Slide 1: Fiscal Second Quarter 2025 Financial Results
Fiscal Second Quarter 2025 Financial Results Western Digital January 29, 2025
Slide 2: Disclaimers
2 © 2025 Western Digital Corporation or its affiliates All rights reserved Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for: the company's business outlook and f
Slide 3: Fiscal Second Quarter Executive Summary
3 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Fiscal Second Quarter Executive Summary Financial Results1 • Revenue of $ 4.3B • Operating cash flow of $ 403M • Non-GAAP EPS of $ 1.77 • Free cash flow of $ 335M • Non-GAAP gross margin of 35.9% • Cash
Slide 4: Revenue Trends by End Market
4 © 2025 Western Digital Corporation or its affiliates All rights reserved Revenue Trends by End Market Cloud Client Consumer In billions In billions In billions $2.5 $1.6 $1.0 $2.0 $0.8 $1.2 $1.5 $0.6 $0.8 $1.0 $0.4 $0.4 $0.5 $0.2 $0.0 $0.0 $0.0 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q2'24 Q3'24 Q4'24 Q1'25
Slide 5: Flash and Hard Drive Metrics
5 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Flash and Hard Drive Metrics Flash Revenue and Gross Margin Hard Drive Revenue and Gross Margin In billions In billions $2.0 40% $2.5 40.0% $2.0 $1.5 30% 30.0% $1.5 $1.0 20% 20.0% $1.0 $0.5 10% 10.0% $0
Slide 6: Non-GAAP Financial Results
6 © 2025 Western Digital Corporation or its affiliates All rights reserved Non-GAAP Financial Results(1) ($ in millions, except for EPS) Q2 2024 Q1 2025 Q2 2025 QoQ YoY Revenue $ 3,032 $ 4,095 $ 4,285 up 5% up 41% Gross Margin % 15.5% 38.5% 35.9% down 2.6 ppt up 20.4 ppt Operating Expenses $ 561 $ 6
Slide 7: Cash Flow Walk
7 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Cash Flow Walk In millions $ 97 $ 2,291 $ 403 $ (68) $ 191 $ (37) $ 1,705 (1) (3) Q1F25 Operating Cash Cash CapEx Net Debt Proceeds from Other Q2F25 (2) Cash & Cash Flow Sale of SDSS Cash & Cash Equival
Slide 8: Fiscal Third Quarter Guidance
8 © 2025 Western Digital Corporation or its affiliates All rights reserved Fiscal Third Quarter Guidance(1) GAAP Non-GAAP(2) Revenue ($ B) $ 3.75 - $ 3.95 $ 3.75 - $ 3.95 Gross Margin % 31.0% - 33.0% 31.5% - 33.5% Operating Expenses ($ M) $ 790 - $ 810 $ 700 - $ 720 Interest and Other Expense, net (
Slide 9: Joint Venture Operational Framework
9 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Joint Venture Operational Framework For more information on Flash Ventures, please visit investor.wdc.com for a published Flash Ventures presentation. Flash Ventures 49.9% Owned by Western Digital 50.1%
Slide 10: Capital Expenditure Framework
10 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Capital Expenditure Framework 1 2 3 Flash Cash Capital HDD CapEx Non-Fab Flash Ventures (1) Parent Loans(2) Expenditures CapEx 3 4 5 Flash Ventures Capital Flash Ventures Flash Ventures Flash Ventures
Slide 11: Gross Capital Expenditure Trends
11 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Gross Capital Expenditure Trends In billions $ 3.5 $ 3.0 $ 2.5 $ 1.0 $ 1.6 $ 2.0 $ 1.5 $ 1.9 $ 1.5 $ 1.4 $ 1.0 $ 2.0 $ 1.6 $ 1.4 ~ $ 0.5 $ 1.2 $ 0.8 $ 0.8 ~ $ 0.8 $ - $ (0.3) $ (0.5) FY18 FY19 FY20 FY2
Slide 12: Appendix
12 © 2025 WEST ERN DI G I T AL CO RPO RAT I O N O R I T S AF F I L I AT ES AL L RI G HT S RESERVED Appendix
Slide 13: Quarterly Fact Sheet
