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Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
GDS Holdings (NAS:GDS) Cash Flow from Operations Explanation
For companies reported in indirect method, cash flow from operations contains six items:
1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.
GDS Holdings's net income from continuing operations for the
three
months ended in Jun. 2026 was $124 Mil.
2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets
GDS Holdings's depreciation, depletion and amortization for the
three
months ended in Jun. 2026 was $126 Mil.
3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.
GDS Holdings's change in working capital for the
three
months ended in Jun. 2026 was $95 Mil. It means GDS Holdings's working capital
increased by $95 Mil
from Mar. 2026 to Jun. 2026 .
4. Deferred Tax:
It is the cash flow generated from deferred tax.
GDS Holdings's cash flow from deferred tax for the
three
months ended in Jun. 2026 was $0 Mil.
GDS Holdings's cash from discontinued operating Activities for the
three
months ended in Jun. 2026 was $0 Mil.
6. Asset Impairment Charge:
It is the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.
GDS Holdings's asset impairment charge for the
three
months ended in Jun. 2026 was $0 Mil.
7. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.
GDS Holdings's stock based compensation for the
three
months ended in Jun. 2026 was $10 Mil.
8. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).
GDS Holdings's cash flow from others for the
three
months ended in Jun. 2026 was $-145 Mil.
GDS Holdings Cash Flow from Operations Related Terms
GDS Holdings Cash Flow from Operations Historical Data
* Premium members only.
The historical data trend for GDS Holdings's Cash Flow from Operations can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
GDS Holdings Cash Flow from Operations Calculation
Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
GDS Holdings's Cash Flow from Operations for the fiscal year that ended in Dec. 2025 is calculated as:
Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $517 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Flow from Operations of $517 Mil mean?
GDS Holdings (GDS) has a Cash Flow from Operations of $517 Mil as of Jun. 2026. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for GDS Holdings and its competitors.
Is GDS Holdings' Cash Flow from Operations too high?
GDS Holdings' current Cash Flow from Operations is $517 Mil. Overall, GDS Holdings has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Cash Flow from Operations compare to PSN and INGM?
GDS Holdings' Cash Flow from Operations of $517 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Flow from Operations for a Software company?
A good Cash Flow from Operations depends on the Software industry context. However, Cash Flow from Operations should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Flow from Operations mean?
A high Cash Flow from Operations can signal that a stock is expensive relative to its fundamentals. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for GDS Holdings and its competitors. GDS Holdings's current Cash Flow from Operations is $517 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (GDS) is currently considered Significantly Overvalued. The stock's GF Value™ is $22.83, compared to a current price of $34.43 — trading 50.8% above its estimated fair value. The current Cash Flow from Operations is $517 Mil. GDS Holdings' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Flow from Operations calculated?
Cash Flow from Operations is calculated from a company's financial statements. For GDS Holdings (GDS), the current Cash Flow from Operations is $517 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GDS Holdings (GDS) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of $34.43 is trading 50.8% above its estimated GF Value™ of $22.83.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for GDS:
Cash Flow from Operations: $517 Mil
GF Value™: $22.83 vs. price of $34.43 (50.8% above fair value)
No single metric tells the full story. See the GDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
64GF Score
Get the complete analysis for GDS
Cash Flow from Operations is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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