Do You Like Cash? Consider Uber Stock
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Uber Technologies (UBER) stock offers a free cash flow yield of 7.2%, compared with 4.4% for the median S&P 500 company, providing a lot of cash for the price. That offer comes after a hard year: the shares lost 25.3% over the twelve months to October 20, 2026, while the S&P 500 returned 17.1%. Such a high yield usually marks either a bargain or a company investors expect to get smaller. So which of those is Uber?
Uber’s Free Cash Flow Keeps Growing
Uber looks like the bargain because the cash it generates continues to rise. Shareholders own a slice of that free cash whether or not Uber pays it out, just as they own a slice of its profit. Share prices can follow when investors recognize that cash. Uber stock has not yet made that move, falling 25.3% over the past year while its twelve-month free cash flow kept rising.
Mobility, Uber’s ride business, brought in $29.7 billion of revenue in fiscal 2025, and Delivery stood as the next largest segment. Overall revenue reached $55.2 billion over the twelve months to June 30, 2026, up 16.7% from a year earlier. Uber also keeps more of each sale. The company recorded an operating margin of 12.1% over that period, compared with 5.0% two years earlier.
The business needs little spending to keep running. Capital spending consumed only 3.0% of cash from operations, leaving almost all of that money as free cash flow. Free cash flow reached $10.1 billion over the last twelve months, up from $4.75 billion two years earlier, and that twelve-month figure has risen at every quarter end over the past three years. Uber has debt to serve, but its operating income covered its interest expense 14.5 times over the last twelve months.
When Uber Technologies is a large share of what you own, your plan leans on one company’s cash flow. See how to protect a concentrated position.
Uber Is Spending On Delivery Hero And Autonomous Vehicles
Uber is putting large sums into a deal and autonomous vehicles, and a holder may worry more about that spending than about the business itself. Management said Uber deployed about $4 billion in the second quarter of 2026, largely on market purchases of Delivery Hero stock. That single quarter’s outlay equals about 40% of the free cash flow Uber generated over the last twelve months.
Management has also described $10 billion of investment in autonomous vehicles over a multiyear period. Those vehicles still account for less than 0.5% of Uber’s trips, management said on the August 5, 2026 call, adding that the company does not want to depend on one partner.
Over the year to June 30, 2026, total debt rose to $14.7 billion from $12.3 billion. Cash and short-term investments fell to $5.39 billion from $7.37 billion. Uber also spent $6.9 billion buying back its own shares over those twelve months. Only one segment has shrunk: Freight, the smallest, saw its revenue slip 0.8% in fiscal 2025 after a 2.0% fall the year before. So the doubt is about how Uber uses its cash, not whether the business makes it.
What Uber Holders Should Watch In November
Uber holders should watch whether the cash keeps growing and whether the company can keep carrying its debt. Management guided gross bookings of $58.3 billion to $60.3 billion for the third quarter of 2026, against more than $58 billion in the second quarter. That guide is a forecast, not a result.
So far, Uber looks like a company growing its free cash flow rather than one in decline. Twelve-month free cash flow and total debt are the two figures to watch when Uber reports, expected on or around November 4, 2026.
Is Too Much Of Your Wealth Riding On One Stock?
Uber Technologies holders are counting on its cash flow to hold up. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax.
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