Seagate Technology Reports Fiscal Second Quarter 2025 Financial Results
Seagate Technology (STX) reported strong fiscal Q2 2025 results with revenue increasing to $2.33 billion. The company achieved GAAP diluted EPS of $1.55 and non-GAAP diluted EPS of $2.03. Financial highlights include cash flow from operations of $221 million and free cash flow of $150 million.
The company demonstrated structural improvements and value capture in an improving demand environment, achieving decade-high gross margin performance in the December quarter. GAAP gross margin reached 34.9%, while operating margin stood at 21.0%. The company began ramping HAMR-based Mozaic products to its lead cloud customer and is sampling capacities up to 36 terabytes.
Seagate returned $148 million to shareholders through quarterly dividends and declared a cash dividend of $0.72 per share, payable on April 2, 2025. Cash and cash equivalents totaled $1.2 billion at quarter-end.
Seagate Technology (STX) ha riportato risultati solidi per il secondo trimestre fiscale del 2025, con un aumento del fatturato a 2,33 miliardi di dollari. L'azienda ha conseguito un EPS diluito GAAP di 1,55 dollari e un EPS diluito non GAAP di 2,03 dollari. Tra i punti salienti finanziari, si evidenzia un flusso di cassa dalle operazioni di 221 milioni di dollari e un flusso di cassa libero di 150 milioni di dollari.
L'azienda ha dimostrato miglioramenti strutturali e cattura di valore in un ambiente di domanda in miglioramento, raggiungendo prestazioni di margine lordo ai massimi decennali nel trimestre di dicembre. Il margine lordo GAAP ha raggiunto il 34,9%, mentre il margine operativo si è attestato al 21,0%. Seagate ha iniziato a lanciare prodotti Mozaic basati su HAMR per il proprio principale cliente cloud, campionando capacità fino a 36 terabyte.
Seagate ha restituito 148 milioni di dollari agli azionisti tramite dividendi trimestrali e ha dichiarato un dividendo in contante di 0,72 dollari per azione, pagabile il 2 aprile 2025. Alla fine del trimestre, cassa e equivalenti di cassa ammontavano a 1,2 miliardi di dollari.
Seagate Technology (STX) reportó resultados sólidos para el segundo trimestre fiscal de 2025, con un aumento en los ingresos a 2.33 mil millones de dólares. La compañía logró un EPS diluido GAAP de 1.55 dólares y un EPS diluido no GAAP de 2.03 dólares. Entre los aspectos destacados financieros, se incluye un flujo de efectivo de las operaciones de 221 millones de dólares y un flujo de efectivo libre de 150 millones de dólares.
La empresa demostró mejoras estructurales y captura de valor en un entorno de demanda en mejora, logrando un rendimiento de margen bruto máximo en una década en el trimestre de diciembre. El margen bruto GAAP alcanzó el 34.9%, mientras que el margen operativo se situó en el 21.0%. Seagate comenzó a lanzar productos Mozaic basados en HAMR para su principal cliente de nube y está muestreando capacidades de hasta 36 terabytes.
Seagate devolvió 148 millones de dólares a los accionistas a través de dividendos trimestrales y declaró un dividendo en efectivo de 0.72 dólares por acción, que se pagará el 2 de abril de 2025. Al final del trimestre, el efectivo y equivalentes de efectivo totalizaron 1.2 mil millones de dólares.
시게이트 테크놀로지 (STX)는 2025 회계 연도 2분기 실적을 발표하며 매출이 23억 3천만 달러로 증가했다고 보고했습니다. 회사는 GAAP 희석 EPS가 1.55 달러와 비GAAP 희석 EPS가 2.03 달러에 도달했습니다. 재무 주요 사항에는 2억 2천1백만 달러의 운영 현금 흐름과 1억 5천만 달러의 자유 현금 흐름이 포함됩니다.
회사는 수요가 개선되는 환경에서 구조적 개선과 가치 확보를 보여주었으며, 12월 분기에는 10년 만의 최고 매출 총 이익률을 달성했습니다. GAAP 매출 총 이익률은 34.9%에 도달했으며, 운영 이익률은 21.0%에 머물렀습니다. 시게이트는 주요 클라우드 고객을 위해 HAMR 기반의 Mozaic 제품을 출시하기 시작했으며, 최대 36테라바이트의 용량을 샘플링하고 있습니다.
