- Reve ue of $935 Millio , GAAP Diluted EPS of $0.22 a d No -GAAP Diluted EPS of $1.08
- Co ti ued Mome tum Ac oss B oad Ma kets G owth E gi es, Led by Automotive a d Data Ce te
- Qo vo Regulato y App ovals P og essi g
- A ou ces Expected Leade ship Team fo Combi ed Compa y
- A ticipates Raisi g App oximately $2 Billio of Acquisitio Debt Fi a ci g
- A ou ces New Capital Allocatio F amewo k fo Combi ed Compa y; New Stock Repu chase Autho izatio of $2 Billio
IRVINE, Calif., July 28, 2026 (GLOBE NEWSWIRE) — Skywo ks Solutio s, I c. (Nasdaq: SWKS), a leadi g develope , ma ufactu e a d p ovide of a alog a d mixed-sig al semico ducto s a d solutio s fo ume ous applicatio s, today epo ted thi d fiscal qua te esults fo the pe iod e ded July 3, 2026.
Reve ue fo the thi d fiscal qua te of 2026 was $935 millio . O a GAAP basis, ope ati g i come fo the thi d fiscal qua te was $49 millio with diluted ea i gs pe sha e of $0.22. O a o -GAAP basis, ope ati g i come was $182 millio with o -GAAP diluted ea i gs pe sha e of $1.08.
“We delive ed a solid qua te with eve ue a d ea i gs above expectatio s, eflecti g co siste t executio ac oss the po tfolio,” said Phil B ace, chief executive office a d p eside t of Skywo ks. “Mobile pe fo med well o healthy dema d, a d B oad Ma kets delive ed a othe qua te of yea -ove -yea g owth, led by double-digit gai s i automotive a d data ce te .
“We co ti ue to adva ce the egulato y p ocess fo ou pe di g combi atio with Qo vo. We a e ow optimistic that we ca close withi the cale da yea , a d we will be p epa i g to close as ea ly as withi the fiscal yea . The steps we’ e a ou ci g today – ou fi a ci g pla s, the combi ed compa y’s expected leade ship team, a d a ew capital allocatio f amewo k a e about bei g eady to execute f om day o e.”
- Expa ded automotive desig wi pipeli e, secu i g telematics a d i -vehicle i fotai me t e gageme ts with leadi g global OEMs
- Expa ded AI data ce te desig wi pipeli e, i cludi g p ecisio timi g fo a hype scale switch platfo m a d isolatio solutio s fo 800-volt HVDC powe a chitectu es
- I t oduced latest powe a d gate d ive tech ologies, ta geti g ext-ge e atio AI data ce te s, elect ic vehicle platfo ms a d i dust ial high-powe applicatio s
We p ovide ea i gs guida ce o a o -GAAP basis because ce tai i fo matio ecessa y to eco cile such guida ce to GAAP is difficult to estimate a d depe de t o futu e eve ts outside of ou co t ol. Please efe to the attached Discussio Rega di g the Use of No -GAAP Fi a cial Measu es i this ea i gs elease fo fu the discussio of ou use of o -GAAP measu es, i cludi g qua tificatio of k ow expected adjustme t items.
“Fo the Septembe qua te , we a ticipate eve ue of $1,010 millio to $1,060 millio , with o -GAAP diluted ea i gs pe sha e of $1.27 at the mid-poi t of the eve ue a ge,” said Philip Ca te , chief fi a cial office a d se io vice p eside t of Skywo ks. “Ou guida ce i cludes app oximately $5 millio i i c eme tal et i te est expe se, o app oximately $0.03 pe sha e, eflecti g a pa tial qua te of fi a ci g costs associated with the pe di g Qo vo acquisitio .
“We expect Mobile to g ow seque tially i the high-tee s a ge, suppo ted by the seaso al amp of ew p oduct lau ches at ou la gest custome , while B oad Ma kets is expected to g ow app oximately 5% yea -ove -yea , ep ese ti g app oximately 39% of sales.”
I co ju ctio with the pe di g Qo vo combi atio , Skywo ks’ boa d of di ecto s has app oved a ew capital allocatio f amewo k fo the combi ed compa y. Reflecti g the combi ed compa y’s expected obust f ee cash flow a d adjusted EBITDA ge e atio , the f amewo k p ovides the flexibility to epu chase sha es, de-leve the bala ce sheet, a d pu sue oppo tu istic, acc etive M&A. Acco di gly, the boa d has eplaced the stock epu chase p og am expi i g i Feb ua y 2027 with a ew $2 billio stock epu chase p og am, a d the compa y has decided ot to decla e a y qua te ly divide ds goi g fo wa d, edi ecti g that capital towa d these highe – etu uses. Repu chases may be made f om time to time i the ope ma ket o th ough p ivately egotiated t a sactio s, subject to ma ket co ditio s a d othe facto s; the p og am does ot obligate the compa y to epu chase a y mi imum umbe of sha es a d may be suspe ded o disco ti ued at a y time.
Skywo ks will host a co fe e ce call with a alysts to discuss its thi d qua te fiscal 2026 esults a d busi ess outlook o July 28, 2026, at 4:30 p.m. EDT.
