opinion claim
Some observers argue that free cash flow overstates profitability because companies need to grant equity to attract employees.
Jamin Ball · Deep Dive: Anthropic S-1 Myths and Mythos — Jamin Ball, Altimeter · 7 Nov 2026
In their words
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“It's actually added back, uh, because it's a non-cash expense. So there are a lot of people who look at the free cash flow metric and say, "Well, it actually overstates your profitability," because the reality is, is if you didn't grant equity to your hires, they wouldn't join you.”22:27Report a misattribution
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