Ano Kaisha no Shikumi
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Adobe

Adobe Inc.

Company highlights

A company that stopped selling software.

Vol.4, Chapter 3 (as of 2026-08-22)

Key figures

Period to 2025-11-28ConsolidatedU.S. GAAP

RevenueDisclosed US$23.8B
Operating marginCalculated 36.6%
Net assets to total assetsCalculated 39.4%

Business revenue model

Featured in

Vol.4, Chapter 3 (as of 2026-08-22)

“Kaisha no Shikumi: Subscriptions”, Chapter 3: Adobe: The Company That Stopped Selling Software

Book’s reference date 2026-08-22 / data last checked 2026-10-20

Key points in this volumeA subscription business's profits cannot be judged by member count alone.

Adobe moved from selling packages outright to selling contracts. Sell a box and the payment becomes sales on the spot; under a contract it arrives month by month.

So the company itself warned, part-way through the switch, that total sales for FY2013 would fall. When the way income arrives changes, the year in which sales bottoms out and the year in which profit bottoms out move apart.

Figures from the book

How the arrival of sales changed as the business moved from boxes sold outright to contracts
Adobe's transition (figure from Chapter 3 of “Kaisha no Shikumi: Subscriptions”, in Japanese)

The move that changed Adobe

It made CS6 the last version sold outright, and wrote the years of lower profit into its annual report before it moved.

In 2012 Adobe was a company that sold boxes, with revenue of $4,404 million and operating profit of $1,180 million. In May 2013 it announced that new features and development for its Creative products from then on would be for Creative Cloud only. CS6 was the last version sold outright, and going on using the software after it meant taking out a subscription. The year before that decision, the company had written plainly in its annual report that in FY2013 revenue would fall and costs would not come down in step, so the margin would worsen. Operating profit came to $413 million in FY2014. The share of revenue from subscriptions went from 11% in FY2011 to 96% in FY2025. Operating profit in FY2025 was $8,706 million.

Coverage in the book

  • What Used to Be Bought in a Box Became Something You Hold Under Contract
  • It Announced the Fall in Revenue Before It Happened
  • After the Warning, Operating Profit Fell for Two Years Running
  • From 11% to 96% Subscription Revenue
  • Adobe's Fifteen Fiscal Years, and No Dividend

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Cover of “Kaisha no Shikumi: Subscriptions” “Kaisha no Shikumi: Subscriptions” Chapter 3: Adobe “Adobe: The Company That Stopped Selling Software” “Ano Kaisha no Shikumi” series, Vol.4 — Kindle and paperback Find it on Amazon →

Company profile

No securities code (not listed) / Information and Communication

Tables scroll sideways

Disclosed data

Source: Annual Securities Report ( to 2025-11-28)

Profitability ★★★★★position among all companies 36.6%
Growth (revenue, 4-year average) ★★★★☆position among all companies 10.8%
Capital efficiency ★★★★★position among all companies 61.3%

Business activities and revenue composition

Breakdown by business: not published

Revenue and profit

Performance, financial position and capital allocation

Finance
39.4% Net assets to total assets FY ending 11/2025 · consolidated / calculated
Capital allocation
115.3% Cash conversion FY ending 11/2025 · consolidated / calculated

Adobe

Recent performance trends

Source Annual securities reports

24 16 8 0 4 years ago 3 years ago 2 years ago Last year This year Net sales and operating revenue ¥ billion
Consolidated indicators (6 items)
Item4 years ago3 years ago2 years agoLast yearThis year
Net sales US$15.8 billion US$17.6 billion US$19.4 billion US$21.5 billion US$23.8 billion
Operating income US$5.8 billion US$6.1 billion US$6.7 billion US$6.7 billion US$8.7 billion
Net income US$4.8 billion US$4.8 billion US$5.4 billion US$5.6 billion US$7.1 billion
Net cash provided by (used in) operating activities US$7.2 billion US$7.8 billion US$7.3 billion US$8.1 billion US$10.0 billion
Total assets US$27.2 billion US$27.2 billion US$29.8 billion US$30.2 billion US$29.5 billion
Net assets US$14.8 billion US$14.1 billion US$16.5 billion US$14.1 billion US$11.6 billion

Revenue scale in the same industry

Companies in the same industry with disclosed revenue: 2 (no comparison)

Sources and methodology

Basic indicators
ItemValueConsolidated / Non-consolidatedSource
Net sales US$23.8 billion Disclosed
Operating income US$8.7 billion Disclosed
Net income US$7.1 billion Disclosed
Net cash provided by (used in) operating activities US$10.0 billion Disclosed
Total assets US$29.5 billion Disclosed
Net assets US$11.6 billion Disclosed
Operating margin 36.6%ConsolidatedCalculated
Net assets to total assets 39.4%ConsolidatedCalculated
Net margin 30.0%ConsolidatedCalculated
Return on equity 61.3%ConsolidatedCalculated
How to read the figures, and caveats

