META cash generation & growth deep dive
Operating cash flow, capex intensity, free cash flow, and how cash goes back to shareholders. Charts update for any symbol; the written analysis covers META only.
META live quote
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META: the short version
Cash from operations is still growing fast, but META is spending much more of it on capex. Operating cash flow rose from $71.1B (FY2023) to $91.3B (FY2024, +28.4%) to $115.8B (FY2025, +26.8%). Capex rose faster: $27.3B → $37.3B → $69.7B (+87.1% in FY2025). Capex took 60.2% of operating cash flow in FY2025, up from 38.3% in FY2023, so free cash flow fell 14.7% to $46.1B even though the core business grew.
On a trailing-12-month basis the trend continues. TTM free cash flow (OCF − capex) is $28.65B on $241.6B of revenue, about an 11.9% FCF margin, while revenue grows +27.5% YoY and the operating margin is 32.9%. The business is very profitable. Its FCF is currently being reinvested, mostly in AI and data-center infrastructure.
META TTM snapshot
StockAlarm fundamentals (TTM, latest filings) · 2026-10-22 close
META · operatingCashFlow loads when visible
META · capitalExpenditure loads when visible
META · freeCashFlow loads when visible
META · capexToOperatingCashFlow loads when visible
META cash flow bridge, FY2023–FY2025 (USD)
| Net income | 39.1B | 62.36B | 60.46B |
| + Depreciation & amortization | 11.18B | 15.5B | 18.62B |
| + Stock-based compensation | 14.03B | 16.69B | 20.43B |
| + Deferred income tax | 131M | -4.74B | 18.74B |
| Operating cash flow | 71.11B | 91.33B | 115.8B |
| − Capital expenditure | -27.27B | -37.26B | -69.69B |
| Free cash flow | 43.85B | 54.07B | 46.11B |
| Share repurchases | -19.77B | -30.13B | -26.25B |
| Dividends paid | 0 | -5.07B | -5.32B |
| Cash at end of period | 42.83B | 45.44B | 39.1B |
StockAlarm cash flow statements (annual, as filed) · FY2025 10-K filed 2026-01-29
Quality of META's cash flow
- The FY2025 OCF was helped by tax timing. Deferred income tax added $18.7B of non-cash add-back in FY2025, after subtracting $4.7B in FY2024. Without that swing, OCF growth would have been far weaker than the reported +26.8%. Don't assume that tailwind repeats.
- Stock-based compensation is large and growing. SBC rose from $14.0B to $20.4B. If you treat it as a real cost, FY2025 FCF falls from $46.1B to roughly $25.7B.
- Shareholder returns now use most of the FCF. Buybacks plus dividends were $31.6B in FY2025, 68.5% of FCF (65.1% in FY2024 and 45.1% in FY2023). Year-end cash fell to $39.1B from $45.4B.
- Valuation reflects compressed FCF. At 62x P/FCF (about 1.6% FCF yield) against 23.5x P/E, the stock is priced on earnings power and the expected payoff from capex, not on current free cash.
META · revenueGrowth loads when visible
META · stockBasedCompensation loads when visible
META · freeCashFlowMargin loads when visible
What to watch for META
- Capex trajectory against OCF growth. FCF only recovers if OCF growth (about 27%) outruns capex growth. In FY2025 capex grew more than three times as fast as OCF.
- Revenue growth holding near consensus. Consensus expects +26.5% revenue growth for FY+1. A slowdown while capex stays high would squeeze FCF further.
- Depreciation catching up. D&A rose from $11.2B to $18.6B. As the new capex is depreciated, it will pressure operating margin, which is 32.9% TTM.
- Buyback pace. With FCF lower and cash declining, sustaining $30B+ a year of shareholder returns may depend on the balance sheet (D/E 0.41).
Snapshot analysis from StockAlarm data as of 2026-10-22. Not investment advice.
Shared by Shawn · Last updated Oct 22, 2026 · Live data sections update automatically · Not investment advice · More community pages