FCF — Free Cash Flow
Definition: Cash generated from operations after capital expenditures. FCF is what a business can actually return to shareholders, pay down debt with, or reinvest — unlike accounting profit, you can't fake it.
Example
A SaaS company with $50M revenue and $12M FCF is meaningfully healthier than one with $50M revenue and negative FCF, even if both report similar "profit."
When you'll hear it
FCF shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to free cash flow — and they expect the room to already know what that means.
FAQs
What does FCF stand for?
FCF stands for Free Cash Flow.
What does FCF mean in business and finance?
Cash generated from operations after capital expenditures. FCF is what a business can actually return to shareholders, pay down debt with, or reinvest — unlike accounting profit, you can't fake it.
Where will I hear FCF used at work?
FCF comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for free cash flow, so people assume you already know the term.
Related terms
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