ARWHIGH SIGNALFINANCIAL10-K

Arrow Electronics experienced a dramatic 94.3% collapse in operating cash flow from $1.1B to $64M despite growing revenue 10.5% and net income 45.7%.

This severe cash flow deterioration signals potential working capital management issues or collection problems that could strain liquidity despite improved profitability. The massive disconnect between earnings growth and cash generation raises red flags about the quality and sustainability of reported profits.

Comparing 2026-02-11 vs 2025-02-11View on EDGAR →
FINANCIAL ANALYSIS

Arrow's financials present a concerning paradox with revenue growing 10.5% to $30.9B and net income surging 45.7% to $571.3M, yet operating cash flow collapsed 94.3% to just $64M. The company's balance sheet expanded significantly with accounts receivable jumping 51.5% and total assets growing 33.6%, suggesting substantial working capital absorption. While cash reserves increased 62.3% and stockholders' equity grew 14.3%, the dramatic cash flow deterioration despite strong profitability signals potential underlying operational stress that investors should monitor closely.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-94.3%
$1.1B→$64.0M

Operating cash flow fell 94.3% — earnings quality concerns; investigate working capital changes and non-cash items.

Cash & Equivalents
Balance Sheet
+62.3%
$188.8M→$306.5M

Cash position surged 62.3% — strong cash generation or capital raise providing significant financial cushion.

Accounts Receivable
Balance Sheet
+51.5%
$13.0B→$19.7B

Receivables surged 51.5% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Current Liabilities
Balance Sheet
+49.1%
$12.6B→$18.8B

Current liabilities surged 49.1% — significant near-term obligations; verify ability to meet short-term debt.

Net Income
P&L
+45.7%
$392.1M→$571.3M

Net income grew 45.7% — bottom-line growth signals improving overall business health.

Current Assets
Balance Sheet
+39.4%
$18.4B→$25.7B

Current assets grew 39.4% — improving short-term liquidity or inventory/receivables build.

Share Buybacks
Cash Flow
-39%
$265.1M→$161.7M

Buyback activity reduced 39% — capital being redeployed elsewhere or cash conservation underway.

Total Assets
Balance Sheet
+33.6%
$21.8B→$29.1B

Asset base grew 33.6% — expansion through organic growth, acquisitions, or capital deployment.

Stockholders Equity
Balance Sheet
+14.3%
$5.8B→$6.6B

Equity base grew 14.3% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Revenue
P&L
+10.5%
$27.9B→$30.9B

Revenue growing 10.5% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-11
ADDED
Glossary of Selected Abbreviated Terms* Abbreviated Term Defined Term AFC Arrow Electronics Funding Corporation AI Artificial Intelligence ASU Accounting Standard Update BIS Bureau of Industry and Security of the U.S.
Department of Commerce CIO Chief Information Officer CODM Chief Operating Decision Maker Compensation Committee Compensation Committee of the company's Board of Directors CSO Chief Security Officer CTA Foreign Currency Translation Adjustment EAR U.S.
These customers include manufacturers of products serving industries including industrial, automotive and transportation, computing, networking and communications, among others.
In 2025, approximately 70% of the company s sales were from global components, and approximately 30% of the company s sales were from global ECS.
Refer to Note 16 - Segment and Geographic Information within Item 8 for financial information about the company s reportable segments and geographic operations.
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REMOVED
Glossary of Selected Abbreviated Terms* Abbreviated Term Defined Term AFC Arrow Electronics Funding Corporation ASU Accounting Standard Update CIO Chief Information Officer CODM Chief Operating Decision Maker Compensation Committee Compensation Committee of the company's Board of Directors CSO Chief Security Officer CTA Foreign Currency Translation Adjustment EAR U.S.
These customers include manufacturers of products serving industries including industrial, automotive and transportation, telecommunications, and consumer electronics, among others.
For 2024, approximately 72% of the company s sales were from the global components reportable segment, and approximately 28% of the company s sales were from the global ECS reportable segment.
The financial information about the company s reportable segments and geographic operations is found in Note 16 to the consolidated financial statements.
The company s long term financial objectives are to grow sales faster than the market, increase the markets served, grow profits faster than sales, generate earnings per share growth in excess of competitors earnings per share growth and market expectations, allocate and deploy capital effectively so that return on invested capital exceeds the company s cost of capital, and increase return on invested capital.
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