ADBEADOBE INC.

Services-Prepackaged Software

Revenue: $23.8B; 11% YoY
Operating margin: 36.6%; 17% YoY
EBITDA: $9.5B; 25% YoY
Market cap: $97.8B
Employees: 31,360; $758K revenue each
Net debt / EBITDA: -0.0×; −$221M net debt
AI in 10-K: 27.2; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 3 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
141% of net income
Cash flow under 80% of net income
Dilutive SBCNo
8% of revenue
Over 10% of revenue
Payouts exceed cash flowYes
112% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
47% of assets
Over 40% of assets
Shareholder dissentYes
51% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$758K · 72nd pct
Bottom quartile of its SIC industry
Quiet on AINo
27.2 per 10K words · 99th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.0× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$97.8B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$49M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$15.8B	$17.6B	$19.4B	$21.5B	$23.8B	11%
Operating income	$5.8B	$6.1B	$6.7B	$6.7B	$8.7B	29%
Net income	$4.8B	$4.8B	$5.4B	$5.6B	$7.1B	28%
Operating cash flow	$7.2B	$7.8B	$7.3B	$8.1B	$10.0B	25%
Capex	$348M	$442M	$360M	$183M	$179M	2.2%
Stock-based comp	$1.1B	$1.4B	$1.7B	$1.8B	$1.9B	5.9%
Buybacks	$4.0B	$6.5B	$4.4B	$9.5B	$11.3B	19%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $2M · 1
Open-market sells, 12 mo: $51M · 19
Net: −$49M

Pay vs performance

No pay-versus-performance disclosure yet.