Cash generation remains highly volatile and insufficient, highlighted by a 2025Q4 OCF/NI ratio of -0.19 and a negligible free cash flow margin of 0.3%.
| 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 | - | - | - |
| 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 |
Accelerating secular revenue erosion
As reported in 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 highlights a significant breakdown in the company's ability to convert accounting profits into tangible liquidity for operations.
The extreme volatility in the OCF/NI ratio suggests that reported earnings are heavily influenced by non-cash items, likely asset impairments or pension adjustments, rather than core operational performance. Investors should monitor this divergence closely, as it indicates that the company's cash-generating capacity is failing to track with its bottom-line accounting results.
Based on the provided quarterly data, free cash flow margins have exhibited extreme instability, swinging from a peak of 131.8% in 2023Q4 to a low of -40.7% in 2025Q2, underscoring the precarious nature of the firm's cash generation amidst its ongoing transition to fiber infrastructure.
The inability to maintain consistent positive free cash flow suggests that the business is struggling to balance necessary network investment with the rapid decline of its legacy revenue base. This erratic trajectory implies that the company may be forced to rely on external financing or parent support to sustain its capital-intensive operations.
According to historical data, the company's capital intensity remains elevated, with CapEx/Revenue ratios frequently exceeding 30%, such as the 34.3% observed in 2025Q4, which reflects the heavy burden of maintaining aging copper infrastructure while simultaneously attempting to fund a modern fiber-to-the-premises buildout.
This high level of capital expenditure appears to be a defensive necessity rather than a growth-oriented investment, as the company attempts to mitigate churn in its broadband segment. The persistent requirement for such high spending levels suggests that the firm's cash flow will remain under significant pressure for the foreseeable future.
As indicated by the quarterly cash flow statements, working capital changes have been highly inconsistent, with a notable $66 million outflow in 2025Q4, suggesting that the company is struggling to manage its receivables and payables effectively during this period of secular revenue contraction.
The lack of a predictable working capital cycle may indicate operational inefficiencies in collections or an inability to optimize vendor payment terms. This instability adds another layer of risk to the company's liquidity profile, as it complicates the forecasting of short-term cash availability.
Quick answers to the most common questions about buying CTDD stock.
Qwest Corp. 6.75% NT 57 (CTDD) generated $1.76B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Qwest Corp. 6.75% NT 57 (CTDD) 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. 6.75% NT 57 (CTDD) 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.