CSCO · 10-K · 2025A · Full report

Financing Guarantees and Channel Financing

CISCO SYSTEMS, INC. · 2025-09-03 · Importance 61 · Surprise 32

Net financing receivables were $6,527 million as of July 26, 2025, a 3% decrease from $6,714 million at the end of fiscal 2024, with loan receivables net of $5,591 million. Channel partner financing volumes were $24.9 billion in fiscal 2025 (down from $27.1 billion in fiscal 2024), with $1.3 billion of channel partner financing subject to guarantees as of July 26, 2025 (compared with $1.2 billion a year earlier). The total maximum potential future payments under financing guarantees were approximately $123 million as of July 26, 2025, of which approximately $13 million was recorded as deferred revenue; historically payments under these guarantees have been immaterial. Financing arrangements include loans and leases for customers purchasing hardware, software and services, and in some cases Cisco provides guarantees to third parties for such arrangements.

Key facts

• Financing receivables, total net as of July 26, 2025: $6,527 million, a decrease of $187 million (3%) from $6,714 million as of July 27, 2024.
• The volume of channel partner financing was $24.9 billion in fiscal 2025, $27.1 billion in fiscal 2024, and $32.1 billion in fiscal 2023.
• Loan receivables, net as of July 26, 2025: $5,591 million, down $217 million from $5,808 million as of July 27, 2024.
• The balance of channel partner financing subject to guarantees was $1.3 billion as of July 26, 2025 and $1.2 billion as of July 27, 2024.
• As of July 26, 2025, the total maximum potential future payments related to financing guarantees was approximately $123 million, of which approximately $13 million was recorded as deferred revenue.

Impact estimates