Broadcom (AVGO) Financials

Broadcom Inc. (NASDAQ: AVGO) has demonstrated strong financial performance over the past several years, highlighted by consistent revenue growth, solid profitability, and significant cash flow generation. Below are the key trends from analyzing income statements, cash flow statements, and balance sheets over the last four years through Q2 2025.

• Revenue Growth: Total revenue has consistently increased from $6.6 billion in Q1 2021 to over $15.0 billion in Q2 2025, showing a strong upward trend supported by expanding operations.
• Net Income Expansion: Net income has grown significantly from approximately $1.3 billion in Q1 2021 to nearly $5.0 billion in Q2 2025, reflecting improved profitability and operational efficiency.
• Robust Operating Cash Flow: Operating cash flow has improved substantially, reaching about $6.55 billion in Q2 2025, indicating strong cash generation capability from core operations.
• Consistent Dividend Payouts: Broadcom pays steady and increasing dividends, reaching around $0.59 per share in Q2 2025, supporting shareholder returns.
• Strategic Capital Expenditures: Capital expenditures have been moderate relative to cash flow, enabling growth investments without compromising liquidity (around $100-$140 million quarterly).
• Stable Share Count: Weighted average diluted shares outstanding have remained fairly stable around 4.3 to 4.8 billion shares, limiting dilution concerns.
• Goodwill and Intangibles: Goodwill and intangible assets are substantial (~$97 billion and $36 billion respectively in Q2 2025), reflecting acquisition strategy but also requiring monitoring for impairment risk.
• Rising Debt Load: Long-term debt has increased from about $39 billion in early 2021 to over $61 billion as of Q2 2025, raising leverage and interest expense considerations.
• Interest Expenses Increasing: Interest expenses have grown alongside debt, currently around $769 million in Q2 2025, which could pressure net income if rates rise.
• Fluctuations in Operating Expenses: Operating expenses, including R&D and restructuring charges, have increased noticeably, which may impact future margins if not controlled carefully.

Summary: Broadcom has steadily grown revenue and profits over the past few years while delivering strong operating cash flows and shareholder returns through dividends. The company’s sizable acquisitions have increased goodwill and intangible assets, and debt levels have risen accordingly, leading to higher interest costs. Investors should watch the company's debt management and ongoing expense control, which will be crucial for sustaining profitability and financial flexibility. Overall, Broadcom’s financials reflect a robust growth trajectory with manageable risks typical for a large-cap semiconductor and technology firm.