ADOBE INC. (ADBE)

How they make money

We offer an end-to-end, ideation-to-creation platform powered by our commercially safe Firefly models and an expansive partner model ecosystem, offering customers choice and flexibility without the friction of switching between workflows and platforms. Marketing professionals require AI-driven solutions that enable them to create, manage and optimize personalized digital experiences at scale and to enhance brand visibility across the content supply chain. They need agility, self-service capabilities, and integrated workflows to collaborate effectively with creative teams and agencies and meet the increasing demand for compelling content. For marketing professionals, we unify creative productⓘ

Revenue mix

-012039-01-01iso4217:USDxbrli:sharesiso4217:USDxbrli:sharesutr:WKxbrli:pureadbe:segmentadbe:numberOfPeriodadbe:purchasePeriod00007963432024-11-302025-11-2800007963432025-05-3000007963432026-01-0900007963432025-11-2800007963432024-11-290000796343adbe:SubscriptionRevenueMember2024-11-302025-11-280000796343adbe:SubscriptionRevenueMember2023-12-022024-11-290000796343adbe:SubscriptionRevenueMember2022-12-032023-12-010000796343us-gaap:ProductMember2024-11-302025-11-280000796343us-gaap:ProductMember2023-12-022024-11-290000796343us-gaap:ProductMember2022-12-032023-12-010000796343us-gaap:ServiceOtherMember2024-11-302025-11-280000796343us-ⓘ

Economics & cash

Revenue $23.77B. Gross margin 89.3%. Operating margin 36.6%. FCF (OCF−capex) $9.85B. ot have an adverse effect on our financial position and results of operations. LIQUIDITY AND CAPITAL RESOURCES Cash Flows Our primary source of cash is receipts from revenue. Other customary sources of cash include proceeds from maturities and sales of short-term investments and issuance of debt instruments. Our primary uses of cash are general business expenses including payroll and related benefⓘ

Balance sheet & capital allocation

Cash & equivalents $5.43B; long-term debt (XBRL concept) $6.21B; goodwill $12.86B; SBC $1.94B; diluted/basic shares signal 413.0M shares. ngement, $5.90 billion remains under our March 2024 stock repurchase authority. Share repurchase activities for fiscal 2025, 2024 and 2023 were as follows: (in millions) Number of Shares Delivered Amount Paid Fiscal 2025 Accelerated share repurchase agreements16.8 $6,250 Open market repurchases14.0 5,031 Total 30.8 $11,281 Fiscal 2024 Accelerated share repurchase agreements16.9ⓘ

Quality & fragility

n and $141 million as of November 28, 2025 and November 29, 2024, respectively. Significant Customers For all periods presented, there were no customers that represented at least 10% of net revenue or that were responsible for over 10% of our trade receivables. NOTE 3. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents consist of highly liquid marketable securities with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable debt securities as “available-for-sale.” We caⓘ

What management is saying

The markets for our solutions are rapidly evolving and intensely competitive. We expect competition to continue to intensify. Our numerous competitors include companies of various sizes and both public and private companies, including large, global companies and smaller companies with more specialized focuses, new entrants, and AI or cloud-native companies. Our competitors include companies with significant sales and research and development resources, broad brand awareness, long opⓘ

Risks that aren’t boilerplate

FORM 10-K TABLE OF CONTENTS Page No. PART I Item 1.Business 3 Item 1A.Risk Factors 17 Item 1B.Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.Properties 30 Item 3.Legal Proceedings 30 Item 4.Mine Safety …ⓘ

ness 3 Item 1A.Risk Factors 17 Item 1B.Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.Properties 30 Item 3.Legal Proceedings 30 Item 4.Mine Safety Disclosures 30 PART II Item 5.Market for Registrant's C…ⓘ

digital experiences at scale and to enhance brand visibility across the content supply chain. They need agility, self-service capabilities, and integrated workflows to collaborate effectively with creative teams and a…ⓘ

regulations that apply specifically to the use of AI. For example, the U.S. AI regulatory framework remains in development and has been introduced at the federal level through executive orders and legislation has been…ⓘ

flow with Adobe’s AI platform, which offers customers brand safety, compliance, intellectual property protection, and reliability. STRATEGY & OPPORTUNITY Adobe’s strategy is to empower our customer audiences—business …ⓘ

Open questions

1. Which mix shift (segment / geo / product) actually drove the latest year — and is it durable?
2. How much of FCF is structural vs working-capital / one-time timing?
3. What does capital allocation imply for per-share value after SBC and M&A?
4. Which risk in the filing would change the thesis if it worsened for 2–3 years?