Statement of Financial Position and Statement of Cash Flows

Assets

At the end of December 2025, total assets were down 2% to € 20,262 million (2024: € 20,655 million), mainly related to the decrease of cash and cash equivalents and other current financial assets, partially offset by the increase of inventories, accounts receivable, and other current assets.

Total current assets increased 1% to € 11,977 million at the end of December 2025 compared to € 11,904 million in 2024. Cash and cash equivalents were down 34% to € 1,617 million at the end of December 2025 (2024: € 2,455 million). This development was related to operating working capital investments as well as the increased dividend payout for the year 2024. Inventories increased 17% to € 5,832 million at the end of December 2025 (2024: € 4,989 million), reflecting the company’s planned top-line growth as well as earlier product purchases related to the FIFA World Cup 2026 and faster inbound deliveries. On a currency-neutral basis, inventories increased 23%. see notes 04–08

Inventories € in millions

Accounts receivable increased 9% to € 2,634 million at the end of December 2025 (2024: € 2,413 million) as a result of growth in the company’s wholesale business and higher marketplace receivables. On a currency-neutral basis, receivables were up 18%. Other current financial assets were down 45% to € 518 million (2024: € 950 million), mainly related to a decrease in the fair value of financial instruments and a payment received in connection with the earn-out components of the Reebok divestiture. Other current assets were up 21% to € 1,208 million at the end of December 2025 (2024: € 997 million), mainly due to customs holdbacks and higher tax-related receivables. SEE NOTEs 05–08

Accounts receivable € in millions

Total non-current assets decreased 5% to € 8,285 million at the end of December 2025 from € 8,751 million in 2024. This development was mainly related to a decrease in fixed assets, which were down 5% to € 6,576 million at the end of December 2025 (2024: € 6,953 million). Right-of-use assets decreased 6% to € 2,605 million (2024: € 2,779 million), mainly due to currency effects. Goodwill was down 6% to € 1,203 million (2024: € 1,275 million), also due to currency effects. Other intangible assets increased 4% to € 443 million (2024: € 426 million) due to the capitalization of internally generated software. Other non-current assets increased 43% to € 415 million at the end of December 2025 (2024: € 291 million), reflecting higher customs refund claims. Deferred tax assets amounted to € 1,077 million compared to € 1,272 million in 2024. see notes 09–15

Liabilities and equity

Total current liabilities were down 5% to € 9,094 million at the end of December 2025 from € 9,593 million in 2024. Short-term borrowings increased 13% to € 645 million at the end of December 2025 (2024: € 570 million). This development was related to the reclassification of a eurobond amounting to € 400 million to short-term borrowings due to its maturity in 2026 and a general increase of financing needs in the regions. This was partially offset by the repayment of a eurobond amounting to € 500 million in November 2025. Accounts payable decreased 6% to € 2,910 million at the end of December 2025 (2024: € 3,096 million), mainly due to exceptionally high sourcing volumes in the fourth quarter of the prior year. On a currency-neutral basis, accounts payable were down 4%. Current lease liabilities remained stable at € 603 million at the end of December 2025 (2024: € 607 million). Other current financial liabilities were up 75% to € 335 million (2024: € 191 million), mainly related to a higher negative fair value of financial instruments. Other current provisions decreased 21% to € 1,208 million at the end of December 2025 (2024: € 1,538 million), mainly due to reduced provisions for personnel and customs, including a reclassification from current to non-current. Current accrued liabilities were down 10% to € 2,383 million at the end of December 2025 (2024: € 2,659 million), mainly due to lower accruals for outstanding invoices and personnel. Other current liabilities were up 9% to € 652 million at the end of December 2025 from € 598 million in 2024, which was mainly related to higher tax liabilities. see notes 16–21

Accounts payable € in millions

Total non-current liabilities decreased 3% to € 5,043 million at the end of December 2025 compared to € 5,194 million in the prior year. Long-term borrowings were up 4% to € 1,996 million at the end of December 2025 (2024:€ 1,915 million). This increase was a result of a new eurobond amounting to € 500 million issued in October 2025, which was partly offset by the reclassification of a eurobond of € 400 million to short-term borrowings due to its maturity in 2026. Non-current lease liabilities were down 7% to € 2,310 million at the end of December 2025 (2024: € 2,495 million), mainly due to currency effects. Deferred tax liabilities decreased 66% to € 45 million at the end of December 2025 (2024: € 133 million). Other non-current provisions were up 24% to € 436 million at the end of December 2025 (2024: € 353 million), reflecting a reclassification of provisions for customs from current to non-current. Other non-current liabilities were down 7% to € 143 million at the end of December 2025 (2024: € 154 million). see notes 16–24

