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Free cash flow margin reached 34.7% in Q2 2026, with operating cash flow to net income at 0.89, reflecting working capital timing swings, while capital expenditure remains minimal at 1.0% of revenue.
Arista Networks, Inc. (ANET) cash flow statement — 14-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 5.31B | 4.37B | 3.71B | 2.03B | 492.81M | 1.02B | 735.11M | 963.03M | 503.12M | 631.63M | 131.44M | 200.53M | 114.52M | 34.65M | 26.31M |
| Operating CF Margin % | - | 48.55% | 52.95% | 34.71% | 11.25% | 34.46% | 31.72% | 39.95% | 23.39% | 38.37% | 11.64% | 23.94% | 19.61% | 9.59% | 13.6% |
| Operating CF Growth % | 184.53% | 17.9% | 82.31% | 312.74% | -51.49% | 38.19% | -23.67% | 91.41% | -20.35% | 380.54% | -34.45% | 75.11% | 230.51% | 31.71% | - |
| Net Income | 4.04B | 3.51B | 2.85B | 2.09B | 1.35B | 840.85M | 634.56M | 859.87M | 328.12M | 423.2M | 184.19M | 121.1M | 86.85M | 42.46M | 21.35M |
| Depreciation & Amortization | 92.7M | 72.6M | 62.04M | 70.63M | 62.7M | 50.33M | 44.59M | 32.85M | 27.67M | 20.64M | 19.75M | 13.67M | 10.02M | 5.04M | 1.78M |
| Stock-Based Compensation | 502.3M | 439.2M | 355.36M | 296.76M | 230.93M | 186.88M | 137.04M | 101.28M | 91.2M | 75.43M | 59.03M | 45.3M | 27.62M | 10.16M | 4.7M |
| Deferred Taxes | -187.2M | -312M | -492.87M | -370.8M | -244.38M | -99.29M | -9.14M | -75.74M | -57.9M | 8.43M | -21.72M | -24.41M | -6.77M | -8.83M | -3.72M |
| Other Non-Cash Items | -16.7M | -27.1M | -53.53M | -33.98M | 3.94M | 43.96M | 13.76M | 3.98M | 10.44M | 1.45M | -41.36M | -35.78M | -19.02M | 427K | 1.27M |
| Working Capital Changes | 870.9M | 687.8M | 985.18M | -15.92M | -912.82M | -6.88M | -85.69M | 40.8M | 103.59M | 102.48M | -68.45M | 80.65M | 15.82M | -14.61M | 926K |
| Change in Receivables | -642.6M | -746.4M | -106.08M | -105.93M | -401.95M | -126.97M | 10.67M | -60.21M | -77.92M | 5.77M | -108.86M | -47.28M | -19.84M | -28.29M | -22.04M |
| Change in Inventory | -476.2M | -412.5M | 110.61M | -655.47M | -638.95M | -170.45M | -235.32M | 20.93M | 51.05M | -69.71M | -144.36M | -14.12M | -13.43M | -49.18M | -7.15M |
| Change in Payables | 141.4M | 260.5M | -51.63M | 198.61M | 31.44M | 66.68M | 41.16M | -1.94M | 39.34M | -30.1M | 38.68M | 9.04M | 14.01M | 3.87M | 3.84M |
| Cash from Investing | -4.63B | -3.58B | -2.46B | -687.45M | 216.33M | -925.56M | -608.8M | -284.07M | -755.11M | -392.58M | -325.98M | 184.17M | -249.36M | -19.49M | -12.35M |
| Capital Expenditures | -151.3M | -119.5M | -32.03M | -34.43M | -44.64M | -64.74M | -15.38M | -15.75M | -23.83M | -15.28M | -21.42M | -19.99M | -13.13M | -20.32M | -3.31M |
| CapEx % of Revenue | 1.44% | 1.33% | 0.46% | 0.59% | 1.02% | 2.2% | 0.66% | 0.65% | 1.11% | 0.93% | 1.9% | 2.39% | 2.25% | 5.62% | 1.71% |
| Acquisitions | -300M | -300M | 0 | 1.8M | -145.09M | -19.93M | -224.02M | 26.86M | -104.82M | 0 | -2.5M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 279.9M | 14.9M | -6.63M | -3.16M | -12.69M | 1.3M | 0 | 0 | 0 | 1.74M | -204K | 0 | -26.21M | 825K | -9.04M |
| Cash from Financing | -606.4M | -1.6B | -421.81M | -83.75M | -654.6M | -360.88M | -346.34M | -217.96M | 42.85M | 51.47M | 75.6M | 63.1M | 261.34M | 9.89M | 3.98M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.93M | -1.62M | -1.34M | -1.09M | -20.79M | 0 | 0 |
| Equity Issued (Net) | -560.3M | -1.55B | -363.44M | -50.19M | -621.88M | -344.4M | -337.62M | -208.76M | 53.66M | 57.11M | 35.18M | -261K | 239.31M | 9M | 3.88M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -620.1M | -1.6B | -423.62M | -112.28M | -670.29M | -411.64M | -395.17M | -266.14M | 0 | 0 | 0 | -261K | 0 | 0 | 0 |
| Other Financing | -46.1M | -50.5M | -58.37M | -33.56M | -32.73M | -16.48M | -8.72M | -9.2M | -8.88M | -4.03M | 41.76M | 64.45M | 42.81M | 882K | 95K |
| Net Change in Cash | 64.7M | -798.5M | 824.3M | 1.26B | 50.93M | -272.4M | -218.06M | 461.35M | -210.53M | 291.27M | -119.4M | 447.3M | 126.37M | 25.01M | 17.93M |
| Free Cash Flow | 5.16B | 4.25B | 3.68B | 2B | 448.17M | 951.12M | 719.73M | 947.28M | 479.29M | 616.35M | 110.02M | 180.54M | 101.38M | 14.33M | 22.99M |
| FCF Margin % | 48.91% | 47.22% | 52.49% | 34.12% | 10.23% | 32.26% | 31.06% | 39.29% | 22.28% | 37.44% | 9.74% | 21.56% | 17.36% | 3.97% | 11.89% |
| FCF Growth % | 29.68% | 15.67% | 83.85% | 346.17% | -52.88% | 32.15% | -24.02% | 97.64% | -22.24% | 460.21% | -39.06% | 78.08% | 607.38% | -37.67% | - |
| FCF per Share | 4.04 | 3.33 | 2.87 | 1.58 | 0.35 | 0.74 | 0.57 | 0.73 | 0.37 | 0.49 | 0.09 | 0.16 | 0.12 | 0.01 | 0.02 |
| FCF Conversion (FCF/Net Income) | 1.27x | 1.25x | 1.30x | 0.97x | 0.36x | 1.21x | 1.16x | 1.12x | 1.53x | 1.49x | 0.71x | 1.66x | 1.32x | 0.82x | 1.23x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.69M | 2.81M | 2.92M | 3M | 6.45M | 0 | 0 |
