TD SYNNEX Reports Fiscal 2025 Second Quarter Results
-
Revenue of
$14.9 billion 7.2% year over year and above the high end of our outlook. On a constant currency(1) basis, revenue increased by6.3% year over year. -
Non-GAAP gross billings(1) of
$21.6 billion 12.1% year over year and above the high end of our outlook. On a constant currency(1) basis, non-GAAP gross billings(1) increased by11.3% year over year. -
Diluted earnings per share (“EPS”) of
$2.21 $2.99 -
Cash provided by operations of
$573 million $543 million -
Returned
$186 million $149 million $37 million -
Announced a quarterly cash dividend of
$0.44 10% year over year.
“Our Q2 results demonstrate the continued strength of the IT Distribution and Hyperscaler markets, meanwhile, our strategy and the execution of our team are enabling us to grow ahead of market,” said Patrick Zammit, CEO of TD SYNNEX. “Gross billings grew double digits and non-GAAP diluted EPS exceeded the high end of our guidance with all regions and major technologies contributing.”
Consolidated Financial Highlights for the Fiscal 2025 Second Quarter:
GAAP |
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($ in millions, except earnings per share) |
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|
|
|
|
|
||||
|
|
Q2 FY25 |
|
Q2 FY24 |
|
Net Change from Q2 FY24 |
||||
Revenue |
|
$ |
14,946.3 |
|
|
$ |
13,947.9 |
|
|
7.2 % |
Gross profit |
|
$ |
1,046.4 |
|
|
$ |
973.5 |
|
|
7.5 % |
Gross margin |
|
|
7.00 |
% |
|
|
6.98 |
% |
|
2 bps |
Operating income |
|
$ |
328.1 |
|
|
$ |
263.9 |
|
|
24.3 % |
Operating margin |
|
|
2.20 |
% |
|
|
1.89 |
% |
|
31 bps |
Net income |
|
$ |
184.9 |
|
|
$ |
143.6 |
|
|
28.8 % |
Diluted EPS |
|
$ |
2.21 |
|
|
$ |
1.66 |
|
|
33.1 % |
Non-GAAP |
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($ in millions, except earnings per share) |
|
|
|
|
|
|
||||
|
|
Q2 FY25 |
|
Q2 FY24 |
|
Net Change from Q2 FY24 |
||||
Gross billings(1) |
|
$ |
21,647.5 |
|
|
$ |
19,304.6 |
|
|
12.1 % |
Gross to net %(1) |
|
|
(31.0 |
)% |
|
|
(27.7 |
)% |
|
(330) bps |
Revenue |
|
$ |
14,946.3 |
|
|
$ |
13,947.9 |
|
|
7.2 % |
Gross profit |
|
$ |
1,046.4 |
|
|
$ |
973.5 |
|
|
7.5 % |
Gross margin |
|
|
7.00 |
% |
|
|
6.98 |
% |
|
2 bps |
Operating income(1) |
|
$ |
414.0 |
|
|
$ |
388.0 |
|
|
6.7 % |
Operating margin(1) |
|
|
2.77 |
% |
|
|
2.78 |
% |
|
(1) bps |
Net income(1) |
|
$ |
250.5 |
|
|
$ |
236.9 |
|
|
5.8 % |
Diluted EPS(1) |
|
$ |
2.99 |
|
|
$ |
2.73 |
|
|
9.5 % |
Consolidated Fiscal 2025 Second Quarter versus Fiscal 2024 Second Quarter Highlights
-
Revenue was
$14.9 billion $13.9 billion 7.2% and above the high end of our outlook. On a constant currency(1) basis, revenue increased by6.3% , driven by growth in both our Endpoint Solutions and Advanced Solutions portfolios. A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately5% . -
Non-GAAP gross billings(1) were
$21.6 billion $19.3 billion 12.1% and above the high end of our outlook. On a constant currency(1) basis, non-GAAP gross billings(1) increased by11.3% . -
Gross profit was
$1,046 million $974 million -
Gross margin was
7.0% in both periods. The presentation of additional revenues on a net basis due to the mix of products sold positively impacted our gross margin by approximately 31 basis points. -
Operating income was
$328 million $264 million $414 million $388 million -
Operating margin was
2.2% , compared to1.9% . Non-GAAP operating margin(1) was2.8% in both periods. -
Diluted EPS was
$2.21 $1.66 $2.99 $2.73 -
Cash provided by operations of
$573 million $115 million $543 million $153 million -
We returned
$186 million $288 million
Regional Fiscal 2025 Second Quarter versus Fiscal 2024 Second Quarter Highlights
-
Americas :-
Revenue was
$9.0 billion $8.6 billion 5.3% . On a constant currency(1) basis, revenue increased by5.7% . A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately4% . -
Non-GAAP gross billings(1) were
$13.3 billion $12.2 billion 9.0% . On a constant currency(1) basis, non-GAAP gross billings(1) increased by9.4% . -
Operating income was
$253 million $209 million $301 million $285 million -
Operating margin was
2.8% , compared to2.4% . Non-GAAP operating margin(1) was3.3% in both periods.