To liste to the co fe e ce call, please visit the i vesto elatio s sectio of Skywo ks’ website at https://i vesto s.skywo ksi c.com/eve ts-p ese tatio s. Playback of the co fe e ce call will be available o Skywo ks’ website at www.skywo ksi c.com/i vesto s begi i g at 9 p.m. EDT o July 28, 2026. Additio ally, a t a sc ipt of the Compa y’s p epa ed ema ks will be made available o ou website p omptly afte thei co clusio du i g the call.
Skywo ks Solutio s, I c. is empowe i g the wi eless etwo ki g evolutio . We a e a leadi g develope , ma ufactu e a d p ovide of a alog a d mixed-sig al semico ducto s a d solutio s fo ume ous applicatio s, i cludi g ae ospace, automotive, b oadba d, cellula i f ast uctu e, co ected home, defe se, e te tai me t a d gami g, i dust ial, medical, sma tpho e, tablet a d wea ables.
Skywo ks is a global compa y with e gi ee i g, ma keti g, ope atio s, sales a d suppo t facilities located th oughout Asia, Eu ope a d No th Ame ica a d is a membe of the S&P 500® ma ket i dex (Nasdaq: SWKS). Fo mo e i fo matio , please visit Skywo ks’ website at: www.skywo ksi c.com.
I co ectio with the p oposed me ge s (the “Me ge s”) with Qo vo, I c. (“Qo vo”), Skywo ks has filed with the SEC a egist atio stateme t o Fo m S-4 (File No. 333-291947) (the “Regist atio Stateme t”), which i cludes a p ospectus with espect to the sha es of Skywo ks’ commo stock to be issued i the Me ge s a d a joi t p oxy stateme t fo Skywo ks’ a d Qo vo’s espective stockholde s (the “Joi t P oxy Stateme t/P ospectus”). The Regist atio Stateme t was decla ed effective o Decembe 23, 2025, a d Skywo ks filed a fi al p ospectus o Decembe 23, 2025, a d Qo vo filed a defi itive p oxy stateme t o Decembe 23, 2025. The Joi t P oxy Stateme t/P ospectus was mailed to stockholde s of Skywo ks a d Qo vo o o about Decembe 23, 2025. Each of Skywo ks a d Qo vo may also file with o fu ish to the SEC othe eleva t docume ts ega di g the Me ge s. This commu icatio is ot a substitute fo the Regist atio Stateme t, the Joi t P oxy Stateme t/P ospectus o a y othe docume t that Skywo ks o Qo vo may mail to thei espective stockholde s i co ectio with the Me ge s.
INVESTORS AND SECURITY HOLDERS OF SKYWORKS AND QORVO ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGERS OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING SKYWORKS, QORVO, THE MERGERS AND RELATED MATTERS.
The docume ts filed by Skywo ks with the SEC also may be obtai ed f ee of cha ge at Skywo ks’ website at https://www.skywo ksi c.com/i vesto s o upo w itte equest to Skywo ks at i vesto . elatio s@skywo ksi c.com. The docume ts filed by Qo vo with the SEC also may be obtai ed f ee of cha ge at Qo vo’s website at https://i .qo vo.com/ o upo w itte equest to Qo vo at i vesto – elatio s@qo vo.com. These docume ts filed with the SEC a e also available fo f ee to the public at the website mai tai ed by the SEC at www.sec.gov.
This commu icatio is fo i fo matio al pu poses o ly a d does ot co stitute, o fo m a pa t of, a offe to sell o the solicitatio of a offe to buy a y secu ities o a solicitatio of a y vote o app oval, o shall the e be a y sale of secu ities i a y ju isdictio i which such offe , solicitatio o sale would be u lawful p io to egist atio o qualificatio u de the secu ities laws of a y such ju isdictio . No offe of secu ities shall be made except by mea s of a p ospectus meeti g the equi eme ts of Sectio 10 of the Secu ities Act of 1933, as ame ded, a d othe wise i acco da ce with applicable law.
This ea i gs elease i cludes “fo wa d-looki g stateme ts” withi the mea i g of the fede al secu ities laws, i cludi g Sectio 27A of the U.S. Secu ities Act of 1933, as ame ded, a d Sectio 21E of the Secu ities Excha ge Act of 1934, as ame ded, a d is i te ded to qualify fo the safe ha bo f om liability established by the P ivate Secu ities Litigatio Refo m Act of 1995. These fo wa d-looki g stateme ts a e based o Skywo ks’ a d Qo vo’s cu e t expectatio s, estimates a d p ojectio s co ce i g futu e eve ts, p ospects a d esults, i cludi g the expected date of closi g a d pote tial be efits of the p oposed t a sactio s with Qo vo, thei espective busi esses a d i dust ies, ma ageme t’s beliefs a d ce tai assumptio s, all of which a e subject to cha ge. I this co text, fo wa d-looki g stateme ts ofte add ess expected futu e busi ess a d fi a cial pe fo ma ce a d fi a cial co ditio , i cludi g ce tai p ojectio s a d busi ess t e ds, i cludi g with espect to futu e sales a d eve ue, as well as pla s fo divide d payme ts a d stock epu chases, expected leade ship of the combi ed compa y a d expectatio s elated to the closi g of the pe di g t a sactio with Qo vo. Fo wa d-looki g stateme ts ca ofte be ide tified by wo ds such as “expect,” “a ticipate,” “fo ecast,” “i te d,” “pla ,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “pote tially,” “estimate,” “co ti ue,” “expect,” “ta get,” a d simila exp essio s a d va iatio s o egatives of these wo ds, o othe compa able te mi ology that co veys u ce tai ty ega di g futu e eve ts o outcomes. All such stateme ts by thei atu e add ess matte s that i volve isks a d u ce tai ties, ma y of which a e beyo d ou co t ol a d a e ot gua a tees of futu e esults, such as stateme ts about the co summatio of the p oposed t a sactio a d the a ticipated be efits the eof. These a d othe fo wa d-looki g stateme ts, i cludi g the failu e to co summate the p oposed t a sactio s o to make o take a y fili g o othe actio equi ed to co summate the t a sactio s i a timely matte o at all, a e ot gua a tees of futu e esults a d a e subject to isks, u ce tai ties a d assumptio s that could cause actual esults to diffe mate ially f om those exp essed i a y fo wa d-looki g stateme ts. Acco di gly, the e a e o will be impo ta t facto s that could cause actual esults to diffe mate ially f om those i dicated i such stateme ts a d adve sely f om those p ojected a d may affect ou futu e ope ati g esults, fi a cial positio a d cash flows, a d, the efo e, you should ot place u due elia ce o a y such stateme ts a d should exe cise cautio i elyi g o fo wa d-looki g stateme ts.
