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, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	4,061,643)	2,761,896)	3,387,351)	3,322,060)	2,077,353)	1,215,025)
Impairment of goodwill and purchased intangible assets	239,100)	289,474)	9,905)	5,962)	842)	269,990)
Depreciation and amortization	394,088)	401,730)	415,113)	363,344)	333,335)	348,049)
Loss on extinguishment of debt	—)	—)	13,286)	—)	—)	22,538)
Unrealized foreign exchange (gain) loss and other	14,974)	(12,533)	(17,825)	46,531)	(19,441)	13,860)
Asset impairment charges	—)	11,307)	—)	—)	—)	—)
Disposal of non-controlling interest	—)	—)	8,270)	—)	—)	—)
Stock-based compensation expense	265,011)	212,695)	171,424)	126,918)	111,836)	111,381)
Net gain on sale of assets	(161)	—)	—)	—)	—)	—)
Gain on sale of business	—)	—)	(29,687)	—)	(4,422)	—)
Deferred income taxes	(246,577)	(155,228)	(298,145)	(329,501)	(44,445)	(93,110)
Gain on fair value adjustment of marketable equity securities	—)	—)	—)	—)	(26,719)	—)
Settlement of treasury lock agreement	—)	415)	—)	82,799)	—)	(21,518)
Accounts receivable	(367,897)	(80,894)	(48,534)	(510,326)	(203,155)	(118,362)
Inventories	(155,170)	(164,092)	(749,047)	(567,003)	(270,100)	(74,817)
Other assets	(10,459)	(289,509)	(121,018)	(217,070)	(96,218)	(11,147)
Accounts payable	33,789)	24,976)	(144,661)	101,632)	79,366)	61,144)
Deferred system revenue	(169,027)	334,136)	150,750)	213,368)	(44,674)	57,687)
Deferred service revenue	100,460)	203,106)	88,223)	129,718)	45,845)	22,779)
Other liabilities	(77,871)	(228,904)	834,400)	544,270)	245,623)	(24,649)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions	(646,175)	(201,181)	10,113)	(305,411)	(243,313)	(87,365)
Adjustments to reconcile net income to net cash provided by operating activities	20,260)	546,679)	282,454)	(9,358)	107,673)	563,825)
Net cash provided by operating activities	4,081,903)	3,308,575)	3,669,805)	3,312,702)	2,185,026)	1,778,850)
Proceeds from sale of assets	161)	5,079)	—)	27,658)	1,855)	—)
Net proceeds from sale of business	—)	—)	75,358)	—)	16,833)	—)
Business acquisitions, net of cash acquired	—)	(3,682)	(27,144)	(479,113)	—)	(90,143)
Acquisition of intellectual property	(4,950)	—)	—)	—)	—)	—)
Capital expenditures	(335,259)	(277,384)	(341,591)	(307,320)	(231,628)	(152,675)
Proceeds from capital-related government assistance	6,263)	—)	—)	—)	—)	—)
Purchases of available-for-sale and equity securities	(2,772,578)	(2,756,987)	(1,441,933)	(987,660)	(1,018,744)	(798,493)
Proceeds from sale of available-for-sale securities	459,620)	107,773)	124,620)	113,538)	145,533)	148,969)
Proceeds from maturity of available-for-sale securities	2,455,815)	1,459,864)	1,134,182)	760,548)	581,679)	626,943)
Purchases of trading securities	(118,288)	(134,098)	(96,611)	(121,254)	(107,867)	(110,241)
Proceeds from sale of trading securities	105,751)	121,020)	89,528)	116,350)	111,321)	115,680)
Proceeds from other investments	984)	1,430)	1,020)	795)	614)	1,086)
Net cash used in investing activities	(202,481)	(1,476,985)	(482,571)	(876,458)	(500,404)	(258,874)
Payment of debt issuance costs	—)	—)	(6,515)	—)	—)	—)
Proceeds from issuance of debt, net of issuance costs	—)	735,043)	—)	2,967,409)	40,343)	741,832)
Proceeds from revolving credit facility, net of costs	—)	—)	300,000)	875,000)	—)	450,000)
Repayment of debt	(750,000)	—)	(1,087,250)	(620,000)	(70,000)	(1,171,033)
Common stock repurchases	(2,149,946)	(1,735,746)	(1,311,864)	(3,967,806)	(938,607)	(829,084)
Forward contract for accelerated share repurchases	—)	—)	—)	(900,000)	—)	—)
Payment of dividends to stockholders	(904,594)	(773,041)	(732,556)	(638,528)	(559,353)	(522,421)
Payment of dividends to subsidiary’s non-controlling interest holders	—)	—)	—)	(602)	—)	(1,239)
Issuance of common stock	151,514)	144,934)	124,847)	113,014)	86,098)	75,634)
Tax withholding payments related to vested and released restricted stock units	(132,661)	(143,024)	(94,806)	(84,371)	(56,362)	(46,260)
Contingent consideration payable and other, net	—)	(4,183)	(17,850)	(1,121)	—)	2,936)
Purchase of non-controlling interest	—)	—)	(4,295)	—)	—)	—)
Net cash used in financing activities	(3,785,687)	(1,776,017)	(2,830,289)	(2,257,005)	(1,497,881)	(1,299,635)
Effect of exchange rate changes on cash and cash equivalents	8,044)	(6,309)	(13,988)	(28,941)	13,460)	(1,926)
Net increase (decrease) in cash and cash equivalents	101,779)	49,264)	342,957)	150,298)	200,201)	218,415)
Cash and cash equivalents at beginning of period	1,977,129)	1,927,865)	1,584,908)	1,434,610)	1,234,409)	1,015,994)
Cash and cash equivalents at end of period	2,078,908)	1,977,129)	1,927,865)	1,584,908)	1,434,610)	1,234,409)