-
Revenue was
-
Europe :-
Revenue was
$4.9 billion $4.4 billion 10.5% . On a constant currency(1) basis, revenue increased by7.3% . A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately6% . -
Non-GAAP gross billings(1) were
$6.8 billion $5.9 billion 16.7% . On a constant currency(1) basis, non-GAAP gross billings(1) increased by13.3% . -
Operating income was
$50 million $34 million $86 million $81 million -
Operating margin was
1.0% , compared to0.8% . Non-GAAP operating margin(1) was1.8% in both periods.
-
Revenue was
-
Asia-Pacific andJapan (“APJ”):-
Revenue was
$1.0 billion $964 million 8.7% . On a constant currency(1) basis, revenue increased by7.6% . A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately13% . -
Non-GAAP gross billings(1) were
$1.5 billion $1.2 billion 22.0% . On a constant currency(1) basis, non-GAAP gross billings(1) increased by21.1% . -
Operating income was
$25 million $20 million $27 million $22 million -
Operating margin was
2.4% , compared to2.1% . Non-GAAP operating margin(1) was2.6% , compared to2.3% .
-
Revenue was
Fiscal 2025 Third Quarter Outlook
The following statements are based on TD SYNNEX’s current expectations for the fiscal 2025 third quarter. These statements are forward-looking and actual results may differ materially. Non-GAAP gross billings(1) include the impact of costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts, and the remaining non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, and the related tax effects thereon.
|
|
Q3 2025 Outlook |
Revenue |
|
|
Non-GAAP gross billings(1) |
|
|
Net income |
|
|
Non-GAAP net income(1) |
|
|
Diluted earnings per share |
|
|
Non-GAAP diluted earnings per share(1) |
|
|
Estimated outstanding diluted weighted average shares |
|
81.8 million |
Dividend
TD SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of
Conference Call and Webcast
TD SYNNEX will host a conference call today to discuss the 2025 fiscal second quarter results at 6:00 AM (PT)/9:00 AM (ET).
A live audio webcast of the earnings call will be accessible at ir.tdsynnex.com and a replay of the webcast will be available following the call.
About TD SYNNEX
TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We are an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, deliver business outcomes and unlock growth opportunities while helping optimize their operating model. Headquartered in
TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit TDSYNNEX.com, follow our newsroom or find us on LinkedIn, Facebook and Instagram.
(1)Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance with GAAP, TD SYNNEX uses and refers to:
- Non-GAAP gross billings, which are the amounts billed to the customer prior to any presentation adjustment under ASC Topic 606 for those arrangements where the Company does not act as the principal. Non-GAAP gross billings are a useful non-GAAP metric in understanding the volume of our business activity and serve as an important performance metric in internally managing our operations.
- Revenue and non-GAAP gross billings in constant currency, which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our performance. Financial results adjusted for constant currency are calculated by translating current period activity using the comparable prior year periods’ currency conversion rate.
- “Gross to net %” refers to the percentage of adjustments made to non-GAAP gross billings for costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts.
