Cash flow generation is highly volatile and inefficient, highlighted by a negative 6.1% FCF margin and an OCF/NI ratio of -0.19 in the most recent quarter.
| Cash from Operations | 1.76B | 2.19B | 2.39B | 2.63B | 3.03B | 3.07B |
| Operating CF Margin % | 37.11% | 39.83% | 40.39% | 40.72% | 43.63% | 41.99% |
| Operating CF Growth % | -19.69% | -8.16% | -9.03% | -13.42% | -1.24% | - |
| Net Income | -1.33B | 1.49B | -831M | 1.92B | 2.11B | 1.71B |
| Depreciation & Amortization | 685M | 753M | 823M | 860M | 1.01B | 1.31B |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 15M | 21M |
| Deferred Taxes | 125M | 37M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.28B | 40M | 2.52B | 59M | 67M | 178M |
| Working Capital Changes | 0 | -123M | -122M | -212M | -165M | -150M |
| Change in Receivables | -23M | -11M | 20M | -68M | 36M | 88M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -50M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.51B | -1.89B | -466M | -1.35B | -751M | 754M |
| Capital Expenditures | -1.51B | -1.89B | -1.06B | -1.35B | -797M | -1.09B |
| CapEx % of Revenue | 31.85% | 34.33% | 17.95% | 20.92% | 11.47% | 14.92% |
| Acquisitions | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - |
| Other Investing | -688M | -844M | 596M | -500M | 46M | 1.84B |
| Cash from Financing | -238M | -287M | -1.92B | -1.27B | -2.29B | -3.81B |
| Debt Issued (Net) | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | -1.98B | 0 | -570M | -1.73B |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -238M | -61M | 61M | -1.27B | -537M | 592M |
| Net Change in Cash | 12M | 16M | 2M | 6M | -11M | 11M |
| Free Cash Flow | 250M | 303M | 1.33B | 1.28B | 2.24B | 1.98B |
| FCF Margin % | 5.27% | 5.5% | 22.43% | 19.8% | 32.17% | 27.08% |
| FCF Growth % | -17.49% | -77.17% | 3.92% | -42.89% | 12.93% | - |
| FCF per Share | 999999.00 | 999999.00 | 999999.00 | 999999.00 | 999999.00 | 999999.00 |
| FCF Conversion (FCF/Net Income) | -1.33x | 1.48x | -2.87x | 1.37x | 1.44x | 1.80x |
| Interest Paid | 0 | 0 | 97M | 113M | 188M | 310M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Terminal legacy revenue decline
According to recent financial filings, the relationship between net income and operating cash flow has become increasingly erratic, evidenced by a 2025Q4 OCF/NI ratio of -0.19, which suggests that accounting earnings are failing to provide a reliable proxy for the company's actual cash-generating capacity.
The significant divergence between reported net income and operating cash flow indicates that non-cash charges, likely related to asset impairments or restructuring, are heavily distorting the bottom line. Investors should monitor this disconnect, as it implies that the company's reported profitability is not translating into the liquidity required to sustain its capital-intensive infrastructure.
As reported in quarterly statements, the company's FCF margin has swung from a positive 21.4% in 2025Q3 to a negative 6.1% in 2025Q4, highlighting a precarious cash flow trajectory that remains highly sensitive to lumpy capital expenditure requirements and declining core service revenues.
The inability to maintain consistent positive free cash flow suggests that the business is struggling to balance necessary network maintenance with the reality of a shrinking subscriber base. This volatility warrants further investigation into whether the current capital allocation strategy is sustainable without external financing or further asset divestitures.
Based on the provided data, the company's CapEx/Revenue ratio reached 40.8% in 2025Q4, a figure that appears disproportionately high for a mature telecommunications entity and suggests that the firm is forced to reinvest heavily just to maintain its aging physical network infrastructure.
This high level of capital intensity relative to revenue indicates that the company is trapped in a cycle of defensive spending to prevent further service degradation. Such elevated reinvestment needs may continue to suppress free cash flow, limiting the company's ability to pivot toward more profitable growth initiatives.
As indicated by the fluctuating working capital changes, which shifted from a $63M inflow in 2025Q3 to a $55M outflow in 2025Q4, the company's cash conversion cycle appears to be under pressure, likely reflecting difficulties in managing payables against a backdrop of declining operational scale.
The inconsistency in working capital movements suggests that the company may be utilizing payables management as a temporary lever to manage liquidity. Analysts should monitor whether these fluctuations are indicative of broader operational inefficiencies or simply a reaction to the ongoing contraction in legacy service volumes.
Quick answers to the most common questions about buying CTBB stock.
Qwest Corp. NT (CTBB) generated $1.76B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Qwest Corp. NT (CTBB) generated $250.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Qwest Corp. NT (CTBB) spent $1.51B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.