Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Cash Flow Statement 
Quarterly Data

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 (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Aug 29, 2025 May 30, 2025 Feb 28, 2025 Nov 29, 2024 Aug 30, 2024 May 31, 2024 Mar 1, 2024 Dec 1, 2023 Sep 1, 2023 Jun 2, 2023 Mar 3, 2023 Dec 2, 2022 Sep 2, 2022 Jun 3, 2022 Mar 4, 2022 Dec 3, 2021 Sep 3, 2021 Jun 4, 2021 Mar 5, 2021 Nov 27, 2020 Aug 28, 2020 May 29, 2020 Feb 28, 2020 Nov 29, 2019 Aug 30, 2019 May 31, 2019 Mar 1, 2019
Net income 1,772 1,691 1,811 1,683 1,684 1,573 620 1,483 1,403 1,295 1,247 1,176 1,136 1,178 1,266 1,233 1,212 1,116 1,261 2,250 955 1,100 955 852 793 633 674
Depreciation, amortization and accretion 208 209 217 218 213 214 212 222 218 220 212 215 216 212 213 205 193 194 196 190 191 188 188 296 151 146 145
Stock-based compensation 497 481 475 441 474 467 451 427 442 433 416 388 378 352 322 269 280 260 260 233 232 227 217 203 196 204 185
Reduction of operating lease right-of-use assets 21 19 19 18 18 18 15 21 20 21 20 22 20 20 14 19 22 23 21 21
Lease-related asset impairments 78
Deferred income taxes (103) (119) (169) (127) (103) (122) (116) (150) (108) (119) (49) 46 85 68 129 63 (90) 93 117 (1,217) (19) (172) (93) 4 9 8 (19)
Unrealized (gains) losses on investments, net (11) (10) (1) (13) (3) (5) (5) 3 (4) 6 10 17 7 (4) (7) (7) (9) (1) 6 (4) (3) 2 (42)
Other non-cash items 2 18 17 1 3 5 1 3 3 2 (5) 2 6 2 4 (2) 3 2 3 21 14 2 11 1 1 1
Trade receivables, net (359) 237 97 (271) (190) 438 166 (376) (168) 116 269 (344) (141) 96 191 (325) (66) 43 (82) (81) 32 10 145 (174) (100) 21 65
Prepaid expenses and other assets 64 (65) (156) 183 (158) (468) (173) (31) (225) (304) (258) 39 7 47 (187) (52) (165) (16) (242) (7) 22 (106) (197) (241) (147) (35) (107)
Trade payables (30) 35 (28) 42 (43) 57 (12) (2) (18) 26 (55) 55 (49) 54 6 (38) 19 58 (59) 77 (61) 25 55 23 18 24 (41)
Accrued expenses and other liabilities (103) 286 (378) 358 (117) 287 (332) 299 (117) 287 (323) 244 (50) 202 (389) 209 (134) 287 (200) 101 43 40 (98) 119 (64) 136 (20)
Income taxes payable 50 (426) 365 (48) 29 (105) 192 (760) 328 269 152 17 22 (56) 36 (11) 39 (55) 29 (92) 18 (8) 10 43 (51) 6 6
Deferred revenue 200 (156) 231 353 220 (424) 160 467 102 (96) 63 471 67 (143) 141 482 102 (2) 471 310 (12) (154) 114 245 122 (36) 166
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities (178) (89) 131 617 (259) (215) 1 (403) (98) 298 (152) 482 (144) 200 (202) 265 (205) 315 (83) 308 42 (193) 29 14 (222) 116 69
Adjustments to reconcile net income to net cash provided by operating activities 426 500 671 1,238 337 367 554 114 470 844 446 1,149 568 862 503 833 192 872 511 (468) 481 84 370 525 130 477 339
Net cash provided by operating activities 2,198 2,191 2,482 2,921 2,021 1,940 1,174 1,597 1,873 2,139 1,693 2,325 1,704 2,040 1,769 2,066 1,404 1,988 1,772 1,782 1,436 1,184 1,325 1,376 923 1,109 1,013
Purchases of short-term investments (609) (209) (533) (59) (206) (179) (236) (288) (652) (242) (350) (289) (307) (501) (50) (213) (327) (234) (139)
