 10.37B | -10B | -6.22B | -5.05B | -26.76B | -1.8B | -1.03B | -844.87M | -6.2M | -31.49M | 10.06M | -1.97M | -3.68M | -4.6M | 5.11M | 17.28M | 5.11M |
| Working Capital Changes | -38.33B | -40.9B | -27.51B | -13.07B | -16.76B | -18.69B | -18.21B | -6.69B | 3.28B | 6.58B | 5.64B | 4.24B | 3.25B | 967.31M | 780.97M | 592.46M | 746.09M | 337.15M | 25.53M | 99.85M | 107.63M | 11.59M | 17.28M | 11.59M |
| Change in Receivables | -4.51B | -4.38B | 107M | 216M | -2.37B | -2.14B | -1.66B | -1.78B | -1.61B | -721M | -238.2M | -868.56M | -1.46B | -773.79M | -338.6M | -282.47M | -128.31M | -33.28M | -388K | -40.69M | -388K | -1.52M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -24.28B | -17.64B | -4.73B | -50M | 1.13B | 1.5B | -2.22B | -1.62B | -1.3B | -464.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | -1.79B | 2.3B | -858M | -1.45B | 7.14B | 208M | -1.65B | 4.09B | 5.1B | 3.71B | 7.18B | 5.03B | 2.01B | 778M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -10.45B | -25.14B | -8.55B | -50.4B | -3.94B | -31.44B | -27.55B | -19.97B | -34.46B | -76.94B | -35.91B | -31.27B | -22.47B | -23.32B | -13.75B | -14.25B | -1.22B | -661.1M | -208.93M | -713.22M | -294.27M | -7.96M | -39.48M | -7.96M |
| Capital Expenditures | -10.62B | -13.05B | -8.13B | -11.19B | -8.39B | -11.24B | -5.33B | -19.12B | -22.36B | -13.95B | -10.51B | -7.77B | -6.4B | -3.68B | -2.57B | -2.34B | -976.12M | -476.81M | -165.61M | -582.34M | -150.41M | -7.96M | -25.41M | -6.4M |
| CapEx % of Revenue | 8.35% | 10.11% | 6.11% | 8.31% | 6.79% | 9.03% | 4.98% | 17.8% | 21.86% | 16.45% | 14.9% | 11.71% | 13.04% | 11.52% | 11.51% | 16.15% | 12.33% | 10.72% | 3.72% | 33.38% | 4.7% | 2.49% | 21.64% | 2% |
| Acquisitions | 0 | 1.15B | 8.44B | -115M | 256M | -12.28B | -2.88B | -1.45B | 3.6B | 892M | 274.71M | -3.87B | -328.89M | -13.46B | -821.55M | -1.95B | 12.63M | 17.67M | -43.32M | -14.08M | -43.32M | 0 | -11.9M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 174.15M | -190.34M | -2.51B | 2.47B | -761M | 71M | 905M | 31M | 5.97B | -23.46B | -4.3B | 41.5M | 20.6M | 22.62M | 9.6M | 2.46M | -12.63M | -17.67M | 0 | -13.25M | 7.68M | 0 | -2.16M | -1.56M |
| Cash from Financing | 4.16B | 17.14B | -13.76B | -14.16B | -6.39B | 23.4B | 5.67B | -3.87B | 15.08B | 44.56B | 14.45B | 7.78B | 8.61B | 7.54B | 9.52B | 2.43B | 124.75M | -35.64M | 32.18M | 40.7M | 32.18M | 72K | 120.34M | 74.5K |
| Debt Issued (Net) | 0 | 19.74B | -7.54B | -13.09B | -6.81B | 8.84B | 12.39B | 1.34B | 20.73B | 23.59B | 6.85B | 10.35B | 7.64B | 6.03B | 9.4B | 2.36B | 86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -5.29B | -5.29B | -6.32B | -4.76B | -1.93B | 12.98B | -13.05B | -4.96B | -3.31B | 2.32B | 661M | -6.38B | 1.85B | 0 | 100.46M | 43.97M | 0 | 54.65M | 54.65M | 0 | -68.54M | 716.3M | 240.07M | 716.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -35.9B | 0 | -12.89B | -337.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -5.38B | -5.39B | -6.32B | -4.76B | -1.93B | -7.58B | -13.05B | -4.96B | -3.31B | -1.72B | 0 | -6.38B | 0 | 0 | 0 | 0 | 0 | -24.42M | -24.42M | 0 | -68.54M | 0 | 0 | 0 |
| Other Financing | 9.45B | 2.7B | 102M | 3.69B | 2.35B | 1.58B | 6.33B | -253M | -2.33B | 54.55B | 6.94B | 16.7B | -870.48M | 1.25B | 19.88M | 23.18M | 38.75M | -90.29M | -22.47M | 40.7M | 32.9M | -716.23M | -119.73M | 8.04M |
| Net Change in Cash | -31.07B | -11.76B | -985M | -27.66B | 17.57B | 11.13B | 2.1B | 4.61B | 18.49B | 186M | 938.53M | -3.89B | 4.16B | -2.19B | 7.75B | -3.65B | 3.6B | 1.01B | 235.68M | 214.33M | 235.68M | 4.82M | 137.38M | 4.82M |
| Free Cash Flow | -5.3B | -16.43B | 13.1B | 25.32B | 17.78B | 8.88B | 18.87B | 9.34B | 13.61B | 18.93B | 11.75B | 11.65B | 11.54B | 10.11B | 9.43B | 5.84B | 3.72B | 1.27B | 275.19M | 352.81M | 375.73M | 4.74M | 31.09M | 6.3M |
| FCF Margin % | -4.17% | -12.73% | 9.84% | 18.81% | 14.37% | 7.13% | 17.62% | 8.69% | 13.3% | 22.32% | 16.65% | 17.55% | 23.53% | 31.66% | 42.27% | 40.25% | 47.05% | 28.54% | 6.19% | 20.22% | 11.75% | 1.49% | 26.47% | 1.97% |
| FCF Growth % | 51.44% | -225.42% | -48.26% | 42.43% | 100.15% | -52.93% | 102.09% | -31.37% | -28.13% | 61.12% | 0.86% | 0.92% | 14.14% | 7.24% | 61.57% | 56.71% | 193.4% | 361.27% | -22% | -6.1% | 7820.13% | -84.74% | 393.56% | - |
| FCF per Share | -15.40 | -47.90 | 37.46 | 71.40 | 50.63 | 25.25 | 54.77 | 26.77 | 38.94 | 54.16 | 33.80 | 33.59 | 32.73 | 28.78 | 26.95 | 16.69 | 10.66 | 3.65 | 0.80 | 1.03 | 1.10 | 0.02 | 0.28 | 0.06 |
| FCF Conversion (FCF/Net Income) | 1.44x | -0.54x | 0.89x | 1.80x | 3.46x | 1.97x | 1.08x | 13.83x | 1.30x | 1.80x | 1.91x | 0.58x | 1.36x | 1.31x | 1.15x | 1.23x | 1.33x | 1.18x | 0.42x | 1.49x | 0.50x | 0.27x | 4.71x | 0.27x |
