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itel Debuts CITY Series with CITY 100 New Model: A Stylish, Durable & DeepSeek AI-Powered Smartphone for Gen Z

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SHENZHEN, China, May 15, 2025 /PRNewswire/ — itel, a reliable smart life brand for everyone, is excited to announce the launch of the CITY 100, the inaugural smartphone in its brand-new CITY Series. itel CITY 100 redefines expectations for budget smartphones by integrating strong performance within a sleek design, bridging the gap between advanced AI capabilities and budget-friendly devices, empowering users to enjoy a smarter, more connected life.

Unibody Frame & Ultra-Flat Display – A First in Its Class

Embodying the series motto – Fun, Yet Strong –CITY 100 is more than just a device, it’s a lifestyle companion for young trendsetters. With a premium 7.65mm unibody frame, it offers seamless and sleek aesthetic. Unlike traditional budget phones designs, it features an ultra-flat display that sits perfectly flush with the frame. This refined design ensures comfort during long browsing sessions and adds a touch of sophistication to every interaction. Its immersive 6.75-inch display offers a smooth 90Hz refresh rate, a peak brightness of 700 nits and an 83% wide color gamut to deliver smooth and vibrant visuals even under sunlight.

Engineered for durability, itel CITY 100 is also remarkably durable with an IP64-rated dust and water resistance, effortlessly withstands the rigors of daily use. Built to last, itel supports this phone with a 60-month fluency guarantee. Also CITY 100 comes with a free magnetic speaker in particular countries and supports accessories like stands and card holders. Furthermore, CITY 100 features a 5200mAh high-capacity battery with 18W fast charging and a 4-year battery health guarantee, ensuring all-day long performance and long-term reliability.

itel’s First DeepSeek AI-Powered Creativity

What truly sets itel City 100 apart in its price range is its creative AI functions. As itel’s first smartphone equipped with the DeepSeek R1 model, itel CITY 100 support intelligent interaction scenarios powered by itel AI. This enables users to transform texts into custom wallpapers or stylize their favorite images with AI creativity, while also enjoying various AI assistant services, such as one-press AI search for shopping or help, instant AI translation, image-to-text conversion, AI writing, AI call noise reduction, and AI voice snap.

Thanks to the upgrade of AI tools, young users can engage with the latest advancements in AI technology and experience the convenience brought by mobile innovation. itel’s commitment to integrating AI into mobile applications demonstrates its dedication to meeting the smart lifestyle needs of entry-level users, making technology more accessible and affordable. With these enhancements, itel continues to bridge the gap between advanced AI capabilities and budget-friendly devices, empowering users to enjoy a smarter, more connected life.

As the first release in itel’s City Series, City 100 is built for the adventurous, expressive, and connected young people who embrace technology not just as a tool, but as a way of life. From its trendy, integrated design to its strong, reliable performance, this is a device that dares users to explore, play, and live their lives to the fullest and have confidence comparing with same price competitors.

For more information please visit: https://www.itel-life.com/ 

About itel

 Established over 15 years, itel is a reliable smart life brand for everyone. Adopting “Enjoy better life” as its brand philosophy, itel’s mission is to provide budget-friendly consumer electronic products. itel has expanded its presence in more than 80 emerging markets globally. itel has a product portfolio of smartphones, accessories, home appliances, and lifestyle products. In 2024 it ranked No.1 Global Smartphone brand under $75 and No.1 feature phone brand.

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eBay Inc. Reports Third Quarter 2026 Results

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Revenue of $3.2 billion, up 14% on an as-reported basis and up 13% on an FX-Neutral basis Gross Merchandise Volume of $23.2 billion, up 15% on an as-reported basis and up 16% on an FX-Neutral basisGAAP and Non-GAAP earnings per diluted share of $1.11 and $1.51, respectively, on a continuing operations basisGAAP and Non-GAAP operating margins of 19.2% and 26.3%, respectivelyReturned $827 million to stockholders in Q3, including $689 million of share repurchases and $138 million paid in cash dividends

SAN JOSE, Calif., Oct. 28, 2026 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its third quarter ended September 30, 2026.

“eBay’s strong third quarter results reflect continued momentum across our business priorities and customer segments as more consumers embrace recommerce,” said Jamie Iannone, Chief Executive Officer at eBay. “Our Focus Categories, C2C marketplace, and Recommerce leadership are driving strong, sustained growth, while innovations across eBay Live, Shipping, and our portfolio are making the platform more trusted, seamless, and compelling for buyers and sellers around the world.”

“Our third quarter results demonstrate that eBay’s strategy is delivering strong GMV growth and meaningful earnings expansion,” said Peggy Alford, Chief Financial Officer at eBay. “By investing with discipline in our highest strategic priorities and focusing on the areas where we have a clear competitive advantage, we are positioning eBay for durable, profitable growth and long-term shareholder value.”

Third Quarter 2026 Business Highlights

eBay continued to enhance its C2C selling experience with comprehensive improvements in France and Italy, bringing together free selling, buyer protection, enhanced local discovery, eBay Balance and simplified shipping.The company expanded the latest generation of its AI-powered Magical Listing technology to all new and reactivated listers in the U.S., U.K., Germany, Australia, France and Italy.eBay Live delivered another record quarter and is generating Gross Merchandise Volume (“GMV”) at a multibillion-dollar annualized run rate. GMV growth remained well into the triple digits year over year, similar to recent quarters, as sellers, buyers, content hours and viewership continued to expand across all seven markets.eBay continued to enhance its Live shopping experience by introducing multistreaming capabilities that allow sellers to broadcast simultaneously across eBay Live and social platforms, and strengthened trust by introducing new features for sellers, including AI-powered moderation of chat, audio and video and enhanced content screening.Depop further strengthened its buying and selling experience by enabling faster personal discovery on the homepage, simplifying its AI-assisted listing flow and offering more affordable shipping options in the U.S.eBay created standout moments at New York and London Fashion Weeks with Endless Runway activations, showcasing rare archival and pre-loved fashion, celebrating iconic designers and leveraging eBay Live to bring the collection to buyers worldwide. In Motors Parts & Accessories, eBay expanded Easy and Free Returns to Germany following successful U.S. and U.K. launches and introduced Certified Recycled badging in the U.S., helping buyers shop for compatible, quality parts with greater confidence.eBay’s Vehicle Purchase Protection now covers eligible transactions up to $500,000. The company also facilitated several vehicle transactions exceeding $1 million, including the sale of a 2005 Porsche Carrera GT for $5 million.eBay expanded Authenticity Guarantee to eligible collectible coins in the U.S. through a partnership with Professional Coin Grading Service, a leading authority in coin grading and authentication. The company also extended trading card authentication services to a broader range of collectors by lowering the mandatory price thresholds in the U.S. and U.K. eBay expanded its Authenticity Guarantee service for luxury fashion across Europe, enabling buyers in 23 European Union countries to shop for authenticated Luxury Fashion from sellers in Germany, France and Italy. In Australia, eBay introduced authentication for watches, further strengthening trust and confidence in its global luxury resale marketplace.TCGplayer surpassed $1 billion in GMV over the trailing 12 months and began onboarding international sellers in the U.K. and Canada.Goldin achieved another quarter of record GMV and hosted an auction commemorating the 250th anniversary of the United States, highlighted by the $3.65 million sale of a rare 1776 Exeter Broadside copy of the Declaration of Independence.eBay expanded Managed Shipping to all new and reactivated listers in the U.S. for domestic transactions and launched eBay International Shipping in the U.K. and Germany, which will enable sellers to reach buyers in more than 190 markets by shipping to a domestic eBay hub.

Impact

In October, eBay released its sixth annual Recommerce Report, which found that 47% of consumers surveyed purchase secondhand goods at least monthly, up from 35% in 2025, underscoring the growing adoption of recommerce worldwide.eBay for Charity enabled buyers and sellers on the platform to raise $59 million worldwide in the third quarter.eBay Foundation’s Global Give Program granted nearly $3 million to over 30 nonprofits around the world that are supporting entrepreneurs in geographies where eBayers live and work.eBay was recognized with numerous awards, including Forbes’ World’s Best Employers 2026, TIME’s World’s Best Companies 2026, Newsweek’s America’s Best Online Platforms 2026 and Business Insider’s America’s Most Innovative Businesses 2027.

