FFilingSight

Adobe Inc. (ADBE) 10-K Red Flags

Risk signals extracted deterministically from Adobe Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.

Detected red flags (17)

  • Material weakness in internal controls: The term "material weakness" appears in 34 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
  • NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 18 filing(s).
  • Operating cash flow exceeds net income: OCF is 1.35x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
  • Deferred revenue growing — future revenue visibility: Deferred revenue grew +21.2% to $2.92B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
  • Goodwill is 47% of total assets: Goodwill of $14.04B represents a large share of the balance sheet. If acquired businesses underperform, a non-cash impairment charge could materially impact earnings. Monitor segment performance and acquisition integration metrics.
  • NEW: Impairment charge: Impairment charge appears in recent filings but not in the prior 24-month period. Monitor for materiality.
  • Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
  • 3 new XBRL disclosure(s) in latest filing — expanding reporting scope.
  • 20 disclosure(s) dropped from prior year — reduced reporting granularity.
  • 4 new risk-language term(s) detected in filing text: Restatement of financial statements, Impairment charge, Restructuring, Off-balance sheet arrangements.
  • Ongoing high-severity risk language: Material weakness in internal controls.
  • Price $219.72 — downtrend (below 200-DMA); 1-month momentum negative.
  • RSI(14) 50.70.
  • Composite risk: Moderate.
  • Leverage debt/equity 0.42 (moderate).
  • Material weakness in internal controls: The term "material weakness" appears in 34 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
  • NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 18 filing(s).

Filings & ownership

  • Latest annual report (10-K) filed Jan 15, 2026.
  • Latest quarterly report (10-Q) filed Jun 15, 2026.
  • 8 recent 8-K material-event filings in the index.
  • Recent insider Form 4s: 0 buy vs 0 sell transactions.
  • ~10,000+ recent 13F-HR filings reference Adobe Inc.; broad institutional reporting.
  • Recent filers include Axiom Investment Management LLC, Saranac Partners Ltd, Axiom Investment Management LLC.
  • 3 recent 13D activist/beneficial-ownership filings — potential catalyst.
  • 17 recent 13G passive institutional ownership notices.

Full ADBE analyst report

Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.

View full report →

Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.