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.

Palo Alto Networks Inc., consolidated cash flow statement (quarterly data)

US$ in millions

3 months ended:	Oct 31, 2025	Jul 31, 2025	Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019
Net income (loss)	334)	254)	262)	267)	351)	358)	279)	1,747)	194)	228)	108)	84)	20)	3)	(73)	(94)	(104)	(119)	(145)	(142)	(92)	(59)	(75)	(74)	(60)
Share-based compensation for equity-based awards	370)	354)	326)	321)	294)	269)	264)	272)	271)	254)	271)	283)	266)	240)	247)	265)	259)	230)	233)	226)	206)	174)	166)	169)	150)
Deferred income taxes	9)	92)	(125)	(179)	(137)	(215)	(127)	(1,691)	—)	7)	3)	3)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Depreciation and amortization	89)	84)	88)	88)	84)	76)	74)	69)	64)	69)	72)	70)	71)	73)	71)	70)	69)	69)	69)	65)	58)	61)	53)	48)	44)
Gain related to facility exit	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(3)	—)
Amortization of deferred contract costs	126)	137)	119)	115)	110)	121)	110)	109)	106)	116)	101)	99)	97)	101)	89)	86)	86)	90)	74)	69)	66)	83)	61)	55)	56)
Amortization of debt issuance costs	—)	—)	—)	—)	1)	1)	1)	1)	1)	1)	2)	2)	2)	2)	2)	2)	2)	36)	36)	36)	35)	27)	16)	16)	16)
Change in fair value of contingent consideration liability	(13)	(156)	4)	10)	6)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Reduction of operating lease right-of-use assets	18)	17)	16)	16)	16)	15)	15)	14)	12)	13)	12)	13)	12)	17)	12)	12)	13)	12)	12)	11)	10)	13)	13)	11)	10)
Amortization of investment premiums, net of accretion of purchase discounts	(7)	(6)	(9)	(11)	(15)	(14)	(16)	(16)	(15)	(18)	(20)	(16)	2)	3)	3)	4)	4)	4)	3)	3)	3)	—)	(2)	(1)	(3)
Repayments of convertible senior notes attributable to debt discount	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Accounts receivable, net	1,622)	(1,014)	(455)	(363)	1,486)	(903)	181)	(482)	1,050)	(1,020)	(165)	(40)	904)	(902)	(288)	(140)	428)	(474)	(97)	16)	382)	(368)	(110)	(41)	84)
Financing receivables, net	125)	89)	113)	(21)	11)	(453)	(369)	—)	(44)	(407)	(246)	(74)	(12)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Deferred contract costs	(82)	(227)	(135)	(115)	(79)	(204)	(126)	(96)	(63)	(181)	(98)	(93)	(60)	(202)	(106)	(87)	(64)	(206)	(94)	(82)	(59)	—)	—)	—)	—)
Prepaid expenses and other assets	(33)	21)	(21)	93)	(4)	(181)	1)	(8)	54)	(101)	(91)	(50)	(29)	(42)	(26)	—)	(73)	(164)	(36)	(62)	(38)	(201)	(67)	(82)	(59)
Accounts payable	(2)	(12)	85)	(63)	97)	6)	(68)	48)	—)	37)	(37)	2)	(1)	18)	(8)	22)	38)	(15)	27)	(6)	(18)	10)	(6)	(15)	(3)
Accrued compensation	(210)	100)	15)	137)	(200)	169)	(67)	119)	(217)	204)	(51)	124)	(192)	96)	35)	79)	(180)	178)	(9)	71)	(135)	147)	(11)	49)	(110)
Accrued and other liabilities	(53)	113)	34)	95)	(94)	157)	28)	234)	(34)	4)	35)	(86)	(28)	(17)	20)	(27)	(23)	36)	(7)	(37)	(20)	7)	(15)	(7)	(25)
Deferred revenue	(522)	1,175)	311)	169)	(417)	1,313)	349)	372)	146)	1,207)	535)	374)	186)	1,135)	410)	291)	134)	649)	213)	198)	137)	440)	146)	182)	126)
