Financial Performance - Revenue for the fiscal third quarter 2025 was $1.7 billion[6], a decrease of 1% year-over-year[17] and down 10% quarter-over-quarter[17] - Non-GAAP gross margin was 22.7%[6], a decrease of 4.7 percentage points year-over-year[17] and down 9.8 percentage points quarter-over-quarter[17] - Non-GAAP EPS showed a loss of $0.30[6], compared to earnings of $0.57 in Q3 2024 and $1.23 in Q2 2025[17] - Adjusted free cash flow was $220 million[6], an increase of 153% year-over-year[17] and up 142% quarter-over-quarter[17] - Cash and cash equivalents totaled $1.5 billion[6] Segment Performance - Client revenue was $197 million, a decrease of 21% quarter-over-quarter[15] - Consumer revenue was $927 million, a decrease of 10% quarter-over-quarter[15] - Cloud revenue was $571 million, a decrease of 5% quarter-over-quarter[15] - Cloud bit allocation increased, representing 12% of total bits this quarter, up from 8% in the same quarter of the prior year[13] Future Outlook - The company forecasts demand to strengthen throughout the year[5] - Revenue guidance for the fiscal fourth quarter is $1.75 billion to $1.85 billion[21] - Non-GAAP gross margin guidance for the fiscal fourth quarter is 25.5% to 27.0%[21]

Financial Performance - Third quarter revenue was $1.70 billion, down 10% sequentially and down 1% year-over-year[4] - Third quarter GAAP loss was $1.93 billion, including a $1.83 billion goodwill impairment charge, resulting in a loss per share of $13.33[4] - Non-GAAP loss per share for the third quarter was $0.30[4] - The company expects fourth quarter revenue to be in the range of $1.75 billion to $1.85 billion[4] - Revenue for the three months ended March 28, 2025, was $1,695 million, a slight decrease of 0.6% compared to $1,705 million for the same period in 2024[20] - The net loss for the three months ended March 28, 2025, was $1,933 million, compared to a net income of $27 million for the same period in 2024[20] - GAAP net loss for the three months ended March 28, 2025, was $(1.933) billion, compared to a net income of $0.104 billion for the same period in 2024[27] - Non-GAAP net loss for the three months ended March 28, 2025, was $(0.043) billion, while the same period in 2024 reported a net income of $0.178 billion[27] Operating Expenses - Operating expenses increased to $2.26 billion, up 451% sequentially[5] - Operating expenses for the three months ended March 28, 2025, totaled $2,263 million, compared to $398 million for the same period in 2024, primarily due to a goodwill impairment of $1,830 million[20] - Research and development expenses for the three months ended March 28, 2025, were $285 million, slightly up from $277 million in the same period of 2024[20] - The company incurred business separation costs of $0.009 billion for the three months ended March 28, 2025, compared to $0.021 billion in the same period of 2024[27] - Stock-based compensation expense for the three months ended March 28, 2025, was $0.044 billion, slightly down from $0.048 billion in the same period of 2024[27] Cash Flow and Assets - Cash flows from operating activities for the three months ended March 28, 2025, provided $26 million, compared to a cash outflow of $12 million for the same period in 2024[22] - The company reported a net cash increase of $703 million for the three months ended March 28, 2025, compared to a decrease of $48 million in the same period of 2024[23] - The total cash and cash equivalents at the end of the period were $1,507 million, up from $377 million at the end of the same period in 2024[23] - Free cash flow for the three months ended March 28, 2025, was $(0.018) billion, compared to $0.047 billion for the same period in 2024[27] - Adjusted free cash flow for the three months ended March 28, 2025, was $0.220 billion, up from $0.091 billion in the same period last year[27] - Cash flow provided by operating activities for the three months ended March 28, 2025, was $0.026 billion, a decrease from $0.095 billion in the same period of 2024[27] Goodwill Impairment - The company incurred a goodwill impairment of $1,830 million for the nine months ended March 28, 2025, with no such impairment recorded in the same period of 2024[20] - The company recognized a goodwill impairment charge of $1.830 billion for the three and nine months ended March 28, 2025, due to a quantitative impairment analysis[29] Guidance and Future Plans - The company plans to implement price increases and manage supply to match demand[3] - Non-GAAP earnings per share guidance for the fourth quarter is expected to be in the range of ($0.10) to $0.15[8] - Gross margin for the third quarter was 22.5%, down 9.8 percentage points from the previous quarter[5] - Cloud revenue decreased by 21% quarter-over-quarter to $197 million, but increased by 103% year-over-year[6] - The company completed a strategic review, incurring associated expenses, which are not indicative of its ongoing business performance[34]