Third Quarter 2026 Financial Highlights

Revenue was $3.2 billion, up 14% on an as-reported basis and up 13% on a foreign exchange (“FX”) neutral basis.GMV was $23.2 billion, up 15% on an as-reported basis and up 16% on an FX-Neutral basis.GAAP net income from continuing operations was $501 million, or $1.11 per diluted share.Non-GAAP net income from continuing operations was $685 million, or $1.51 per diluted share.GAAP and Non-GAAP operating margins were 19.2% and 26.3%, respectively.Generated $875 million of operating cash flow and $749 million of free cash flow from continuing operations.Returned $827 million to stockholders, including $689 million of share repurchases and $138 million paid in cash dividends.

(In millions, except per share data and percentages)

Third Quarter

2026

2025

Change

eBay Inc.

Net revenues

$  3,206

$  2,820

$    386

14 %

GAAP – Continuing Operations

Net income

$    501

$    593

$     (92)

(16) %

Earnings per diluted share

$    1.11

$    1.27

$   (0.16)

(13) %

Non-GAAP – Continuing Operations

Net income

$    685

$    633

$      52

8 %

Earnings per diluted share

$    1.51

$    1.35

$    0.16

12 %

Other Selected Financial and Operational Results

Advertising revenue – The company’s total advertising offerings generated $607 million of revenue in the third quarter of 2026. First-party advertising products on the eBay platform delivered $575 million of revenue in the third quarter of 2026, up 16% on an as-reported basis and up 16% on an FX-Neutral basis.Operating margin – GAAP operating margin decreased to 19.2% for the third quarter of 2026, compared to 20.3% for the same period last year. Non-GAAP operating margin decreased to 26.3% for the third quarter of 2026, compared to 27.0% for the same period last year.Income tax rate – The GAAP effective tax rate for continuing operations for the third quarter of 2026 was 17.1%, compared to (4.3)% for the third quarter of 2025. The non-GAAP effective tax rate for continuing operations for the third quarter of 2026 was 17.5%(1).Cash flow – The company generated $875 million of operating cash flow and $749 million of free cash flow during the third quarter of 2026 from continuing operations.Capital returns – The company repurchased $689 million of its common stock, or approximately 6 million shares, in the third quarter of 2026. The company’s total repurchase authorization remaining as of September 30, 2026 was approximately $1.3 billion. The company also paid cash dividends of $138 million during the third quarter of 2026.Cash and cash equivalents and non-equity investments – The company’s cash and cash equivalents and non-equity investments portfolio totaled $3.3 billion as of September 30, 2026.

(1) We are using a non-GAAP effective tax rate of 17.5% in 2026 for evaluating our operating results, up from 16.5% in 2025. This rate could continue to change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.

Business Outlook

eBay is providing the following guidance for continuing operations for the fourth quarter and full year 2026. This outlook includes the expected impact from Depop.

(In billions, except per share data and percentages)

Q4 2026 Guidance

Full Year 2026 Guidance

Revenue

$3.19 – $3.24

$12.62 – $12.67

FX-Neutral Y/Y Growth

7% – 9%

12% – 13%

Gross Merchandise Volume

$23.7 – $24.1

$91.5 – $91.9

FX-Neutral Y/Y Growth

12% – 14%

14% – 14%

Diluted GAAP EPS

$0.82 – $0.87

$4.26 – $4.31

Diluted Non-GAAP EPS

$1.48 – $1.53

$6.25 – $6.30

Dividend Declaration

eBay’s Audit Committee declared a fourth quarter 2026 cash dividend of $0.31 per share of the company’s common stock. The dividend is payable on December 18, 2026 to stockholders of record as of December 4, 2026.

Acquisition of Depop

On July 30, 2026, we completed the acquisition of Depop, a leading C2C fashion marketplace, from Etsy, Inc.  We paid $1.4 billion in cash, inclusive of a preliminary purchase price adjustment, which is subject to finalization.  We believe the acquisition strengthens our leadership in circular fashion and recommerce.

Quarterly Conference Call and Webcast

eBay Inc. will host a conference call to discuss third quarter 2026 results at 2:30 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company’s Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for at least three months through the same link.

eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com and social media channels as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, Securities and Exchange Commission (“SEC”) filings, public conference calls and webcasts.

About eBay

eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2025, eBay enabled nearly $80 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

Presentation

All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided. References to “revenue” refer to “net revenues” as reported in the company’s consolidated statement of income.

New Accounting Standard

In September 2025, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Accounting for and Disclosure of Software Costs. eBay adopted the standard effective January 1, 2026 using the full retrospective method, which required the restatement of each prior reporting period presented.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as “non-GAAP financial measures” by the SEC: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an “FX-Neutral basis,” to the nearest comparable GAAP measures, see “Non-GAAP Measures of Financial Performance,” “Reconciliation of GAAP Operating Income to Non-GAAP Operating Income,” “Reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate” and “Reconciliation of Operating Cash Flow to Free Cash Flow” included in this press release. For figures in this press release reported “on an FX-Neutral basis,” we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.

Forward-Looking Statements

This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involves risks and uncertainties. These statements include, but are not limited to, management’s vision for the future of eBay and our ability to accomplish our vision, expected financial results for the fourth quarter and full year 2026 and expected drivers thereof, the future growth in our business, and our ability to drive sustainable long-term growth and create lasting value for our stockholders, the impact of current and contemplated strategic initiatives and offerings, partnerships with and acquisitions of other companies, and new and updated product features or programs, including the initiatives, offerings, partnerships, acquisitions, features and programs discussed in our business highlights, the effects of foreign currency volatility and our ability to respond to such effects, operating efficiency and margins, and dividends and share repurchases.

Actual results could differ materially from those expressed or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: significant variation in our operating and financial results, including GMV and net revenues; our ability to compete in the markets in which we participate; our ability to generate revenue from our advertising products, including our Promoted Listings; our ability to generate consumer engagement and spending; our ability to keep pace with technological changes, including emerging AI technologies, and with changes in consumer demands and expectations; our ability to operate internationally and generate revenue from our international operations and our exposure to costs and risks in connection therewith; the impact of changes in global trade policies on our revenue, profit and ability to support cross-border trade; our ability to manage our buyer and seller trust protection programs; the risk of systems failures and business interruptions to our business; operation of and ongoing investment into our payments and financial services offerings; the risk of fraud on our platforms; the impact of any cyberattacks or data security breaches; our ability to attract, retain and develop our senior managers and other key employees; our and our customers’ dependence on third-party providers, some of which are our competitors; the impact of our current, contemplated and future acquisitions, dispositions, joint ventures, strategic partnerships and strategic investments, including our ability to realize the projected benefits from the recently completed Depop acquisition; the impact of stockholder activism or unsolicited acquisition proposals; the impact of extensive and increasing regulation and oversight that affect our business; the risk of liability for the actions of our customers, including products sold by sellers on our platforms; the impact of increasing levels of regulation in the areas of privacy, protection of user data cybersecurity, and AI; the risks associated with third-party allegations relating to intellectual property rights; current and potential litigation and regulatory and government inquiries, investigations and litigation involving us; the impact of evolving sales and other tax regimes in various jurisdictions; our ability to protect or enforce our intellectual property rights; risks and costs relating to stakeholder expectations around environmental, social and governance matters; potential exposure to claims and liabilities as a result of the distribution of PayPal; the risk of exposure to greater than anticipated tax liabilities; fluctuations in interest rates, and changes in regulatory guidance relating thereto; fluctuations in foreign currency exchange rates; our ability to generate sufficient cash flow to service our indebtedness and to comply with financial covenants in our outstanding debt instruments; and the risk that our stock repurchases may not be effected or may not achieve the desired objectives.

The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.

More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.

eBay Inc.

Unaudited Condensed Consolidated Balance Sheet

September 30,
2026

December 31,
2025

(In millions)

ASSETS

Current assets:

Cash and cash equivalents

$         1,166

$         1,867

Short-term investments

809

1,052

Customer accounts and funds receivable

1,624

1,280

Other current assets

1,187

887

Total current assets

4,786

5,086

Long-term investments

2,171

2,767

Property and equipment, net

1,303

1,165

Goodwill

5,242

4,467

Operating lease right-of-use assets

456

428

Deferred tax assets

2,929

2,959

Other assets

1,119

565

Total assets

$       18,006

$       17,437

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Short-term debt

$         1,599

$           750

Accounts payable

339

242

Customer accounts and funds payable

1,624

1,280

Accrued expenses and other current liabilities

2,542

2,257

Income taxes payable

22

108

Total current liabilities

6,126

4,637

Operating lease liabilities

343

315

Deferred tax liabilities

1,457

1,431

Long-term debt

5,134

5,996

Other liabilities

534

575

Total liabilities

13,594

12,954

Total stockholders’ equity

4,412

4,483

Total liabilities and stockholders’ equity

$       18,006

$       17,437

 

eBay Inc. 