Based on: 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), 10-K (reporting date: 2020-06-30).

Net Income Trend: Net income displayed a strong upward trend overall, increasing from approximately $1.22 billion in 2020 to over $4.06 billion by 2025. There was consistent annual growth except for a decline in 2024 compared to 2023.
Impairment and Asset-Related Expenses: Impairments of goodwill and purchased intangible assets fluctuated significantly, with notable spikes in 2020 and again in 2024 and 2025, indicating episodic write-downs. Asset impairment charges appeared only in 2024. Depreciation and amortization expenses remained relatively steady with a slight upward trend peaking in 2023.
Foreign Exchange and Other Income/Expenses: Unrealized foreign exchange gains and losses exhibited volatility with alternating gains and losses across the years, showing the impact of currency fluctuations. Loss on extinguishment of debt appeared sporadically, limited to 2020 and 2023.
Stock-Based Compensation: Stock-based compensation expenses increased steadily over the period, rising from approximately $111 million in 2020 to $265 million in 2025, reflecting a growing cost in employee compensation potentially linked to equity incentives.
Income Tax-Related Items: Deferred income taxes consistently showed negative figures, reflecting tax benefits or timing differences with fluctuations but no clear long-term trend. Other tax-related gains or losses, such as the gain on fair value adjustment of securities, occurred intermittently.
Working Capital Changes: Accounts receivable and inventories showed significant decreases, particularly between 2020 and 2022, suggesting improved collection or inventory reduction efforts. Accounts payable fluctuated with a notable decrease in 2023. Deferred revenue accounts had mixed and volatile movements. Other assets and liabilities presented varied trends with some large increases and decreases, affecting net asset and liability changes.
Cash Flow from Operating Activities: Net cash provided by operating activities closely followed net income trends, increasing substantially from $1.78 billion in 2020 to over $4.08 billion in 2025, although with a slight dip in 2024. Adjustments to reconcile net income to cash from operations were irregular, with a negative adjustment in 2022.
Investing Activities: Cash flows used in investing activities increased substantially over time, from approximately $259 million outflow in 2020 to over $2 billion outflow in 2025, driven largely by purchases of available-for-sale securities, capital expenditures, and business acquisitions. Proceeds from maturities and sales of securities offset some of these expenditures but not enough to prevent increasing net outflows.
Financing Activities: Net cash used in financing activities showed large outflows each year, peaking in 2023 at nearly $2.83 billion outflow. Major uses of funds included common stock repurchases, dividend payments, and debt repayments. The company showed active management of its capital structure, with substantial debt issuance and repayments along with considerable share repurchase programs.
Cash Position and Liquidity: Cash and cash equivalents increased steadily over the period, rising from $1.23 billion at the end of 2020 to just over $2.07 billion by mid-2025. This growth reflects overall strong cash generation despite significant investing and financing outflows. The net increase in cash was positive every year, suggesting sound liquidity management.

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KLA Corp. (NASDAQ:KLAC)

Cash Flow Statement