Palo Alto Networks Inc

For the period ended Jul 31, 2025. Filed Aug 29, 2025.

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FY2025 · Filed Aug 29, 2025

PANW$326.36-1.4%Stored close · as of Nov 10, 2026

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Contents

Item 8. Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)
	Year Ended July 31,
	2025	2024	2023
Cash flows from operating activities
Net income	$1,133.9	$2,577.6	$439.7
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation for equity-based awards	1,295.1	1,075.4	1,074.5
Deferred income taxes	(349.9)	(2,033.7)	12.5
Depreciation and amortization	343.4	283.3	282.2
Amortization of deferred contract costs	480.6	446.0	413.4
Amortization of debt issuance costs	1.1	3.5	6.7
Change in fair value of contingent consideration liability	(135.3)	—	—
Reduction of operating lease right-of-use assets	65.4	55.3	49.9
Amortization of investment premiums, net of accretion of purchase discounts	(41.1)	(60.1)	(52.2)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(345.3)	(154.3)	(320.3)
Financing receivables, net	191.1	(865.9)	(738.7)
Deferred contract costs	(555.0)	(489.3)	(431.9)
Prepaid expenses and other assets	88.3	(134.1)	(270.6)
Accounts payable	106.8	(15.0)	1.0
Accrued compensation	51.3	3.8	84.4
Accrued and other liabilities	147.5	384.5	(74.8)
Deferred revenue	1,238.1	2,180.6	2,301.7
Net cash provided by operating activities	3,716.0	3,257.6	2,777.5
Cash flows from investing activities
Purchases of investments	(3,695.9)	(3,551.3)	(5,460.4)
Proceeds from sales of investments	1,196.9	956.2	965.9
Proceeds from maturities of investments	1,594.9	1,852.6	2,811.5
Business acquisitions, net of cash and restricted cash acquired	(1,054.4)	(610.6)	(204.5)
Purchases of property, equipment, and other assets	(246.2)	(156.8)	(146.3)
Net cash used in investing activities	(2,204.7)	(1,509.9)	(2,033.8)
Cash flows from financing activities
Repayments of convertible senior notes	(965.6)	(1,033.7)	(1,692.0)
Repurchases of common stock	—	(566.7)	(272.7)
Proceeds from sales of shares through employee equity incentive plans	370.5	283.9	258.8
Payments for taxes related to net share settlement of equity awards	(183.8)	(26.6)	(20.4)
Net cash used in financing activities	(778.9)	(1,343.1)	(1,726.3)
Net increase (decrease) in cash, cash equivalents, and restricted cash	732.4	404.6	(982.6)
Cash, cash equivalents, and restricted cash—beginning of period	1,546.8	1,142.2	2,124.8
Cash, cash equivalents, and restricted cash—end of period	$2,279.2	$1,546.8	$1,142.2
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$2,268.6	$1,535.2	$1,135.3
Restricted cash included in prepaid expenses and other current assets	10.6	11.6	6.9
Total cash, cash equivalents, and restricted cash	$2,279.2	$1,546.8	$1,142.2
Non-cash investing and financing activities
Equity consideration for business acquisitions	$(27.1)	$(27.4)	$(0.3)
Contingent consideration for a business acquisition	$(648.9)	$—	$—
Supplemental disclosures of cash flow information
Cash paid for income taxes	$505.5	$342.3	$147.1
Cash paid for contractual interest	$1.7	$5.6	$20.2

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