Unaudited Condensed Consolidated Statement of Income

Three Months Ended

September 30,

Nine Months Ended

September 30,

2026

2025

2026

2025

(In millions, except per share amounts)

Net revenues

$       3,206

$       2,820

$       9,429

$       8,135

Cost of net revenues (1)

887

794

2,521

2,241

Gross profit

2,319

2,026

6,908

5,894

Operating expenses:

Sales and marketing (1)

747

606

2,117

1,728

Product development (1)

517

455

1,451

1,300

General and administrative (1)

303

282

1,019

914

Transaction losses

122

106

393

273

Amortization of acquired intangible assets

14

6

25

18

Total operating expenses

1,703

1,455

5,005

4,233

Income from operations

616

571

1,903

1,661

Interest and other:

Gain (loss) on equity investments and warrants, net

6

(10)

10

(16)

Interest expense

(64)

(62)

(190)

(185)

Interest income and other, net

47

69

165

209

Income from continuing operations before income taxes

605

568

1,888

1,669

Income tax benefit (provision)

(104)

25

(323)

(210)

Income from continuing operations

501

593

1,565

1,459

Income (loss) from discontinued operations, net of income taxes

(4)

35

(6)

32

Net income

$         497

$         628

$       1,559

$       1,491

Income (loss) per share – basic:

Continuing operations

$         1.13

$         1.30

$         3.51

$         3.16

Discontinued operations

(0.01)

0.08

(0.01)

0.07

Net income per share – basic

$         1.12

$         1.38

$         3.50

$         3.23

Income (loss) per share – diluted:

Continuing operations

$         1.11

$         1.27

$         3.44

$         3.10

Discontinued operations

(0.01)

0.07

(0.01)

0.07

Net income per share – diluted

$         1.10

$         1.34

$         3.43

$         3.17

Weighted average shares:

Basic

444

456

445

461

Diluted

453

467

455

471

(1) Includes stock-based compensation as follows:

Cost of net revenues

$           12

$           11

$           36

$           30

Sales and marketing

25

21

74

65

Product development

86

73

248

228

General and administrative

50

42

153

125

$         173

$         147

$         511

$         448

 

eBay Inc.

Unaudited Condensed Consolidated Statement of Cash Flows

Three Months Ended

September 30,

Nine Months Ended

September 30,

2026

2025

2026

2025

(In millions)

Cash flows from operating activities:

Net income

$         497

$         628

$       1,559

$       1,491

Loss (income) from discontinued operations, net of income
taxes

4

(35)

6

(32)

Adjustments:

Transaction losses

122

106

393

273

Depreciation and amortization

116

77

310

208

Stock-based compensation

173

147

511

448

Deferred income taxes

32

69

75

11

Loss (gain) on investments, warrants and other, net

(10)

9

(40)

6

Changes in assets and liabilities, net of acquisition effects

(59)

(101)

(420)

(1,090)

Net cash provided by continuing operating activities

875

900

2,394

1,315

Net cash used in discontinued operating activities

—

(38)

(27)

(38)

Net cash provided by operating activities

875

862

2,367

1,277

Cash flows from investing activities:

Purchases of property and equipment

(126)

(97)

(421)

(309)

Purchases of investments

(37)

(1,093)

(1,446)

(6,100)

Maturities of investments

312

1,449

1,376

7,979

Sales of investments

61

42

745

42

Shareholder distributions from equity investments

—

2

194

227

Acquisition of Depop, net of cash acquired

(1,321)

—

(1,321)

—

Other

(16)

(4)

(55)

(96)

Net cash provided by (used in) investing activities

(1,127)

299

(928)

1,743

Cash flows from financing activities:

Proceeds from issuance of common stock

—

8

64

101

Repurchases of common stock

(664)

(626)

(1,473)

(1,865)

Payments for taxes related to net share settlements of
restricted stock units and awards

(77)

(71)

(266)

(208)

Payments for dividends

(138)

(132)

(415)

(400)

Repayment of senior notes

—

—

(750)

(800)

Proceeds from issuance of commercial paper

493

632

1,232

1,575

Repayment of commercial paper

(493)

(628)

(493)

(1,446)

Net funds receivable and payable activity

35

(57)

248

231

Other

4

—

(12)

(26)

Net cash used in financing activities

(840)

(874)

(1,865)

(2,838)

Effect of exchange rate changes on cash, cash equivalents and
restricted cash

6

(5)

(17)

45

Net increase (decrease) in cash, cash equivalents and restricted
cash

(1,086)

282

(443)

227

Cash, cash equivalents and restricted cash at beginning of
period

3,698

3,231

3,055

3,286

Cash, cash equivalents and restricted cash at end of period

$       2,612

$       3,513

$       2,612

$       3,513

 

eBay Inc.

Unaudited Summary of Consolidated Net Revenues

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

(In millions, except percentages)

Total net revenues (1)(2)

$      3,206

$      3,134

$      3,089

$      2,965

$      2,820

Current quarter vs prior year quarter

14 %

15 %

19 %

15 %

9 %

Percent from international

43 %

44 %

44 %

46 %

48 %

(1) Hedge gain/(loss)

$           (2)

$           (1)

$          (13)

$          (19)

$          (24)

(2) Foreign currency impact

$           (7)

$           22

$           78

$           16

$           20

 

eBay Inc.

Unaudited Supplemental Operating Data

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

(In millions, except percentages)

Active Buyers (1)

147

136

136

135

134

Current quarter vs prior year quarter

10 %

2 %

1 %

1 %

1 %

Active Buyers excluding Depop and
Tise (2)(3)

136

136

135

134

Current quarter vs prior year quarter

1 %

1 %

1 %

1 %

Gross Merchandise Volume (4)

U.S.

$     12,545

$     11,688

$     11,503

$     10,721

$      9,872

Current quarter vs prior year quarter

27 %

24 %

27 %

19 %

13 %

International

10,621

10,710

10,694

10,516

10,233

Current quarter vs prior year quarter

4 %

6 %

10 %

2 %

7 %

Total Gross Merchandise Volume

$     23,166

$     22,398

$     22,197

$     21,237

$     20,105

Current quarter vs prior year quarter

15 %

15 %

18 %

10 %

10 %

(1)

Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account.

(2)

On October 1, 2025, we completed the acquisition of Tise AS (Tise).

(3)

On July 30, 2026, we completed the acquisition of Depop Limited (Depop).

(4)

Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace platforms during the applicable period inclusive of shipping fees and taxes, without adjustment for returns or cancellations.

eBay Inc.
Business Outlook

The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company’s future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.

The company’s future performance involves risks and uncertainties, and the company’s actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company’s operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay’s investor relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov.

eBay Inc.

Three Months Ending

December 31, 2026

(In billions, except per share amounts)

GAAP

Non-GAAP (a)

Net revenues

$3.19 – $3.24

$3.19 – $3.24

Diluted EPS from continuing operations

$0.82 – $0.87

$1.48 – $1.53

Gross Merchandise Volume

$23.7 – $24.1

Twelve Months Ending

December 31, 2026

(In billions, except per share amounts)

GAAP

Non-GAAP (b)

Net revenues

$12.62 – $12.67

$12.62 – $12.67

Diluted EPS from continuing operations

$4.26 – $4.31

$6.25 – $6.30

Gross Merchandise Volume

$91.5 – $91.9

(a) Estimated non-GAAP amounts above for the three months ending December 31, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $30-$32 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $163-$173 million, estimated restructuring expense of $130-$150 million, and estimated adjustment between our GAAP and non-GAAP tax expense of approximately $(41)-$(47) million. The estimated GAAP diluted EPS above does not assume any future gains or losses on our equity investments.

(b) Estimated non-GAAP amounts above for the twelve months ending December 31, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $79-$81 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $695-$705 million, estimated restructuring expense of $212-$232 million, and estimated adjustment between our GAAP and non-GAAP tax rate of approximately $(179)-$(184) million. The estimated GAAP diluted EPS above does not assume any future gains or losses on our equity investments.

eBay Inc.
Non-GAAP Measures of Financial Performance 

To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an “FX-Neutral basis.” These non-GAAP financial measures are presented on a continuing operations basis.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company’s results of operations in conjunction with the corresponding GAAP measures.

Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an “FX-Neutral basis,” can be found in the tables included in this press release. For figures in this press release reported on an “FX-Neutral basis,” the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.

These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting.

For its internal budgeting process, and as discussed further below, the company’s management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company’s management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.

The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin and non-GAAP effective tax rate:

Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company’s stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company’s operation of the business.

Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company’s business.

Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.

Transaction related costs. The company may incur significant gains or losses and incremental costs related to the acquisition or disposal of a business, unsolicited proposals and shareholder activism matters. These costs include third party fees such as banker fees, legal and advisory fees and other professional services. The company excludes these items from its non-GAAP measures as management does not believe they correlate to the company’s ongoing operating results of the business.

Other certain significant gains, losses, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.

Change in fair market value of warrants. These are gains or losses associated with warrant agreements entered into with vendors, which are attributable to changes in fair value during the period.

Income tax effects and adjustments. We are using a non-GAAP tax rate of 17.5% for evaluating our operating results, up from 16.5% in 2025. This rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.

In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company’s business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements.

eBay Inc.

Reconciliation of GAAP Operating Income to Non-GAAP Operating Income

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

(In millions, except percentages)

GAAP operating income

$       616

$       571

$     1,903

$     1,661

Stock-based compensation expense and related employer
payroll taxes

177

153

532

469

Amortization of acquired intangible assets within cost of net
revenues and operating expenses

25

12

50

37

Restructuring and executive bonuses

(3)

24

102

79

Legal matters

—

—

(10)

52

Transaction related costs

28

—

66

—

Total non-GAAP operating income adjustments

227

189

740

637

Non-GAAP operating income

$       843

$       760

$     2,643

$     2,298

GAAP operating margin

19.2 %

20.3 %

20.2 %

20.4 %

Non-GAAP operating margin

26.3 %

27.0 %

28.0 %

28.3 %

Presented on a continuing operations basis

 

Reconciliation of GAAP Net Income to Non-GAAP Net Income and 

GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

(In millions, except per share amounts and percentages)

GAAP income from continuing operations before income taxes

$       605

$       568

$     1,888

$     1,669

GAAP provision for income taxes

(104)

25

(323)

(210)

GAAP net income from continuing operations

501

593

1,565

1,459

Non-GAAP adjustments to net income from continuing
operations:

Non-GAAP operating income from continuing operations
adjustments (see table above)

227

189

740

637

Change in fair value of equity investments and warrants

(1)

—

5

—

Income tax effects and adjustments

(42)

(149)

(138)

(169)

Non-GAAP net income from continuing operations

$       685

$       633

$     2,172

$     1,927

Diluted net income from continuing operations per share:

GAAP

$      1.11

$      1.27

$      3.44

$      3.10

Non-GAAP

$      1.51

$      1.35

$      4.77

$      4.09

Shares used in GAAP diluted net income per share calculation

453

467

455

471

Shares used in non-GAAP diluted net income per share
calculation

453

467

455

471

GAAP effective tax rate – Continuing operations

17.1 %

(4.3) %

17.1 %

12.6 %

Income tax effects and adjustments to net income from
continuing operations

0.4 %

20.8 %

0.4 %

3.9 %

Non-GAAP effective tax rate – Continuing operations

17.5 %

16.5 %

17.5 %

16.5 %

Presented on a continuing operations basis

 

Reconciliation of Operating Cash Flow to Free Cash Flow

Three Months Ended
September 30,

Nine Months Ended
September 30,

2026

2025

2026

2025

(In millions)

Net cash provided by continuing operating activities

$         875

$         900

$       2,394

$       1,315

Less: Purchases of property and equipment

(126)

(97)

(421)

(309)

Free cash flow

$         749

$         803

$       1,973

$       1,006

Presented on a continuing operations basis

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ebay-inc-reports-third-quarter-2026-results-302922657.html

SOURCE eBay Inc.

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KLA Corporation Reports Fiscal 2027 First Quarter Results

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Total revenues were $4.14 billion, above the midpoint of the guidance range of $4.0 billion +/- $200 million;GAAP diluted EPS was $1.18 and non-GAAP diluted EPS was $1.22, both above the midpoints of the respective guidance ranges;Cash flow from operating activities for the quarter and last twelve months were $1.53 billion and $4.51 billion, respectively, and free cash flow was $1.34 billion and $4.04 billion, respectively; andCapital returns for the quarter and last twelve months were $1.24 billion and $3.79 billion, respectively.

MILPITAS, Calif., Oct. 28, 2026 /PRNewswire/ — KLA Corporation (NASDAQ: KLAC) today announced financial and operating results for its first quarter of fiscal year 2027, which ended on September 30, 2026, and reported GAAP net income of $1.55 billion and GAAP net income per diluted share of $1.18 on revenues of $4.14 billion.

“KLA’s September quarter beat the midpoint of guidance across all key metrics, demonstrating the accelerated growth we expected for the second half of calendar 2026,” said Rick Wallace, president and CEO of KLA Corporation. “Process control, and KLA in particular, continues to be critical to the AI ecosystem buildout and benefits from numerous ongoing inflections, including increases in leading-edge designs across foundry and logic, device size and value, memory complexity and performance requirements, and the importance of advanced packaging. In addition, KLA’s process, PCB, and component inspection businesses are benefiting from the technology transitions and the rigorous performance requirements of high-performance computing, which further augments the company’s growth profile. KLA’s market-leading product portfolio and its associated services offerings remain well positioned to address these compelling opportunities as we approach the end of calendar 2026 and look forward to calendar 2027.” 

GAAP Results

Q1 FY 2027

Q4 FY 2026

Q1 FY 2026

Total Revenues

$4,136 million

$3,658 million

$3,210 million

Net Income

$1,549 million

$1,363 million

$1,121 million

Net Income per Diluted Share(1)

$1.18

$1.04

$0.85

Non-GAAP Results

Q1 FY 2027

Q4 FY 2026

Q1 FY 2026

Net Income

$1,603 million

$1,386 million

$1,167 million

Net Income per Diluted Share(1)

$1.22

$1.05

$0.88

__________________

(1)

All per share amounts referenced herein have been retroactively adjusted to reflect the ten-for-one stock split effective June 11, 2026.

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2027 first quarter, along with its outlook, on a conference call today beginning at 2 p.m. PT. A webcast of the call will be available at: ir.kla.com.

Second Quarter Fiscal 2027 Guidance

The following details our guidance for the second quarter of fiscal 2027 ending in December:

Total revenues are expected to be in a range of $4.7 billion +/- $200 millionGAAP gross margin is expected to be in a range of 61.8% +/- 1.0%Non-GAAP gross margin is expected to be in a range of 62.5% +/- 1.0%GAAP diluted EPS is expected to be in a range of $1.41 +/- $0.11Non-GAAP diluted EPS is expected to be in a range of $1.44 +/- $0.11

For additional details and assumptions underlying our guidance metrics, please see the company’s published Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic on the KLA investor relations website (ir.kla.com). Such Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic are not incorporated by reference into this earnings release.

About KLA:

KLA Corporation (“KLA”) develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com.