시게이트는 분기 배당금을 통해 주주에게 1억 4천8백만 달러를 환급했으며, 주당 현금 배당금으로 0.72 달러를 선언했으며, 이는 2025년 4월 2일에 지급될 예정입니다. 분기 말에 현금 및 현금성 자산은 12억 달러에 달했습니다.
Seagate Technology (STX) a annoncé de solides résultats pour le deuxième trimestre fiscal 2025, avec des revenus atteignant 2,33 milliards de dollars. L'entreprise a réalisé un BPA dilué GAAP de 1,55 dollar et un BPA dilué non-GAAP de 2,03 dollars. Les points forts financiers incluent un flux de trésorerie d'exploitation de 221 millions de dollars et un flux de trésorerie libre de 150 millions de dollars.
L'entreprise a démontré des améliorations structurelles et une capture de valeur dans un environnement de demande en amélioration, atteignant une performance de marge brute au plus haut depuis une décennie au trimestre de décembre. La marge brute GAAP a atteint 34,9%, tandis que la marge opérationnelle était de 21,0%. Seagate a commencé à lancer des produits Mozaic basés sur HAMR pour son principal client cloud et teste des capacités allant jusqu'à 36 téraoctets.
Seagate a retourné 148 millions de dollars aux actionnaires par le biais de dividendes trimestriels et a déclaré un dividende en espèces de 0,72 dollar par action, payable le 2 avril 2025. À la fin du trimestre, la trésorerie et les équivalents de trésorerie totalisaient 1,2 milliard de dollars.
Seagate Technology (STX) berichtete über starke Ergebnisse für das zweite Geschäftsjahr 2025, mit einem Umsatzanstieg auf 2,33 Milliarden US-Dollar. Das Unternehmen erzielte ein verwässertes EPS von 1,55 US-Dollar nach GAAP und ein verwässertes EPS von 2,03 US-Dollar ohne GAAP. Zu den finanziellen Highlights gehören ein Cashflow aus Betriebstätigkeit von 221 Millionen US-Dollar und ein freier Cashflow von 150 Millionen US-Dollar.
Das Unternehmen zeigte strukturelle Verbesserungen und wertschöpfende Maßnahmen in einem sich verbessernden Nachfrageumfeld und erreichte im Dezemberquartal eine jahrzehntelange Höchstleistung im Bruttomargenbereich. Die GAAP-Bruttomarge erreichte 34,9%, während die Betriebsmarge bei 21,0% lag. Das Unternehmen begann, HAMR-basierte Mozaic-Produkte an seinen Haupt-Cloud-Kunden auszuliefern und testet Kapazitäten von bis zu 36 Terabyte.
Seagate gab 148 Millionen US-Dollar an die Aktionäre durch vierteljährliche Dividenden zurück und erklärte eine Bar-Dividende von 0,72 US-Dollar pro Aktie, zahlbar am 2. April 2025. Zum Ende des Quartals beliefen sich die liquiden Mittel und Äquivalente auf insgesamt 1,2 Milliarden US-Dollar.
- Revenue significantly increased to $2.33 billion from $1.56 billion YoY
- Strong profitability with GAAP EPS of $1.55 vs loss of $0.09 YoY
- Gross margin improved to 34.9% from 23.3% YoY
- Generated $221 million in operating cash flow
- Successfully launched new HAMR-based Mozaic products
- None.
Insights
Seagate's Q2 FY2025 financial results reveal a remarkable turnaround, painting a picture of robust recovery and strategic positioning in the AI-driven storage market. The company's revenue surged by
The standout metric is the company's gross margin expansion to
The introduction of HAMR (Heat-Assisted Magnetic Recording) technology through the Mozaic products marks a pivotal moment. With sampling capacities up to 36 terabytes, Seagate is positioning itself at the forefront of the high-capacity storage market, important for AI and cloud computing applications. This technological advancement could create a competitive moat, as competitors struggle to match these capacity levels.
The company's financial health appears robust, maintaining a strong cash position of
Looking ahead, Seagate's strategic focus on AI-driven storage solutions, combined with its improved operational efficiency and strong cash generation, positions the company well for sustained growth in the evolving data storage landscape. The successful ramp-up of HAMR technology could be a game-changer, potentially leading to increased market share and pricing power in the high-capacity enterprise storage segment.
