Sandisk Corporation · NASDAQ:SNDK
Sandisk — Q3 2025 Earnings Presentation
20 slides from Sandisk's earnings presentation, May 7, 2025
Slide 1: Fiscal Third Quarter 2025 Financial Results
Fiscal Third Quarter 2025 Financial Results Quarter ended March 28, 2025 Wednesday, May 7, 2025
Slide 2: Disclaimers
“START” “REPEAT” “1988/2025” Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws, including, but not limited to, statements regarding expectations for: Sandisk Corporation’s (the “Company”) business outlook and op
Slide 3: Fiscal Third Quarter Executive Summary
“START” “REPEAT” “1988/2025” Fiscal Third Quarter Executive Summary Key Messages • Successful first quarter as a standalone company meeting/beating expectations • Creating value for customers and shareholders through innovation, scale, agility and resilience • Leading innovation with BiCS 8– driving
Slide 4: Technology and operations
“START” “REPEAT” “1988/2025” Technology and operations Client Segment • PC Demand 2H CY2025 Drivers: • Windows 10 End of Life replacement cycle • Post-pandemic refresh • AI PCs requiring higher memory/storage • Smartphone refresh cycle including AI-enabled devices • OEM Engagement: BiCS8 SSD mass pr
Slide 5: Technology and operations (cont'd)
“START” “REPEAT” “1988/2025” Technology and operations (cont'd) Consumer Segment • Launched high-performance portable SSDs & USB drives • Expanded into pro-grade memory cards for content creators • Industry recognition: Red Dot Design Award, NAB TV Tech Best of Show Datacenter Segment • Increased Cl
Slide 6: Revenue Trends by End Market
“START” “REPEAT” “1988/2025” Revenue Trends by End Market Client Consumer Cloud In millions In millions In millions $1,050 $600 $300 $700 $400 $200 $350 $200 $100 $0 $0 $0 Q3F24 Q4F24 Q1F25 Q2F25 Q3F25 Q3F24 Q4F24 Q1F25 Q2F25 Q3F25 Q3F24 Q4F24 Q1F25 Q2F25 Q3F25 Revenue Revenue Revenue $927 million $
Slide 7: Non-GAAP Financial Results
“START” “REPEAT” “1988/2025” Non-GAAP Financial Results(1) ($in millions, except for EPS) Q3 2024 Q2 2025 Q3 2025 QoQ YoY Revenue $1,705 $1,876 $1,695 down 10% down 1% Gross Margin % 27.4% 32.5% 22.7% down 9.8 ppt down 4.7 ppt Operating Expenses $351 $376 $383 up 2% up 9% Operating Income (Loss) $11
Slide 8: Gross and Cash Capital Expenditure Trends and Plan
“START” “REPEAT” “1988/2025” Gross and Cash Capital Expenditure Trends and Plan In millions 9 Months Ended March 28, 2025 Revenue, net $5,454 • JV Gross CapEx fluctuates based primarily on node transitions and aligning Sandisk share of JV Gross CapEx $(343) supply with demand Funding mechanisms: Ext
Slide 9: Fiscal Fourth Quarter Guidance
“START” “REPEAT” “1988/2025” Fiscal Fourth Quarter Guidance(1) GAAP Non-GAAP(2) Revenue ($B) $1.75 - $1.85 $1.75 - $1.85 Gross Margin 25.3% - 26.7% 25.5% - 27.0% Operating Expenses ($M) $440 - $460 $395 - $405 Interest and Other Expense, net ($M) $43 - $48 $45 - $50 Tax Expense ($M)(3) N/A $22 - $25
Slide 10: Joint Venture Operational Framework
“START” “REPEAT” “1988/2025” Joint Venture Operational Framework Flash Ventures 49.9% Owned by Sandisk 50.1% Owned by Kioxia Co-develops flash (including process technology and Owns and leases equipment for flash wafer production Co-develops flash (including process technology and memory design) wit
Slide 11: START REPEAT 1988/2025
“START” “REPEAT” “1988/2025”
Slide 12: Appendix
“START” “REPEAT” “1988/2025” Appendix ©2025 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED
Slide 13: Non-GAAP Reconciliations
“START” “REPEAT” “1988/2025” Non-GAAP Reconciliations ©2025 SANDISK CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED
Slide 14: GAAP to Non-GAAP Reconciliations
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations In millions; unaudited Q3'24 Q2'25 Q3'25 GAAP Gross Profit $463 $606 $382 Stock-based compensation expense 5 3 3 Non-GAAP Gross Profit $468 $609 $385 GAAP Operating Expenses $398 $411 $2,263 Goodwill impairment — — (1,830) Stock-based com
Slide 15: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q3'24 Q2'25 Q3'25 GAAP Operating Income (Loss) $65 $195 $(1,881) Gross profit adjustments 5 3 3 Operating expense adjustments 47 35 1,880 Non-GAAP Operating Income $117 $233 $2 GAAP Interest and Other Expen
Slide 16: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions, except per share amount; Q3'24 Q2'25 Q3'25 unaudited GAAP Net Income (Loss) $27 $104 $(1,933) Goodwill impairment — — 1,830 Stock-based compensation expense 38 48 44 Business separation costs 12 21 9 Employee termina
Slide 17: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q3'24 Q2'25 Q3'25 Cash Flows Cash flow provided by (used in) operating activities (12) 95 26 Purchases of property, plant and equipment, net (29) (48) (44) Free Cash Flow $(41) $47 $(18) Activity related to
Slide 18: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) In millions; unaudited Q3'24 Q2'25 Q3'25 GAAP Net Income (Loss) $27 $104 $(1,933) Interest and other expense, net 11 22 20 Income tax expense 27 69 32 Depreciation and amortization 56 36 37 EBITDA $121 $231 $(1,844) Goodwill impa
Slide 19: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) FOOTNOTES This presentation contains the following financial measures that are not in accordance with U.S. generally accepted accountin g principles (“GAAP”): Non-GAAP gross profit; Non-GAAP gross margin; Non-GAAP operating expen
Slide 20: GAAP to Non-GAAP Reconciliations (cont'd)
“START” “REPEAT” “1988/2025” GAAP to Non-GAAP Reconciliations (cont'd) Employee termination and other. From time to time, in order to realign the Company’s operations with anticipated market demand, the Company may terminate e mployees and/or restructure its operations. From time to time, the Compan