Name: KLA Corp. (NASDAQ:KLAC) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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KLA Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	4,830,771)	4,061,643)	2,761,896)	3,387,351)	3,322,060)	2,077,353)
Impairment of goodwill and purchased intangible assets	—)	239,100)	289,474)	9,905)	5,962)	842)
Depreciation and amortization	393,978)	394,088)	401,730)	415,113)	363,344)	333,335)
Loss on extinguishment of debt	—)	—)	—)	13,286)	—)	—)
Unrealized foreign exchange (gain) loss and other	6,725)	14,974)	(12,533)	(17,825)	46,531)	(19,441)
Asset impairment charges	—)	—)	11,307)	—)	—)	—)
Disposal of non-controlling interest	—)	—)	—)	8,270)	—)	—)
Stock-based compensation expense	310,171)	265,011)	212,695)	171,424)	126,918)	111,836)
Net gain on sale of assets	(683)	(161)	—)	—)	—)	—)
Gain on sale of business	—)	—)	—)	(29,687)	—)	(4,422)
Deferred income taxes	77,795)	(246,577)	(155,228)	(298,145)	(329,501)	(44,445)
Gain on fair value adjustment of marketable equity securities	—)	—)	—)	—)	—)	(26,719)
Settlement of treasury lock agreement	—)	—)	415)	—)	82,799)	—)
Accounts receivable	(641,824)	(367,897)	(80,894)	(48,534)	(510,326)	(203,155)
Inventories	(465,963)	(155,170)	(164,092)	(749,047)	(567,003)	(270,100)
Other assets	(501,420)	(10,459)	(289,509)	(121,018)	(217,070)	(96,218)
Accounts payable	172,357)	33,789)	24,976)	(144,661)	101,632)	79,366)
Deferred system revenue	116,071)	(169,027)	334,136)	150,750)	213,368)	(44,674)
Deferred service revenue	(54,617)	100,460)	203,106)	88,223)	129,718)	45,845)
Other liabilities	(100,282)	(77,871)	(228,904)	834,400)	544,270)	245,623)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions	(1,475,678)	(646,175)	(201,181)	10,113)	(305,411)	(243,313)
Adjustments to reconcile net income to net cash provided by operating activities	(687,692)	20,260)	546,679)	282,454)	(9,358)	107,673)
Net cash provided by operating activities	4,143,079)	4,081,903)	3,308,575)	3,669,805)	3,312,702)	2,185,026)
Net proceeds from sale of business	—)	—)	—)	75,358)	—)	16,833)
Business acquisitions, net of cash acquired	—)	—)	(3,682)	(27,144)	(479,113)	—)
Capital expenditures	(375,945)	(335,259)	(277,384)	(341,591)	(307,320)	(231,628)
Proceeds from capital-related government assistance	16,782)	6,263)	—)	—)	—)	—)
Purchases of available-for-sale and equity securities	(3,711,093)	(2,772,578)	(2,756,987)	(1,441,933)	(987,660)	(1,018,744)
Proceeds from maturity and sale of available-for-sale securities	2,894,046)	2,915,435)	1,567,637)	1,258,802)	874,086)	727,212)
Purchases of trading securities	(264,960)	(118,288)	(134,098)	(96,611)	(121,254)	(107,867)
Proceeds from sale of trading securities	248,624)	105,751)	121,020)	89,528)	116,350)	111,321)
Other, net	2,451)	(3,805)	6,509)	1,020)	28,453)	2,469)
Net cash used in investing activities	(1,190,095)	(202,481)	(1,476,985)	(482,571)	(876,458)	(500,404)
Payment of debt issuance costs	(1,602)	—)	—)	(6,515)	—)	—)
Proceeds from issuance of debt, net of issuance costs	—)	—)	735,043)	—)	2,967,409)	40,343)
Proceeds from revolving credit facility, net of costs	—)	—)	—)	300,000)	875,000)	—)
Repayment of debt	—)	(750,000)	—)	(1,087,250)	(620,000)	(70,000)
Common stock repurchases	(2,289,769)	(2,149,946)	(1,735,746)	(1,311,864)	(3,967,806)	(938,607)
Forward contract for accelerated share repurchases	—)	—)	—)	—)	(900,000)	—)
Payment of dividends to stockholders	(1,057,832)	(904,594)	(773,041)	(732,556)	(638,528)	(559,353)
Payment of dividends to subsidiary’s non-controlling interest holders	—)	—)	—)	—)	(602)	—)
Issuance of common stock	168,573)	151,514)	144,934)	124,847)	113,014)	86,098)
Tax withholding payments related to vested and released restricted stock units	(204,976)	(132,661)	(143,024)	(94,806)	(84,371)	(56,362)
Contingent consideration payable and other, net	—)	—)	(4,183)	(17,850)	(1,121)	—)
Purchase of non-controlling interest	—)	—)	—)	(4,295)	—)	—)
Net cash used in financing activities	(3,385,606)	(3,785,687)	(1,776,017)	(2,830,289)	(2,257,005)	(1,497,881)
Effect of exchange rate changes on cash and cash equivalents	3,556)	8,044)	(6,309)	(13,988)	(28,941)	13,460)
Net increase (decrease) in cash and cash equivalents	(429,066)	101,779)	49,264)	342,957)	150,298)	200,201)
Cash and cash equivalents at beginning of period	2,078,908)	1,977,129)	1,927,865)	1,584,908)	1,434,610)	1,234,409)
Cash and cash equivalents at end of period	1,649,842)	2,078,908)	1,977,129)	1,927,865)	1,584,908)	1,434,610)