These isks, u ce tai ties a d othe impo ta t facto s that may cause a diffe e ce i clude, but a e ot limited to: the isks of doi g busi ess i te atio ally, i cludi g f om t ade wa o t ade p otectio measu es (e.g., ta iffs, etaliato y ta iffs a d othe cou te measu es o taxes), i c eased impo t/expo t est ictio s a d co t ols (e.g., ou ability to obtai fo eig -sou ced aw mate ials, i cludi g f om Chi ese-based sou ces, as well as ou ability to sell p oducts to ce tai specified fo eig e tities o ly pu sua t to a limited expo t lice se f om the U.S. Depa tme t of Comme ce), the susceptibility of the semico ducto i dust y a d the ma kets add essed by ou , a d ou custome s’, p oducts to eco omic cycles o cha ges i eco omic co ditio s, i cludi g i flatio a d ecessio that could esult f om t ade wa o t ade p otectio measu es; ou elia ce o a small umbe of key custome s fo a la ge pe ce tage of ou sales; dec eased g oss ma gi s a d loss of ma ket sha e as a esult of i c eased competitio ; ou ability to obtai desig wi s f om custome s; ou ability to co ve t desig wi s i to eve ue, i cludi g with espect to the desig wi with a leadi g A d oid OEM oted i this ea i gs elease; ma ket accepta ce of ou p oducts a d ou custome s’ p oducts, i cludi g ma ket accepta ce of ew, eme gi g tech ologies such as AI; the mix a d volume of pho e models sold by ou la gest custome ; the completio of the p oposed t a sactio s with Qo vo o a ticipated te ms a d timi g, i cludi g obtai i g equi ed egulato y app ovals, ealizi g the a ticipated tax t eatme t; the pote tial impacts of the p oposed t a sactio s with Qo vo o the busi esses of Skywo ks a d Qo vo, i cludi g u fo esee liabilities, futu e capital expe ditu es, eve ues, expe ses, ea i gs, sy e gies, eco omic pe fo ma ce, i debted ess, fi a cial co ditio , losses, futu e p ospects, busi ess a d ma ageme t st ategies, a d the expa sio a d g owth of thei busi esses; the failu e to ealize the a ticipated be efits of the p oposed t a sactio s with Qo vo, i cludi g as a esult of delay i completi g the t a sactio s o i teg ati g the busi esses of Skywo ks a d Qo vo; Skywo ks’ a d Qo vo’s ability to impleme t thei busi ess st ategies; p ici g t e ds; pote tial litigatio elati g to the p oposed t a sactio s that has bee o could be i stituted agai st Skywo ks, Qo vo o thei espective di ecto s; the isk that dis uptio s f om the p oposed t a sactio s will ha m Skywo ks’ o Qo vo’s busi ess, i cludi g cu e t pla s a d ope atio s; the ability of Skywo ks a d Qo vo to etai a d hi e key pe so el; pote tial adve se eactio s o cha ges to busi ess elatio ships with employees, custome s, othe busi ess pa t e s o gove me tal e tities esulti g f om the a ou ceme t, pe de cy o completio of the p oposed t a sactio s; u ce tai ty as to the lo g-te m value of Skywo ks’ commo stock; legislative, egulato y a d eco omic developme ts affecti g Skywo ks’ a d Qo vo’s busi esses; ge e al eco omic a d ma ket developme ts a d co ditio s; the evolvi g legal, egulato y a d tax egimes u de which Skywo ks a d Qo vo ope ate; pote tial busi ess u ce tai ty, i cludi g cha ges to existi g busi ess elatio ships du i g the pe de cy of the p oposed t a sactio s, that could affect Skywo ks’ o Qo vo’s fi a cial pe fo ma ce; est ictio s du i g the pe de cy of the p oposed t a sactio s that may impact Skywo ks’ o Qo vo’s ability to pu sue ce tai busi ess oppo tu ities o st ategic t a sactio s; the u p edictability a d seve ity of catast ophic eve ts, i cludi g acts of te o ism, outb eaks of wa o hostilities, as well as Skywo ks’ a d Qo vo’s espo se to a y of the afo eme tio ed facto s; the costs, fees, expe ses a d othe cha ges elated to the t a sactio s with Qo vo, i cludi g with espect to a y elated litigatio ; educed flexibility i ope ati g ou busi ess as a esult of the i debted ess i cu ed i co ectio with the t a sactio with Silico Labo ato ies I c. a d the substa tial amou t of additio al i debted ess we expect to i cu i co ectio with the Qo vo t a sactio s; delays i the deployme t of comme cial 5G etwo ks o i co sume adoptio of 5G-e