Terms

  • Consolidated: the parent company together with the subsidiaries it consolidates
  • Parent-only: the single company that filed the annual securities report
  • Calculated: a disclosed figure put through the formula shown
  • Not disclosed: no such value in the filing (not treated as zero)
  • Not retrieved: a value this page could not extract, including values in the filing that could not be matched. The same item may appear in another table
  • Segment: a business division the company uses in its disclosures
  • Industry median: the middle value among companies in the same industry that disclose the item
  • ★: position when every company is lined up by value (not a judgement of the company)See the formulas
  • Source: document name, period covered, filing date and where it was obtained
  • Tables scroll sideways

Key figures

  • Operating margin 36.6% Operating income ÷ revenue  = US$8.7 billion ÷ US$23.8 billion
    The denominator is revenue under U.S. GAAP (consolidated, U.S. GAAP).
  • Net assets to total assets 39.4% Stockholders' equity ÷ total assets  = US$11.6 billion ÷ US$29.5 billion
    Calculated here from stockholders' equity and total assets (no equity-to-asset ratio disclosed by U.S. companies; the Japanese field is the company's own disclosed value)
  • Net margin 30% Net income ÷ revenue  = US$7.1 billion ÷ US$23.8 billion
  • Return on equity 61.3% Net income ÷ stockholders' equity  = US$7.1 billion ÷ US$11.6 billion
    Calculated here (not a value the company disclosed)

Business activities and revenue composition

  • Breakdown by business: machine transcription of segment information (business divisions used in disclosures) in the annual securities report. No table where segment sales differ from the disclosed total by more than 1%, or where the company reports a single business

Finance

  • Net assets to total assets Net assets ÷ total assets

Capital allocation

  • ★: position when all companies are sorted by value and cut into fifths (a position, not a rating). The five items with ★: only where both numerator and denominator are available on a consolidated basisSee the formulas
  • Cash conversion Net cash provided by (used in) operating activities ÷ operating income

Data sources and calculation methods

Primary source: the annual securities report of Adobe Inc. on EDINET, the FSA’s disclosure system (free to read)
Corporate number: / Accounting standard: U.S. GAAP

  • Amounts: machine transcription of EDINET XBRL (no manual re-keying). Long narrative notes are text and not in the account list. Identifiers: machine transcription of the EDINET code list (retrieved 2026-08-22)
  • ★: position of the value calculated from disclosed figures among the 4,240 companies on this site, on a five-step scale. Not a judgement of the company. No forecasts usedThe formulas and how they are counted
  • No rank: net assets as a share of total assets, cash conversion and revenue per employee (size alone does not show quality). Industry median shown for comparison. Cash conversion of 100%: operating cash flow equal to operating profit
  • Profit-and-loss chart: only where “sales − cost of sales − SG&A = operating income” holds between disclosed values. Cost breakdown: the six largest SG&A items
  • Trend charts: key financial indicators of the annual securities report. Amounts in billions of yen (dividend per share in yen). Long-run chart joins reports filed in different years (newer report for overlapping years). Some items stop part-way after a change of accounting standard. A stock split changes the weight of one share. Consolidated and parent-only in separate tables
  • Revenue scale in the same industry: bars of revenue (disclosed values) of companies in the same industry grouping as the industry pages, largest first. Only the top three and the two companies either side of this one. Each company’s latest fiscal year. An order of size, not a ranking of quality or an investment view
  • Share prices: not published (no data source allows redistribution). No share-price-based indicators (such as the price earnings ratio) and no extension of past growth into the future
  • Average age, average length of service and average annual salary: the reporting company alone (the parent). At a holding company, a small head-office staff. Payout ratio (basic facts): dividend per share ÷ consolidated earnings per share, calculated here (the payout ratio in the annual securities report is the reporting company’s figure, on a different basis). Representative and founding date: gBizINFO (Ministry of Economy, Trade and Industry), some companies only
  • “Retrieved disclosed figures”: every value readable as a number from the annual securities report. Company-wide values only (no segment or other breakdowns)
  • Segment table: machine transcription of the segment information in the annual securities report. Business names as labelled by the company in its XBRL. No table where segment sales differ from the disclosed total by more than 1%. Adjustments, corporate, eliminations and “other” left out of the table and the share denominator, as they are not businesses
  • Breakdowns of amounts, not diagrams of how the business works. Who pays whom, and for what, is not in the disclosed figures; no lines drawn from guesswork
  • No reproduction of the book’s content. Figures from the same filings; text written separately