Meta Platforms Inc. (NASDAQ:META)

The cash flow statement reveals a dynamic pattern of cash generation and utilization over the five-year period. While net cash provided by operating activities generally increased, significant fluctuations occurred in investing and financing activities, resulting in varying net changes in cash.

Operating Activities

Net cash provided by operating activities demonstrated an overall upward trend, increasing from US$57.683 billion in 2021 to US$115.800 billion in 2025. However, there was a slight decrease from 2021 to 2022 (US$50.475 billion) before a substantial increase through 2025. This positive trend was largely driven by increasing net income, coupled with significant adjustments to reconcile net income to net cash flow, which rose from US$18.313 billion to US$55.342 billion over the period. Key components of these adjustments, such as depreciation and amortization and share-based compensation, consistently increased throughout the period.

Investing Activities

Net cash used in investing activities consistently represented a significant outflow, escalating from US$7.570 billion in 2021 to US$102.003 billion in 2025. This was primarily due to substantial and increasing purchases of property and equipment and marketable securities. While sales and maturities of marketable securities provided some offsetting inflows, these were insufficient to counteract the significant outflows. A notable increase in purchases of non-marketable equity investments occurred in 2025, contributing to the overall increased cash outflow.

Financing Activities

Net cash used in financing activities also consistently represented a cash outflow, though with some variation. Outflows were substantial in 2021 (US$50.728 billion) and 2024 (US$40.781 billion), largely driven by repurchases of Class A common stock and taxes paid related to net share settlement of equity awards. Proceeds from the issuance of long-term debt provided inflows in 2022, 2023, and 2024, but these were not enough to offset the significant outflows from stock repurchases and tax payments. The introduction of dividend payments in 2024 further contributed to the cash outflow.

Cash Position

The net increase (decrease) in cash, cash equivalents, and restricted cash equivalents fluctuated considerably. A decrease was observed in 2021 and 2022, followed by a substantial increase in 2023. However, decreases were again observed in 2024 and 2025. Despite these fluctuations, the company maintained a significant cash balance, decreasing from US$17.954 billion in 2021 to US$39.100 billion in 2025.

Working Capital

Changes in accounts receivable, prepaid expenses, and other current assets, as well as accounts payable and accrued expenses, exhibited variability. Accounts receivable generally showed outflows, while accrued expenses and other current liabilities generally showed inflows. These fluctuations contributed to the overall adjustments to reconcile net income to net cash provided by operating activities. Deferred income taxes also showed significant fluctuations, impacting the overall operating cash flow.

In summary, the company generated substantial cash from operations, but this was largely offset by significant investments in property, equipment, and marketable securities, as well as substantial returns of capital to shareholders through stock repurchases and, beginning in 2024, dividend payments. The overall cash position remained healthy despite these offsetting factors.