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.

Arista Networks Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	3,511,400)	2,852,054)	2,087,321)	1,352,446)	840,854)
Depreciation and amortization	72,600)	62,038)	70,630)	62,700)	50,334)
Stock-based compensation	439,200)	355,364)	296,756)	230,934)	186,875)
Deferred income taxes	(312,000)	(492,874)	(370,796)	(244,382)	(99,290)
Other	(27,100)	(53,529)	(33,981)	3,936)	43,959)
Accounts receivable, net	(746,400)	(106,080)	(101,473)	(401,531)	(126,969)
Inventories	(412,500)	110,608)	(655,474)	(638,948)	(170,449)
Other assets	(937,400)	(234,242)	(66,401)	(117,465)	(130,222)
Accounts payable	260,500)	(51,635)	198,612)	31,436)	66,681)
Other liabilities	119,400)	47,823)	123,694)	70,704)	78,187)
Deferred revenue	2,452,000)	1,285,211)	464,958)	98,957)	278,485)
Income taxes, net	(47,800)	(66,503)	20,168)	44,026)	(2,589)
Changes in operating assets and liabilities	687,800)	985,182)	(15,916)	(912,821)	(6,876)
Adjustments to reconcile net income to net cash provided by operating activities	860,500)	856,181)	(53,307)	(859,633)	175,002)
Net cash provided by operating activities	4,371,900)	3,708,235)	2,034,014)	492,813)	1,015,856)
Proceeds from maturities of marketable securities	3,432,500)	2,058,588)	1,887,939)	1,643,824)	1,455,465)
Proceeds from sale of marketable securities	144,300)	48,845)	67,284)	193,782)	19,607)
Purchases of marketable securities	(6,748,400)	(4,526,127)	(2,606,878)	(1,418,857)	(2,317,264)
Purchases of property, equipment and intangible assets	(119,500)	(32,032)	(34,434)	(44,644)	(64,736)
Cash paid for business combination, net of cash acquired	(300,000)	—)	1,799)	(145,087)	1,299)
Other	14,900)	(6,628)	(3,164)	(12,691)	(19,933)
Net cash (used in) provided by investing activities	(3,576,200)	(2,457,354)	(687,454)	216,327)	(925,562)
Proceeds from issuance of common stock under equity plans	57,700)	60,181)	62,093)	48,411)	67,245)
Tax withholding paid on behalf of employees for net share settlement	(50,500)	(58,372)	(33,563)	(32,725)	(16,482)
Repurchase of common stock	(1,603,100)	(423,619)	(112,279)	(670,287)	(411,645)
Net cash used in financing activities	(1,595,900)	(421,810)	(83,749)	(654,601)	(360,882)
Effect of exchange rate changes	1,700)	(4,767)	675)	(3,611)	(1,816)
Net increase (decrease) in cash, cash equivalents and restricted cash	(798,500)	824,304)	1,263,486)	50,928)	(272,404)
Cash, cash equivalents and restricted cash, beginning of period	2,763,800)	1,939,464)	675,978)	625,050)	897,454)
Cash, cash equivalents and restricted cash, end of period	1,965,300)	2,763,768)	1,939,464)	675,978)	625,050)

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.

AI Ask an analyst for more

Download chart

Arista Networks Inc. (NYSE:ANET)

Cash Flow Statement