Summarize For instance, in the first few years of operation of a startup or company undertaking a new project, free cash flow may be negative. This event will largely be due to high fixed assets and high working capital needed to support the operations. These high costs might increase the cash outflows from current operations. However, this situation is viewed optimistically by investors only when the investment in new assets would cause positive cash inflows in the future and eventually turn out to be profitable. So, yes, a company to report negative free cash flow, and such negative free cash flow can be viewed optimistically by investors