| Interest Paid | 0 | 2.01B | 2.24B | 2.76B | 2.69B | 2.54B | 2.2B | 2.45B | 1.58B | 1.21B | 1.11B | 867M | 592.76M | 302.06M | 38.03M | -17.52M | 709K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 3.25B | 3.68B | 3.67B | 3.52B | 3.25B | 3.61B | 4.1B | 5.51B | 3.3B | 2.4B | 2.76B | 2.8B | 1.66B | 1.64B | -1.17B | 436.63M | 150.17M | 150.17M | 11.89M | 145.83M | 4.66M | 0 | 0 |
Quick answers to the most common questions about buying BIDU stock.
Baidu, Inc. (BIDU) generated $-3013.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Baidu, Inc. (BIDU) reported negative free cash flow of $16.43B in 2025, indicating capital requirements exceeded cash from operations.
Baidu, Inc. (BIDU) spent $13.05B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Baidu, Inc. (BIDU) spent $5.39B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Negative FCF despite reported profits
Earnings Quality Under Severe Strain
The relationship between net income and operating cash flow has deteriorated significantly, with operating cash flow turning negative in two of the last three quarters despite reported profits, indicating severe earnings quality issues.
The OCF/NI ratio, which should ideally be above 1.0 for a healthy business, has fallen to 0.78 in 2026Q1 and turned negative in 2025Q2 and 2025Q1. This divergence suggests that reported net income is not translating into actual cash generation, likely due to aggressive revenue recognition, receivables build-up, or non-cash gains inflating earnings. The persistent gap between net income and operating cash flow warrants close investigation into the composition of earnings and working capital management.
Free Cash Flow Turned Deeply Negative
Baidu's free cash flow has plunged into deeply negative territory, with the company burning through approximately $18.9 billion in the first half of 2025 alone, a stark reversal from positive FCF in early 2024.
The FCF margin has collapsed from a healthy 18.5% in 2024Q2 to -27.4% in 2025Q1, indicating that the company's capital expenditures and operational cash burn are overwhelming its earnings. This negative FCF trajectory is not sustainable and suggests the company is either funding massive growth investments or facing operational challenges that are consuming cash at an alarming rate. The combination of negative FCF and reported profits is a major red flag for cash flow sustainability.
CapEx Surge Drives Cash Burn
Capital expenditures have surged to $5.9 billion in 2026Q1 alone, representing 18.4% of revenue and driving the negative free cash flow, which suggests a massive investment cycle in AI infrastructure.
The CapEx/Revenue ratio has spiked dramatically from 6.2% in 2024Q2 to 18.4% in 2026Q1, indicating an aggressive acceleration in infrastructure spending. This capital intensity is unsustainable at current revenue levels and suggests the company is making large upfront investments in AI and cloud infrastructure that may not generate returns for several years. The magnitude of this investment cycle is compressing cash flow and profitability in the near term.
Cumulative Cash Drain Erodes Value
Over the ten quarters analyzed, Baidu has generated approximately $19.8 billion in cumulative net income but consumed roughly $7.3 billion in cumulative operating cash flow, revealing a persistent and widening disconnect between reported profits and actual cash generation.
This cumulative gap suggests that Baidu's accounting earnings significantly overstate the company's underlying cash generation capability. The erosion is particularly severe in 2025, where the company reported net income of only $1.6 billion but consumed $5.3 billion in operating cash flow. This pattern indicates structural issues in cash conversion that go beyond temporary working capital fluctuations and raises fundamental questions about the quality of the company's earnings.
SBC and Non-Cash Items Mask True Cash Reality
The company's cash flow statement is significantly distorted by substantial stock-based compensation averaging over $900 million per quarter, which inflates operating cash flow metrics while diluting shareholders.
Stock-based compensation (SBC) has averaged approximately $937 million per quarter over the ten quarters, totaling over $9.3 billion. This non-cash expense is added back to operating cash flow, artificially inflating the metric. When adjusted for SBC, the company's true cash generation capability appears even weaker than reported. Additionally, the volatile quarterly net income swings, including the $11.2 billion loss in 2025Q3, suggest significant non-operational items that obscure the underlying cash flow trajectory.