SAFE HARBOR STATEMENT This presentation contains forward-looking statements, as defined by federal and state securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or products, underlying assumptions, and other statements which are other than statements of histori ...

2Q 2025 Earnings July 23, 2025 ibm.com/investor Forward-looking statements and non-GAAP information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on the company's current assumptions regarding future business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number of factors that c ...

Investor Presentation Second Quarter 2025 Safe Harbor and other information This presentation contains "forward‐looking" statements that are based on our management's beliefs and assumptions and on information currently available to management. Forward‐looking statements include information concerning our possible or assumed strategy, future operations, financing plans, operating model, financial position, future revenues, projected costs, competitive position, industry environment, potential growth opportu ...

Certain statements made in this presentation and the associated conference call may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and prici ...

FORWARD-LOOKING STATEMENTS Certain statements in this Investor Presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements often discuss our plans, strategies, intentions, markets, beliefs, forecasts and guidance, and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "expects," "may," "will," "believes," "should," "would," "could," "appro ...

This presentation contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding our projected financial results for the third quarter of 2025 and beyond; the effect of U.S. tariffs and the response from other countries; future expenses and restructuring activiti ...

Financial Performance - Q2'25 revenue reached $1088 million, a 134% increase from Q1'25 and an 183% increase from Q2'24 [5] - GAAP gross margin was 565% and non-GAAP gross margin was 591% in Q2'25 [5] - GAAP operating margin was (226)% and non-GAAP operating margin was 72% in Q2'25 [5] - GAAP diluted loss per share was $(031) and non-GAAP diluted earnings per share was $002 in Q2'25 [5] - Cash provided by operations was $105 million in Q2'25 [5] Business Highlights & Future Outlook - The company is on track to deliver $60 million to $70 million in revenue this year for the 5nm Keystone PAM4 product family [6] - Expects to begin ramp in early 2026 of its single-chip integrated fiber PON and 10-gigabit processor gateway SoC plus triband WiFi-7 single-chip platform solution with a second major Tier-1 North American carrier [6] - Q3'25 revenue guidance is between $115 million and $135 million [10] - Q3'25 gross margin is expected to be between 550% and 580% on a GAAP basis, and between 575% and 605% on a non-GAAP basis [10] - Q3'25 operating expenses are projected to be between $84 million and $90 million on a GAAP basis, and between $55 million and $61 million on a non-GAAP basis [10]

Q2 2025 Earnings Supplemental Materials Safe Harbor Operating Data | | | Q2 | | | --- | --- | --- | --- | | | 2025 | | 2024 | | Results Operating | | | | | Revenues | $ 1,020.6 | $ | 1,034.7 | | Gross Profit | 293.3 | | 301.1 | | Net Income | 29.3 | | 47.2 | | Adjusted Net Income | 51.6 | | 62.6 | | Adjusted EBITDA | 108.5 | | 117.1 | | Margins | | | | | Gross | 28.7% | | 29.1% | | EBITDA Adjusted | 10.6% | | 11.3% | | Earnings per Share - Diluted | | | | | Income per Share | $ 0.67 | $ | 1.02 | | Net Incom ...

Customer Metrics - Total postpaid customers reached 107284 thousand in Q2 2025[23] - Postpaid net customer additions were 1732 thousand in Q2 2025[23] - Postpaid phone net customer additions were 830 thousand in Q2 2025[23] - Postpaid other net customer additions were 902 thousand in Q2 2025[23] - Prepaid customers reached 25494 thousand in Q2 2025[34] - Prepaid net customer additions were 39 thousand in Q2 2025[34] - Postpaid phone churn decreased slightly to 090% in Q2 2025[29] - Total 5G broadband customers reached 7308 thousand in Q2 2025[37] Financial Metrics - Service revenues increased 6% year-over-year to $17438 million in Q2 2025[41,42] - Postpaid service revenues increased 9% year-over-year to $14078 million in Q2 2025[43,44] - Equipment revenues increased 11% year-over-year to $3439 million in Q2 2025[47,49] - Net income was $3222 million in Q2 2025[68] - Diluted earnings per share was $284 in Q2 2025[70] - Core Adjusted EBITDA increased 6% year-over-year to $8541 million in Q2 2025[74,76] - Net cash provided by operating activities increased 27% year-over-year to $6992 million in Q2 2025[77,78] - Adjusted Free Cash Flow increased 4% year-over-year to $4596 million in Q2 2025[87,89] Capital Allocation - During Q2 2025, 101 million shares were repurchased for approximately $25 billion[97] - During Q2 2025, the company paid a cash dividend of $088 per share of common stock, or approximately $996 million[97] Guidance - The company revised its 2025 guidance for postpaid net customer additions to 61 to 64 million, an increase of 500 thousand at the midpoint[99] - The company revised its 2025 guidance for Core Adjusted EBITDA to $333 to $337 billion, an increase of $50 million at the midpoint[99] - The company revised its 2025 guidance for Net cash provided by operating activities to $271 to $275 billion, an increase of $50 million at the midpoint[99] - The company revised its 2025 guidance for Adjusted Free Cash Flow to $176 to $180 billion, an increase of $50 million at the midpoint[99]

Forward Looking Statements This presentation contains forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the discussions of our business strategies and expectations concerning future operations, margins, profitability, liquidity and capital resources. In addition, in certain portions included in this presentation, the words "anticipates," "believes," "estimates," "expects," "intends," "may," ...