Tencent Holdings ADR experienced a nearly 4% decline during early trading hours. The tech giant reported a revenue of RMB 204.79 billion for the second quarter of 2026, marking an 11% year-on-year increase. However, the company also posted a negative free cash flow of RMB 13.8 billion for the quarter, a situation primarily attributed to a substantial rise in capital expenditures. It's worth noting that if we exclude the prepayments made for computing power acquisitions, the free cash flow would actually stand at a positive RMB 37.6 billion, offering a more nuanced perspective on the company's financial health.