TD SYNNEX (SNX) investor relations material

Executive summary

• Achieved record non-GAAP gross billings of $22.7B, up 12% year-over-year, and record non-GAAP diluted EPS of $3.58, up 25% year-over-year, with broad-based growth across all regions and technology categories.

• Revenue for Q3 FY25 was $15.7B, up 6.6% year-over-year, exceeding outlook, with growth in Advanced Solutions and Endpoint Solutions portfolios.

• Gross margin improved to 7.22% from 6.54% year-over-year, driven by a higher mix of net-basis revenue and margin expansion in Endpoint Solutions.

• Returned $210M to shareholders via $174M in share repurchases and $36M in dividends; dividend increased 10% year-over-year to $0.44 per share.

• Completed the acquisition of Apptium Technologies for $111.8M, enhancing technology solutions orchestration.

Financial highlights

• Non-GAAP gross billings: $22.7B, up 12% year-over-year; net revenue: $15.7B, up 6.6% year-over-year.

• Non-GAAP diluted EPS: $3.58, up 25% year-over-year; non-GAAP net income: $296M; GAAP net income: $227M.

• Gross profit: $1.13B, up 17.6% year-over-year; gross margin: 7.22%, up from 6.54% year-over-year.

• Non-GAAP operating income: $475M, up 21% year-over-year; operating margin: 3.0% (non-GAAP), 2.5% (GAAP).

• Free cash flow: $214M for the quarter; cash and cash equivalents at quarter-end were $874M.

Outlook and guidance

• Q4 FY25 non-GAAP gross billings expected between $23.0B–$24.0B; revenue $16.5B–$17.3B.

• Q4 FY25 non-GAAP net income guidance: $281M–$322M; non-GAAP diluted EPS: $3.45–$3.95.

• Free cash flow for FY25 expected to be ~$800M; quarterly dividend of $0.44 per share declared, payable October 31, 2025.

• Management expects continued growth in Advanced Solutions and Endpoint Solutions portfolios, with ongoing investments in services and technology orchestration.

• Medium-term net income to free cash flow conversion expected to remain around 95%.