- Adjusted selling, general and administrative expenses, which excludes acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. TD SYNNEX also uses adjusted selling, general and administrative expenses as a percentage of non-GAAP gross billings, which is a useful metric in considering our selling, general and administrative expenses without the impact of gross to net revenue adjustments to gross billings. Furthermore, TD SYNNEX uses adjusted selling, general and administrative expenses as a percentage of gross profit, which is a useful metric in considering the portion of gross profit retained after selling, general and administrative expenses.
- Non-GAAP operating income and non-GAAP operating margin, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense.
- Earnings before interest, taxes, depreciation and amortization (“EBITDA”), which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, and amortization of intangibles. TD SYNNEX also uses adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, amortization of intangibles, other income (expense), net, acquisition, integration and restructuring costs, and share-based compensation expense.
- Non-GAAP net income and non-GAAP diluted earnings per share, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, and the related tax effects thereon.
- Free cash flow, which is cash flow from operating activities reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because although it is similar to cash flows from operating activities, TD SYNNEX believes free cash flow is an additional useful measure of cash flows since purchases of property and equipment are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX’s liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations as it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire Consolidated Statements of Cash Flows.
- Trailing fiscal four quarters return on invested capital (“ROIC”), which is defined as the last four quarters’ tax effected operating income divided by the average of the last five quarterly balances of borrowings and equity, net of cash. Adjusted ROIC is calculated by excluding the tax effected impact of non-GAAP adjustments from operating income and by excluding the cumulative tax effected impact of current and prior period non-GAAP adjustments on equity.
In prior periods, TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures.
Acquisition, integration and restructuring costs, which are expensed as incurred, primarily represent professional services costs for legal, banking, consulting and advisory services, severance and other personnel-related costs, share-based compensation expense and debt extinguishment fees that are incurred in connection with acquisition, integration, restructuring, and divestiture activities. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses, costs related to long-lived assets including impairment charges and accelerated depreciation and amortization expense due to changes in asset useful lives, as well as various other costs associated with the acquisition or divestiture.
TD SYNNEX’s acquisition activities have resulted in the recognition of finite-lived intangible assets which consist primarily of customer relationships and vendor lists. Finite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company’s Statements of Operations. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company’s products. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees and non-employee members of the Company’s Board of Directors based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period.
TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX’s operational results and trends that more readily enable investors to analyze TD SYNNEX’s base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX’s Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release.
Safe Harbor Statement
Statements in this news release regarding TD SYNNEX that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of factors. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements about our strategy, demand, plans and positioning, capital allocation, as well as guidance related to the third quarter of 2025. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which TD SYNNEX is unable to predict or control, that may cause TD SYNNEX actual results, performance, or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to: the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; general economic and political conditions; weakness in information technology spending; seasonality; risks related to the buying patterns of our customers, concentration of sales to large customers; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; the timing and amount of returns to our stockholders via repurchases of our common stock and dividends; changes in foreign currency exchange rates and interest rates; increased inflation; uncertainty over global trade policies and the impacts of related tariffs; dependence upon and trends in capital spending budgets in the IT industry; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our supplier finance programs; credit exposure to our reseller customers and negative trends in their businesses; any incidents of theft; the declaration, timing and payment of dividends, and the Board’s reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2024 and subsequent SEC filings. Statements included in this press release are based upon information known to TD SYNNEX as of the date of this release, and TD SYNNEX assumes no obligation to update information contained in this press release unless otherwise required by law.
Copyright 2025 TD SYNNEX CORPORATION. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks or registered trademarks of TD SYNNEX Corporation. Other names and marks are the property of their respective owners.
