[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Sandisk reported strong Q4 2025 results, with revenue of **$1.90 billion**, up 12% sequentially and exceeding guidance, achieving a Non-GAAP EPS of **$0.29** but recording a GAAP net loss of **$23 million** [Q4 2025 Financial Highlights](index=2&type=section&id=Q4%202025%20Financial%20Highlights) In Q4 2025, revenue reached **$1.90 billion**, an increase of 12% quarter-over-quarter and 8% year-over-year, with a GAAP net loss of **$23 million** and Non-GAAP net income of **$42 million** Q4 2025 Key Financial Metrics (GAAP vs. Non-GAAP) | Metric | Q4 2025 GAAP | Q3 2025 GAAP | Q/Q Change | Q4 2025 Non-GAAP | Q3 2025 Non-GAAP | Q/Q Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $1,901M | $1,695M | +12% | $1,901M | $1,695M | +12% | | **Gross Margin** | 26.2% | 22.5% | +3.7 ppt | 26.4% | 22.7% | +3.7 ppt | | **Operating Income (Loss)** | $18M | $(1,881)M | +101% | $100M | $2M | +4900% | | **Net Income (Loss)** | $(23)M | $(1,933)M | +99% | $42M | $(43)M | +198% | | **Diluted EPS** | $(0.16) | $(13.33) | +99% | $0.29 | $(0.30) | +197% | [Fiscal Year 2025 Financial Highlights](index=2&type=section&id=Fiscal%20Year%202025%20Financial%20Highlights) For the full fiscal year 2025, revenue grew 10% to **$7.36 billion**, reporting a GAAP net loss of **$1.64 billion** due to a goodwill impairment, contrasted by a Non-GAAP net income of **$440 million** Fiscal Year 2025 vs. 2024 Financial Performance | Metric | 2025 GAAP | 2024 GAAP | Y/Y Change | 2025 Non-GAAP | 2024 Non-GAAP | Y/Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $7,355M | $6,663M | +10% | $7,355M | $6,663M | +10% | | **Gross Margin** | 30.1% | 16.1% | +14.0 ppt | 30.3% | 15.8% | +14.5 ppt | | **Operating Income (Loss)** | $(1,377)M | $(468)M | -194% | $689M | $(309)M | +323% | | **Net Income (Loss)** | $(1,641)M | $(672)M | -144% | $440M | $(502)M | +188% | | **Diluted EPS** | $(11.32) | $(4.63) | -144% | $2.99 | $(3.46) | +186% | [End Market Performance](index=2&type=section&id=End%20Market%20Performance) In Q4 2025, all end markets experienced sequential revenue growth, with the Client segment remaining the largest at **$1.10 billion**, and the Cloud segment showing robust year-over-year growth of 195% for the full fiscal year End Market Revenue ($M) | End Market | Q4 2025 | Q3 2025 | Q/Q Change | Q4 2024 | Y/Y Change | FY 2025 | FY 2024 | Y/Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Cloud** | $213 | $197 | +8% | $170 | +25% | $960 | $325 | +195% | | **Client** | $1,103 | $927 | +19% | $1,067 | +3% | $4,127 | $4,069 | +1% | | **Consumer** | $585 | $571 | +2% | $523 | +12% | $2,268 | $2,269 | 0% | - CEO David Goeckeler emphasized strong execution, the performance benefits of BiCS8 technology, and the development of High Bandwidth Flash (HBF) for AI inference solutions, positioning the company for sustainable growth amid improving industry fundamentals[3](index=3&type=chunk) [Business Outlook for Fiscal First Quarter of 2026](index=3&type=section&id=Business%20Outlook%20for%20Fiscal%20First%20Quarter%20of%202026) Sandisk anticipates continued strong performance into the first quarter of fiscal 2026, projecting revenue between **$2.10 billion** and **$2.20 billion**, with Non-GAAP diluted earnings per share forecasted between **$0.70** and **$0.90** Q1 2026 Guidance | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | **Revenue ($B)** | $2.10 - $2.20 | $2.10 - $2.20 | | **Gross Margin** | 28.3% - 29.2% | 28.5% - 29.5% | | **Operating Expenses ($M)** | $475 - $490 | $415 - $430 | | **Diluted EPS** | N/A | $0.70 - $0.90 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Sandisk's financial position and performance, showing total assets of **$13.0 billion** and a GAAP net loss of **$1.64 billion** for FY2025, with positive net cash from operations of **$84 million** [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 27, 2025, Sandisk's balance sheet shows strong liquidity with cash and cash equivalents at **$1.48 billion**, despite a decrease in total assets to **$12.99 billion** primarily due to a **$1.83 billion** reduction in goodwill Selected Balance Sheet Items ($ in millions) | Account | June 27, 2025 | June 28, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,481 | $328 | | **Total current assets** | $5,086 | $3,548 | | **Goodwill** | $4,999 | $7,207 | | **Total assets** | $12,985 | $13,506 | | **Long-term debt** | $1,829 | $0 | | **Total liabilities** | $3,769 | $2,424 | | **Total shareholders' equity** | $9,216 | $11,082 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For fiscal year 2025, Sandisk's revenue increased 10% to **$7.36 billion**, but a **$1.83 billion** goodwill