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.

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	—)	—)	—)	(6,515)	—)	—)
Proceeds from issuance of debt, net of issuance costs	(1,602)	—)	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 operational capacity to generate liquidity, which is primarily utilized to fund aggressive shareholder return programs and strategic investments in securities. While net income exhibits an overall upward trajectory, reaching 4.83 billion USD in 2026, the net cash provided by operating activities shows a more steady climb from 2.19 billion USD in 2021 to 4.14 billion USD in 2026.

Operating Cash Flow Dynamics: Cash generation from operations is consistently robust, supported by significant non-cash adjustments. Stock-based compensation expenses have trended upward, rising from 111.8 million USD in 2021 to 310.2 million USD in 2026. Depreciation and amortization remained relatively stable, fluctuating between 333 million USD and 415 million USD throughout the period. A notable volatility is observed in working capital, particularly in 2026, where substantial cash outflows were recorded for accounts receivable (641.8 million USD) and inventories (466 million USD), indicating an increase in operational asset requirements.
Investing Activities and Asset Management: Investing activities are characterized by a dual focus on capital expenditures and the management of a large securities portfolio. Capital expenditures have increased progressively from 231.6 million USD in 2021 to 375.9 million USD in 2026, reflecting ongoing investment in productive capacity. The company maintains a high volume of turnover in available-for-sale securities, with purchases peaking at 3.71 billion USD in 2026, largely offset by proceeds from maturities and sales totaling 2.89 billion USD in the same year.
Financing Strategy and Capital Distribution: The company employs an aggressive capital return strategy, resulting in consistent net cash outflows from financing activities. Common stock repurchases represent a primary use of cash, with a significant peak of 3.97 billion USD in 2022 and sustained outflows exceeding 2 billion USD annually in 2025 and 2026. Dividend payments to stockholders have scaled linearly from 559.4 million USD in 2021 to 1.06 billion USD in 2026. Debt management has been opportunistic, with a large issuance of 2.97 billion USD in 2022 followed by periodic repayments, including 1.09 billion USD in 2023 and 750 million USD in 2025.
Liquidity and Cash Position: The net increase or decrease in cash is the result of a balance between strong operating inflows and heavy financing outflows. Cash and cash equivalents grew from 1.43 billion USD in 2021 to a peak of 2.08 billion USD in 2025, before declining to 1.65 billion USD in 2026. This final decrease is attributable to the combination of intensified share repurchases and a significant increase in working capital absorption during the 2026 fiscal year.

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KLA Corp. (NASDAQ:KLAC)

Cash Flow Statement