Free cash flow remains highly sensitive to cyclical demand, with margins fluctuating between 9.1% and 24.6% over the last ten quarters.
| Cash from Operations | 1.94B | 1.73B | 1.72B | 2.13B | 2.62B | 2.84B | 1B | 496.82M |
| Operating CF Margin % | - | 25.49% | 25.51% | 28.75% | 32.36% | 43.11% | 20.7% | 8.55% |
| Operating CF Growth % | 111.46% | 0.52% | -18.96% | -19.02% | -7.57% | 182.77% | 102.09% | - |
| Net Income | 778M | 888M | -262M | 1.02B | 1.45B | -254M | -1.35B | -1.37B |
| Depreciation & Amortization | 1.27B | 1.31B | 1.57B | 1.45B | 1.62B | 1.62B | 2.52B | 2.68B |
| Stock-Based Compensation | 218M | 200M | 186M | 150M | 181M | 223M | 1M | 0 |
| Deferred Taxes | 158M | 27M | 72M | 50M | 82M | 93M | -38M | 214.27M |
| Other Non-Cash Items | -98M | -160M | 777M | -37M | -542M | -71M | -187M | -739.65M |
| Working Capital Changes | -390M | -538M | -619M | -507M | -166M | 1.23B | 59M | -284.85M |
| Change in Receivables | -65M | -280M | -71M | -169M | 35M | -387M | 753M | -143.71M |
| Change in Inventory | 149M | 81M | -137M | -148M | -261M | -202M | -560M | -42.33M |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 1.83B | -154.51M | -96.87M |
| Cash from Investing | -1.11B | -1.27B | -1.13B | -1.88B | -4.06B | -1.45B | -366M | 343.75M |
| Capital Expenditures | -868M | -722M | -625M | -1.8B | -3.06B | -1.77B | -592M | -587.93M |
| CapEx % of Revenue | 12.69% | 10.63% | 9.26% | 24.4% | 37.73% | 26.83% | 12.2% | 10.11% |
| Acquisitions | -620M | -682M | -69M | 236M | 0 | 0 | 111M | 832.63M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 180M | 317M | 65M | 160M | -3M | 317M | 115M | 96.42M |
| Cash from Financing | -578M | -845M | -785M | -212M | 842M | 650M | -733M | -683.83M |
| Debt Issued (Net) | -127M | -840M | -606M | -259M | 581M | -911M | -1.04B | -991.02M |
| Equity Issued (Net) | -451M | -5M | -177M | 42M | 168M | 1.44B | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -435M | -5M | -200M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -2M | 5M | 93M | 117M | 311M | 307.19M |
| Net Change in Cash | 253M | -383M | -195M | 35M | -587M | 2.03B | -89M | 153.34M |
| Free Cash Flow | 1.07B | 1.01B | 1.1B | 321M | -435M | 1.07B | 412M | -276M |
| FCF Margin % | 15.7% | 14.86% | 16.25% | 4.34% | -5.37% | 16.28% | 8.49% | -4.75% |
| FCF Growth % | 7.29% | -8.02% | 241.74% | 173.79% | -140.58% | 160.19% | 249.28% | - |
| FCF per Share | 1.91 | 1.81 | 1.98 | 0.58 | -0.79 | 2.12 | 0.77 | -0.53 |
| FCF Conversion (FCF/Net Income) | 1.38x | 1.96x | -6.50x | 2.08x | 1.81x | -11.36x | -0.74x | -0.36x |
| Interest Paid | 0 | 0 | 118M | 121M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 22M | 24M | 21M | 0 | 0 | 0 | 0 |
High fixed cost sensitivity
Based on reported quarterly figures, the relationship between net income and operating cash flow is consistently decoupled, with OCF/NI ratios frequently exceeding 2.0, largely driven by the substantial non-cash depreciation and amortization charges inherent in the company's capital-intensive semiconductor fabrication business model.
The persistent gap between net income and operating cash flow suggests that reported earnings may significantly understate the actual cash-generating capacity of the firm. Investors should monitor whether this cash conversion quality remains sustainable as the company continues its aggressive capacity expansion, which will likely increase the depreciation burden further.
As reported in financial statements, free cash flow margins have fluctuated significantly, ranging from a low of 9.1% to a peak of 24.6%, indicating that GFS remains highly susceptible to the cyclical nature of semiconductor demand and the resulting impact on factory utilization rates.
The variability in FCF margins underscores the difficulty in maintaining consistent cash flow generation during periods of inventory correction. While the company has managed to remain FCF positive even during downturns, the lack of a stable trajectory warrants caution regarding the predictability of future cash distributions.
According to recent SEC filings, GFS maintains a high capital intensity, with CapEx as a percentage of revenue reaching as high as 19.1% in 2026Q1, reflecting the ongoing necessity to invest in specialized node capacity to maintain its competitive position in the foundry market.
This elevated level of capital expenditure suggests that a significant portion of operating cash flow is being reinvested to sustain the asset base rather than being returned to shareholders. The reliance on high utilization to justify these investments implies that any prolonged demand weakness could lead to a rapid deterioration in free cash flow.
Based on the provided cash flow data, working capital changes have been highly erratic, with significant outflows such as the $274 million reduction in 2025Q4, suggesting that inventory management and customer payment cycles are currently exerting meaningful pressure on the company's short-term cash position.
These fluctuations in working capital appear to be a primary driver of quarterly cash flow volatility, potentially masking underlying operational performance. Investors should investigate whether these swings are indicative of structural inefficiencies in supply chain management or merely temporary adjustments to shifting customer demand patterns.
Quick answers to the most common questions about buying GFS stock.
GLOBALFOUNDRIES Inc. (GFS) generated $1.73B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GLOBALFOUNDRIES Inc. (GFS) generated $1.01B 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.
GLOBALFOUNDRIES Inc. (GFS) spent $722.0M 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, GLOBALFOUNDRIES Inc. (GFS) spent $5.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.