Maturities of short-term investments 439 112 130 107 84 160 135 211 216 284 254 186 148 141 208 176 180 275 246 241 257 182 235 222 157 224 96
Proceeds from sales of short-term investments 1 1 2 2 2 3 4 8 20 162 33 49 62 105 54 53 34 65 39 44 53 44 26 20 37 16 14
Acquisitions, net of cash acquired (17) (20) (106) (1,212) (1,470) (1) (100)
Purchases of property and equipment (72) (47) (26) (48) (57) (41) (37) (47) (91) (121) (101) (91) (125) (126) (100) (99) (95) (95) (59) (103) (126) (96) (94) (94) (90) (145) (65)
Purchases of long-term investments, intangibles and other assets (21) (136) (59) 17 (76) (11) (38) (19) (4) (30) (7) (9) (2) (28) (5) (10) (2) (25) (7) (2) (4) (2) 11 (36) 54 (78)
Proceeds from sale of long-term investments and other assets 1 2 2 1 1 4 4 1 1
Net cash (used for) provided by investing activities (279) (278) (484) 19 (47) 111 66 153 145 322 156 (69) (103) (138) (260) (1,739) (133) (107) (1,558) (131) (315) 80 (48) (168) (165) 10 (132)
Repurchases of common stock (2,057) (3,500) (3,250) (2,500) (2,500) (2,500) (2,000) (1,000) (1,000) (1,000) (1,400) (1,750) (1,200) (1,200) (2,400) (1,000) (1,000) (1,000) (950) (850) (500) (850) (850) (750) (750) (750) (500)
Proceeds from re-issuance of treasury stock 252 96 264 97 244 1 69 187 91 1 203 87 181 1 88 1 158 2 72
Taxes paid related to net share settlement of equity awards (110) (112) (159) (152) (168) (135) (222) (202) (120) (103) (164) (67) (84) (101) (266) (117) (122) (89) (391) (82) (78) (54) (467) (28) (35) (24) (353)
Proceeds from issuance of debt 1,997 1,997 3,144
Repayment of debt (1,500) (500) (3,150)
Other financing activities, net 39 (176) (25) 151 (49) (4) (3) (15) 5 22 (19) (94) 37 51 (29) 38 20 9 10 (8) (17) 2 2 12 3 (3)
Net cash used for financing activities (1,876) (3,788) (2,841) (2,501) (2,453) (642) (2,128) (1,217) (871) (1,080) (2,014) (1,911) (1,060) (1,250) (2,604) (1,078) (899) (1,080) (1,244) (940) (414) (901) (1,233) (766) (624) (772) (784)
Effect of foreign currency exchange rates on cash and cash equivalents 8 48 (12) (19) 12 (3) 1 7 (2) 3 1 21 (36) (26) (10) (28) 1 (3) 4 16 (7) (6) (1) (7) (3) (2)
Net change in cash and cash equivalents 51 (1,827) (855) 420 (467) 1,406 (887) 540 1,145 1,384 (164) 366 505 626 (1,105) (779) 373 798 (1,026) 711 723 356 38 441 126 344 96

Based on: 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), 10-K (reporting date: 2019-11-29), 10-Q (reporting date: 2019-08-30), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-03-01).


Net Income
The net income exhibited fluctuations over the periods with an overall increasing trend until the end of 2023, reaching a peak of 1,483 million USD in December 2023. However, there was a significant dip to 620 million USD in March 2024 before rebounding to 1,772 million USD by August 2025, indicating variability possibly due to extraordinary events or market conditions.
Depreciation, Amortization, and Accretion
These expense components remained relatively stable across the periods, oscillating narrowly between approximately 145 million to 222 million USD, suggesting consistent investment in fixed assets and intangible asset amortization.
