Name: Synopsys Inc. (NASDAQ:SNPS) | 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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Synopsys Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Oct 31, 2025	Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Net income	1,333,251)	2,235,810)	1,218,125)	978,436)	756,359)	663,447)
Amortization and depreciation	660,430)	295,065)	247,120)	228,405)	203,676)	209,986)
Reduction of operating lease right-of-use assets	117,273)	97,273)	97,705)	89,541)	86,645)	82,895)
Amortization of capitalized costs to obtain revenue contracts	53,237)	73,587)	82,190)	73,026)	64,698)	61,185)
Stock-based compensation	893,294)	692,316)	563,292)	459,029)	345,272)	248,584)
Allowance for credit losses	50,891)	19,724)	19,932)	(3,477)	18,515)	20,875)
(Gain) loss on sale of strategic investments	3,635)	(55,077)	—)	—)	—)	—)
Gain on sale of building	(51,385)	(1,906)	—)	—)	—)	—)
Gain on divestitures, net of transaction costs	(508,044)	(868,830)	—)	—)	—)	—)
Amortization of bridge financing costs	41,996)	33,677)	—)	—)	—)	—)
Amortization of debt issuance costs	13,847)	—)	—)	—)	—)	—)
Deferred income taxes	(470,693)	(407,649)	(211,045)	(36,913)	(128,583)	(111,526)
Other	(888)	611)	13,295)	10,188)	15,859)	4,325)
Accounts receivable	(174,140)	(103,460)	(178,432)	(251,390)	201,706)	(236,806)
Inventories	(22,517)	(51,449)	(123,752)	1,320)	(48,046)	(55,024)
Prepaid and other current assets	66,918)	(410,432)	(106,396)	(89,983)	(102,174)	(11,298)
Other long-term assets	(481,376)	(168,255)	(100,618)	(15,283)	(153,037)	(83,367)
Accounts payable and accrued liabilities	(13,487)	187,564)	170,496)	(34,066)	125,133)	113,773)
Operating lease liabilities	(113,603)	(96,966)	(73,281)	(85,828)	(82,581)	(78,578)
Income taxes	6,351)	(73,215)	198,078)	1,644)	28,855)	14,120)
Deferred revenue	235,261)	8,641)	(113,435)	414,251)	160,325)	148,722)
Net changes in operating assets and liabilities, net of effects from acquisitions and dispositions	(496,593)	(707,572)	(327,340)	(59,335)	130,181)	(188,458)
Unrealized loss on settlement of interest rate treasury lock	(121,643)	—)	—)	—)	—)	—)
Adjustments to reconcile net income to net cash provided by operating activities	185,357)	(828,781)	485,149)	760,464)	736,263)	327,866)
Net cash provided by operating activities	1,518,608)	1,407,029)	1,703,274)	1,738,900)	1,492,622)	991,313)
Proceeds from maturities of short-term investments	58,016)	126,703)	127,128)	93,696)	12,850)	—)
Proceeds from sales of short-term investments	157,204)	12,258)	3,307)	—)	—)	—)
Purchases of short-term investments	(65,708)	(136,821)	(131,079)	(97,245)	(161,732)	—)
Proceeds from sales of strategic investments	3,566)	55,696)	8,492)	582)	—)	2,151)
Purchases of strategic investments	(4,100)	(1,293)	(435)	(7,000)	(7,591)	(2,762)
Purchases of property and equipment, net	(169,454)	(139,500)	(189,618)	(136,589)	(93,764)	(154,717)
Proceeds from sale of building	74,279)	16,339)	—)	—)	—)	—)
Acquisitions, net of cash acquired	(16,681,257)	(156,947)	(297,692)	(422,374)	(296,017)	(201,045)
Proceeds from business divestiture, net of cash divested	746,550)	1,446,578)	—)	—)	—)	—)
Capitalization of software development costs	—)	—)	(2,204)	(2,493)	(1,976)	(4,045)
Other	(365)	—)	—)	(1,200)	(800)	—)
Net cash (used in) provided by investing activities	(15,881,269)	1,223,013)	(482,101)	(572,623)	(549,030)	(360,418)
Proceeds from debt, net of issuance costs	14,329,340)	—)	—)	—)	—)	276,489)
Repayment of debt	(863,637)	(2,607)	(2,603)	(76,838)	(28,061)	(288,879)
Payment of bridge financing and term loan costs	—)	(72,265)	—)	—)	—)	—)
Issuances of common stock	228,418)	232,212)	252,986)	237,956)	210,719)	197,403)
Payments for taxes related to net share settlement of equity awards	(305,501)	(337,541)	(241,408)	(174,005)	(138,950)	(82,225)
Purchase of equity forward contract	—)	—)	(45,000)	—)	(35,000)	—)
Purchases of treasury stock	—)	—)	(1,160,724)	(1,100,000)	(753,081)	(242,078)
Redemption of redeemable non-controlling interest	(30,000)	—)	—)	—)	—)	—)
Other	(2,863)	(1,096)	(122)	(3,413)	(4,375)	(1,316)
Net cash provided by (used in) financing activities	13,355,757)	(181,297)	(1,196,871)	(1,116,300)	(748,748)	(140,606)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,896)	8,797)	(2,979)	(65,296)	2,369)	17,154)
Net change in cash, cash equivalents and restricted cash	(1,005,008)	2,457,542)	21,323)	(15,319)	197,213)	507,443)
Cash, cash equivalents and restricted cash, beginning of year	3,898,729)	1,441,187)	1,419,864)	1,435,183)	1,237,970)	730,527)
Cash, cash equivalents and restricted cash, end of year	2,893,721)	3,898,729)	1,441,187)	1,419,864)	1,435,183)	1,237,970)

Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31).

The cash flow statement reveals a complex pattern of activity over the six-year period. While net cash provided by operating activities generally increased through 2023, it declined significantly in 2024 before partially recovering in 2025. Investing activities demonstrate a shift from cash outflows to a substantial inflow in 2024, largely driven by business divestitures. Financing activities show considerable volatility, with significant cash outflows in earlier years followed by a large inflow in 2025. Overall, the company experienced net increases in cash through 2024, but a net decrease in 2025.

Operating Activities: Net cash provided by operating activities increased steadily from US$991.313 million in 2020 to US$1,703.274 million in 2023. However, a substantial decrease to US$1,407.029 million occurred in 2024, followed by a partial recovery to US$1,518.608 million in 2025. This volatility is linked to significant fluctuations in adjustments to reconcile net income, particularly in 2024 where a large negative adjustment was recorded. Net income itself also experienced a significant drop in 2025, contributing to the lower operating cash flow.
Investing Activities: Net cash used in investing activities was consistently negative from 2020 to 2023, ranging from US$360.418 million to US$572.623 million. This reflects ongoing purchases of property and equipment, strategic investments, and acquisitions. A dramatic shift occurred in 2024, with net cash provided by investing activities reaching US$1,223.013 million, primarily due to proceeds from business divestitures. However, this trend reversed in 2025, with net cash used in investing activities reaching a substantial US$15,881.269 million, largely attributable to significant acquisitions.
Financing Activities: Financing activities exhibited considerable fluctuation. Net cash used in financing activities was observed in 2020, 2021, 2022, and 2023, driven by debt repayment, purchases of treasury stock, and payments related to equity awards. A significant inflow of US$13,355.757 million occurred in 2025, primarily due to proceeds from debt. This was partially offset by continued repayments of debt and payments related to equity awards.
Key Adjustments to Net Income: Stock-based compensation consistently contributed a significant positive adjustment to net income, increasing from US$248.584 million in 2020 to US$893.294 million in 2025. Amortization and depreciation also provided a consistent positive adjustment, rising from US$209.986 million to US$660.430 million over the same period. Deferred income taxes consistently represented a negative adjustment, increasing in magnitude each year, reaching US$470.693 million in 2025. The net changes in operating assets and liabilities were volatile, with significant negative adjustments in 2024 and 2025.
Cash Position: Cash, cash equivalents, and restricted cash increased from US$730.527 million in 2020 to US$3,898.729 million in 2024. However, a decrease to US$2,893.721 million was observed in 2025, reflecting the substantial cash outflow from investing activities, despite the inflow from financing activities.

The company’s cash flow profile demonstrates a dynamic interplay between operating, investing, and financing activities. The significant changes in 2024 and 2025, particularly related to acquisitions and divestitures, warrant further investigation to understand the strategic rationale and long-term implications for the company’s financial position.

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