Operating cash flow remains robust at 2.4x net income, but capex surged to 23% of revenue in Q2 2026, driving free cash flow to -$6M, and stock-based compensation of $68M adds back to OCF but represents a real economic cost.
GLOBALFOUNDRIES Inc. (GFS) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 1.92B | 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 % | 98.22% | 0.52% | -18.96% | -19.02% | -7.57% | 182.77% | 102.09% | - |
| Net Income | 716M | 888M | -262M | 1.02B | 1.45B | -254M | -1.35B | -1.37B |
| Depreciation & Amortization | 1.25B | 1.31B | 1.57B | 1.45B | 1.62B | 1.62B | 2.52B | 2.68B |
| Stock-Based Compensation | 234M | 200M | 186M | 150M | 181M | 223M | 1M | 0 |
| Deferred Taxes | 196M | 27M | 72M | 50M | 82M | 93M | -38M | 214.27M |
| Other Non-Cash Items | -110M | -160M | 777M | -37M | -542M | -71M | -187M | -739.65M |
| Working Capital Changes | -369M | -538M | -619M | -507M | -166M | 1.23B | 59M | -284.85M |
| Change in Receivables | -184M | -280M | -71M | -169M | 35M | -387M | 753M | -143.71M |
| Change in Inventory | 170M | 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 | -2.03B | -1.27B | -1.13B | -1.88B | -4.06B | -1.45B | -366M | 343.75M |
| Capital Expenditures | -1.12B | -722M | -625M | -1.8B | -3.06B | -1.77B | -592M | -587.93M |
| CapEx % of Revenue | 16.14% | 10.63% | 9.26% | 24.4% | 37.73% | 26.83% | 12.2% | 10.11% |
| Acquisitions | -1.1B | -682M | -69M | 236M | 0 | 0 | 111M | 832.63M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -699M | 317M | 65M | 160M | -3M | 317M | 115M | 96.42M |
| Cash from Financing | -591M | -845M | -785M | -212M | 842M | 650M | -733M | -683.83M |
| Debt Issued (Net) | -136M | -840M | -606M | -259M | 581M | -911M | -1.04B | -991.02M |
| Equity Issued (Net) | -455M | -5M | -177M | 42M | 168M | 1.44B | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -405M | -5M | -200M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -2M | 5M | 93M | 117M | 311M | 307.19M |
| Net Change in Cash | -703M | -383M | -195M | 35M | -587M | 2.03B | -89M | 153.34M |
| Free Cash Flow | 796M | 1.01B | 1.1B | 321M | -435M | 1.07B | 412M | -276M |
| FCF Margin % | 11.47% | 14.86% | 16.25% | 4.34% | -5.37% | 16.28% | 8.49% | -4.75% |
| FCF Growth % | -18.11% | -8.02% | 241.74% | 173.79% | -140.58% | 160.19% | 249.28% | - |
| FCF per Share | 1.43 | 1.81 | 1.98 | 0.58 | -0.79 | 2.12 | 0.77 | -0.53 |
| FCF Conversion (FCF/Net Income) | 1.11x | 1.96x | -6.50x | 2.08x | 1.81x | -11.36x | -0.74x | -0.36x |
| Interest Paid | 29M | 0 | 118M | 121M | 0 | 0 | 0 | 0 |
| Taxes Paid | 17M | 22M | 24M | 21M | 0 | 0 | 0 | 0 |
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.
Key Metrics
Top Statement Risk
ICFR weakness and capex surge
Cash Conversion Remains Robust
Operating cash flow consistently exceeds net income, with OCF/NI averaging 2.4x over the last year, per company filings, indicating strong non-cash add-backs and working capital management.
The persistent gap between net income and operating cash flow is driven by substantial depreciation and amortization, which averaged over $300 million per quarter, reflecting the capital-intensive nature of the foundry business. Even in Q4 2024, when net income was deeply negative due to an impairment, operating cash flow remained positive at $457 million, underscoring the resilience of cash generation. This suggests that reported earnings understate the company's cash-generating ability, though investors should monitor the sustainability of working capital contributions.
FCF Volatility Mirrors Capex Cycle
Free cash flow swung from $406 million in Q3 2025 to -$6 million in Q2 2026, as capex surged to 23% of revenue, according to recent financial statements, highlighting the cyclicality of capital spending.
The trajectory of free cash flow is heavily influenced by the timing and magnitude of capital expenditures, which have ramped up significantly in 2026, likely tied to the Malta, NY expansion. While FCF margins have been positive in most quarters, the latest quarter's near-zero FCF suggests that the company is prioritizing growth investments over near-term cash returns. This pattern is typical for a foundry scaling capacity, but it implies that FCF generation will remain lumpy until capex normalizes.
Capex Intensity Signals Expansion Phase
Capital expenditures rose to $411 million in Q2 2026, representing 23% of revenue, up from 6.2% in Q2 2024, per company data, indicating a strategic push to expand capacity.
The sharp increase in capex intensity suggests that GFS is investing heavily in new capacity, likely to support automotive and AI-related demand, as well as to fulfill CHIPS Act commitments. However, this elevated spending may pressure near-term free cash flow and could lead to overcapacity if demand does not materialize as expected. The depreciation charge has remained relatively stable, implying that the new assets have not yet been fully depreciated, which could lead to higher D&A in future periods.
Working Capital Swings Reflect Demand Volatility
Working capital changes have been consistently negative, averaging -$122 million per quarter over the last year, as per reported figures, indicating cash outflows tied to inventory and receivables.
The persistent negative working capital changes suggest that GFS is building inventory or extending receivables, possibly due to customer order timing or preparation for anticipated demand. In Q4 2025, working capital swung to -$274 million, the largest outflow in the period, which may indicate inventory build-up ahead of expected shipments. This pattern warrants monitoring, as it could signal either a strategic response to demand or a potential buildup of excess inventory if demand softens.
Capital Deployment Focused on Growth
GFS has not paid dividends and has minimal buybacks, but acquisitions and investments totaled $440 million in Q2 2026, per financial statements, indicating a focus on strategic expansion.
The company appears to be reinvesting its cash flow into capacity and strategic acquisitions rather than returning capital to shareholders. The $440 million acquisition outflow in Q2 2026 is notable and may reflect investments in technology or partnerships to strengthen its specialty node portfolio. With no dividends and negligible buybacks, investors are relying on capital appreciation, which hinges on the success of these growth investments.
What the Cash Flow Statement Obscures
Stock-based compensation of $68 million in Q2 2026, per company filings, is added back to operating cash flow, but it represents a real economic cost that is not captured in cash flow metrics.
While SBC is a non-cash expense, it dilutes existing shareholders and should be considered when evaluating true cash generation. Additionally, government grants and subsidies, such as those from the CHIPS Act, may be netted against capex, potentially understating the actual cash outlay for capacity expansion. The material weakness in ICFR, as disclosed in recent filings, raises the risk that reported cash flow figures could be subject to restatement, warranting close monitoring of remediation efforts.