Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Adobe Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Nov 28, 2025	Nov 29, 2024	Dec 1, 2023	Dec 2, 2022	Dec 3, 2021	Nov 27, 2020
Net income	7,130)	5,560)	5,428)	4,756)	4,822)	5,260)
Depreciation, amortization and accretion	818)	857)	872)	856)	788)	757)
Stock-based compensation	1,942)	1,833)	1,718)	1,440)	1,069)	909)
Lease-related asset impairments	—)	78)	—)	—)	—)	—)
Deferred income taxes	(512)	(468)	(426)	328)	183)	(1,501)
Other non-cash items	48)	52)	65)	122)	76)	116)
Trade receivables, net	(275)	143)	(159)	(198)	(430)	106)
Prepaid expenses and other assets	(90)	(616)	(818)	(94)	(475)	(288)
Trade payables	64)	44)	(49)	66)	(20)	96)
Accrued expenses and other liabilities	180)	196)	146)	7)	162)	86)
Income taxes payable	(45)	68)	(11)	19)	2)	(72)
Deferred revenue	771)	309)	536)	536)	1,053)	258)
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities	605)	144)	(355)	336)	292)	186)
Adjustments to reconcile net income to net cash provided by operating activities	2,901)	2,496)	1,874)	3,082)	2,408)	467)
Net cash provided by operating activities	10,031)	8,056)	7,302)	7,838)	7,230)	5,727)
Purchases of short-term investments	(2,034)	(59)	—)	(909)	(1,533)	(1,071)
Maturities of short-term investments	1,168)	486)	965)	683)	877)	915)
Proceeds from sales of short-term investments	6)	11)	223)	270)	191)	167)
Acquisitions, net of cash acquired	(17)	—)	—)	(126)	(2,682)	—)
Purchases of property and equipment	(179)	(183)	(360)	(442)	(348)	(419)
Purchases of long-term investments, intangibles and other assets	(134)	(108)	(53)	(46)	(42)	(15)
Other investing activities, net	3)	2)	1)	—)	—)	9)
Net cash (used for) provided by investing activities	(1,187)	149)	776)	(570)	(3,537)	(414)
Repurchases of common stock	(11,281)	(9,500)	(4,400)	(6,550)	(3,950)	(3,050)
Proceeds from re-issuance of treasury stock	348)	361)	314)	278)	291)	270)
Taxes paid related to net share settlement of equity awards	(475)	(677)	(589)	(518)	(719)	(681)
Proceeds from issuance of debt	1,997)	1,997)	—)	—)	—)	3,144)
Repayment of debt	(1,500)	—)	(500)	—)	—)	(3,150)
Other financing activities, net	(149)	95)	(7)	(35)	77)	(21)
Net cash used for financing activities	(11,060)	(7,724)	(5,182)	(6,825)	(4,301)	(3,488)
Effect of foreign currency exchange rates on cash and cash equivalents	34)	(9)	9)	(51)	(26)	3)
Net change in cash and cash equivalents	(2,182)	472)	2,905)	392)	(634)	1,828)
Cash and cash equivalents at beginning of year	7,613)	7,141)	4,236)	3,844)	4,478)	2,650)
Cash and cash equivalents at end of year	5,431)	7,613)	7,141)	4,236)	3,844)	4,478)

Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).

The company demonstrates a generally positive trend in net income over the observed period, increasing from US$5.260 billion in 2020 to US$7.130 billion in 2025. However, operating cash flow exhibits fluctuations, while investing and financing activities show significant variability. A detailed examination of these trends is presented below.

Operating Activities: Net cash provided by operating activities increased from US$5.727 billion in 2020 to US$10.031 billion in 2025, although not consistently. Adjustments to reconcile net income to net cash from operations were substantial, peaking at US$3.082 billion in 2022, and contributing significantly to the overall cash flow. Changes in operating assets and liabilities were also a notable factor, with a particularly large negative impact in 2023 (-US$355 million) and a positive impact in 2025 (US$605 million). Trade receivables and prepaid expenses show considerable fluctuation, often negatively impacting cash flow.
Investing Activities: Net cash used in investing activities varied considerably. 2021 saw a large outflow of US$3.537 billion, largely due to acquisitions. 2022 and 2025 also showed significant cash outflows, primarily driven by acquisitions and purchases of long-term investments. 2023, however, provided a net cash inflow of US$776 million, likely due to maturities of short-term investments. Purchases of property and equipment remained relatively consistent, ranging from US$348 million to US$442 million annually.
Financing Activities: Financing activities consistently resulted in net cash outflows. Repurchases of common stock were a major driver of these outflows, increasing from US$3.050 billion in 2020 to US$11.281 billion in 2025. Proceeds from the issuance of debt provided some offset in 2020 and 2024, but were followed by substantial repayments in 2020 and 2025. Taxes paid related to net share settlement of equity awards also contributed to the outflows, remaining consistently high throughout the period.
Cash Position: The company’s cash and cash equivalents increased from US$2.650 billion in 2020 to US$7.613 billion in 2024, but decreased to US$5.431 billion in 2025. The net change in cash and cash equivalents mirrored these trends, with a significant decrease in 2025 (-US$2.182 billion) despite positive net income.
Non-Cash Items: Depreciation, amortization, and accretion remained relatively stable, ranging from US$757 million to US$872 million. Stock-based compensation increased steadily throughout the period, from US$909 million in 2020 to US$1.942 billion in 2025. Deferred income taxes exhibited volatility, with both positive and negative impacts on cash flow. Other non-cash items were consistently positive, but relatively small in comparison to other adjustments.

Overall, the company generated substantial cash from operations, but this was offset by significant investments in acquisitions, share repurchases, and debt management. The increasing trend in stock-based compensation and the fluctuating impact of deferred income taxes are also noteworthy. The decrease in cash and cash equivalents in 2025, despite increased net income, warrants further investigation.

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Adobe Inc. (NASDAQ:ADBE)

Cash Flow Statement