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9065cf6b844e376aca6335087ba5d5b2890a755b07b33e63953e1f985fd7807b

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

50ae350cfc7175f633a4f9115c4c69e1c99910167d623e2d1da60825fa649d55

Creative ARR (USD billions)

Document Cloud ARR (USD billions)

Total Digital Media ARR (USD billions)

Remaining performance obligations (USD billions)

c11062c0424306fa74dcaacc29420384fe1c2cb81f66183de8cc8fd2429bb795

Americas

- United States

- Other Americas

EMEA

- United Kingdom

- Other EMEA

APAC

- Japan

- Other APAC

Total Revenue

e9acd8bf980e8dd7e8542e0066d3c8143874c985ef634b6a643743aa4b7b2adb

Adobe's **short-term investments** dropped sharply in Q4 2024 primarily due to significant maturities and sales activities. Specifically, there were notable **maturities**—with proceeds from maturities amounting to **$486 million** and purchases only totaling **$59 million**—which led to a substantial decrease in the investment balance from **$701 million** at the end of Q4 2023 to **$273 million** in Q4 2024.  **[0000796343-25-000004_adbe-20241129.htm:83]** **[0000796343-25-000004_adbe-20241129.htm:87]** **[0000796343-25-000004_adbe-20241129.htm:77]** 

Why did Short-term investments drop so sharply in Q4 2024?

Adobe's dramatic increase in long-term debt in Q2 2024 was driven primarily by **new senior note issuances** and the **reclassification of existing debt**. In April 2024, Adobe issued **$500 million** of 4.85% notes (due April 2027), **$750 million** of 4.80% notes (due April 2029), and **$750 million** of 4.95% notes (due April 2034), which significantly increased the overall debt balance. Additionally, existing 2025 Notes were reclassified from long-term to current debt because they became due in February 2025, impacting the carrying value of long-term debt. This combination of new issuances and reclassification explains the substantial change in the long-term debt reported in Q2 2024.  **[0000796343-24-000150_adbe-20240531.htm:21]** **[0000796343-24-000065_adbe-20240301.htm:20]** 

What drove the dramatic increase in long-term debt in Q2 2024?

Adobe's boost in cash and cash equivalents in Q2 2024 was primarily driven by **robust operating performance**, as the company generated **$1,940 million** in net cash from operating activities by adjusting for non-cash items and strong collections on trade receivables.  **[0000796343-24-000150_adbe-20240531.htm:36]** **[0000796343-24-000140_adbeex991q224.htm:4]**  In addition, **$111 million** was contributed through net cash provided by investing activities, largely due to maturities and sales of short-term investments.  **[0000796343-24-000140_adbeex991q224.htm:4]**  Although financing activities reflected a net cash use of **$642 million**—including substantial stock repurchases offset by proceeds from debt issuance—and a minor **$3 million** negative impact from foreign exchange changes, the overall inflows from operations and investing were sufficient to boost Adobe's cash and cash equivalents in Q2 2024.  **[0000796343-24-000140_adbeex991q224.htm:4]** 

What factors contributed to the boost in cash and cash equivalents in Q2 2024?

c3a5ec51d67a4d43b84d3ab3eb92fc0113adc965ffeafbeb4fca36bdfa97a2e6

Revenue: Subscription (USD, millions)

Revenue: Product (USD, millions)

Revenue: Services and other (USD, millions)

Total revenue (USD, millions)

Revenue: Total revenue (USD, millions)

Cost of revenue: Subscription (USD, millions)

Cost of revenue: Product (USD, millions)

Cost of revenue: Services and other (USD, millions)

Total cost of revenue (USD, millions)

Cost of revenue: Total cost of revenue (USD, millions)

Gross profit (USD, millions)

Operating expenses: Research and development (USD, millions)

Operating expenses: Sales and marketing (USD, millions)

Operating expenses: General and administrative (USD, millions)

Operating expenses: Amortization of intangibles (USD, millions)

Total operating expenses (USD, millions)

Operating expenses: Total operating expenses (USD, millions)

Operating income (USD, millions)