Fiscal Q2 2025 Highlights
-
Revenue increased to
$2.33 billion -
GAAP diluted earnings per share (EPS) of
$1.55 $2.03 -
Cash flow from operations of
$221 million $150 million -
Declared cash dividend of
$0.72
"Seagate ended calendar 2024 on a strong note as we grew revenue, gross margin and non-GAAP EPS successively in each quarter of the year. Our results demonstrate structural improvements in the business and our focus on value capture in an improving demand environment, highlighted by decade-high gross margin performance exiting the December quarter," said Dave Mosley, Seagate’s chief executive officer.
"We are advancing our technology roadmap to meet our customers’ growing need for scalable, cost efficient and sustainable storage solutions in the age of AI. We began ramping HAMR-based Mozaic products to our lead cloud customer in the December quarter and are already sampling in capacities of up to 36 terabytes. Looking ahead, we believe Seagate is in a great position to deliver profitable growth in fiscal 2025," Mosley concluded.
Quarterly Financial Results
|
GAAP |
|
Non-GAAP |
||||||||||||
|
FQ2 2025 |
|
FQ2 2024 |
|
FQ2 2025 |
|
FQ2 2024 |
||||||||
Revenue ($M) |
$ |
2,325 |
|
|
$ |
1,555 |
|
|
$ |
2,325 |
|
|
$ |
1,555 |
|
Gross Margin |
|
34.9 |
% |
|
|
23.3 |
% |
|
|
35.5 |
% |
|
|
23.6 |
% |
Operating Margin |
|
21.0 |
% |
|
|
8.0 |
% |
|
|
23.1 |
% |
|
|
8.2 |
% |
Net Income (Loss) ($M) |
$ |
336 |
|
|
$ |
(19 |
) |
|
$ |
433 |
|
|
$ |
25 |
|
Diluted Earnings (Loss) Per Share |
$ |
1.55 |
|
|
$ |
(0.09 |
) |
|
$ |
2.03 |
|
|
$ |
0.12 |
|
For a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
During the fiscal second quarter the Company generated
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investor Relations website at investors.seagate.com.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of
Business Outlook
The business outlook for the fiscal third quarter 2025 is based on our current assumptions and expectations; actual results may differ materially as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.
The Company is providing the following guidance for its fiscal third quarter 2025:
-
Revenue of
$2.10 billion $150 million -
Non-GAAP diluted EPS of
$1.70 $0.20
Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of
We have not reconciled our non-GAAP diluted EPS guidance for fiscal third quarter 2025 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, net (gain) loss recognized from early redemption of debt, purchase order cancellation fees, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of the non-GAAP diluted EPS guidance for fiscal third quarter 2025 to the corresponding GAAP measures is not available without unreasonable effort. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.
Investor Communications
Seagate management will hold a public webcast today at 2:00 PM PT / 5:00 PM ET that can be accessed on its Investor Relations website at investors.seagate.com.
An archived audio webcast of this event will be available on Seagate’s Investor Relations website at investors.seagate.com shortly following the event conclusion.
About Seagate
Seagate Technology is a leading innovator of mass-capacity data storage. We create breakthrough technology so you can confidently store your data and easily unlock its value. Founded over 45 years ago, Seagate has shipped over four billion terabytes of data capacity and offers a full portfolio of storage devices, systems, and services from edge to cloud. To learn more about how Seagate leads storage innovation, visit www.seagate.com and our blog, or follow us on X, Facebook, LinkedIn, and YouTube.
© 2025 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are registered trademarks of Seagate Technology LLC in
Cautionary Note Regarding Forward-Looking Statements
This press release and our other communications regarding our quarterly financial results contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about the Company’s plans, programs, strategies, prospects, and opportunities; financial outlook for future periods, including the fiscal third quarter 2025; expectations regarding our ability to service debt and continue to generate free cash flow; expectations regarding our ability to make timely quarterly payments under the settlement agreement with the
The inclusion of Seagate’s website addresses in this press release are provided for convenience only. The information contained in, or that can be accessed through, Seagate’s websites and social media channels are not part of this press release.
