Tencent reported a negative free cash flow of 13.8B yuan for Q2 2026, as net operating cash (52.7B yuan) was offset by capital expenditures (59.3B yuan), media content payments (5.0B yuan), and lease liabilities (2.2B yuan).

Operating cash flow was impacted by heavy AI advance payments to build infrastructure for Hy model upgrades, WorkBuddy, CodeBuddy, WeChat AI, and Tencent Cloud.

Excluding compute prepayments, Tencent's adjusted free cash flow reached 37.6B yuan.