Non-operating income (expense): Interest expense (USD, millions)

Non-operating income (expense): Investment gains (losses), net (USD, millions)

Non-operating income (expense): Other income (expense), net (USD, millions)

Total non-operating income (expense), net (USD, millions)

Non-operating income (expense): Total non-operating income (expense), net (USD, millions)

Income before income taxes (USD, millions)

Provision for income taxes (USD, millions)

Net income (USD, millions)

Basic net income per share (USD)

Shares used to compute basic net income per share (millions)

Diluted net income per share (USD)

Shares used to compute diluted net income per share (millions)

466d469369abf847c9bbd887d107279c8d6ff98c44a94d9785db275bbef047f7

834efeba5c893dd3837a72440e9d5c3b5b085851c2541fe367e6b2ac235cd7f7

Depreciation, amortization and accretion (USD, millions)

Stock-based compensation (USD, millions)

Reduction of operating lease right-of-use assets (USD, millions)

Lease-related asset impairments (USD, millions)

Deferred income taxes (USD, millions)

Unrealized losses (gains) on investments, net (USD, millions)

Other non-cash items (USD, millions)

Trade receivables, net (USD, millions)

Prepaid expenses and other assets (USD, millions)

Trade payables (USD, millions)

Accrued expenses and other liabilities (USD, millions)

Income taxes payable (USD, millions)

Deferred revenue (USD, millions)

Net cash provided by operating activities (USD, millions)

Purchases of short-term investments (USD, millions)

Maturities of short-term investments (USD, millions)

Proceeds from sales of short-term investments (USD, millions)

Acquisitions, net of cash acquired (USD, millions)

Purchases of property and equipment (USD, millions)

Purchases of long-term investments, intangibles and other assets (USD, millions)

Proceeds from sales of long-term investments and other assets (USD, millions)

Net cash provided by (used for) investing activities (USD, millions)

Repurchases of common stock (USD, millions)

Proceeds from re-issuance of treasury stock (USD, millions)

Taxes paid related to net share settlement of equity awards (USD, millions)

Proceeds from issuance of debt (USD, millions)

Repayment of debt (USD, millions)

Other financing activities, net (USD, millions)

Net cash used for financing activities (USD, millions)

Effect of foreign currency exchange rates on cash and cash equivalents (USD, millions)

Net change in cash and cash equivalents (USD, millions)

Cash paid for income taxes, net of refunds (USD, millions)

Cash paid for interest (USD, millions)

Cash and cash equivalents at beginning of year (USD, millions)

Cash and cash equivalents at end of year (USD, millions)

3d4ff694a12a1cd3643b15846c21f66068129bbb6c8fa85da16abc0ca109c4b9

Cash and cash equivalents [USD, millions]

Short-term investments [USD, millions]

Trade receivables, net [USD, millions]

Prepaid expenses and other current assets [USD, millions]

Total current assets [USD, millions]

Property and equipment, net [USD, millions]

Operating lease right-of-use assets, net [USD, millions]

Goodwill [USD, millions]

Other intangibles, net [USD, millions]

Deferred income taxes [USD, millions]

Other assets [USD, millions]

Total assets [USD, millions]

Trade payables [USD, millions]

Debt, current [USD, millions]

Deferred revenue, current [USD, millions]

Income taxes payable, current [USD, millions]

Operating lease liabilities, current [USD, millions]

Total current liabilities [USD, millions]

Debt, long-term [USD, millions]

Deferred revenue, long-term [USD, millions]

Income taxes payable, long-term [USD, millions]

Operating lease liabilities, long-term [USD, millions]

Other liabilities, long-term [USD, millions]

Total liabilities [USD, millions]

Additional paid-in capital [USD, millions]

Retained earnings [USD, millions]

Accumulated other comprehensive income (loss) [USD, millions]

Treasury stock, at cost [USD, millions]

Total stockholders’ equity [USD, millions]

Total liabilities and stockholders’ equity [USD, millions]

42407af4264720dff5b38d73b53faf9cfdf3ce082057db8f9170f3922f93e6d8

Adobe Inc (ADBE)

Financials