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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceFree Cash Flow

Marketing Finance

Free Cash Flow

Cash a business generates from operations after capital expenditures, available for growth, debt repayment, or shareholders.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Free cash flow is the cash a business generates from operations after capital expenditures, available for growth, debt repayment or returns to shareholders. It is commonly calculated as operating cash flow minus capital expenditures. Investors watch it closely because it reflects real cash generation more directly than accounting profit.