SEAGATE TECHNOLOGY HOLDINGS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) |
|||||||
|
December 27, 2024 |
|
June 28, 2024 |
||||
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,238 |
|
|
$ |
1,358 |
|
Accounts receivable, net |
|
587 |
|
|
|
429 |
|
Inventories, net |
|
1,473 |
|
|
|
1,239 |
|
Other current assets |
|
364 |
|
|
|
306 |
|
Total current assets |
|
3,662 |
|
|
|
3,332 |
|
Property, equipment and leasehold improvements, net |
|
1,595 |
|
|
|
1,614 |
|
Goodwill |
|
1,219 |
|
|
|
1,219 |
|
Deferred income taxes |
|
1,032 |
|
|
|
1,037 |
|
Other assets, net |
|
451 |
|
|
|
537 |
|
Total Assets |
$ |
7,959 |
|
|
$ |
7,739 |
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
1,567 |
|
|
$ |
1,786 |
|
Accrued employee compensation |
|
204 |
|
|
|
106 |
|
Accrued warranty |
|
63 |
|
|
|
74 |
|
Current portion of long-term debt |
|
479 |
|
|
|
479 |
|
Accrued expenses |
|
656 |
|
|
|
654 |
|
Total current liabilities |
|
2,969 |
|
|
|
3,099 |
|
Long-term accrued warranty |
|
73 |
|
|
|
75 |
|
Other non-current liabilities |
|
796 |
|
|
|
861 |
|
Long-term debt, less current portion |
|
5,200 |
|
|
|
5,195 |
|
Total Liabilities |
|
9,038 |
|
|
|
9,230 |
|
Total Shareholders’ Deficit |
|
(1,079 |
) |
|
|
(1,491 |
) |
Total Liabilities and Shareholders’ Deficit |
$ |
7,959 |
|
|
$ |
7,739 |
|
SEAGATE TECHNOLOGY HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) |
|||||||||||||||
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||
|
December 27,
|
|
December 29,
|
|
December 27,
|
|
December 29,
|
||||||||
Revenue |
$ |
2,325 |
|
|
$ |
1,555 |
|
|
$ |
4,493 |
|
|
$ |
3,009 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
1,513 |
|
|
|
1,193 |
|
|
|
2,967 |
|
|
|
2,498 |
|
Product development |
|
184 |
|
|
|
161 |
|
|
|
365 |
|
|
|
332 |
|
Marketing and administrative |
|
139 |
|
|
|
108 |
|
|
|
268 |
|
|
|
213 |
|
Restructuring and other, net |
|
1 |
|
|
|
(31 |
) |
|
|
2 |
|
|
|
(29 |
) |
Total operating expenses |
|
1,837 |
|
|
|
1,431 |
|
|
|
3,602 |
|
|
|
3,014 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
488 |
|
|
|
124 |
|
|
|
891 |
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
8 |
|
|
|
3 |
|
|
|
15 |
|
|
|
5 |
|
Interest expense |
|
(84 |
) |
|
|
(84 |
) |
|
|
(169 |
) |
|
|
(168 |
) |
Net gain from termination of interest rate swap |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
Net loss from early redemption of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(29 |
) |
Other, net |
|
(62 |
) |
|
|
(47 |
) |
|
|
(71 |
) |
|
|
(58 |
) |
Other expense, net |
|
(138 |
) |
|
|
(128 |
) |
|
|
(225 |
) |
|
|
(146 |
) |
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
|
350 |
|
|
|
(4 |
) |
|
|
666 |
|
|
|
(151 |
) |
Provision for income taxes |
|
14 |
|
|
|
15 |
|
|
|
25 |
|
|
|
52 |
|
Net income (loss) |
$ |
336 |
|
|
$ |
(19 |
) |
|
$ |
641 |
|
|
$ |
(203 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.58 |
|
|
$ |
(0.09 |
) |
|
$ |
3.04 |
|
|
$ |
(0.97 |
) |
Diluted |
$ |
1.55 |
|
|
$ |
(0.09 |
) |
|
$ |
2.95 |
|
|
$ |
(0.97 |
) |
Number of shares used in per share calculations: |
|
|
|
|
|
|
|
||||||||
Basic |
|
212 |
|
|
|
209 |
|
|
|
211 |
|
|
|
209 |
|
Diluted |
|
217 |
|
|
|
209 |
|
|
|
217 |
|
|
|
209 |
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per ordinary share |