impairment charge led to a GAAP operating loss of **$1.38 billion** and a net loss of **$1.64 billion** - A goodwill impairment charge of **$1.83 billion** was the primary driver of the company's significant GAAP operating and net losses for fiscal year 2025[21](index=21&type=chunk) Fiscal Year Statement of Operations Summary ($ in millions) | Account | Year Ended June 27, 2025 | Year Ended June 28, 2024 | | :--- | :--- | :--- | | **Revenue, net** | $7,355 | $6,663 | | **Gross profit** | $2,212 | $1,072 | | **Total operating expenses** | $3,589 | $1,540 | | **Operating income (loss)** | $(1,377) | $(468) | | **Net income (loss)** | $(1,641) | $(672) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2025, Sandisk generated **$84 million** in cash from operating activities, with net cash from investing activities at **$556 million** and financing activities providing **$518 million**, resulting in a **$1.15 billion** increase in cash to **$1.48 billion** Fiscal Year Cash Flow Summary ($ in millions) | Cash Flow Activity | Year Ended June 27, 2025 | Year Ended June 28, 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $84 | $(309) | | **Net cash from investing activities** | $556 | $210 | | **Net cash from financing activities** | $518 | $136 | | **Net increase in cash** | $1,153 | $36 | | **Cash and cash equivalents, end of period** | $1,481 | $328 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details adjustments to reconcile GAAP results to Non-GAAP measures, converting a GAAP net loss of **$1.64 billion** into a Non-GAAP net income of **$440 million** for fiscal year 2025, primarily by excluding a **$1.83 billion** goodwill impairment [Reconciliation Tables](index=10&type=section&id=Reconciliation%20Tables) The tables provide a clear bridge from GAAP to Non-GAAP metrics, showing how adjustments like stock-based compensation and business separation costs transformed a Q4 2025 GAAP net loss of **$23 million** into a Non-GAAP net income of **$42 million** FY 2025 GAAP to Non-GAAP Net Income Reconciliation ($ in millions) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(1,641)** | | Goodwill impairment | $1,830 | | Stock-based compensation expense | $182 | | Business separation costs | $67 | | Employee termination and other | $21 | | Gain on business divestiture | $(34) | | Other adjustments | $(7) | | Income tax adjustments | $22 | | **Non-GAAP net income** | **$440** | [Explanation of Non-GAAP Adjustments](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Adjustments) Sandisk justifies its Non-GAAP adjustments by excluding items not indicative of core operating results, with the largest being a **$1.8 billion** goodwill impairment triggered by stock price performance post-separation from WDC - A **$1.8 billion** goodwill impairment charge was recognized in Q3 2025 after a quantitative analysis was triggered by the company's stock price and market capitalization following its separation from WDC[30](index=30&type=chunk) - Business separation costs were incurred as Sandisk became an independent public company after separating from Western Digital Corporation on February 21, 2025; these costs are excluded as they are not considered part of ongoing operations[33](index=33&type=chunk) - The company defines Adjusted Free Cash Flow as cash flow from operations less net purchases of property, plant and equipment, plus net activity related to its Flash Ventures joint venture[40](index=40&type=chunk) [Company and Report Information](index=4&type=section&id=Company%20and%20Report%20Information) This section provides important context, noting Sandisk completed its separation from Western Digital Corporation on February 21, 2025, and now operates as a standalone public company, with a standard forward-looking statements disclaimer [Basis of Presentation](index=4&type=section&id=Basis%20of%20Presentation) The financial statements are presented on a consolidated basis following Sandisk's separation from Western Digital Corporation (WDC) on February 21, 2025, with prior periods prepared on a carve-out basis from WDC's consolidated statements - Sandisk Corporation completed its separation from Western Digital Corporation and became a standalone publicly traded company on February 21, 2025[11](index=11&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains a legal disclaimer regarding forward-looking statements, highlighting numerous risks and uncertainties that could cause actual results to differ materially, such as global economic conditions, demand volatility, and reliance on strategic partners - Key risks that could affect future results include adverse economic conditions, demand volatility, pricing trends, supply chain disruptions, and reliance on strategic partners like Kioxia Corporation[16](index=16&type=chunk) [About Sandisk](index=4&type=section&id=About%20Sandisk) Sandisk is a leading developer and manufacturer of data storage devices and solutions based on NAND flash technology, with a portfolio serving AI workloads in datacenters, edge devices, and consumer products - Sandisk's business is focused on developing and providing NAND flash technology-based data storage solutions for AI workloads, datacenters, edge devices, and consumers[14](index=14&type=chunk)