abled devices; the volatility of ou stock p ice; cha ges i laws, egulatio s a d/o policies that could adve sely affect ou ope atio s a d fi a cial esults, the eco omy a d ou custome s’ dema d fo ou p oducts, o the fi a cial ma kets a d ou ability to aise capital; fluctuatio s i ou ma ufactu i g yields due to ou complex a d specialized ma ufactu i g p ocesses; ou ability to develop, ma ufactu e a d ma ket i ovative p oducts, avoid p oduct obsolesce ce, educe costs i a timely ma e , t a sitio ou p oducts to smalle geomet y p ocess tech ologies a d achieve highe levels of desig i teg atio ; the quality of ou p oducts a d a y defect emediatio costs; ou p oducts’ ability to pe fo m u de st i ge t ope ati g co ditio s; the availability a d p ici g of thi d-pa ty semico ducto fou d y, assembly a d test capacity, aw mate ials, i cludi g a e ea th a d simila mi e als, supplie compo e ts, equipme t a d shippi g a d logistics se vices, i cludi g limits o ou custome s’ ability to obtai such se vices a d mate ials; isks that we may ot be able to optimize ou ma ufactu i g footp i t a d achieve a y fi a cial a d ope atio al be efits f om such effo ts, i cludi g educi g fixed costs o imp ovi g utilizatio ates, dis uptio s to ou ma ufactu i g p ocesses, i cludi g elati g to a y elocatio of ou key facilities; ou ability to successfully ma age ou se io ma ageme t t a sitio s; ou ability to etai , ec uit a d hi e key executives o the depa tu e of a y such executives, tech ical pe so el a d othe employees i the positio s a d umbe s, with the expe ie ce a d capabilities, a d at the compe satio levels eeded to impleme t ou busi ess a d p oduct pla s; the timi g, escheduli g o ca cellatio of sig ifica t custome o de s a d ou ability, as well as the ability of ou custome s, to ma age i ve to y; othe eco omic, social, milita y a d geopolitical co ditio s i the cou t ies i which we, ou custome s o ou supplie s ope ate, i cludi g the co flicts i Uk ai e, I a a d othe egio s i the Middle East, possible dis uptio s i t a spo tatio etwo ks, a d fluctuatio s i fo eig cu e cy excha ge ates; the effects of global health c ises o busi ess co ditio s i ou i dust y, i cludi g the isk of sig ifica t dis uptio s to ou busi ess ope atio s, as well as egative impacts to ou fi a cial co ditio ; ou ability to p eve t theft of ou i tellectual p ope ty, disclosu e of co fide tial i fo matio o b eaches of ou i fo matio tech ology systems; u ce tai ties of litigatio , i cludi g pote tial disputes ove i tellectual p ope ty i f i geme t a d ights, as well as payme ts elated to the lice si g a d/o sale of such ights; ou ability to co ti ue to g ow a d mai tai a i tellectual p ope ty po tfolio a d obtai eeded lice ses f om thi d pa ties; ou ability to make ce tai i vestme ts a d acquisitio s, i teg ate compa ies we acqui e a d/o e te i to st ategic allia ces; a d othe isks a d u ce tai ties, i cludi g those detailed f om time to time i ou fili gs, i cludi g the Joi t P oxy Stateme t/P ospectus, with the Secu ities a d Excha ge Commissio . While the facto s ide tified he e a d i the Joi t P oxy Stateme t/P ospectus a e co side ed ep ese tative, o such list should be co side ed a complete stateme t of all pote tial isks a d u ce tai ties. U listed facto s may p ese t sig ifica t additio al obstacles to the ealizatio of fo wa d-looki g stateme ts. Co seque ces of mate ial diffe e ces i esults as compa ed with those a ticipated i the fo wa d-looki g stateme ts could i clude, amo g othe thi gs, busi ess dis uptio , ope atio al p oblems, fi a cial loss, legal liability to thi d pa ties a d simila isks, a y of which could have a mate ial adve se effect o Skywo ks’ o Qo vo’s co solidated fi a cial co ditio , esults of ope atio s o liquidity.
The fo wa d-looki g stateme ts co tai ed i this ea i gs elease a e made o ly as of the date he eof, a d we u de take o obligatio to update o evise a y fo wa d-looki g stateme ts, whethe as a esult of ew i fo matio , futu e eve ts o othe wise, should ci cumsta ces cha ge, except as othe wise equi ed by secu ities o othe applicable laws.