$ |
0.72 |
|
|
$ |
0.70 |
|
|
$ |
1.42 |
|
|
$ |
1.40 |
|
SEAGATE TECHNOLOGY HOLDINGS PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
For the Six Months Ended |
||||||
|
December 27,
|
|
December 29,
|
||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income (loss) |
$ |
641 |
|
|
$ |
(203 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
127 |
|
|
|
138 |
|
Share-based compensation |
|
87 |
|
|
|
55 |
|
Net loss from redemption and repurchase of debt |
|
— |
|
|
|
7 |
|
Deferred income taxes |
|
5 |
|
|
|
41 |
|
Other non-cash operating activities, net |
|
96 |
|
|
|
(12 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(158 |
) |
|
|
150 |
|
Inventories, net |
|
(234 |
) |
|
|
87 |
|
Accounts payable |
|
(190 |
) |
|
|
54 |
|
Accrued employee compensation |
|
85 |
|
|
|
(14 |
) |
BIS settlement penalty |
|
(30 |
) |
|
|
(15 |
) |
Accrued expenses, income taxes and warranty |
|
(42 |
) |
|
|
(13 |
) |
Other assets and liabilities |
|
(71 |
) |
|
|
21 |
|
Net cash provided by operating activities |
|
316 |
|
|
|
296 |
|
INVESTING ACTIVITIES |
|
|
|
||||
Acquisition of property, equipment and leasehold improvements |
|
(139 |
) |
|
|
(140 |
) |
Proceeds from sale of assets |
|
1 |
|
|
|
35 |
|
Net cash used in investing activities |
|
(138 |
) |
|
|
(105 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Redemption and repurchase of debt |
|
— |
|
|
|
(1,288 |
) |
Proceeds from issuance of long-term debt |
|
— |
|
|
|
1,500 |
|
Dividends to shareholders |
|
(295 |
) |
|
|
(291 |
) |
Taxes paid related to net share settlement of equity awards |
|
(35 |
) |
|
|
(28 |
) |
Proceeds from issuance of ordinary shares under employee stock plans |
|
32 |
|
|
|
44 |
|
Other financing activities, net |
|
— |
|
|
|
(128 |
) |
Net cash used in financing activities |
|
(298 |
) |
|
|
(191 |
) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash |
|
— |
|
|
|
1 |
|
(Decrease) increase in cash, cash equivalents and restricted cash |
|
(120 |
) |
|
|
1 |
|
Cash, cash equivalents and restricted cash at the beginning of the period |
|
1,360 |
|
|
|
788 |
|
Cash, cash equivalents and restricted cash at the end of the period |
$ |
1,240 |
|
|
$ |
789 |
|
Use of non-GAAP financial information
The Company uses non-GAAP measures of gross profit, gross margin, operating expenses, income from operations, operating margin, net income, diluted EPS, free cash flow, EBITDA, adjusted EBITDA and last twelve months adjusted EBITDA, which are adjusted from results based on GAAP to exclude certain benefits, expenses, gains and losses. These non-GAAP financial measures are used by management to evaluate the business and provided to enhance the user’s overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company believes non-GAAP results provide useful information to investors as these non-GAAP results exclude certain benefits, expenses, gains and losses that the Company believes are not part of the Company's ongoing operations and not indicative of its core operating results.
These non-GAAP financial measures are some of the measurements management uses to assess the Company’s performance, allocate resources and plan for future periods. Reported non-GAAP results should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies in its industry.