Group 1 - SanDisk has abandoned plans to build a large chip manufacturing plant in Mundy, Michigan, leading to the failure of a $55 billion semiconductor manufacturing project that was expected to create up to 10,000 jobs in Genesee County [2] - The Michigan state government and economic developers worked for over a year to secure this investment, which was poised to be one of the largest in the state's history [2] - The U.S. aims to regain its status as a semiconductor manufacturing superpower through the $280 billion CHIPS and Science Act, which seeks to reduce reliance on foreign foundries [2] Group 2 - Intel plays a core role in establishing U.S. alternatives to foreign foundries but faces challenges following the sudden departure of former CEO Pat Gelsinger and the need for a new development strategy [3] - Micron Technology is prepared to compete with larger rivals SK Hynix and Samsung Electronics, showcasing its ability to produce advanced memory modules [3] Group 3 - Micron recently detailed its $200 billion investment plan in the U.S., which includes $150 billion for storage manufacturing and $50 billion for R&D, aiming to create approximately 90,000 direct and indirect jobs [4] - The $150 billion investment will fund the construction of a second leading memory factory in Boise, Idaho, and the expansion of existing facilities in Virginia and New York [4] - Micron's investment aims to meet anticipated market demand and support its goal of producing 40% of DRAM in the U.S. [4] Group 4 - Micron's first phase of investment involves building one of the largest and most advanced DRAM production facilities, Fab ID1, in Boise, Idaho, with a cleanroom area of 600,000 square feet [5] - Fab ID1 is expected to reach a key construction milestone by June 2025 and begin wafer production in the second half of 2027 [5] - A second facility, Fab ID2, will be constructed near ID1, benefiting from shared infrastructure and R&D co-location [5] Group 5 - Micron is also working on plans for up to four leading volume wafer fabs in New York, with a cleanroom area of approximately 600,000 square feet [6] - The New York project is more ambitious than the Idaho plan and aims to establish a strong domestic manufacturing footprint to support commercial and national computing needs [6]

Group 1 - The individual investor focuses on managing personal capital accumulated over the years, utilizing a diverse range of investment strategies including fundamental, technical, and momentum investing [1] - The investor aims to leverage the strengths of various investment approaches to refine their investment process [1] - The purpose of writing on Seeking Alpha is to track the performance of investment ideas and connect with like-minded investors [1] Group 2 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha does not provide recommendations or advice regarding the suitability of investments for particular investors [3]

Core Viewpoint - SanDisk's stock is currently underperforming, with expectations for improvement in 2026 despite recent negative trends in demand and pricing for computer memory [1][4]. Group 1: Current Stock Performance - SanDisk shares fell by 8.3% as of Monday afternoon, attributed to a report from Edgewater Research [1]. - The company has been unprofitable, reporting losses of $1.5 billion over the last 12 months, with analysts predicting further losses of $1.4 billion this year [5]. Group 2: Market Demand and Pricing - Edgewater Research indicates that demand and pricing for computer memory in the first half of 2025 were better than expected, but the second half of the year is projected to be "sub seasonal" with a downward bias [3][4]. - This negative outlook applies to both SanDisk and its competitor Micron [4]. Group 3: Future Projections - SanDisk is expected to return to profitability in 2026, potentially earning $607 million, which would result in a P/E ratio of about 11 based on those earnings [6]. - The current P/E ratio is undefined due to ongoing losses, but a significant stock sell-off could present a buying opportunity for investors willing to wait for recovery [6].