Note to Edito s: Skywo ks a d the Skywo ks symbol a e t adema ks o egiste ed t adema ks of Skywo ks Solutio s, I c., o its subsidia ies i the U ited States a d othe cou t ies. Thi d-pa ty b a ds a d ames a e fo ide tificatio pu poses o ly a d a e the p ope ty of thei espective ow e s.
| (i millio s, except pe sha e amou ts) | Net eve ue | $ | 934.8 | $ | 965.0 | $ | 2,913.9 | $ | 2,986.7 | Cost of goods sold | 559.8 | 564.0 | 1,726.3 | 1,752.1 | G oss p ofit | 375.0 | 401.0 | 1,187.6 | 1,234.6 | Ope ati g expe ses: | Resea ch a d developme t | 207.8 | 199.4 | 623.5 | 562.4 | Selli g, ge e al, a d admi ist ative | 98.7 | 89.3 | 326.8 | 259.9 | Amo tizatio of i ta gibles | 0.2 | 0.2 | 0.7 | 0.7 | Rest uctu i g, impai me t, a d othe cha ges | 19.8 | 1.5 | 42.2 | 22.6 | Total ope ati g expe ses | 326.5 | 290.4 | 993.2 | 845.6 | Ope ati g i come | 48.5 | 110.6 | 194.4 | 389.0 | I te est expe se | (5.9 | ) | (6.6 | ) | (19.8 | ) | (20.2 | ) | Othe i come, et | 6.2 | 8.0 | 29.3 | 35.9 | I come befo e i come taxes | 48.8 | 112.0 | 203.9 | 404.7 | P ovisio fo i come taxes | 14.9 | 7.0 | 55.2 | 69.0 | Net i come | $ | 33.9 | $ | 105.0 | $ | 148.7 | $ | 335.7 | Ea i gs pe sha e: | Basic | $ | 0.23 | $ | 0.70 | $ | 0.99 | $ | 2.15 | Diluted | $ | 0.22 | $ | 0.70 | $ | 0.99 | $ | 2.14 | Weighted ave age sha es: | Basic | 150.4 | 150.0 | 150.1 | 156.3 | Diluted | 151.4 | 150.3 | 150.8 | 156.9 |
| (i millio s) | GAAP g oss p ofit | $ | 375.0 | $ | 401.0 | $ | 1,187.6 | $ | 1,234.6 | Sha e-based compe satio expe se [a] | 10.9 | 8.5 | 34.0 | 21.5 | Amo tizatio of acquisitio – elated i ta gibles | 34.1 | 37.7 | 105.7 | 114.8 | Rest uctu i g a d othe cha ges | — | 7.0 | — | 25.1 | No -GAAP g oss p ofit | $ | 420.0 | $ | 454.2 | $ | 1,327.3 | $ | 1,396.0 | GAAP g oss ma gi % | 40.1 | % | 41.6 | % | 40.8 | % | 41.3 | % | No -GAAP g oss ma gi % | 44.9 | % | 47.1 | % | 45.6 | % | 46.7 | % | (i millio s) | GAAP ope ati g i come | $ | 48.5 | $ | 110.6 | $ | 194.4 | $ | 389.0 | Sha e-based compe satio expe se [a] | 53.2 | 55.2 | 168.9 | 168.9 | Acquisitio – elated expe ses | 25.7 | 2.8 | 97.2 | 3.4 | Amo tizatio of acquisitio – elated i ta gibles | 34.2 | 37.9 | 106.4 | 115.5 | Settleme ts, gai s, losses, a d impai me ts | (2.0 | ) | — | 1.5 | (1.8 | ) | Rest uctu i g a d othe cha ges | 22.0 | 17.9 | 54.3 | 56.3 | No -GAAP ope ati g i come | $ | 181.6 | $ | 224.4 | $ | 622.7 | $ | 731.3 | GAAP ope ati g ma gi % | 5.2 | % | 11.5 | % | 6.7 | % | 13.0 | % | No -GAAP ope ati g ma gi % | 19.4 | % | 23.3 | % | 21.4 | % | 24.5 | % | (i millio s) | GAAP et i come | $ | 33.9 | $ | 105.0 | $ | 148.7 | $ | 335.7 | Sha e-based compe satio expe se [a] | 53.2 | 55.2 | 168.9 | 168.9 | Acquisitio – elated expe ses | 25.7 | 2.8 | 97.2 | 3.4 | Amo tizatio of acquisitio – elated i ta gibles | 34.2 | 37.9 | 106.4 | 115.5 | Settleme ts, gai s, losses, a d impai me ts | (2.0 | ) | — | 1.5 | (1.8 | ) | Rest uctu i g a d othe cha ges | 22.0 | 17.9 | 54.3 | 56.3 | Tax adjustme ts | (3.3 | ) | (18.4 | ) | (8.1 | ) | (22.6 | ) | No -GAAP et i come | $ | 163.7 | $ | 200.4 | $ | 568.9 | $ | 655.4 | GAAP et i come pe sha e, diluted | $ | 0.22 | $ | 0.70 | $ | 0.99 | $ | 2.14 | Sha e-based compe satio expe se [a] | 0.35 | 0.36 | 1.12 | 1.08 | Acquisitio – elated expe ses | 0.17 | 0.02 | 0.64 | 0.02 | Amo tizatio of acquisitio – elated i ta gibles | 0.23 | 0.25 | 0.70 | 0.74 | Settleme ts, gai s, losses, a d impai me ts | (0.01 | ) | — | 0.01 | (0.01 | ) | Rest uctu i g a d othe cha ges | 0.14 | 0.12 | 0.36 | 0.36 | Tax adjustme ts | (0.02 | ) | (0.12 | ) | (0.05 | ) | (0.15 | ) | No -GAAP et i come pe sha e, diluted | $ | 1.08 | $ | 1.33 | $ | 3.77 | $ | 4.18 | (i millio s) | GAAP et cash p ovided by ope ati g activities | $ | 70.4 | $ | 314.1 | $ | 516.2 | $ | 1,100.8 | Capital expe ditu es | (87.1 | ) | (61.4 | ) | (226.0 | ) | (139.0 | ) | No -GAAP f ee cash flow | $ | (16.7 | ) | $ | 252.7 | $ | 290.2 | $ | 961.8 | GAAP et cash p ovided by ope ati g activities ma gi % | 7.5 | % | 32.5 | % | 17.7 | % | 36.9 | % | No -GAAP f ee cash flow ma gi % | (1.8 | )% | 26.2 | % | 10.0 | % | 32.2 | % |