Financial Performance - The Company reported net revenue of $1,876 million for the three months ended December 27, 2024, representing a 13% increase from $1,665 million in the prior year[174]. - Cost of revenue decreased by 16% to $1,270 million, down from $1,504 million, resulting in a gross profit of $606 million, a significant increase of 276% compared to $161 million in the previous year[174]. - Operating income improved to $195 million, compared to a loss of $245 million in the same period last year, marking a turnaround of $440 million[174]. - The Company incurred a net income of $104 million, a substantial recovery from a net loss of $301 million in the prior year, reflecting a 135% improvement[174]. - Net revenue increased 18% to $3,759 million for the six months ended December 27, 2024, compared to $3,198 million for the same period in the prior year[177]. - Gross profit increased by $1,359 million for the six months ended December 27, 2024, resulting in a gross profit margin increase of 36%[183][184]. - Cloud revenue surged 848% in the six months ended December 27, 2024, driven by a 571% increase in exabytes sold[178]. - Client revenue rose 7% in the six months ended December 27, 2024, primarily due to a 37% increase in average selling prices per gigabyte[179]. - Consumer revenue decreased 5% in the six months ended December 27, 2024, attributed to an 8% decrease in exabytes sold[180]. Expenses and Cash Flow - Total operating expenses increased by $141 million to $846 million for the six months ended December 27, 2024[182]. - Interest and other expense, net increased by $24 million for the six months ended December 27, 2024, primarily due to increased foreign exchange losses[189]. - Income tax expense for the six months ended December 27, 2024, was $125 million, with an effective tax rate of 28%[193]. - Research and development expenses increased by $76 million for the six months ended December 27, 2024, reflecting continued investment in innovation[185]. - Selling, general and administrative expenses rose by $41 million for the six months ended December 27, 2024, primarily due to increased compensation and benefits[186]. - For the six months ended December 27, 2024, net cash provided by operating activities was $(36) million, compared to $(167) million for the same period in 2023[196]. - Net cash provided by investing activities was $169 million for the six months ended December 27, 2024, compared to $113 million for the same period in 2023[196]. - Net cash provided by financing activities was $344 million for the six months ended December 27, 2024, compared to $186 million for the same period in 2023[196]. Operational Metrics - The cash conversion cycle increased to 151 days for the three months ended December 27, 2024, compared to 96 days for the same period in 2023[200]. - Days sales outstanding (DSO) increased by 7 days to 44 days for the three months ended December 27, 2024, compared to 37 days for the same period in 2023[202]. - Days in inventory (DIO) increased by 58 days to 156 days for the three months ended December 27, 2024, compared to 98 days for the same period in 2023[202]. Future Outlook and Commitments - The Company expects to incur charges for unabsorbed manufacturing overhead costs due to reduced utilization of manufacturing capacity in fiscal 2025[169]. - The Company anticipates that digital transformation, including the artificial intelligence data-cycle, will drive improved market conditions for data storage products in the long term[169]. - The company expects cash capital expenditures in 2025 to be higher than in 2024 but remain below 2023 expenditures[196]. - Total known material cash requirements as of December 27, 2024, amounted to $7,660 million, with $4,442 million related to Flash Ventures commitments[206]. - As of December 27, 2024, the liability for unrecognized tax benefits was approximately $60 million, with potential cash payments of approximately $66 million[210]. Corporate Developments - The Company entered into a five-year supply agreement with SDSS with a minimum annual commitment of $550 million following the sale of 80% of its equity interest in SDSS[161]. - A sale-leaseback transaction in September 2023 generated net proceeds of $191 million, with $134 million allocated to the Company, and an annual lease expense of $16 million for the first year[162]. - The Company completed a spin-off from WDC, distributing 80.1% of its outstanding shares to WDC stockholders, and began trading independently under the symbol "SNDK" on February 24, 2025[159]. - The Company has drawn no amounts under its $1.5 billion Revolving Credit Facility as of March 7, 2025[167]. - A total of $692 million of cash and cash equivalents were held outside of the U.S. as of December 27, 2024[198].