| Taxes Paid | 0 | 0 | 970.64M | 686.15M | 427.85M | 189.77M | 82.6M | 32.83M | 17.57M | 44.22M | 39.64M | 6.59M | 44.77M | 16.81M | -15.11M |
Quick answers to the most common questions about buying ANET stock.
Arista Networks, Inc. (ANET) generated $4.37B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arista Networks, Inc. (ANET) generated $4.25B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Arista Networks, Inc. (ANET) spent $119.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Arista Networks, Inc. (ANET) spent $1.60B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Hyperscaler concentration and AI competition
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Signals Timing
Operating cash flow to net income ratio swung from 0.89 in Q2 2026 to 1.66 in Q1 2026, indicating timing effects from working capital, as per quarterly cash flow data.
The OCF/NI ratio has been consistently above 1 in most quarters, but Q2 2026 dipped to 0.89, the lowest since Q1 2025, driven by a working capital outflow of $158.3M. This suggests that while earnings quality is generally high, quarterly cash conversion can be lumpy due to the timing of collections and payments, particularly with hyperscaler customers. Investors should monitor whether this volatility persists as revenue scales.
Free Cash Flow Margin Expansion on AI Demand
Free cash flow margin reached 34.7% in Q2 2026, down from 60.5% in Q1 2026, but trailing twelve-month FCF remains robust, as reported in the latest quarterly data.
Despite the sequential decline, FCF generation remains strong, with Q2 2026 FCF of $1.1B on revenue of $3.0B. The TTM FCF margin is approximately 47%, well above peers like Cisco (22.1%), reflecting Arista's asset-light model and high incremental margins. The volatility in FCF margin is largely due to working capital swings, not operational deterioration, as evidenced by the consistent OCF/NI above 1 in most quarters.
Minimal Capital Intensity Belies Growth
Capital expenditure as a percentage of revenue rose to 1.0% in Q2 2026, still minimal, indicating a highly asset-light model, based on reported figures.
CapEx/Revenue has remained below 2% across the period, with Q2 2026 at 1.0%, reflecting Arista's reliance on contract manufacturers and merchant silicon. This low capital intensity allows nearly all operating cash flow to convert to FCF, a key differentiator versus traditional hardware peers. The slight uptick in CapEx may indicate investments in labs or facilities to support AI networking, but it remains immaterial to the overall cash generation story.
Working Capital Swings Reflect Hyperscaler Timing
Working capital changes swung from a $634.7M source in Q1 2026 to a $158.3M use in Q2 2026, highlighting the lumpy cash flow impact of large customer orders, as per quarterly data.
The volatility in working capital is a direct consequence of Arista's concentration in a few hyperscalers, where the timing of shipments and payments can cause significant quarterly swings. The positive working capital contributions in most quarters suggest efficient collection and inventory management, but the Q2 2026 outflow warrants monitoring. If this trend persists, it could signal a shift in customer payment terms or inventory build-up ahead of anticipated demand.
Share Repurchases Offset by Acquisition Spend
Arista returned $26.2M to shareholders via buybacks in Q2 2026, while a $300M acquisition in Q4 2025 highlights selective capital deployment, as reported in cash flow statements.
Capital deployment has been conservative, with no dividends and modest buybacks, but the $300M acquisition in Q4 2025 indicates a willingness to deploy cash for strategic tuck-ins. The fortress balance sheet, with nearly $2B in cash and no debt, provides ample flexibility for future deployment. Investors should watch whether management accelerates buybacks or pursues larger M&A as cash accumulates.
SBC and Customer Concentration Obscure Cash Flow
Stock-based compensation of $120.4M in Q2 2026, roughly 10% of revenue, is a non-cash expense that inflates reported earnings relative to cash generation, as per the cash flow data.
While SBC is added back to operating cash flow, it represents real dilution to shareholders. The cumulative SBC over the past five quarters exceeds $800M, which is significant relative to net income. Additionally, the reliance on a few hyperscalers for a large portion of revenue means that a slowdown in their capex could cause a sharp contraction in cash flow, as seen in the Q1 2025 dip. These factors suggest that reported cash flow may overstate the sustainability of free cash flow generation.