Ou ea i gs elease co tai s some o all of the followi g fi a cial measu es that have ot bee calculated i acco da ce with U ited States Ge e ally Accepted Accou ti g P i ciples (“GAAP”): (i) o -GAAP g oss p ofit a d g oss ma gi , (ii) o -GAAP ope ati g i come a d ope ati g ma gi , (iii) o -GAAP et i come, (iv) o -GAAP diluted ea i gs pe sha e, a d (v) o -GAAP f ee cash flow a d f ee cash flow ma gi . As set fo th i the “U audited Reco ciliatio s of No -GAAP Fi a cial Measu es” table fou d above, we de ive such o -GAAP fi a cial measu es by excludi g ce tai expe ses a d othe items f om the espective GAAP fi a cial measu e that is most di ectly compa able to each o -GAAP fi a cial measu e. Ma ageme t uses these o -GAAP fi a cial measu es to evaluate ou ope ati g pe fo ma ce a d compa e it agai st past pe iods, make ope ati g decisio s, fo ecast fo futu e pe iods, compa e ou ope ati g pe fo ma ce agai st pee compa ies, a d dete mi e payme ts u de ce tai compe satio p og ams. These o -GAAP fi a cial measu es p ovide ma ageme t with additio al mea s to u de sta d a d evaluate the ope ati g esults a d t e ds i ou o goi g busi ess by elimi ati g ce tai o – ecu i g expe ses a d othe items that ma ageme t believes might othe wise make compa iso s of ou o goi g busi ess with p io pe iods a d competito s mo e difficult, obscu e t e ds i o goi g ope atio s, o educe ma ageme t’s ability to make fo ecasts.
We p ovide i vesto s with o -GAAP g oss p ofit a d g oss ma gi , o -GAAP ope ati g i come a d ope ati g ma gi , o -GAAP et i come, o -GAAP diluted ea i gs pe sha e, a d o -GAAP f ee cash flow a d f ee cash flow ma gi because we believe it is impo ta t fo i vesto s to be able to closely mo ito a d u de sta d cha ges i ou ability to ge e ate i come f om o goi g busi ess ope atio s. We believe these o -GAAP fi a cial measu es give i vesto s a additio al method to evaluate histo ical ope ati g pe fo ma ce a d ide tify t e ds, a additio al mea s of evaluati g pe iod-ove -pe iod ope ati g pe fo ma ce a d a method to facilitate ce tai compa iso s of ou ope ati g esults to those of ou pee compa ies. We believe that p ovidi g o -GAAP ope ati g i come a d ope ati g ma gi allows i vesto s to assess the exte t to which ou o goi g ope atio s impact ou ove all fi a cial pe fo ma ce. We also believe that p ovidi g o -GAAP et i come a d o -GAAP diluted ea i gs pe sha e allows i vesto s to assess the ove all fi a cial pe fo ma ce of ou o goi g ope atio s by elimi ati g the impact of sha e-based compe satio expe se, acquisitio – elated expe ses, amo tizatio of acquisitio – elated i ta gibles, settleme ts, gai s, losses, a d impai me ts, est uctu i g- elated cha ges, a d ce tai tax items which may ot occu i each pe iod p ese ted a d which may ep ese t o -cash items u elated to ou o goi g ope atio s. We fu the believe that p ovidi g o -GAAP f ee cash flow a d f ee cash flow ma gi p ovide i sight i to ou liquidity, ou cash-ge e ati g capability, a d the amou t of cash pote tially available to etu to sha eholde s. We believe that disclosi g these o -GAAP fi a cial measu es co t ibutes to e ha ced fi a cial epo ti g t a spa e cy a d p ovides i vesto s with added cla ity about complex fi a cial pe fo ma ce measu es.
We calculate o -GAAP g oss p ofit by excludi g f om GAAP g oss p ofit, sha e-based compe satio expe se, amo tizatio of acquisitio – elated i ta gibles, a d est uctu i g a d othe cha ges. We calculate o -GAAP ope ati g i come by excludi g f om GAAP ope ati g i come, sha e-based compe satio expe se, acquisitio – elated expe ses, amo tizatio of acquisitio – elated i ta gibles, settleme ts, gai s, losses, a d impai me ts, a d est uctu i g- elated cha ges. We calculate o -GAAP et i come a d diluted ea i gs pe sha e by excludi g f om GAAP et i come a d diluted ea i gs pe sha e, sha e-based compe satio expe se, acquisitio – elated expe ses, amo tizatio of acquisitio – elated i ta gibles, settleme ts, gai s, losses, a d impai me ts, est uctu i g- elated cha ges, a d ce tai tax items. We calculate o -GAAP f ee cash flow by deducti g capital expe ditu es f om GAAP et cash p ovided by ope ati g activities. We exclude ce tai items ide tified above f om the espective o -GAAP fi a cial measu e efe e ced above fo the easo s set fo th with espect to each such excluded item below:
Sha e-Based Compe satio Expe se – because (1) the total amou t of expe se is pa tially outside of ou co t ol because it is based o facto s such as stock p ice volatility a d i te est ates, which may be u elated to ou pe fo ma ce du i g the pe iod i which the expe se is i cu ed, (2) it is a expe se based upo a valuatio methodology p emised o assumptio s that va y ove time, a d (3) the amou t of the expe se ca va y sig ifica tly betwee compa ies due to facto s that ca be outside of the co t ol of such compa ies.
