Overview
- Adobe reported record fiscal Q2 revenue of $6.62 billion and raised its full‑year revenue and EPS guidance following its June 11 earnings call.
- Executives disclosed a deliberate freemium shift that removes paywalls from Acrobat, Express, and Firefly and defers Creative Cloud price increases to boost user acquisition.
- The company said Acrobat and Express monthly active users topped about 850 million and Creative freemium users rose from 50 million to 90 million, which it expects will enlarge the future conversion funnel.
- Adobe said AI‑first annual recurring revenue tripled to more than $500 million with Firefly ARR near $300 million, and the SEMrush acquisition added roughly $480 million to ARR for the quarter.
- Leadership turnover and investor doubt followed the announcements as CFO Dan Durn left effective June 15 with Steve Day named interim CFO, sending the stock to fresh 52‑week lows and leaving markets waiting for proof free users become durable paid subscribers.