Core Viewpoint - BofA Securities analyst Wamsi Mohan initiated coverage on SanDisk with a Buy rating and a price target of $61, highlighting the company's strong position in the NAND flash technology market [1] Group 1: Market Dynamics - The near-term supply-demand balance is improving, with supply curtailment observed in the first quarter, leading to a more positive pricing environment for NAND in the upcoming quarters [1] - The NAND flash industry remains fragmented with over six players, but there is potential for consolidation in the long term [2] - SanDisk aims to implement more disciplined pricing strategies in a capital expenditure-heavy industry characterized by historically low returns [2] Group 2: Financial Projections - Mohan projects fiscal 2025 revenue for SanDisk at $7.29 billion and earnings per share (EPS) at $2.75 [5] - SanDisk's stock price increased by 6.04% to $46.76 at the time of publication [5] Group 3: Competitive Positioning - SanDisk's operating margin has shown resilience during downturns due to effective capacity management and a favorable customer mix [4] - The company is expanding its product mix towards embedded solid-state drives (eSSDs), which represented only 15% of sales in the second half of 2024 [4] - SanDisk's joint venture with Kioxia allows for shared capital expenditure costs, which have surged to as high as $30 billion in recent years [3] Group 4: Future Outlook - There is potential for significant valuation rerating if pricing trends improve structurally in the NAND industry, although competition in China poses a concern [3] - The company is expected to outperform other NAND flash competitors in terms of through-cycle operating profit in the coming years [4]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Summary of Sandisk (SNDK) 2025 Conference Call Company Overview - **Company**: Sandisk Corporation - **Industry**: Flash semiconductor storage and advanced memory - **Global Presence**: Operations in the U.S. and Asia with nearly 10,000 employees worldwide [2][2] Key Insights on the NAND Industry - **Market Size**: The NAND industry is currently valued at $65 billion and is projected to reach $100 billion by the end of the decade [6][6] - **Growth Rate**: The growth rate is expected to stabilize in the mid-teens, which is considered strong given the market size [7][7] - **R&D and Innovation**: Sandisk has a robust roadmap for NAND technology, ensuring ongoing innovation and supply capabilities [8][8] Customer Base and Market Dynamics - **Customer Profile**: Sandisk serves a diverse range of customers, from individual consumers to major technology companies [9][9] - **Brand Strength**: The Sandisk brand is recognized globally for reliability and performance [10][10] - **Changing Management Dynamics**: The management of the NAND business is evolving, focusing on matching supply with demand rather than solely driving cost reductions [41][41] AI and Data Center Market - **AI Demand**: There is a growing demand for NAND in AI model training and inference, which is expected to drive significant growth in the data center market [17][17] - **Enterprise SSD Market**: The market is bifurcating into high-performance SSDs and high-capacity SSDs, with new products being developed to meet these needs [19][19][19] - **High Bandwidth Flash**: Sandisk is exploring the use of high bandwidth flash to support AI workloads, which could provide better cost and scaling dynamics [24][24][25][25] Product Development and Future Outlook - **Stargate Product**: A new product aimed at the enterprise SSD market is in development, expected to enhance performance and capacity [19][19][82][82] - **3D Matrix Memory**: Sandisk is working on a new memory technology that promises significant capacity expansion at lower costs, with a pilot line already operational [63][63][64][64] - **Market Positioning**: Sandisk aims to increase its share in the data center market, which is currently underrepresented in its portfolio [75][75][79][79] Financial Dynamics and Management Strategy - **Profitability Focus**: The company is shifting its strategy to ensure profitability through better supply-demand matching rather than relying solely on new node introductions [46][46][55][55] - **Underutilization Strategy**: Sandisk is adopting an underutilization strategy to maintain profitability during market downturns [47][47][55][55] Conclusion - **Long-term Growth**: Sandisk is optimistic about its future growth prospects, driven by innovation in NAND technology and the increasing demand from AI and data center markets [27][27][54][54]