Acquisitio -Related Expe ses a d Amo tizatio of Acquisitio -Related I ta gibles – i cludi g such items as, whe applicable, fai value adjustme ts to co ti ge t co side atio , fai value cha ges i cu ed upo the sale of acqui ed i ve to y, acquisitio – elated expe ses, a d amo tizatio of acqui ed i ta gible assets because they a e ot co side ed by ma ageme t i maki g ope ati g decisio s a d we believe that such expe ses do ot have a di ect co elatio to ou futu e busi ess ope atio s a d the eby i cludi g such cha ges does ot ecessa ily eflect the pe fo ma ce of ou o goi g ope atio s fo the pe iod i which such cha ges o eve sals a e i cu ed.
Settleme ts, Gai s, Losses, a d Impai me ts – because such settleme ts, gai s, losses, a d impai me ts (1) a e ot co side ed by ma ageme t i maki g ope ati g decisio s, (2) a e i f eque t i atu e, (3) a e ge e ally ot di ectly co t olled by ma ageme t, (4) do ot ecessa ily eflect the pe fo ma ce of ou o goi g ope atio s fo the pe iod i which such cha ges a e ecog ized, a d/o (5) ca va y sig ifica tly i amou t betwee compa ies a d make compa iso s less eliable.
Rest uctu i g a d Othe Cha ges – because these cha ges have o di ect co elatio to ou futu e busi ess ope atio s a d i cludi g such cha ges o eve sals does ot ecessa ily eflect the pe fo ma ce of ou o goi g ope atio s fo the pe iod i which such cha ges o eve sals a e i cu ed.
Ce tai I come Tax Items – i cludi g ce tai defe ed tax cha ges a d be efits that do ot esult i a cu e t tax payme t o tax efu d a d othe adjustme ts, i cludi g but ot limited to, items u elated to the cu e t fiscal yea o that a e ot i dicative of ou o goi g busi ess ope atio s. Skywo ks uses a o malized tax ate i its computatio of the o -GAAP i come tax p ovisio to p ovide bette co siste cy ac oss epo ti g pe iods a d to alig with its ece t histo ical ave age of cu e t taxes. Fo fiscal 2026, Skywo ks will apply a o -GAAP tax ate of 10%, which eflects cu e t taxes elative to o -GAAP p e-tax i come afte applyi g ce tai o -GAAP tax adjustme ts.
The o -GAAP fi a cial measu es p ese ted i the table above should ot be co side ed i isolatio a d a e ot a alte ative fo the espective GAAP fi a cial measu e that is most di ectly compa able to each such o -GAAP fi a cial measu e. I vesto s a e cautio ed agai st placi g u due elia ce o these o -GAAP fi a cial measu es a d a e u ged to eview a d co side ca efully the adjustme ts made by ma ageme t to the most di ectly compa able GAAP fi a cial measu es to a ive at these o -GAAP fi a cial measu es. No -GAAP fi a cial measu es may have limited value as a alytical tools because they may exclude ce tai expe ses that some i vesto s co side impo ta t i evaluati g ou ope ati g pe fo ma ce o o goi g busi ess pe fo ma ce. Fu the , o -GAAP fi a cial measu es may have limited value fo pu poses of d awi g compa iso s betwee compa ies as a esult of diffe e t compa ies pote tially calculati g simila ly titled o -GAAP fi a cial measu es i diffe e t ways because o -GAAP measu es a e ot based o a y comp ehe sive set of accou ti g ules o p i ciples.
Ou ea i gs elease co tai s fo wa d-looki g estimates of o -GAAP diluted ea i gs pe sha e fo the fou th qua te of ou 2026 fiscal yea (“Q4 2026”). We p ovide this o -GAAP measu e to i vesto s o a p ospective basis fo the same easo s (set fo th above) that we p ovide it to i vesto s o a histo ical basis. We a e u able to p ovide a eco ciliatio of ou fo wa d-looki g estimate of Q4 2026 GAAP diluted ea i gs pe sha e to a fo wa d-looki g estimate of Q4 2026 o -GAAP diluted ea i gs pe sha e because ce tai i fo matio eeded to make a easo able fo wa d-looki g estimate of GAAP diluted ea i gs pe sha e fo Q4 2026 (othe tha estimated sha e-based compe satio expe se of $0.20 to $0.40 pe diluted sha e, estimated amo tizatio of i ta gibles of $0.20 to $0.30 pe diluted sha e a d ce tai tax items of -$0.15 to $0.20 pe diluted sha e) is difficult to p edict a d estimate a d is ofte depe de t o futu e eve ts that may be u ce tai o outside of ou co t ol. Such eve ts may i clude u a ticipated cha ges i ou GAAP effective tax ate, u a ticipated o e-time cha ges elated to asset impai me ts (fixed assets, i ve to y, i ta gibles, o goodwill), u a ticipated acquisitio – elated expe ses, u a ticipated settleme ts, gai s, losses, a d impai me ts, a d othe u a ticipated o – ecu i g items ot eflective of o goi g ope atio s. The p obable sig ifica ce of these u k ow items, i the agg egate, is estimated to be i the a ge of $0.00 to $0.15 i qua te ly ea i gs pe diluted sha e o a GAAP basis. Ou fo wa d-looki g estimates of both GAAP a d o -GAAP measu es of ou fi a cial pe fo ma ce may diffe mate ially f om ou actual esults a d should ot be elied upo as stateme ts of fact.
