Glossary term
FCF (Free Cash Flow)
Cash generated after operating expenses and capex; the number that survives the hype cycle and grounds mature-SaaS valuation.
FCF (Free Cash Flow) is the cash a business generates after operating expenses and capital expenditures, the figure left to return to shareholders or reinvest. For SaaS evaluated at scale, FCF is the durability check that revenue multiples cannot provide, because it strips out the accounting flattery of deferred revenue and stock comp. As the SaaS narrative shifts from growth-at-all-costs to efficient growth, FCF has become the metric that matters most. See SaaSpocalypse 101.