SEAGATE TECHNOLOGY HOLDINGS PLC RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts, gross margin and operating margin) (Unaudited) |
|||||||||||||||
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||
|
December 27,
|
|
December 29,
|
|
December 27,
|
|
December 29,
|
||||||||
GAAP Gross Profit |
$ |
812 |
|
|
$ |
362 |
|
|
$ |
1,526 |
|
|
$ |
511 |
|
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Purchase order cancellation fees |
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
114 |
|
Share-based compensation |
|
13 |
|
|
|
8 |
|
|
|
23 |
|
|
|
15 |
|
Other charges |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
Non-GAAP Gross Profit |
$ |
825 |
|
|
$ |
367 |
|
|
$ |
1,548 |
|
|
$ |
655 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Gross Margin |
|
34.9 |
% |
|
|
23.3 |
% |
|
|
34.0 |
% |
|
|
17.0 |
% |
Non-GAAP Gross Margin |
|
35.5 |
% |
|
|
23.6 |
% |
|
|
34.5 |
% |
|
|
21.8 |
% |
|
|
|
|
|
|
|
|
||||||||
GAAP Operating Expenses |
$ |
324 |
|
|
$ |
238 |
|
|
$ |
635 |
|
|
$ |
516 |
|
Restructuring and other, net |
|
(1 |
) |
|
|
31 |
|
|
|
(2 |
) |
|
|
29 |
|
Share-based compensation |
|
(36 |
) |
|
|
(22 |
) |
|
|
(64 |
) |
|
|
(40 |
) |
Other charges |
|
— |
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(17 |
) |
Non-GAAP Operating Expenses |
$ |
287 |
|
|
$ |
240 |
|
|
$ |
568 |
|
|
$ |
488 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Income (Loss) From Operations |
$ |
488 |
|
|
$ |
124 |
|
|
$ |
891 |
|
|
$ |
(5 |
) |
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Purchase order cancellation fees |
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
114 |
|
Restructuring and other, net |
|
1 |
|
|
|
(31 |
) |
|
|
2 |
|
|
|
(29 |
) |
Share-based compensation |
|
49 |
|
|
|
30 |
|
|
|
87 |
|
|
|
55 |
|
Other charges |
|
— |
|
|
|
8 |
|
|
|
1 |
|
|
|
19 |
|
Non-GAAP Income From Operations |
$ |
538 |
|
|
$ |
127 |
|
|
$ |
980 |
|
|
$ |
167 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Operating Margin |
|
21.0 |
% |
|
|
8.0 |
% |
|
|
19.8 |
% |
|
|
(0.2 |
)% |
Non-GAAP Operating Margin |
|
23.1 |
% |
|
|
8.2 |
% |
|
|
21.8 |
% |
|
|
5.6 |
% |
GAAP Net Income (Loss) |
$ |
336 |
|
|
$ |
(19 |
) |
|
$ |
641 |
|
|
$ |
(203 |
) |
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Net gain from termination of interest rate swap |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(104 |
) |
Net loss from early redemption of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
Purchase order cancellation fees |
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
|
|
114 |
|
Restructuring and other, net |
|
1 |
|
|
|
(31 |
) |
|
|
2 |
|
|
|
(29 |
) |
Share-based compensation |
|
49 |
|
|
|
30 |
|
|
|
87 |
|
|
|
55 |
|
Strategic investment losses or impairment charges |
|
52 |
|
|
|
43 |
|
|
|
53 |
|
|
|
43 |
|
Other charges |
|
— |
|
|
|
8 |
|
|
|
1 |
|
|
|
19 |
|
Income tax adjustments |
|
(5 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
42 |
|
Non-GAAP Net Income (Loss) |
$ |
433 |
|
|
$ |
25 |
|
|
$ |
770 |
|
|
$ |
(21 |
) |
GAAP Diluted Net Income (Loss) Per Share |
$ |
1.55 |
|
|
$ |
(0.09 |
) |
|
$ |
2.95 |
|
|
$ |
(0.97 |
) |
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
Net gain from termination of interest rate swap |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.50 |
) |
Net loss from early redemption of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
Purchase order cancellation fees |
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
0.55 |
|
Restructuring and other, net |
|
— |
|
|
|
(0.15 |
) |
|
|
0.01 |
|
|
|
(0.14 |
) |
Share-based compensation |
|
0.23 |
|
|
|
0.14 |
|
|
|
0.40 |
|
|
|
0.26 |
|
Strategic investment losses or impairment charges |
|
0.24 |
|
|
|
0.20 |
|
|
|
0.24 |
|
|
|
0.21 |
|
Other charges |
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.09 |
|