[a] The followi g table summa izes the expe se ecog ized i acco da ce with ASC 718 – Compe satio , Stock Compe satio (i millio s):
| Cost of goods sold | $ | 10.9 | $ | 8.5 | $ | 34.0 | $ | 21.5 | Resea ch a d developme t | 30.0 | 32.8 | 96.4 | 86.0 | Selli g, ge e al, a d admi ist ative | 12.3 | 13.9 | 38.5 | 48.9 | Rest uctu i g, impai me t, a d othe cha ges | — | — | — | 12.5 | Total sha e-based compe satio | $ | 53.2 | $ | 55.2 | $ | 168.9 | $ | 168.9 |
| (i millio s) | Cash, cash equivale ts, a d ma ketable secu ities | $ | 813.8 | $ | 1,388.4 | Accou ts eceivable, et | 348.2 | 598.1 | I ve to y | 1,015.5 | 754.7 | P ope ty, pla t, a d equipme t, et | 1,205.7 | 1,194.6 | Goodwill a d i ta gible assets, et | 2,855.5 | 2,985.7 | Othe assets | 1,186.3 | 995.5 | Total assets | $ | 7,425.0 | $ | 7,917.0 | Accou ts payable | $ | 268.6 | $ | 236.0 | Acc ued a d othe liabilities | 921.2 | 928.1 | Debt | 496.9 | 995.8 | Stockholde s’ equity | 5,738.3 | 5,757.1 | Total liabilities a d equity | $ | 7,425.0 | $ | 7,917.0 |
| (i millio s) | Net i come | $ | 33.9 | $ | 105.0 | $ | 148.7 | $ | 335.7 | Adjustme ts to eco cile et i come to et cash p ovided by ope ati g activities: | Sha e-based compe satio | 53.2 | 55.2 | 168.9 | 168.9 | Dep eciatio | 73.8 | 70.1 | 216.1 | 206.3 | Amo tizatio of i ta gible assets | 42.9 | 45.8 | 130.4 | 139.8 | Defe ed i come taxes | 17.7 | 1.4 | 7.6 | 21.1 | Amo tizatio of debt discou t a d issua ce costs | 0.4 | 0.5 | 1.4 | 1.5 | Othe , et | (2.1 | ) | (1.6 | ) | (2.7 | ) | (5.2 | ) | Cha ges i assets a d liabilities: | Receivables, et | (12.2 | ) | (24.3 | ) | 250.0 | 112.6 | I ve to y | (133.3 | ) | (26.8 | ) | (268.1 | ) | 85.2 | Accou ts payable | (2.9 | ) | 21.6 | 30.0 | 32.6 | Othe cu e t a d lo g-te m assets a d liabilities | (1.0 | ) | 67.2 | (166.1 | ) | 2.3 | 70.4 | 314.1 | 516.2 | 1,100.8 | Capital expe ditu es | (87.1 | ) | (61.4 | ) | (226.0 | ) | (139.0 | ) | Pu chased i ta gibles | (0.2 | ) | (6.7 | ) | (19.8 | ) | (24.1 | ) | Pu chases of ma ketable secu ities | (0.9 | ) | (135.9 | ) | (28.6 | ) | (415.9 | ) | Sales a d matu ities of ma ketable secu ities | 0.3 | 126.6 | 232.7 | 473.9 | Othe | 2.6 | — | 3.3 | 2.2 | (85.3 | ) | (77.4 | ) | (38.4 | ) | (102.9 | ) | Repu chase of commo stock – pay oll tax withholdi gs o equity awa ds | (1.5 | ) | (4.5 | ) | (41.6 | ) | (43.4 | ) | Repu chase of commo stock – stock epu chase p og am | — | (330.2 | ) | (7.5 | ) | (830.2 | ) | Divide ds paid | (106.9 | ) | (103.9 | ) | (320.1 | ) | (327.0 | ) | P oceeds f om employee stock pu chase pla | — | — | 21.2 | 20.0 | Debt fi a ci g costs | — | — | (1.1 | ) | — | Payme ts of debt | (500.0 | ) | — | (500.0 | ) | — | (608.4 | ) | (438.6 | ) | (849.1 | ) | (1,180.6 | ) | Net dec ease i cash a d cash equivale ts | (623.3 | ) | (201.9 | ) | (371.3 | ) | (182.7 | ) | Cash a d cash equivale ts at begi i g of pe iod | 1,413.3 | 1,387.8 | 1,161.3 | 1,368.6 | Cash a d cash equivale ts at e d of pe iod | $ | 790.0 | $ | 1,185.9 | $ | 790.0 | $ | 1,185.9 |