Note Regarding Forward-Looking Statements:

Statements in this press release other than historical facts, such as statements pertaining to the amount and timing of dividends, the amount and timing of share repurchases, total revenues, GAAP and non-GAAP gross margin and GAAP and non-GAAP diluted EPS for the quarter ending Dec. 31, 2026, are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including, but not limited to: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the U.S. Department of Commerce rules and regulations and their impact on our ability to sell products to and provide services to certain customers in China; tariffs, retaliatory trade measures and other trade restrictions, as well as uncertainty regarding tariff authority, implementation and refund process; costly intellectual property disputes that could result in our inability to sell or use the challenged technology; risks related to the legal, regulatory and tax environments in which we conduct our business; differing stakeholder expectations, requirements and attention to environment, social and governance (“ESG”) matters and the resulting costs, risks and impact on our business; unexpected delays, difficulties and expenses in executing against our environmental, climate, or other ESG targets, goals and commitments, or meeting stakeholder expectations; our ability to attract, retain and motivate key personnel; our vulnerability to disruptions and delays at our third-party service providers; cybersecurity threats, cyber incidents affecting our and our business partners’ systems and networks; our reliance on critical information, including our enterprise resource planning system for daily operations; risks related to acquisitions, integrations, strategic alliances or collaborative arrangements; climate change, natural disasters, public health crises, terrorism, acts of war and other catastrophic events and the adverse impact on our business operations; the war between Ukraine and Russia, the armed conflict in Iran and elsewhere in the Middle East, and the significant military activity in those regions; lack of insurance for losses and interruptions caused by terrorists and acts of war, and our self-insurance of certain risks including earthquake risk; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in interest rates and the market values of our portfolio investments; risks associated with our interest rate hedging activities; risks related to tax and regulatory compliance audits; any change in taxation rules or practices and our effective tax rate; compliance costs with federal securities laws, rules, regulations, NASDAQ requirements, and evolving accounting standards and practices; ongoing changes in the technology industry, including artificial intelligence (“AI”) related developments and changes in semiconductor manufacturing processes, customer investment patterns and end-market demand; our vulnerability to a highly concentrated customer base; the cyclicality of the industries in which we operate; our ability to timely develop new technologies and products that successfully address changes in the industry; risks related to the development, adoption, governance and use of AI by us, our competitors and third parties; our ability to maintain our technology advantage and protect proprietary rights; our ability to compete in the industry; the availability and cost of components, materials or subassemblies used in the production of our products, including due to limited-source suppliers, the availability of rare earth elements or DRAM chip shortages; our ability to operate our business in accordance with our business plan; risks related to our debt and leveraged capital structure; we may not be able to declare cash dividends at all or in any particular amount; liability to our customers under indemnification provisions if our products fail to operate properly or contain defects or our customers are sued by third parties due to our products; risks associated with our receipt of government funding; we may incur significant restructuring charges or other asset impairment charges or inventory write offs; we are subject to risks related to receivables factoring, banking arrangements and compliance risk of certain settlement agreements with the government; and risks related to the Court of Chancery of the State of Delaware being the sole and exclusive forum for certain actions and proceedings. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this press release, please refer to KLA’s Annual Report on Form 10-K for the year ended June 30, 2026, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA assumes no obligation to, and does not currently intend to, update these forward-looking statements.

KLA Corporation

Condensed Consolidated Unaudited Balance Sheets

(In thousands)

September 30, 2026

June 30, 2026

ASSETS

Current assets:

Cash and cash equivalents

$        1,531,950

$        1,649,842

Marketable securities

3,209,241

3,252,566

Accounts receivable, net

3,072,087

2,889,208

Inventories

4,090,426

3,648,538

Other current assets

669,711

941,636

Total current assets

12,573,415

12,381,790

Land, property and equipment, net

1,541,331

1,380,550

Goodwill, net

1,789,683

1,788,758

Deferred income taxes

1,054,617

1,037,224

Purchased intangible assets, net

212,598

255,835

Other non-current assets

1,233,091

1,107,378

Total assets

$       18,404,735

$       17,951,535

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$          740,743

$          623,668

Deferred system revenue

843,008

932,901

Deferred service revenue

634,232

604,127

Other current liabilities

2,337,103

2,144,231

Total current liabilities

4,555,086

4,304,927

Long-term debt

5,723,289

5,887,415

Deferred tax liabilities

452,541

473,648

Deferred service revenue

230,562

238,111

Other non-current liabilities

919,850

697,614

Total liabilities

11,881,328

11,601,715

Stockholders’ equity:

Common stock and capital in excess of par value

2,585,416

2,700,409

Retained earnings

3,997,397

3,683,864

Accumulated other comprehensive loss

(59,406)

(34,453)

Total stockholders’ equity

6,523,407

6,349,820

Total liabilities and stockholders’ equity

$       18,404,735

$       17,951,535

 

KLA Corporation

Condensed Consolidated Unaudited Statements of Operations

Three Months Ended

(In thousands, except per share amounts)

September 30, 2026

June 30, 2026

September 30, 2025

Revenues:

Product

$      3,285,469

$      2,837,151

$      2,465,006

Service

850,546

820,405

744,690

Total revenues

4,136,015

3,657,556

3,209,696

Costs and expenses:

Costs of revenues

1,577,791

1,413,108

1,243,070

Research and development

395,096

399,023

360,461

Selling, general and administrative

301,458

291,477

268,988

Interest expense

67,927

73,274

71,075

Other expense (income), net

(30,339)

(68,711)

(43,374)

Income before income taxes

1,824,082

1,549,385

1,309,476

Provision for income taxes

275,494

186,326

188,436

Net income

$      1,548,588

$      1,363,059

$      1,121,040

Net income per share(1)

Basic

$            1.19

$            1.04

$            0.85

Diluted

$            1.18

$            1.04

$            0.85

Weighted-average number of shares(1):

Basic

1,305,330

1,306,517

1,317,567

Diluted

1,311,064

1,314,986

1,323,808

__________________

(1)

All per share amounts referenced herein have been retroactively adjusted to reflect the ten-for-one stock split effective June 11, 2026.

 

KLA Corporation

Condensed Consolidated Unaudited Statements of Cash Flows

Three Months Ended

(In thousands)

September 30, 2026

June 30, 2026

September 30, 2025

Cash flows from operating activities:

Net income

$      1,548,588

$      1,363,059

$      1,121,040

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation and amortization

97,424

98,606

97,016

Unrealized foreign exchange (gain) loss and other

(6,872)

6,343

12,078

Stock-based compensation expense

84,073

82,104

70,182

Deferred income taxes

(27,093)

105,049

(10,615)

Changes in assets and liabilities:

Accounts receivable

(179,196)

(586,459)

(12,575)

Inventories

(433,839)

(212,304)

(95,738)

Other assets

176,890

(423,291)

50,921

Accounts payable

116,666

107,788

(23,680)

Deferred system revenue

(89,893)

312,062

1,974

Deferred service revenue

22,556

14,172

(4,970)

Other liabilities

221,635

39,301

(44,042)

Net cash provided by operating activities

1,530,939

906,430

1,161,591

Cash flows from investing activities:

Capital expenditures

(194,756)

(89,288)

(95,894)

Proceeds from capital-related government assistance

435

—

1,541

Purchases of available-for-sale and equity securities

(701,246)

(860,407)

(949,871)

Proceeds from maturity and sale of available-for-sale securities

716,202

780,717

632,795

Purchases of trading securities

(36,801)

(35,233)

(156,864)

Proceeds from sale of trading securities

38,228

31,094

158,305

Net cash used in investing activities

(177,938)

(173,117)

(409,988)

Cash flows from financing activities:

Payment of debt issuance costs

—

—

(1,602)

Common stock repurchases

(935,776)

(570,997)

(545,067)

Payment of dividends to stockholders

(305,145)

(305,334)

(254,008)

Issuance of common stock

—

113,030

—

Tax withholding payments related to vested and released
restricted stock units

(238,682)

(113,775)

(81,122)

Net cash used in financing activities

(1,479,603)

(877,076)

(881,799)

Effect of exchange rate changes on cash and cash equivalents

8,710

6,595

(2,501)

Net decrease in cash and cash equivalents

(117,892)

(137,168)

(132,697)

Cash and cash equivalents at beginning of period

1,649,842

1,787,010

2,078,908

Cash and cash equivalents at end of period

$      1,531,950

$      1,649,842

$      1,946,211

Supplemental cash flow disclosures:

Income taxes paid, net

$         61,284

$        198,963

$        119,049

Interest paid, net of capitalized interest

$        131,275

$         11,919

$        131,494

KLA Corporation
Segment Information (Unaudited)

The following is a summary of results for each of our three reportable segments and reconciliations to total revenues for the indicated periods:

Three Months Ended

(In thousands)

September 30, 2026

June 30, 2026

September 30, 2025

Revenues:

Semiconductor Process Control

$      3,754,254

$      3,256,781

$      2,899,392

Specialty Semiconductor Process

139,487

159,704

119,755

PCB and Component Inspection

242,151

241,110

189,488

Total revenues for reportable segments

4,135,892

3,657,595

3,208,635

Effects of changes in foreign currency exchange rates

123

(39)

1,061

Total revenues

$      4,136,015

$      3,657,556

$      3,209,696

 

KLA Corporation

Condensed Consolidated Unaudited Supplemental Information

Reconciliation of GAAP Net Income to Non-GAAP Net Income

Three Months Ended

(In thousands, except per share amounts)

September 30,
2026

June 30,
2026

September 30,
2025

GAAP net income

$   1,548,588

$   1,363,059

$   1,121,040

Adjustments to reconcile GAAP net income to non-GAAP net income:

Acquisition-related charges

a

43,040

33,069

49,026

Income tax effect of non-GAAP adjustments

b

(14,560)

(17,159)

(18,348)

Pillar Two undertaxed profits rule taxes

c

20,151

—

—

Discrete tax items

d

5,785

6,780

15,087

Non-GAAP net income

$   1,603,004

$   1,385,749

$   1,166,805

GAAP net income per diluted share(1)

$          1.18

$          1.04

$          0.85

Non-GAAP net income per diluted share(1)

$          1.22

$          1.05

$          0.88

Shares used in diluted net income per share calculation(1)

1,311,064

1,314,986

1,323,808

__________________

(1)

All per share amounts referenced herein have been retroactively adjusted to reflect the ten-for-one stock split effective June 11, 2026.