Stock-based Compensation
Stock-based compensation demonstrated a steady increase, rising from 185 million USD in early 2019 to 497 million USD by August 2025, reflecting increasing employee compensation expense or equity incentives.
Operating Lease Right-of-Use Assets Reduction and Lease-related Asset Impairments
Reductions in operating lease right-of-use assets were present intermittently from early 2020 onward with minor fluctuations around 15 to 23 million USD, while lease-related impairments appeared isolated, notably with a 78 million USD charge in August 2024, indicating occasional adjustments in lease asset valuation.
Deferred Income Taxes
Deferred income taxes showed high volatility, with both positive and negative values, including a notable large negative figure of -1,217 million USD in November 2019. This suggests complex tax timing differences and potential impacts from tax legislation or accounting changes.
Unrealized Gains and Losses on Investments, Net
Fluctuations were relatively minor, with values mostly ranging between -13 million and 17 million USD, representing minor periodic adjustments in investment valuation without significant impact.
Other Non-Cash Items
These items exhibited inconsistency throughout the periods with values varying between -5 million and 21 million USD, indicating varying non-recurring or miscellaneous adjustments.
Working Capital Components (Trade Receivables, Prepaid Expenses, Trade Payables, Accrued Expenses, Income Taxes Payable, Deferred Revenue)
Trade receivables and prepaid expenses showed volatility with sharp changes including negative and positive swings, indicative of fluctuating collections and prepayments. Trade payables and accrued expenses also demonstrated irregular movements with both positive and negative changes, suggesting fluctuating obligations management. Income taxes payable showed notable fluctuations, including large positive values (e.g., 328 million USD in September 2023) followed by steep negative values, highlighting variations in tax liabilities timing. Deferred revenue values presented sharp positive and negative changes, indicating variable recognition of unearned revenue potentially linked to product or service releases.
Operating Assets and Liabilities Adjustments
Net changes in operating assets and liabilities were highly volatile, fluctuating between negative and positive extremes, reflecting changes in the company's operating cycle and cash flow timing.
Adjustments to Reconcile Net Income to Operating Cash Flows
These adjustments varied widely, with some quarters showing substantial increases (up to 1,238 million USD), implying fluctuations in non-cash expenses and working capital changes affecting cash from operations.
Net Cash Provided by Operating Activities
Operating cash flow generally trended upward, rising from 1,013 million USD in early 2019 to peaks exceeding 2,900 million USD in late 2024, reflecting strong operational cash generation despite periodic fluctuations.
Investing Activities
The company had significant variations in cash flows from investing activities, with major negative cash uses including acquisitions (notably -1,470 million USD in November 2020 and -1,212 million USD in December 2021) and property and equipment purchases. Short-term investment purchases and maturities fluctuated while purchases of long-term assets were modest. Overall, investing cash flows ranged widely with notable large negative outflows in quarters involving substantial acquisitions.
Financing Activities
Repurchases of common stock increased substantially, reaching a zenith of -3,500 million USD by mid-2024, indicating aggressive share buyback programs. Proceeds from treasury stock reissuance and debt issuances appeared intermittently, with debt issuance spikes (up to 3,144 million USD) balanced by repayments of similar magnitude. Taxes paid relating to equity awards and other financing activities also fluctuated, contributing to overall volatile financing cash flows, with net cash used in financing activities generally negative and sizable.
Cash and Cash Equivalents Changes
The net changes in cash and equivalents fluctuated markedly, with positive surges such as 1,384 million USD in June 2023 contrasted by substantial negative movements including -1,827 million USD in May 2024. These swings mirror the combined effects of operating performance, investing outlays, and financing activities.
Overall Summary
The company demonstrated strong operating cash flow growth amid fluctuating net income with periodic volatility affected by unusual items and acquisitions. Investment activities were characterized by significant acquisition-driven cash outflows and capital expenditure investments, while financing activities reflected sustained stock repurchases and active debt management. The variability in working capital components and deferred tax positions signifies complex operational and tax environments, requiring careful ongoing management to optimize cash flows and balance sheet strength.