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
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.
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
Related books, articles and videos
“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
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Disclosed data
Business activities and revenue composition
Breakdown by business: not published
Revenue and profit
Performance, financial position and capital allocation
Adobe
Recent performance trends
Source Annual securities reports
Consolidated indicators (6 items)
| Item | 4 years ago | 3 years ago | 2 years ago | Last year | This 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
| Item | Value | Consolidated / Non-consolidated | Source |
|---|---|---|---|
| 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% | Consolidated | Calculated |
| Net assets to total assets | 39.4% | Consolidated | Calculated |
| Net margin | 30.0% | Consolidated | Calculated |
| Return on equity | 61.3% | Consolidated | Calculated |