Changes in operating assets and liabilities, net of effects of acquisitions	845)	245)	(53)	(69)	800)	(98)	(71)	186)	893)	(257)	(117)	158)	767)	86)	38)	137)	260)	5)	(4)	98)	250)	35)	(62)	87)	13)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	1,437)	767)	367)	290)	1,159)	155)	250)	(1,057)	1,332)	186)	324)	610)	1,217)	520)	463)	576)	693)	445)	423)	507)	627)	393)	245)	381)	285)
Net cash provided by operating activities	1,771)	1,021)	629)	557)	1,510)	513)	529)	690)	1,526)	414)	432)	695)	1,237)	524)	390)	483)	589)	326)	278)	365)	535)	334)	170)	307)	225)
Purchases of investments	(1,401)	(875)	(1,089)	(1,072)	(660)	(1,065)	(475)	(1,157)	(855)	(999)	(742)	(1,607)	(2,113)	(975)	(241)	(616)	(439)	(465)	(382)	(283)	(830)	(885)	(12)	(9)	(274)
Proceeds from sales of investments	30)	367)	185)	354)	291)	455)	70)	127)	305)	91)	375)	15)	485)	160)	7)	246)	36)	94)	37)	—)	—)	3)	310)	1)	—)
Proceeds from maturities of investments	474)	386)	455)	385)	369)	488)	556)	350)	458)	1,308)	505)	651)	348)	402)	315)	177)	225)	395)	311)	336)	198)	246)	451)	623)	632)
Business acquisitions, net of cash and restricted cash acquired	(2)	(555)	—)	1)	(500)	—)	—)	(611)	—)	—)	(19)	(186)	—)	(20)	—)	—)	(17)	—)	(147)	(405)	(225)	—)	(388)	(129)	(66)
Purchases of property, equipment, and other assets	(84)	(86)	(68)	(48)	(44)	(47)	(37)	(35)	(37)	(37)	(31)	(38)	(40)	(39)	(38)	(81)	(35)	(27)	(27)	(32)	(30)	(32)	(86)	(49)	(47)
Net cash (used in) provided by investing activities	(983)	(763)	(518)	(381)	(544)	(169)	113)	(1,326)	(129)	363)	88)	(1,165)	(1,320)	(472)	43)	(274)	(230)	(2)	(208)	(384)	(886)	(668)	275)	436)	245)
Repayments of convertible senior notes	—)	(383)	(151)	(112)	(319)	(200)	(662)	(126)	(46)	(1,692)	—)	—)	—)	(1)	—)	—)	—)	(1)	—)	—)	—)	—)	—)	—)	—)
Payments for debt issuance costs	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Proceeds from borrowings on convertible senior notes, net	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	1,979)	—)	—)	—)
Proceeds from issuance of warrants	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	203)	—)	—)	—)
Purchase of note hedges	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(371)	—)	—)	—)
Repurchases of common stock	—)	—)	—)	—)	—)	—)	(500)	—)	(67)	—)	—)	(250)	(23)	(342)	—)	(550)	—)	(328)	(350)	—)	(500)	—)	(1,000)	—)	(198)
Proceeds from sales of shares through employee equity incentive plans	130)	10)	203)	37)	121)	24)	116)	58)	86)	60)	130)	1)	68)	—)	78)	—)	59)	—)	58)	—)	45)	—)	47)	1)	36)
Payments for taxes related to net share settlement of equity awards	(1)	(1)	(5)	(156)	(21)	(4)	(3)	(4)	(16)	(3)	(2)	(2)	(14)	(11)	(11)	(9)	(20)	(7)	(7)	(6)	(10)	(6)	(5)	(7)	(5)
Payments of contingent consideration liability	(121)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Payment of deferred consideration related to prior year business acquisition	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(1)	—)	—)
Net cash provided by (used in) financing activities	8)	(374)	47)	(232)	(220)	(179)	(1,049)	(73)	(42)	(1,635)	128)	(251)	31)	(353)	66)	(559)	39)	(336)	(299)	(5)	(465)	1,806)	(959)	(6)	(167)
Net increase (decrease) in cash, cash equivalents, and restricted cash	796)	(116)	158)	(56)	746)	165)	(407)	(708)	1,355)	(858)	648)	(721)	(52)	(302)	499)	(350)	398)	(12)	(228)	(25)	(816)	1,472)	(515)	737)	303)