Shareholders’ equity increased 5% to € 5,776 million at the end of December 2025 versus € 5,476 million in 2024. This was mainly driven by higher net income, partly offset by the dividend paid to shareholders for the year 2024, negative currency effects, as well as a decrease of hedging reserves. The equity ratio increased to 28.5% compared to 26.5% in the prior year. see note 25

Equity ratio¹ in %

Operating working capital

Operating working capital increased 29% to € 5,556 million at the end of December 2025 (2024: € 4,306 million), reflecting the inventory increase to support the company’s planned top-line growth, the increase in receivables in relation to growth in the wholesale business, and the decline in payables as sourcing volumes were more evenly distributed than in the prior year. On a currency-neutral basis, operating working capital was up 41%. Average operating working capital as a percentage of sales increased 3.3 percentage points to 23.0% (2024: 19.7%), which was driven by the company’s operating working capital investments.

Average operating working capital¹ in % of net sales

Investment analysis

Capital expenditure is defined as the total cash expenditure for the purchase of tangible and intangible assets (excluding acquisitions and right-of-use assets according to IFRS 16). Capital expenditure decreased 12% to € 477 million (2024: € 540 million). Capital expenditure for property, plant, and equipment was down 13% to € 363 million compared to € 419 million in the prior year. The company invested € 114 million in intangible assets (2024: € 121 million). Depreciation and amortization, excluding impairment losses and reversal of impairment losses of tangible and intangible assets, decreased 9% to € 482 million in 2025 (2024: € 530 million).

Controlled space initiatives, which comprise investments in new or remodeled own retail and franchise stores as well as in shop-in-shop presentations of our products in our customers’ stores, accounted for 52% of total capital expenditure (2024: 50%). Expenditure for IT and logistics represented 27% and 6%, respectively (2024: 25% and 9%, respectively). In addition, expenditure for administration accounted for 15% (2024: 16%). From a segmental perspective, the majority of the capital expenditure was recorded centrally at headquarter level, which accounted for 34% (2024: 31%). From a regional perspective, capital expenditure in North America and Europe accounted for 15% and 14%, respectively (2024: 16% and 16%, respectively) of the total capital expenditure, followed by Emerging Markets with 13% and Greater China with 12% (2024: 13% and 13%, respectively) as well as Latin America and Japan/South Korea with 8% and 5%, respectively (2024: 5% and 5%, respectively).

Capital expenditure by type in %

Capital expenditure by segments in %

Liquidity analysis

Net cash generated from operating activities amounted to € 751 million in 2025 (2024: € 2,910 million). This development was mainly due to operating working capital investments that offset the higher operating profit in the period. Adjustments according to IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ are required to be separately disclosed and had a positive impact of € 3 million on the company’s 2025 operating cash flow (2024: € 9 million). SEE NOTE 37

In 2025, net cash used in investing activities reached a level of € 404 million compared to € 356 million in 2024. This development was mainly due to the purchase of property, plant, and equipment, as well as the change in investments and other long-term assets.

Net cash used in financing activities amounted to € 1,103 million (2024: € 1,559 million). This was mainly the result of repayments of lease liabilities, the repayment of a € 500 million eurobond in November 2025, the dividend payment for the year 2024 as well as interest paid. This development was partly offset by the proceeds of a € 500 million eurobond issued in October 2025 and changes in short-term borrowings.

Exchange rate effects on cash negatively impacted the company’s cash position by € 82 million (2024: positive € 29 million). As a result of all these developments, cash and cash equivalents decreased to € 1,617 million at the end of December 2025 (2024: € 2,455 million).

Change in cash and cash equivalents € in millions

Adjusted net borrowings at December 31, 2025 amounted to € 4,331 million, compared to € 3,622 million in 2024. The company’s ratio of adjusted net borrowings over EBITDA improved to 1.4 at the end of December 2025 (2024: 1.5). SEE TREASURY

Adjusted net borrowings/EBITDA € in millions

Off-balance-sheet items

The company’s most significant off-balance-sheet items are commitments for promotion and advertising, for service arrangements as well as for other contracts. At the end of December 2025, financial commitments for promotion and advertising decreased 3% to € 7,897 million in 2025 (2024: € 8,122 million). adidas has outsourced certain logistics and information technology functions, for which it has entered into long-term contracts. For these service arrangements, financial commitments increased 20% to € 839 million in 2025 (2024: € 669 million). The increase compared to the prior year was mainly related to new IT service agreements. SEE NOTE 38