Group 1 - SanDisk Corporation (NASDAQ: SNDK) recently reported its fiscal third quarter results, indicating a focus on performance post-spinoff from Western Digital (WDC) [1] - The company is analyzed with a long-term investment perspective, typically looking for a mix of growth, value, and dividend-paying stocks, with a preference for value [1] Group 2 - No specific financial metrics or performance data were provided in the available content [1][2][3]

Summary of SanDisk (SNDK) FY Conference Call - May 13, 2025 Company Overview - **Company**: SanDisk (SNDK) - **Event**: FY Conference Call - **Date**: May 13, 2025 Key Points Industry and Market Position - SanDisk is positioned as a leader in the NAND market, having successfully established itself as a standalone company post-separation [3][4] - The NAND market is projected to grow to $100 billion by the end of the decade, with a built-in growth driver leading to a potential 50% increase in Total Addressable Market (TAM) over the next several years [6][7] Financial Performance - SanDisk reported strong first-quarter results, aligning with previous guidance [5] - The enterprise SSD segment saw over 100% growth last year, driven by AI and new use cases [11][12] - Year-over-year revenue in the enterprise SSD segment is expected to triple from fiscal year 2024 to 2025 [14] Demand Drivers - Long-term demand for NAND is expected to grow in the low to mid-teens percentage range, supported by unit growth in PCs and smartphones, as well as increased CapEx spending in data centers [18][20] - The company anticipates a supply-demand imbalance, with demand exceeding supply in the near term [22] Supply Chain and Pricing Strategy - The market is currently underutilized by approximately 15%, and the company is focused on balancing supply and demand to avoid low pricing environments [22][26] - SanDisk is adopting a proactive approach to manage supply, adjusting production based on market conditions to maintain healthy pricing [27][28] Technological Innovation - SanDisk is committed to innovation, with a strong technology roadmap that includes advancements in NAND production and the introduction of new products [8][46] - The Bix8 node technology is expected to account for nearly 10% of bids and is anticipated to grow through FY 2026 [46] Joint Venture and R&D - The joint venture with Kioxia is highlighted as a key driver of success, providing scale and accumulated expertise in NAND production [62][63] - The focus on R&D efficiency has led to a capital efficiency that is reportedly a third more efficient than the industry average [65] Financial Goals and Capital Allocation - SanDisk aims for a long-term gross margin target of 35%, with ongoing efforts to improve profitability through better supply-demand management [71][72] - The company is shifting its focus from merely expanding TAM to ensuring sustained profitability and effective capital allocation [74][76] Market Outlook - The management expresses optimism about the future, citing significant growth opportunities and the ability to respond quickly to market dynamics [84] Additional Insights - The impact of tariffs on SanDisk's business is currently minimal, affecting only a small percentage of products shipped to the U.S. [32][33] - The company is focused on maintaining agility in operations to adapt to market changes effectively [36] This summary encapsulates the key insights and strategic directions discussed during the SanDisk FY Conference Call, highlighting the company's strong market position, growth prospects, and commitment to innovation and profitability.

