Slide 1: Fiscal Third Quarter 2025 Financial Results
Fiscal Third Quarter 2025 Financial Results Western Digital April 30, 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 Third Quarter Executive Summary
3 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Fiscal Third Quarter Executive Summary Financial • Revenue of $ 2.3B • Operating cash flow of $ 508M Results1 • Non-GAAP EPS of $ 1.36 • Free cash flow of $ 436M • Non-GAAP gross margin of 40.1% • Cash and cash equivalents of
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 millions In millions $150 $200 $2.0 $1.5 $150 $100 $1.0 $100 $50 $0.5 $50 $0.0 $0 $0 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1
Slide 5: Business Metrics (Non-GAAP)
5 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Business Metrics (Non-GAAP) Revenue and Gross Margin In billions $2.5 45.0% $2.0 30.0% $1.5 $1.0 15.0% $0.5 $0.0 0.0% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Revenue Gross Margin Exabyte shipments: decreased 6% QoQ Q3F25 Results AS
Slide 6: Non-GAAP Financial Results
6 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Non-GAAP Financial Results(1) ($ in millions, except for EPS) Q3F24 Q2F25 Q3F25 QoQ YoY Revenue $ 1,752 $ 2,409 $ 2,294 down 5% up 31% Gross Margin % 30.1% 38.4% 40.1% up 1.7 ppt up 10.0 ppt Operating Expenses $ 375 $ 335 $ 3
Slide 7: Cash Flow Walk
© 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED 7 Cash Flow Walk In millions $ 1,894 $ (1,366) $ 222 $ 3,477 $ 508 $ (72) $ 2,291 (1) (3) Q2F25 Operating Cash Cash CapEx Proceeds from Cash transferred Other Q3F25 Cash & Cash Flow Debt (2) to Sandisk (2) Cash & Cash Equivalen
Slide 8: Fiscal Fourth Quarter Guidance
8 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Fiscal Fourth Quarter Guidance(1) GAAP Non-GAAP(2) Revenue $ 2.45B +/- $ 150M $ 2.45B +/- $ 150M Gross Margin % 39.5% - 40.5% 40.0% - 41.0% Operating Expenses ($ M) $ 385 - $ 395 $ 330 - $ 340 Interest and Other Expense, net
Slide 9: Quarterly Fact Sheet
9 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Quarterly Fact Sheet In millions, except Average Selling Price (ASP), percentages, and working capital related metrics Q3F24 Q4F24 Q1F25 Q2F25 Q3F25 Revenue by End Market(1) Cloud $ 1,455 $ 1,712 $ 1,909 $ 2,096 $ 2,007 Clien
Slide 10: Quarterly Fact Sheet (continued)
10 © 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 11: Appendix
© 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED 11 Appendix
Slide 12: Convertible Preferred Stock Impact to Income Statement
12 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Convertible Preferred Stock Impact to Income Statement Convertible Preferred Stock (as of Q3F25) Convertible preferred stock liquidation preference:1 $ 265M with a conversion price of Income Statement Example ($ in millions
Slide 13: Convertible Notes Impact to Income Statement
13 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Convertible Notes Impact to Income Statement Convertible Senior Notes + Capped Calls • Principal balance: $ 1.6B with a conversion price of $ 37.89 Financial reporting (diluted shares for EPS) • Conversion premium in excess
Slide 14: Debt Capital Structure
14 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Debt Capital Structure Current Cap Table Maturity Profile (in billions) As of All-in March 28, Rate Maturity 2025 Rate1 (in millions) Sr. Unsecured Notes Due 20262 4.750% 4.750% 2/15/2026 $ 2,300 $ 1.25B Revolver3 S+1.500%4
Slide 15: Credit Agreement Defined Adjusted EBITDA
15 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED Credit Agreement Defined Adjusted EBITDA In millions; unaudited Q4F24 Q1F25 Q2F25 Q3F25 LTM Q3F25 Net Income (Loss) $ (246) $ 155 $ 466 $ 772 $ 1,147 Income tax expense (benefit) 53 90 — (698) (555) Interest and other expens
Slide 16: GAAP to Non-GAAP Reconciliations
16 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED GAAP to Non-GAAP Reconciliations In millions; unaudited Q3F24 Q2F25 Q3F25 GAAP Gross Profit $ 519 $ 907 $ 912 Stock-based compensation expense 8 9 7 Litigation matter — 10 — Other 1 — 1 Non-GAAP Gross Profit $ 528 $ 926 $ 92
Slide 17: GAAP to Non-GAAP Reconciliations (cont'd)
17 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED GAAP to Non-GAAP Reconciliations (cont'd) In millions, except per share amounts; unaudited Q2F25 Q3F25 GAAP Net Income from Continuing Operations $ 466 $ 772 Stock-based compensation expense 30 35 Litigation matter 14 (207)
Slide 18: GAAP to Non-GAAP Reconciliations (cont'd)
18 © 2025 WESTERN DIGITAL CORPORATION OR ITS AFFILIATES ALL RIGHTS RESERVED 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 accounting principles (“GAAP”): Non-GAAP gross profit; N
Slide 19: Western Digital
N. Western Digital.