13 © 2025 Western Digital Corporation or its affiliates All rights reserved Quarterly Fact Sheet In millions, except Average Selling Price (ASP), Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 percentages, and working capital related metrics Revenue by End Market(1) Cloud $ 1,071 $ 1,553 $ 1,882 $ 2,208 $ 2,346 Clie
Slide 14: Quarterly Fact Sheet (continued)
14 © 2025 Western Digital Corporation or its affiliates All rights reserved Quarterly Fact Sheet (continued) FOOTNOTES FORMULAS Days Sales Outstanding (DSO) = Accounts Receivable / (Revenue / # of days in quarter) Days Inventory Outstanding (DIO) = Inventories / (Cost of Revenue / # of days in quart
Slide 15: Convertible Preferred Stock Impacts to Income Statement
15 © 2025 Western Digital Corporation or its affiliates All rights reserved Convertible Preferred Stock Impacts to Income Statement Convertible Preferred Stock (as of Q2F25) Convertible preferred stock liquidation preference:1 $ 265M with a conversion price of Income Statement Example ($ in millions
Slide 16: Convertible Preferred Stock Impacts to Income Statement (cont.)
16 © 2025 Western Digital Corporation or its affiliates All rights reserved Convertible Preferred Stock Impacts to Income Statement (cont.) Convertible Senior Notes + Capped Calls • Principal balance: $ 1.6B with a conversion price of $ 52.20 Financial reporting (diluted shares for EPS) • Conversion
Slide 17: Debt Capital Structure
17 © 2025 Western Digital Corporation or its affiliates All rights reserved Debt Capital Structure Current Cap Table Maturity Profile (in billions) As of All-in December Rate Maturity 27, 2024 Rate1 (in millions) Sr. Unsecured Notes Due 20262 4.750% 4.750% 2/15/2026 $ 2,300 $ 2.25B Revolver3 S+1.500
Slide 18: Credit Agreement Defined Leverage Ratio
18 © 2025 Western Digital Corporation or its affiliates All rights reserved Credit Agreement Defined Leverage Ratio In millions; unaudited; trailing 12 months Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 Net Income (Loss) $ (2,252) $ (1,546) $ (798) $ 380 $ 1,261 Income tax expense 49 49 137 269 388 Interest and o
Slide 19: GAAP to Non-GAAP Reconciliations
19 © 2025 Western Digital Corporation or its affiliates All rights reserved GAAP to Non-GAAP Reconciliations In millions; unaudited Q2F24 Q1F25 Q2F25 GAAP Gross Profit $ 492 $ 1,551 $ 1,516 Stock-based compensation expense 13 14 12 Litigation matter — 9 10 Amortization of acquired intangible assets
Slide 20: GAAP to Non-GAAP Reconciliations (cont'd)
20 © 2025 Western Digital Corporation or its affiliates All rights reserved GAAP to Non-GAAP Reconciliations (cont'd) In millions, except per share amounts; unaudited Q2F24 Q1F25 Q2F25 GAAP Net Income (Loss) $ (287) $ 493 $ 594 Gain on business divestiture — — (113) Stock-based compensation expense
Slide 21: Supplemental Operating Segment Results
21 © 2025 Western Digital Corporation or its affiliates All rights reserved Supplemental Operating Segment Results In millions, except percentages; unaudited Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 Net Revenue HDD $ 1,367 $ 1,752 $ 2,003 $ 2,211 $ 2,409 Flash 1,665 1,705 1,761 1,884 1,876 Total Net Revenue $
Slide 22: GAAP to Non-GAAP Reconciliations
22 © 2025 Western Digital Corporation or its affiliates All rights reserved GAAP to Non-GAAP Reconciliations FOOTNOTES This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“GAAP”): Non-GAAP gross profit; Non-GAAP g
Slide 23: Western Digital. Create What's Next
N. Western Digital. Create What’s Next