SanDisk said net revenue for the 3 months ended March 28, 2025 decreased 1% from the comparable period in the prior year, citing a 11% decrease in average selling prices per gigabyte and a 13% increase in exabytes sold. Cloud revenue increased 103%.

10-QQuarterly reportFiled May 12, 2025Period of report Mar 28, 2025Summary published (UTC) Oct 10, 2026

Key points

AI summary

SanDisk said net revenue for the 3 months ended March 28, 2025 decreased 1% from the comparable period in the prior year, citing a 11% decrease in average selling prices per gigabyte and a 13% increase in exabytes sold. Cloud revenue increased 103%.
The company said that following the separation, a quantitative analysis indicated the estimated carrying value of its reporting unit exceeded its fair value, and it recorded a goodwill impairment charge of $1.8 billion for the 3 months ended March 28, 2025.
SanDisk said gross profit for the quarter decreased $81 million from the comparable period in the prior year, citing as factors a decrease in revenue due to lower average selling price, a $29 million increase in start-up costs related to construction of its K2 facility, and a $24 million charge as a result of reduced utilization of manufacturing capacity.
The company borrowed $2 billion under its 7-year Term Loan B facility on February 21, 2025, and used a portion of the proceeds to make a net distribution payment of $1.5 billion to WDC. As of March 28, 2025, the company had drawn no amounts under its $1.5 billion Revolving Credit Facility.

Key figures

Quarter ended March 28, 2025

Revenue: $1.7B
Operating income: −$1.9B
Net income: −$1.9B
EPS: −$13.33
Gross profit: $382M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Quarterly net revenue down 1%, Cloud revenue up 103%

SanDisk said net revenue for the 3 months ended March 28, 2025 decreased 1% from the comparable period in the prior year, citing a 11% decrease in average selling prices per gigabyte and a 13% increase in exabytes sold. Cloud revenue increased 103%.

Source · Based on the MD&A text of the filing

Quarterly goodwill impairment charge of $1.8 billion

The company said that following the separation, a quantitative analysis indicated the estimated carrying value of its reporting unit exceeded its fair value, and it recorded a goodwill impairment charge of $1.8 billion for the 3 months ended March 28, 2025.

Source · Based on the MD&A text of the filing

Quarterly gross profit down $81 million and manufacturing underutilization charges

SanDisk said gross profit for the quarter decreased $81 million from the comparable period in the prior year, citing as factors a decrease in revenue due to lower average selling price, a $29 million increase in start-up costs related to construction of its K2 facility, and a $24 million charge as a result of reduced utilization of manufacturing capacity.

Source · Based on the MD&A text of the filing

Term Loan Facility borrowing of $2 billion and net distribution to WDC of $1.5 billion

The company borrowed $2 billion under its 7-year Term Loan B facility on February 21, 2025, and used a portion of the proceeds to make a net distribution payment of $1.5 billion to WDC. As of March 28, 2025, the company had drawn no amounts under its $1.5 billion Revolving Credit Facility.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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