Common-Size Income Statement
Quarterly Data
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
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Adobe Inc., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2025-11-28), 10-Q (reporting date: 2025-08-29), 10-Q (reporting date: 2025-05-30), 10-Q (reporting date: 2025-02-28), 10-K (reporting date: 2024-11-29), 10-Q (reporting date: 2024-08-30), 10-Q (reporting date: 2024-05-31), 10-Q (reporting date: 2024-03-01), 10-K (reporting date: 2023-12-01), 10-Q (reporting date: 2023-09-01), 10-Q (reporting date: 2023-06-02), 10-Q (reporting date: 2023-03-03), 10-K (reporting date: 2022-12-02), 10-Q (reporting date: 2022-09-02), 10-Q (reporting date: 2022-06-03), 10-Q (reporting date: 2022-03-04), 10-K (reporting date: 2021-12-03), 10-Q (reporting date: 2021-09-03), 10-Q (reporting date: 2021-06-04), 10-Q (reporting date: 2021-03-05), 10-K (reporting date: 2020-11-27), 10-Q (reporting date: 2020-08-28), 10-Q (reporting date: 2020-05-29), 10-Q (reporting date: 2020-02-28).
The common-size income statement reveals a significant evolution in revenue composition and profitability over the analyzed period. A consistent and substantial increase in the proportion of revenue derived from subscriptions is observed, rising from 88.39% in February 2020 to 96.71% in August 2025. Conversely, the contribution from product sales and services & other revenue consistently decreased over the same timeframe.
Gross profit as a percentage of revenue demonstrates relative stability, fluctuating between approximately 85% and 89% throughout the period. However, operating expenses exhibit a more complex pattern, initially decreasing before a notable spike in late 2023, driven primarily by a large acquisition termination fee. This resulted in a temporary dip in operating income.
- Revenue Composition
- Subscription revenue consistently dominates, increasing from 88.39% to 96.71% of total revenue. Product revenue declines from 4.63% to 1.14%, and services & other revenue decreases from 6.99% to 2.11%. This indicates a strategic shift towards a subscription-based business model.
- Profitability
- Gross profit percentage remains relatively stable, ranging from 85.38% to 89.76%. Operating income percentage shows more volatility, peaking at 37.23% in March 2021 before a significant drop in December 2023 due to the acquisition termination fee, and recovering to 36.50% in November 2025.
- Expense Management
- Operating expenses as a percentage of revenue initially decrease, reaching a low of 52.02% in August 2020, but then increase substantially in December 2023 to 71.11% due to the acquisition termination fee. Excluding this outlier, operating expenses generally remain within a range of 51% to 55%. Research and development and sales & marketing expenses are consistently the largest components of operating expenses, both remaining relatively stable as a percentage of revenue.
- Tax Rate
- The effective tax rate, represented by (Provision for) benefit from income taxes as a percentage of revenue, fluctuates significantly. It shows a large benefit in February 2020 (negative value) and a substantial provision in November 2020. The rate stabilizes in the 6-8% range for most periods, with some fluctuations.
- Net Income
- Net income as a percentage of revenue mirrors the trends in operating income, with a significant decrease in December 2023 due to the acquisition termination fee. Overall, net income percentage remains relatively strong, generally between 25% and 35%, excluding the outlier period.
Non-operating income (expense) demonstrates increasing positive contributions over time, particularly from other income (expense), net, which rises from 0.58% to 1.65% of revenue. Interest expense remains relatively consistent as a percentage of revenue, with a slight increase towards the end of the period. The overall trend suggests a strengthening financial position, driven by the successful transition to a subscription model, despite occasional fluctuations caused by non-recurring items like the acquisition termination fee.