Sandisk Corporation (SNDK) Q1 2025 Earnings Report

Overview: Sandisk reported QQ1 2025 revenue of $1.695 billion, up ~9.8% year over year, but delivered a material net loss of $1.933 billion and an EPS of -$13.33. The gross margin stood at 22.5%, reflecting continued margin pressure in a cyclical NAND market. EBITDA and operating income were deeply negative at approximately -$1.881 billion, driven by non-cash and other charges that overshadow revenue growth. The company did, however, generate operating cash flow of $26 million and ended the quarter with solid liquidity (cash and equivalents of $1.508 billion) and a conservative gearing profile (net debt of $0.44 billion). This juxtaposition highlights a classic turnaround setup: top-line momentum amid heavy one-time or non-cash impairments and ongoing cost discipline required to restore profitability.

Balance sheet strength provides a cushion for strategic investments and working-capital management as the company navigates NAND cycle volatility. Management commentary (when available) and forward guidance will be critical to assess the trajectory of gross margin restoration, capex efficiency, and any restructuring initiatives. Absent explicit guidance in the supplied data, investors should focus on efficiency gains, reduction of non-cash charges, and sustained free cash flow generation as indicators of a potential turn.