 

Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations

(In thousands)

Acquisition-Related
Charges

Total Pre-tax GAAP to
Non-GAAP Adjustments

Three Months Ended September 30, 2026

Costs of revenues

$                 34,929

$                 34,929

Selling, general and administrative

8,111

8,111

Total in three months ended September 30, 2026

$                 43,040

$                 43,040

Three Months Ended June 30, 2026

Costs of revenues

$                 36,200

$                 36,200

Selling, general and administrative

8,470

8,470

Other expense (income), net

(11,601)

(11,601)

Total in three months ended June 30, 2026

$                 33,069

$                 33,069

Three Months Ended September 30, 2025

Costs of revenues

$                 38,053

$                 38,053

Selling, general and administrative

10,973

10,973

Total in three months ended September 30, 2025

$                 49,026

$                 49,026

 

Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow

Three Months Ended

Twelve Months Ended

(In thousands)

September 30,
2026

June 30,
2026

September 30,
2025

September 30,
2026

September 30,
2025

Net cash provided by operating activities

$   1,530,939

$     906,430

$   1,161,591

$   4,512,427

$   4,248,256

Capital expenditures

(194,756)

(89,288)

(95,894)

(474,807)

(370,760)

Free cash flow

$   1,336,183

$     817,142

$   1,065,697

$   4,037,620

$   3,877,496

 

Capital Returns Calculation

Three Months Ended

Twelve Months Ended

(In thousands)

September 30,
2026

June 30,
2026

September 30,
2025

September 30,
2026

September 30,
2025

Payments of dividends to stockholders

$     305,145

$     305,334

$     254,008

$   1,108,969

$     960,523

Common stock repurchases

935,776

570,997

545,067

2,680,478

2,127,630

Capital returns

$   1,240,921

$     876,331

$     799,075

$   3,789,447

$   3,088,153

 

Second Quarter Fiscal 2027 Guidance

Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS

Three Months Ending December 31, 2026

(In millions, except per share amounts)

Low

High

GAAP net income per diluted share

$1.30

$1.52

Acquisition-related charges

a

0.03

0.03

Income tax effect of non-GAAP adjustments

b

(0.01)

(0.01)

Pillar Two undertaxed profits rule taxes

c

0.01

0.01

Non-GAAP net income per diluted share

$1.33

$1.55

Shares used in net income per diluted share calculation

1,306

1,306

 

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin

Three Months Ending December 31, 2026

Low

High

GAAP gross margin

60.8 %

62.8 %

Acquisition-related charges

a

0.7 %

0.7 %

Non-GAAP gross margin

61.5 %

63.5 %

The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA’s financial results presented in accordance with United States GAAP.

To supplement our Condensed Consolidated Financial Statements presented in accordance with GAAP, we provide certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain gains, costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user’s overall understanding of our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information, including non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin and free cash flow, provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP. The following are descriptions of the adjustments made to reconcile GAAP net income to non-GAAP net income:

a.

Acquisition-related charges primarily include amortization of intangible assets. Acquisition-related charges during the three months ended June 30, 2026 also include a discrete release of $11.6 million of interest on unrecognized tax positions recorded as part of purchase price accounting arising from acquisitions. Although we exclude the effect of amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and such amortization of intangible assets related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of these intangible assets contributed to our revenues earned during the periods presented and are expected to contribute to our future period revenues as well.

b.

Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above.

c.

Pillar Two undertaxed profits rule taxes represents the impact of Undertaxed Profits Rule taxes arising from Pillar Two legislation. We expect these taxes to be temporary and reverse upon adoption of the Side-by-Side Safe Harbor provisions, which would exempt U.S.-parented groups from the Undertaxed Profits Rule.

d.

Discrete tax items in the three months ended Sept. 30, 2025 include the recognition of a deferred tax liability for withholding taxes on future remittance of previously taxed income as a result of new tax legislation. Discrete tax items in all periods presented include a tax impact relating to the amortization of tax benefits from internal restructuring or similar tax benefits recorded in other periods.

 

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SOURCE KLA Corporation

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Gen Delivers Another Double-Digit Growth Quarter in Q2 FY27 and Raises FY27 Outlook

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TEMPE, Ariz. and PRAGUE, Oct. 28, 2026 /PRNewswire/ — Gen Digital Inc. (NASDAQ: GEN), a global leader dedicated to powering Digital Freedom, released its results for its second quarter fiscal year 2027, which ended October 2, 2026.

“We delivered our sixth consecutive quarter of double-digit bookings growth,” said Vincent Pilette, CEO of Gen. “We reached a record high customer count, alongside strong product engagement and retention. Innovation across our brands and continued investment in our platform are resonating with consumers. We’re building on that momentum to expand how we help people protect and manage their digital and financial lives in an increasingly agentic AI world.”

Q2 Fiscal Year 2027 Financial Highlights

Q2 GAAP Results

Revenue of $1.369 billion, up 12%   Operating income of $507 million, up 16%Diluted EPS of $0.48, up 122%Year-to-date operating cash flow of $760 million, up 45%

Q2 Non-GAAP Results

Bookings of $1.347 billion, up 10%Revenue of $1.369 billion, up 12%Operating income of $686 million, up 10%Diluted EPS of $0.74, up 19%Year-to-date free cash flow of $753 million, up 47%

“Our second quarter results reflect the durability of our business model and continued momentum across both segments,” said Natalie Derse, CFO of Gen. “Customer demand is strong, and we remain disciplined about investment, efficiency and profitable growth. That balance gives us the confidence to invest in our highest potential opportunities and raise full-year guidance again. We remain focused on consistent execution and lasting value for customers and shareholders.”

Non-GAAP Q3 Fiscal Year 2027 Guidance

Q3 FY27 Revenue expected to be in the range of $1.365 billion to $1.390 billionQ3 FY27 EPS expected to be in the range of $0.73 to $0.75

Raises Non-GAAP Fiscal Year 2027 Guidance

FY27 Revenue expected to be in the range of $5.465 billion to $5.515 billion, compared to prior guidance of $5.375 billion to $5.475 billionFY27 EPS expected to be in the range of $2.93 to $2.98, compared to prior guidance of $2.87 to $2.97

Quarterly Cash Dividend
Gen’s Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on December 9, 2026, to all shareholders of record as of the close of business on November 16, 2026.

Q2 Fiscal Year 2027 Earnings Call
October 28, 2026
2 p.m. PT / 5 p.m. ET

Webcast & Dial-in instructions at Investor.GenDigital.com. A replay will be posted following the call. For additional details regarding Gen’s results and outlook, please see the Financials section of the Investor Relations website at Investor.GenDigital.com.

About Gen 
Gen (NASDAQ: GEN) is a global company dedicated to powering Digital Freedom. Through its trusted brands including Norton, Avast, LifeLock, MoneyLion and Engine, Gen helps people protect and take control of their digital and financial lives. As AI reshapes how people discover, decide and transact, Gen is building the security and trust layer to empower people and their agents to navigate digital life more safely. Gen empowers nearly 500 million users in more than 150 countries through its products and services that span cybersecurity, online privacy, identity protection and financial wellness. Learn more at GenDigital.com.