Income tax adjustments |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.06 |
) |
|
|
0.20 |
|
Non-GAAP diluted share count adjustments1 |
|
0.03 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
Non-GAAP Diluted Net Income (Loss) Per Share1,2 |
$ |
2.03 |
|
|
$ |
0.12 |
|
|
$ |
3.62 |
|
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
||||||||
Shares Used In Diluted Net Income (Loss) Per Share Calculation |
|
|
|
|
|
|
|
|
|
||||||
GAAP |
|
217 |
|
|
|
209 |
|
|
|
217 |
|
|
|
209 |
|
Non-GAAP diluted share count adjustments1,2 |
|
(4 |
) |
|
|
2 |
|
|
|
(4 |
) |
|
|
— |
|
Non-GAAP |
|
213 |
|
|
|
211 |
|
|
|
213 |
|
|
|
209 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP Net Cash Provided by Operating Activities |
$ |
221 |
|
|
$ |
169 |
|
|
$ |
316 |
|
|
$ |
296 |
|
Acquisition of property, equipment and leasehold improvements |
|
(71 |
) |
|
|
(70 |
) |
|
|
(139 |
) |
|
|
(140 |
) |
Free Cash Flow |
$ |
150 |
|
|
$ |
99 |
|
|
$ |
177 |
|
$ |
156 |
||
| _____________________________________ | ||
1 |
For the three and six months ended December 27, 2024, using the if-converted method, approximately 4 million shares are issuable upon conversion of our 2028 exchangeable senior notes. These dilutive effects are expected to be offset in full by the capped call transactions and are excluded from non-GAAP shares used in diluted net income per share calculation. |
|
2 |
As a result of the net loss reported during the period, GAAP diluted net loss per share for the three months ended December 29, 2023 was computed using weighted average basic shares of 209 million; both GAAP and non-GAAP diluted net loss per share for the six months ended December 29, 2023, were computed using weighted average basic shares of 209 million. |
|
SEAGATE TECHNOLOGY HOLDINGS PLC RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (In millions) (Unaudited) |
|||||||||||||||||||
|
For the Three Months Ended |
|
|
||||||||||||||||
|
December 27,
|
|
September 27,
|
|
June 28,
|
|
March 29,
|
|
Last Twelve
|
||||||||||
GAAP Net Income |
$ |
336 |
|
|
$ |
305 |
|
|
$ |
513 |
|
|
$ |
25 |
|
|
$ |
1,179 |
|
Depreciation and amortization |
|
63 |
|
|
|
64 |
|
|
|
63 |
|
|
|
63 |
|
|
|
253 |
|
Interest expense |
|
84 |
|
|
|
85 |
|
|
|
82 |
|
|
|
82 |
|
|
|
333 |
|
Interest income |
|
(8 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(25 |
) |
Income tax expense |
|
14 |
|
|
|
11 |
|
|
|
25 |
|
|
|
33 |
|
|
|
83 |
|
Non-GAAP EBITDA |
|
489 |
|
|
|
458 |
|
|
|
676 |
|
|
|
200 |
|
|
|
1,823 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net gain from business divestiture |
|
— |
|
|
|
— |
|
|
|
(313 |
) |
|
|
— |
|
|
|
(313 |
) |
Purchase order cancellation fees |
|
— |
|
|
|
(1 |
) |
|
|
(26 |
) |
|
|
(1 |
) |
|
|
(28 |
) |
Restructuring and other, net |
|
1 |
|
|
|
1 |
|
|
|
(3 |
) |
|
|
2 |
|
|
|
1 |
|
Share-based compensation |
|
49 |
|
|
|
38 |
|
|
|
38 |
|
|
|
34 |
|
|
|
159 |
|
Strategic investment losses or impairment charges |
|
52 |
|
|
|
1 |
|
|
|
8 |
|
|
|
— |
|
|
|
61 |
|
Underutilization charges, net of depreciation and amortization |
|
— |
|
|
|
— |
|
|
|
20 |
|
|
|
38 |
|
|
|
58 |
|
Other charges |
|
— |
|
|
|
1 |
|
|
|
4 |
|
|
|
5 |
|
|
|
10 |
|
Non-GAAP Adjusted EBITDA |
$ |
591 |
|
|
$ |
498 |
|
|
$ |
404 |
|
|
$ |
278 |
|
|
$ |
1,771 |
|
The Company’s Non-GAAP measures are adjusted for the following items:
Accelerated depreciation, impairment and other charges related to cost saving efforts
These expenses are excluded in the non-GAAP measures due to the inconsistency in amount and frequency, and they are not normal operating expenses or indicative of the Company's operating performance. Exclusion of these amounts provides a supplemental view of the Company's operating performance to investors to enable them to evaluate the Company's current operating performance compared to the past periods' operating performance.