Financial Performance - Net revenue decreased by 1% to $1,695 million for the three months ended March 28, 2025, compared to $1,705 million in the prior year, primarily due to an 11% decrease in average selling prices per gigabyte[197]. - Net revenue increased by 11% to $5,454 million for the nine months ended March 28, 2025, compared to $4,903 million in the prior year, driven by a 12% increase in average selling prices per gigabyte[198]. - Cloud revenue surged by 103% to $197 million for the three months ended March 28, 2025, and increased by 382% to $747 million for the nine months ended March 28, 2025, primarily due to a 75% increase in exabytes sold[199]. - Client revenue decreased by 10% to $927 million for the three months ended March 28, 2025, but increased by 1% to $3,024 million for the nine months ended March 28, 2025, primarily due to a 17% increase in average selling prices per gigabyte[200]. - Gross profit decreased by $81 million to $382 million for the three months ended March 28, 2025, primarily due to lower revenue and increased start-up costs[204]. - Gross profit increased by $1,278 million to $1,714 million for the nine months ended March 28, 2025, primarily due to improved pricing and a favorable product mix[205]. Expenses and Charges - The Company incurred charges of $24 million for unabsorbed manufacturing overhead costs in the third quarter of fiscal year 2025[189]. - Research and development expenses increased by $8 million to $285 million for the three months ended March 28, 2025, reflecting continued investment in innovation[208]. - Selling, general and administrative expenses increased by $32 million to $139 million for the three months ended March 28, 2025, primarily due to higher compensation and benefits[210]. - Total operating expenses increased by $1,865 million to $2,263 million for the three months ended March 28, 2025, reflecting a substantial rise in costs associated with the business separation[196]. - Employee termination and other charges increased by $49 million in the nine months ended March 28, 2025, compared to the prior year, primarily due to a $60 million gain on the sale-leaseback of a facility in the prior period[213]. Goodwill Impairment - The Company recorded a goodwill impairment charge of $1.8 billion for the three months ended March 28, 2025[184]. - Goodwill impairment of $1,830 million was recorded for the three and nine months ended March 28, 2025, significantly impacting operating income[196]. - Goodwill impairment rose by $1.8 billion in the three and nine months ended March 28, 2025, due to an impairment charge from the difference between the carrying value and fair value of the reporting unit[214]. - The company uses qualitative factors to assess goodwill impairment and may require a quantitative assessment if impairment is likely[246]. - The company identified potential impairment indicators related to macroeconomic conditions and the trading price of its common stock[248]. Financing Activities - The Company entered into a seven-year Term Loan B facility of $2 billion and a five-year revolving credit facility of $1.5 billion on February 21, 2025[186]. - The company entered into a loan agreement on February 21, 2025, consisting of a $1.5 billion revolving credit facility and a $2 billion term loan facility due in 2032[233]. - The Company received net proceeds of $191 million from a sale-leaseback transaction, with $134 million allocated to it[183]. - Gain on business divestiture increased by $34 million in the nine months ended March 28, 2025, due to a pre-tax gain on the sale of SDSS[216]. - Interest and other expense, net increased by $33 million in the nine months ended March 28, 2025, primarily due to a $26 million increase in foreign exchange losses and a $15 million increase in interest expense from the Term Loan Facility[218]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $(10) million for the nine months ended March 28, 2025, compared to $(179) million for the same period in the prior year[223]. - Net cash provided by investing activities was $573 million for the nine months ended March 28, 2025, compared to $213 million for the same period in the prior year[223]. - Net cash provided by financing activities was $620 million for the nine months ended March 28, 2025, compared to $51 million for the same period in the prior year[223]. - The company expects cash capital expenditures in fiscal 2025 to be higher than in fiscal 2024 but remain below fiscal 2023 expenditures[223]. Corporate Developments - The Company became an independent publicly traded company on February 21, 2025, trading under the stock symbol "SNDK" on Nasdaq[180]. - The company recorded a tax indemnification liability of $112 million on February 21, 2025, which was reduced to $110 million as of March 28, 2025[239]. - The remaining tax indemnification liability of $110 million is classified as Other liabilities in the Condensed Consolidated Balance Sheets as of March 28, 2025[239]. - As of March 28, 2025, the liability for unrecognized tax benefits was approximately $127 million, with accrued interest and penalties totaling $4 million[237]. - The company maintains director and officer insurance to cover certain liabilities arising from indemnification obligations[240]. - The company has not incurred material costs from indemnification agreements historically[241]. - The company’s financial statements are prepared using judgments and estimates that can materially affect reported amounts[243]. - The company’s impairment calculations involve significant estimates and assumptions, including revenue forecasts and a weighted average cost of capital[251].