Forward-Looking Statements
This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, the quotes under “Q2 Fiscal Year 2027 Financial Highlights” including expectations relating to achievement of long-term objectives, and the statements under “Non-GAAP Q3 Fiscal Year 2027 Guidance” and “Non-GAAP Fiscal Year 2027 Guidance” including expectations relating to Q3 Fiscal Year 2027 and Fiscal Year 2027 non-GAAP revenue and non-GAAP EPS, and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated cost savings from any such acquisitions); divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities; the outcome or impact of pending litigation, claims or disputes; difficulties in executing the operating model for the consumer Cyber Safety business; lower than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer and partner relationships; the anticipated growth of certain market segments;  fluctuations and volatility in our stock price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices; and general business and macroeconomic changes in the U.S. and worldwide, including economic recessions, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates, and ongoing and new geopolitical conflicts, and other global macroeconomic factors on our operations and financial performance. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or are not described in our periodic filings, generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments.

Use of Non-GAAP Financial Information
We use non-GAAP measures of operating margin, operating income, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, and constant currency revenues. These non-GAAP financial measures are provided to enhance the user’s understanding of our past financial performance and our prospects for the future, and to provide more meaningful comparisons of our current results to our historical performance by adjusting items that affect comparability between periods. Our management team uses these non-GAAP financial measures in assessing Gen’s performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release, and which can be found, along with other financial information including the Earnings Presentation, on the investor relations page of our website at Investor.GenDigital.com. No reconciliation of the forecasted range for non-GAAP revenues and EPS guidance is included in this release because most non-GAAP adjustments pertain to events that have not yet occurred. It would be unreasonably burdensome to forecast, therefore we are unable to provide an accurate estimate.

GEN DIGITAL INC.

Condensed Consolidated Balance Sheets

(Unaudited, in millions)

October 2, 2026

April 3, 2026

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$                 589

$                 411

Accounts receivable, net

398

361

Other current assets

295

295

Assets held for sale

16

14

Total current assets

1,298

1,081

Property and equipment, net

69

71

Intangible assets, net

1,927

2,096

Goodwill

10,930

10,996

Deferred income tax assets

1,143

1,153

Other long-term assets

181

192

Total assets

$            15,548

$            15,589

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current liabilities:

Accounts payable

$                   82

$                   96

Accrued compensation and benefits

79

115

Current portion of long-term debt

1,080

181

Contract liabilities

1,823

1,904

Other current liabilities

417

414

Total current liabilities

3,481

2,710

Long-term debt

7,036

8,015

Long-term contract liabilities

76

73

Deferred income tax liabilities

178

198

Long-term income taxes payable

1,625

1,588

Other long-term liabilities

411

394

Total liabilities

12,807

12,978

Total stockholders’ equity (deficit)

2,741

2,611

Total liabilities and stockholders’ equity (deficit)

$            15,548

$            15,589

 

GEN DIGITAL INC.

Condensed Consolidated Statements of Operations

(Unaudited, in millions, except per share amounts)

Three Months Ended

Six Months Ended

October 2, 2026

October 3, 2025

October 2, 2026

October 3, 2025

Net revenues

$              1,369

$              1,220

$              2,705

$              2,477

Cost of revenues

330

266

637

533

Gross profit

1,039

954

2,068

1,944

Operating expenses:

Sales and marketing

298

297

598

594

Research and development

112

100

230

209

General and administrative

66

60

146

134

Amortization of intangible assets

56

55

112

109

Restructuring and other costs

—

4

32

14

Total operating expenses

532

516

1,118

1,060

Operating income (loss)

507

438

950

884

  Interest expense

(123)

(146)

(247)

(302)

Other income (expense), net

2

(59)

6

(49)

Income (loss) before income taxes

386

233

709

533

Income tax expense (benefit)

99

99

207

264

Net income (loss)

$                 287

$                 134

$                 502

$                 269

Net income (loss) per share – basic

$                0.48

$                0.22

$                0.84

$                0.44

Net income (loss) per share – diluted

$                0.48

$                0.21

$                0.83

$                0.43

Weighted-average shares outstanding:

Basic

596

616

598

617

Diluted

603

624

603

624

GEN DIGITAL INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in millions)

Three Months Ended

Six Months Ended

October 2, 2026

October 3, 2025

October 2, 2026

October 3, 2025

OPERATING ACTIVITIES:

Net income (loss)

$                 287

$                 134

$                 502

$                 269

Adjustments:

Amortization and depreciation

122

125

245

248

Stock-based compensation expense

56

56

110

122

Loss on sale of Instacash Advances

69

55

129

91

Deferred income taxes

(16)

(17)

(25)

(6)

Loss on sale of property

—

—

—

1

Non-cash operating lease expense

4

5

8

9

Change in fair value and impairment of non-marketable equity
investments

—

69

—

69

Foreign currency remeasurement loss (gain)

(17)

3

(18)

89

Other

14

11

23

21

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net

(21)

(13)

(34)

(3)

Accounts payable

(15)

(9)

(14)

(57)

Accrued compensation and benefits

4

12

(35)

(9)

Contract liabilities

(24)

(3)

(80)

(72)

Income taxes payable

(35)

(225)

40

(164)

Instacash Advances held for sale, net

(45)

(44)

(131)

(91)

Other assets

8

7

5

65

Other liabilities

(65)

(50)

35

(57)

Net cash provided by (used in) operating activities

326

116

760

525

INVESTING ACTIVITIES:

Purchases of property and equipment

(3)

(9)

(7)

(13)

Payments for acquisitions, net of cash acquired

—

—

—

(876)

Payments for originations of notes receivable

(88)

—

(173)

—

Proceeds from principal repayments of notes receivable

81

—

158

—

Proceeds from sale of non-marketable equity investments

—

4

—

4

Proceeds from the sale of property

—

—

—

9

Other

—

(2)

(3)

(4)

Net cash provided by (used in) investing activities

(10)

(7)

(25)

(880)

FINANCING ACTIVITIES:

Repayments of debt

(45)

(169)

(90)

(360)

Proceeds from issuance of debt, net of issuance costs (1)

—

—

—

741

Net proceeds from sales of common stock under employee
stock incentive plans

7

7

7

7

Tax payments related to vesting of stock units

(3)

(3)

(44)

(47)

Dividends and dividend equivalents paid

(76)

(77)

(157)

(159)

Repurchases of common stock

(171)

—

(271)

(134)

Other

(1)

—

(1)

—

Net cash provided by (used in) financing activities

(289)

(242)

(556)

48

Effect of exchange rate fluctuations on cash, cash equivalents
and restricted cash

(2)

6

(1)

2

Change in cash, cash equivalents and restricted cash

25

(127)

178

(305)

Beginning cash, cash equivalents and restricted cash

564

828

411

1,006

Ending cash, cash equivalents and restricted cash

$                 589

$                 701

$                 589

$                 701

_____________________

(1)

Issuance costs paid for issuance of debt for the six months ended October 3, 2025 were $9 million.

 

GEN DIGITAL INC.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (2)

(Unaudited, in millions, except per share amounts)

Three Months Ended

October 2, 2026

October 3, 2025

Operating income (loss)

$                     507

$                     438

Stock-based compensation

56

55

Amortization of intangible assets

118

121

Restructuring and other costs

—

4

Acquisition and integration costs

3

2

Litigation costs

2

2

Other

—

1

Operating income (loss) (Non-GAAP)

$                     686

$                     623

Operating margin

37.0 %

35.9 %

Operating margin (Non-GAAP)

50.1 %

51.1 %

Net income (loss)

$                     287

$                     134

Adjustments to net income (loss):

Stock-based compensation

56

55

Amortization of intangible assets

118

121

Restructuring and other costs

—

4

Acquisition and integration costs

3

2

Litigation costs

2

2

Other

—

3

Non-cash interest expense

5

7

Change in fair value and impairment of non-marketable equity investments

—

69

Total adjustments to GAAP income (loss) before income taxes

184

263

Adjustment to GAAP provision for income taxes

(27)

(10)

Total adjustment to income (loss), net of taxes

157

253

Net income (loss) (Non-GAAP)

$                     444

$                     387

Diluted net income (loss) per share

$                    0.48

$                    0.21

Adjustments to diluted net income (loss) per share:

Stock-based compensation

0.09

0.09

Amortization of intangible assets

0.20

0.19

Restructuring and other costs

—

0.01

Acquisition and integration costs

0.00

0.00

Litigation costs

0.00

0.00

Other

—

0.00

Non-cash interest expense

0.01

0.01

Change in fair value and impairment of non-marketable equity investments

—

0.11

Total adjustments to GAAP income (loss) before income taxes

0.31

0.42

Adjustment to GAAP provision for income taxes

(0.04)

(0.02)

Total adjustment to income (loss), net of taxes

0.26

0.41

Diluted net income (loss) per share (Non-GAAP)

$                    0.74

$                    0.62

Diluted weighted-average shares outstanding

603

624

Diluted weighted-average shares outstanding (Non-GAAP)

603

624

Six Months Ended

October 2, 2026

October 3, 2025

Net cash provided by (used in) operating activities

$                     760

$                     525

Adjustments to net cash provided by (used in) operating activities:

Purchases of property and equipment

(7)

(13)

Free cash flow (Non-GAAP)

$                     753

$                     512

__________________________

(1)

This presentation includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A.