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

The cash flow profile demonstrates a strong capacity for generating operating cash, which is consistently utilized to fund capital expenditures and aggressive shareholder return programs. While net income exhibited a general upward trajectory from 2021 to 2026, reaching 4.83 billion, operating cash flows showed a more stable growth pattern, peaking at 4.14 billion in 2026.

Operating Cash Flow Dynamics: Net cash provided by operating activities grew from 2.18 billion in 2021 to 4.14 billion in 2026. This growth was supported by rising net income and consistent non-cash adjustments. Stock-based compensation expense showed a steady increase, rising from 111.8 million in 2021 to 310.2 million in 2026, which serves as a significant non-cash add-back to operating cash. Working capital requirements remained volatile, with substantial fluctuations in accounts receivable and inventories, particularly in 2022 and 2026, indicating cyclicality in asset management.
Investing Activities and Capital Allocation: Investing activities were characterized by a combination of steady capital investment and active portfolio management of marketable securities. Capital expenditures increased progressively from 231.6 million in 2021 to 375.9 million in 2026, reflecting a long-term commitment to infrastructure and capacity expansion. The organization maintained high liquidity through the frequent purchase and sale of available-for-sale securities, with purchases peaking at 3.71 billion in 2026, offset by significant proceeds from maturities and sales.
Financing Activities and Shareholder Returns: Financing activities were dominated by significant outflows directed toward shareholders. Common stock repurchases were a primary driver of cash usage, peaking at 3.97 billion in 2022 and remaining above 2 billion annually in 2025 and 2026. Simultaneously, dividend payments to stockholders increased every year, growing from 559.4 million in 2021 to 1.06 billion in 2026. Debt management varied, with a massive issuance of debt in 2022 (2.97 billion) used to support these returns, followed by periodic repayments, including a 750 million repayment in 2025.
Liquidity and Cash Position: The ending cash and cash equivalents balance grew from 1.43 billion in 2021 to a peak of 2.08 billion in 2025. However, a reversal occurred in 2026, where the balance decreased to 1.65 billion. This decline was primarily driven by a substantial increase in net cash used in financing activities and a higher volume of security purchases, despite the strong operating cash flow generated during the period.

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