# What is free cash flow?

Informational only - not investment advice.

Book: [Reading Financial Data - Step by Step](/guide/)
Chapter: [Cash flow & returns](/guide/cash-flow-returns/)
As of: 2025-10-31

Free cash flow subtracts capital expenditures from operating cash flow.

## Concept

Capital expenditures are cash spent on long-term assets such as property, equipment, or infrastructure.

## Worked Example: Compute Apple free cash flow

1. Start with AAPL operating cash flow: $111.5 billion for fiscal 2025.
2. Subtract capital expenditures: $12.7 billion.
3. Free cash flow = operating cash flow - capex = $111.5 billion - $12.7 billion = $98.8 billion.
4. grepcent's extracted free cash flow row shows $98.8 billion for the same year.
5. Free cash flow can be negative when capital spending is larger than operating cash flow. Read it as a computed cash-flow fact, not a verdict.

## See it live

- [AAPL company page](/company/AAPL/)

## Sources

- [AAPL SEC companyfacts](https://data.sec.gov/api/xbrl/companyfacts/CIK0000320193.json)
- [AAPL latest 10-K source](https://www.sec.gov/Archives/edgar/data/320193/000032019325000079/aapl-20250927.htm)