Net Income (Loss): The net income demonstrated substantial volatility, starting with consistent losses through 2019 and early 2022, followed by a clear trend of profitability from mid-2022 onward. Notably, sharp income spikes were observed from early 2024 to 2025, reaching peaks above one billion in certain quarters. This indicates a significant turnaround in profitability during the later periods.
Share-Based Compensation: Share-based compensation steadily increased over the full period, moving from around 150 million to levels exceeding 350 million by late 2025. The gradual upward trend suggests increasing use of equity incentives to compensate employees or executives.
Deferred Income Taxes: Deferred income taxes figures were largely missing until early 2023, where unusual large negative and positive swings appeared. For instance, a major negative adjustment occurred around early 2024, followed by extreme fluctuations in subsequent quarters. These irregularities may reflect tax-related accounting adjustments or changes in tax position.
Depreciation and Amortization: This expense showed a steady, moderate increase over time, rising from mid-40s millions to upper 80s millions by late 2025. The gradual increase correlates with asset growth or acquisition activities.
Amortization of Deferred Contract Costs: The amortization amounts exhibited a general upward trend with some fluctuations, notably increasing from around 55 million to over 130 million. This suggests growth in deferred contract costs, possibly tied to revenue recognition of long-term contracts.
Amortization of Debt Issuance Costs: This item peaked in 2020–2021 around 35–36 million, then sharply declined to near zero by 2025. The decline indicates a reduction in outstanding debt issuance costs, potentially due to debt maturities or refinancing.
Change in Fair Value of Contingent Consideration Liability: This figure was mostly absent until late 2024 to early 2025, where large negative values appeared. The negative swings may represent revaluations or settlements related to acquisition-related contingent liabilities.
Operating Lease Right-of-Use Assets Reduction: The reductions remained relatively stable, fluctuating modestly between 10 and 18 million, reflecting consistent lease-related amortization/expense.
Amortization of Investment Premiums, Net: The values oscillated around small positive and negative amounts, with a notable negative spike from late 2022 through 2025, reflecting changes in investment valuation assumptions or portfolio adjustments.
Accounts Receivable, Net: Accounts receivable showed highly variable changes quarter to quarter, alternating large positive and negative figures. The volatility suggests irregular collection patterns, possibly linked to significant contract timing or customer payment behavior.
Financing Receivables, Net: This category emerged in 2022 and showed increases and decreases with occasional large negative movements, implying fluctuating financing activity or credit risk adjustments.
Deferred Contract Costs: Deferred contract costs increased significantly in magnitude, with large negative movements reflecting capitalized costs followed by amortization. These sizable fluctuations demonstrate ongoing investments related to contract acquisition and fulfillment.
Prepaid Expenses and Other Assets: This balance saw wide swings, shifting from moderately negative to some positive spikes, indicating fluctuating prepayments or other asset adjustments possibly influenced by seasonality or operational changes.
Accounts Payable: Accounts payable fluctuated irregularly, with alternating positive and negative changes, but generally stayed within a moderate range, suggesting typical short-term operational payables variability.
Accrued Compensation: Significant volatility was evident, with large positive and negative swings. This pattern could relate to timing of payroll, bonuses, or equity-based compensation settlements.
Accrued and Other Liabilities: Fluctuations ranging from negative to positive values were present, with several steep changes in the later periods. This indicates variable accruals likely tied to operational or acquisition-related liabilities.
Deferred Revenue: Deferred revenue grew substantially over the period, with large increases especially after early 2022. However, some abrupt decreases occurred in 2024 and 2025. These fluctuations signal growth in subscription or contract-based revenues alongside large adjustments possibly due to revenue recognition timing.
Changes in Operating Assets and Liabilities: The net changes in operating assets and liabilities were highly erratic, with large positive and negative swings, indicating dynamic working capital management reflecting operational scale and timing.
Adjustments to Reconcile Net Income to Operating Cash Flow: These adjustments generally increased from 2019 through 2022, peaking in 2022, and became volatile later. This pattern reflects both rising non-cash charges such as amortization and compensation and fluctuating working capital elements.
Net Cash Provided by Operating Activities: Operating cash flow improved over time, showing a discernible upward trend with peaks in 2023 and especially from 2024 onwards. This aligns with the reported net income improvement and indicates stronger cash generation capabilities.
Purchases and Sales of Investments: Purchases of investments were substantial and consistently high across the period, often exceeding several hundred million per quarter, reflecting aggressive investment activity. Proceeds from sales and maturities also showed considerable amounts but did not fully offset purchases, indicating net deployment of capital into investments.
Business Acquisitions: Acquisitions costs fluctuated, with several large outflows occurring intermittently, particularly in early 2021 and 2024, showing active inorganic growth efforts with varying intensity.
Purchases of Property, Equipment, and Other Assets: Capital expenditures were relatively stable, ranging mostly between 30 and 90 million per quarter, suggesting continuous investment to maintain or expand operational capacity.
Net Cash Used in Investing Activities: Investing cash flow was mostly negative, consistent with high investment and acquisition spends, except for sporadic positive quarters often tied to proceeds from sales or maturities of investments.
Financing Activities: Financing cash flows showed a mixed pattern, with periods of both inflows and outflows. Notable inflows early in the period relate to issuance of convertible notes and warrants, while outflows later correspond to debt repayments and common stock repurchases. The company actively managed its capital structure and equity financing.
Net Increase (Decrease) in Cash and Equivalents: Cash balances were highly variable, reflecting the interplay of operating, investing, and financing cash flows. Periods of large increases in cash were followed by significant decreases, indicating dynamic liquidity management amidst active investing and financing strategies.

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Palo Alto Networks Inc. (NASDAQ:PANW)

Cash Flow Statement Quarterly Data

Cash Flow Statement
Quarterly Data