(2)

Amounts may not add due to rounding.

 

GEN DIGITAL INC.

Performance Metrics

(Unaudited, in millions)

Performance Metrics

Three Months Ended

October 2, 2026

October 3, 2025

Cyber Safety Platform

$                 858

$                814

Trust-Based Solutions

511

406

Total net revenues

$              1,369

$             1,220

Direct revenues

$              1,074

$             1,010

Partner revenues

295

210

Total net revenues

$              1,369

$             1,220

Total bookings

$              1,347

$             1,222

As of

October 2, 2026

October 3, 2025

Total paid customers

83

77

GEN DIGITAL INC.
Appendix A
Explanation of Non-GAAP Measures and Other Items

Objective of non-GAAP measures: We believe our presentation of non-GAAP financial measures, when taken together with corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company’s operating performance for the reasons discussed below. Our management team uses these non-GAAP financial measures in assessing our performance, as well as in planning and forecasting future periods. Due to the importance of these measures in managing the business, we use non-GAAP measures in the evaluation of management’s compensation. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. 

Stock-based compensation: This consists of expenses for employee restricted stock units, performance-based awards, stock options and our employee stock purchase plan, determined in accordance with GAAP. We evaluate our performance both with and without these measures because stock-based compensation is a non-cash expense and can vary significantly over time based on the timing, size, nature and design of the awards granted, and is influenced in part by certain factors that are generally beyond our control, such as the volatility of the market value of our common stock. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation to facilitate the comparison of our results to those of other companies in our industry. 

Amortization of intangible assets: Amortization of intangible assets consists of amortization of acquisition-related intangible assets such as developed technology, customer relationships and trade names acquired in connection with business combinations. We record charges relating to the amortization of these intangibles within both cost of revenues and operating expenses in our GAAP financial statements. Under purchase accounting, we are required to allocate a portion of the purchase price to intangible assets acquired and amortize this amount over the estimated useful lives of the acquired intangible assets. However, the purchase price allocated to these assets is not necessarily reflective of the cost we would incur to internally develop the intangible asset. Further, amortization charges for our acquired intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We eliminate these charges from our non-GAAP operating results to facilitate an evaluation of our current operating performance and provide better comparability to our past operating performance.

Restructuring and other costs: Restructuring charges are costs associated with a formal restructuring plan and are primarily related to employee severance and benefit arrangements, contract termination costs, and assets write-offs, as well as other exit and disposal costs. Included in other exit and disposal costs are costs to exit and consolidate facilities in connection with restructuring events. We exclude restructuring and other costs from our non-GAAP results as we believe that these costs are incremental to core activities that arise in the ordinary course of our business and do not reflect our current operating performance, and that excluding these charges facilitates a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.

Acquisition-related and integration costs: These represent the transaction and business integration costs related to significant acquisitions that are charged to operating expense in our GAAP financial statements. These costs include incremental expenses incurred to affect these business combinations such as advisory, legal, accounting, valuation, and other professional or consulting fees. We exclude these costs from our non-GAAP results as they have no direct correlation to the operation of our business, and because we believe that the non-GAAP financial measures excluding these costs provide meaningful supplemental information regarding the spending trends of our business. In addition, these costs vary, depending on the size and complexity of the acquisitions, and are not indicative of costs of future acquisitions.

Litigation costs: We may periodically incur charges or benefits related to litigation settlements, legal contingency accruals and third-party legal costs related to certain legal matters. We exclude these charges and benefits when associated with a significant matter because we do not believe they are reflective of ongoing business and operating results. 

Non-cash interest expense and amortization of debt issuance costs: In accordance with GAAP, we separately account for the value of the conversion feature on our convertible notes as a debt discount that reflects our assumed non-convertible debt borrowing rates. We amortize the discount and debt issuance costs over the term of the related debt. We exclude the difference between the imputed interest expense, which includes the amortization of the conversion feature and of the issuance costs, and the coupon interest payments. We extinguished our remaining convertible debt on August 15, 2022. During fiscal 2023, we also started amortizing the debt issuance costs associated with our senior credit facilities, which were secured upon close of the acquisition of Avast. We believe that excluding these costs provides meaningful supplemental information regarding the cash cost of our debt instruments and enhances investors’ ability to view the Company’s results from management’s perspective.

Gain (loss) on extinguishment of debt: We record gains or losses on extinguishment of debt. Gains or losses represent the difference between the fair value of the exchange consideration and the carrying value of the liability component of the debt at the date of extinguishment. We exclude the gain or loss on debt extinguishment in our non-GAAP results because they are not reflective of our ongoing business.

Change in fair value and impairment of non-marketable equity investments: We record gains or losses, unrealized and realized, on equity investments in privately-held companies. We exclude the net gains or losses because we do not believe they are reflective of our ongoing business.

Gain (loss) on sale of properties and nonfinancial assets: We periodically recognize gains or losses from the disposition of land, buildings and nonfinancial assets. We exclude such gains or losses because they are not reflective of our ongoing business and operating results.

Income tax effects and adjustments: We use a non-GAAP tax rate that excludes (1) the discrete impacts of changes in tax legislation, (2) most other significant discrete items, (3) unrealized gains or losses from remeasurement of foreign currency denominated deferred tax items and uncertain tax benefits, and (4) the income tax effects of the non-GAAP adjustment to our operating results described above. We believe making these adjustments facilitates a better evaluation of our current operating performance and comparisons to past operating results. Our tax rate is subject to change for a variety of reasons, such as significant changes in the geographic earnings mix due to acquisition and divestiture activities or fundamental tax law changes in major jurisdictions where we operate.

Diluted GAAP and non-GAAP weighted-average shares outstanding: Diluted GAAP and non-GAAP weighted-average shares outstanding are generally the same, except in periods when there is a GAAP loss from continuing operations. In accordance with GAAP, we do not present dilution for GAAP in periods in which there is a loss from continuing operations. However, if there is non-GAAP net income, we present dilution for non-GAAP weighted-average shares outstanding in an amount equal to the dilution that would have been presented had there been GAAP income from continuing operations for the period.

Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers’ demand for our products and services and to assist readers in analyzing our performance in future periods.

Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.

(Unlevered) Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Unlevered free cash flow excludes cash interest expense payments, net of payments received through interest rate swap hedges. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.

Cyber Safety Platform: Includes our security and privacy products, as well as our cyber safety comprehensive suites which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and confidently.

Trust-Based Solutions: Trust-Based Solutions includes our identity, reputation, and financial wellness products, which provide innovative solutions and insights that empower consumers to grow and manage their identity, reputation and finances confidently.

Direct revenue: Direct revenue reflects subscriptions sold directly through e-commerce or mobile channels, and revenue generated from financial transactions directly made through Gen properties or marketplaces.

Partner revenue: Partner revenue reflects partner-sourced and channel revenue via retailers, employee benefits, telcos, publishers, and strategic partnerships, including revenue generated from product usage or products sold through our financial marketplace.

Paid customers: We define paid customers as active users of our products and solutions, including subscribers with an active paid subscription to our products at the end of the reported period. Paid customers also includes product users with a unique account and at least one revenue-generating transaction in the relevant active period of each respective product category, whether through our first-party personal finance products, transacting through our financial marketplaces, or generating revenue through product usage. We exclude users on free trials and those who have not actively transacted in the relevant period of each respective product category. In order to properly reflect Gen’s customer cohorts that contribute to revenue given the dynamic nature of consumers and our product portfolio, our methodology is subject to change from time to time. The methodologies used to measure these metrics require judgment and we regularly review our metrics to improve their accuracy. However, our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. We generally do not intend to update previously disclosed metrics for any such inaccuracies or adjustments that are deemed not material.

CONTACTS

Investor Contact

Ben Lu

Media Contact

Audra Proctor

Gen

Gen

IR@GenDigital.com 

Press@GenDigital.com 

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SOURCE Gen Digital Inc.

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