Net gain from business divestiture
The Company recorded a pre-tax net gain of
Net loss (gain) from early redemption of debt and termination of interest rate swap
From time to time, the Company incurs gains, losses and fees from the early redemption and repurchase of certain long-term debt instruments and termination of related interest rate swap agreements. The amount of these charges may be inconsistent in size and varies depending on the timing of the early redemption of debt and/or termination of interest rate swap. The Company does not believe these are part of its normal operating performance. Exclusion of these amounts provides a supplemental view of the Company's operating performance to investors to enable them to evaluate the Company's current operating performance compared to the past periods' operating performance.
Purchase order cancellation fees
Purchase order cancellation fees are the costs incurred to cancel certain purchase commitments made with the Company's suppliers for component and equipment purchases that will not be received due to change in forecasted demand. These charges are inconsistent in amount and frequency. The Company does not believe these are part of its normal operating expenses. Exclusion of these amounts provides a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Restructuring and other, net
Restructuring and other, net are costs associated with restructuring plans that are primarily related to costs associated with reduction in the Company’s workforce, exiting certain facilities and other related costs, as well as charges or gains from sale of properties. These costs or benefits do not reflect the Company’s normal or ongoing operating performance and consequently the Company excludes these expenses to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Share-based compensation
These expenses consist primarily of expenses for employee share-based compensation. Given the variety of equity awards used by companies, the varying methodologies for determining share-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding share-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the Company’s peers, a majority of whom also exclude share-based compensation expense from their non-GAAP results.
Strategic investment gains, losses and impairment charges
From time to time, the Company incurs gains, losses or impairment charges from strategic investments that are measured and accounted at fair value, under the equity method of accounting, as available-for-sale debt securities or adjust for downward or upward adjustments to the carrying value under the measurement alternative if an impairment or observable price adjustment is recognized in the current period that are not considered normal operating expenses or gains. The resulting expense, gain or impairment loss is inconsistent in amount and frequency and the Company excludes these amounts to provide a supplemental view to investors to evaluate the Company's current operating performance compared to the past periods’ operating performance.
Other charges
The other charges primarily include IT transformation costs. These charges are inconsistent in amount and frequency and are excluded to provide a supplemental view to investors to evaluate the Company's current operating performance compared to past periods’ operating performance.
Income tax adjustments
Provision or benefit for income taxes represents the tax effects of non-GAAP adjustments determined using a hybrid with and without method and effective tax rate for the applicable adjustment and jurisdiction.
Non-GAAP diluted share count adjustments
Using the if-converted method, diluted net income per share is calculated assuming that the excess value above the principal of the 2028 exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Non-GAAP shares used in diluted net income per share calculation excluded certain dilutive shares, which are expected to be offset partially or in full by the capped call transactions entered by the Company in conjunction with our 2028 exchangeable senior notes in order to reduce the potential dilution to the Company’s ordinary shares upon the conversion.
Free cash flow
Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less acquisition of property, equipment and leasehold improvements. Free cash flow does not reflect non-cash items, net cash used or provided by financing activities and net cash used or provided by investing activities, other than acquisition of property, equipment and leasehold improvements. This non-GAAP financial measure is used by management to assess the Company's sources of liquidity, capital structure and operating performance.
EBITDA, adjusted EBITDA and last twelve months (LTM) adjusted EBITDA
EBITDA is defined as net income (loss) before income tax expense, interest expense, interest income, depreciation and amortization. Adjusted EBITDA excludes certain expenses, gains and losses that the Company believes are not indicative of its core operating results. These adjustments primarily include impairment and other charges related to cost saving efforts, net loss (gain) from early redemption of debt, net gain from termination of interest rate swap, net gain from business divestiture, purchase order cancellation fees, restructuring and other, net, share-based compensation, strategic investment losses or impairment charges, other extraordinary charges such as factory underutilization charges. LTM adjusted EBITDA is defined as the total of last twelve months adjusted EBITDA. These non-GAAP financial measures are used by management to evaluate the Company’s debt portfolio and structure to comply with its financial debt covenants.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121673140/en/
Investor Relations Contact:
Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com
Media Contact:
Karin Taylor, (408) 772-8279
karin.h.taylor@seagate.com
Source: Seagate Technology Holdings plc
FAQ
What was Seagate's (STX) revenue in Q2 2025?
How much did Seagate (STX) earn per share in Q2 2025?
What is Seagate's (STX) dividend payment for Q2 2025?
What was Seagate's (STX) gross margin in Q2 2025?
How much cash did Seagate (STX) return to shareholders in Q2 2025?
What is Seagate's (STX) new product development in Q2 2025?
