Stock Analysis on Net
Stock Analysis on Net

Arista Networks Inc. (NYSE:ANET)

$24.99

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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Arista Networks Inc., consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net income
Depreciation and amortization
Stock-based compensation
Deferred income taxes
Other
Accounts receivable, net
Inventories
Other assets
Accounts payable
Other liabilities
Deferred revenue
Income taxes, net
Changes in operating assets and liabilities
Adjustments to reconcile net income to net cash provided by operating activities
Net cash provided by operating activities
Proceeds from maturities of marketable securities
Proceeds from sale of marketable securities
Purchases of marketable securities
Purchases of property, equipment and intangible assets
Cash paid for business combination, net of cash acquired
Other
Net cash (used in) provided by investing activities
Proceeds from issuance of common stock under equity plans
Tax withholding paid on behalf of employees for net share settlement
Repurchase of common stock
Net cash used in financing activities
Effect of exchange rate changes
Net increase (decrease) in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, beginning of period
Cash, cash equivalents and restricted cash, end of period

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The company demonstrates a consistent increase in net income over the five-year period, rising from US$840.854 million in 2021 to US$3.511 billion in 2025. This positive trend is accompanied by fluctuations in cash flow from operating, investing, and financing activities.

Operating Activities
Net cash provided by operating activities exhibits significant volatility. While starting at US$1.016 billion in 2021, it decreased substantially to US$492.813 million in 2022 before recovering and increasing to US$4.372 billion in 2025. Adjustments to reconcile net income to net cash provided by operating activities mirror this pattern, with a large negative adjustment in 2022 and a substantial positive adjustment in 2024 and 2025. Changes in operating assets and liabilities contribute significantly to these adjustments, showing a large negative impact in 2022 and a large positive impact in 2024 and 2025. Accounts receivable and inventories show significant fluctuations, impacting operating cash flow.
Investing Activities
Net cash used in investing activities is consistently negative, indicating ongoing investments. The largest outflow occurred in 2024, reaching US$2.457 billion, primarily driven by purchases of marketable securities. Proceeds from maturities of marketable securities represent a significant inflow, increasing from US$1.455 billion in 2021 to US$3.433 billion in 2025. A notable cash outflow for a business combination was recorded in 2022 and again in 2025.
Financing Activities
Net cash used in financing activities is consistently negative, suggesting a reliance on external funding or shareholder returns. Repurchase of common stock represents a substantial outflow, increasing significantly to US$1.603 billion in 2025. Proceeds from issuance of common stock under equity plans provide a consistent, though smaller, inflow. Tax withholding related to net share settlement also represents a consistent outflow.
Cash Position
The company experienced a decrease in cash, cash equivalents, and restricted cash in 2021 and 2025, but significant increases in 2022, 2023, and 2024. The ending cash balance increased from US$625.050 million in 2021 to US$1.965 billion in 2025, despite the net decrease in 2025. Deferred revenue shows a strong upward trend, increasing from US$278.485 million in 2021 to US$2.452 billion in 2025, potentially indicating growing future revenue streams.
Non-Cash Items
Stock-based compensation consistently increases over the period, reaching US$439.200 million in 2025. Depreciation and amortization remains relatively stable, with a slight decrease in 2024. Deferred income taxes consistently represent a negative adjustment, increasing in magnitude until 2024 before decreasing in 2025.

Overall, the company demonstrates strong net income growth, but its cash flow profile is complex, with significant fluctuations driven by changes in working capital, investment activities, and financing decisions. The increasing deferred revenue balance suggests potential for continued revenue growth in future periods.