TD SYNNEX Corporation |
||||||||
Consolidated Balance Sheets |
||||||||
(Currency and share amounts in thousands, except par value) |
||||||||
(Amounts may not add or compute due to rounding) |
||||||||
(Unaudited) |
||||||||
|
|
May 31, 2025 |
|
November 30, 2024 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
767,099 |
|
|
$ |
1,059,378 |
|
Accounts receivable, net |
|
|
10,127,960 |
|
|
|
10,341,625 |
|
Receivables from vendors, net |
|
|
987,901 |
|
|
|
958,105 |
|
Inventories |
|
|
8,655,741 |
|
|
|
8,287,048 |
|
Other current assets |
|
|
954,078 |
|
|
|
678,540 |
|
Total current assets |
|
|
21,492,779 |
|
|
|
21,324,696 |
|
Property and equipment, net |
|
|
482,912 |
|
|
|
457,024 |
|
Goodwill |
|
|
3,997,641 |
|
|
|
3,895,077 |
|
Intangible assets, net |
|
|
3,893,177 |
|
|
|
3,912,267 |
|
Other assets, net |
|
|
642,673 |
|
|
|
685,415 |
|
Total assets |
|
$ |
30,509,182 |
|
|
$ |
30,274,479 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Borrowings, current |
|
$ |
382,425 |
|
|
$ |
171,092 |
|
Accounts payable |
|
|
14,542,575 |
|
|
|
15,084,107 |
|
Other accrued liabilities |
|
|
2,197,402 |
|
|
|
1,966,036 |
|
Total current liabilities |
|
|
17,122,402 |
|
|
|
17,221,235 |
|
Long-term borrowings |
|
|
3,723,280 |
|
|
|
3,736,399 |
|
Other long-term liabilities |
|
|
487,227 |
|
|
|
468,648 |
|
Deferred tax liabilities |
|
|
833,906 |
|
|
|
812,763 |
|
Total liabilities |
|
|
22,166,815 |
|
|
|
22,239,045 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock, |
|
|
99 |
|
|
|
99 |
|
Additional paid-in capital |
|
|
7,448,114 |
|
|
|
7,437,688 |
|
Treasury stock, 17,092 and 15,289 shares as of May 31, 2025 and November 30, 2024, respectively |
|
|
(1,737,413 |
) |
|
|
(1,513,017 |
) |
Accumulated other comprehensive loss |
|
|
(402,554 |
) |
|
|
(645,117 |
) |
Retained earnings |
|
|
3,034,121 |
|
|
|
2,755,781 |
|
Total stockholders' equity |
|
|
8,342,367 |
|
|
|
8,035,434 |
|
Total liabilities and equity |
|
$ |
30,509,182 |
|
|
$ |
30,274,479 |
|
TD SYNNEX Corporation |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(Currency and share amounts in thousands, except per share amounts) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Revenue |
|
$ |
14,946,315 |
|
|
$ |
13,947,908 |
|
|
$ |
29,478,022 |
|
|
$ |
27,923,161 |
|
Cost of revenue |
|
|
(13,899,942 |
) |
|
|
(12,974,361 |
) |
|
|
(27,433,643 |
) |
|
|
(25,943,848 |
) |
Gross profit |
|
|
1,046,373 |
|
|
|
973,547 |
|
|
|
2,044,379 |
|
|
|
1,979,313 |
|
Selling, general and administrative expenses |
|
|
(717,570 |
) |
|
|
(671,714 |
) |
|
|
(1,410,055 |
) |
|
|
(1,343,259 |
) |
Acquisition, integration and restructuring costs |
|
|
(664 |
) |
|
|
(37,885 |
) |
|
|
(1,726 |
) |
|
|
(69,534 |
) |
Operating income |
|
|
328,139 |
|
|
|
263,948 |
|
|
|
632,598 |
|
|
|
566,520 |
|
Interest expense and finance charges, net |
|
|
(89,982 |
) |
|
|
(76,701 |
) |
|
|
(177,862 |
) |
|
|
(152,592 |
) |
Other expense, net |
|
|
(79 |
) |
|
|
(3,091 |
) |
|
|
(1,775 |
) |
|
|
(5,975 |
) |
Income before income taxes |
|
|
238,078 |
|
|
|
184,156 |
|
|
|
452,961 |
|
|
|
407,953 |
|
Provision for income taxes |
|
|
(53,157 |
) |
|
|
(40,551 |
) |
|
|
(100,503 |
) |
|
|
(92,220 |
) |
Net income |
|
$ |
184,921 |
|
|
$ |
143,605 |
|
|
$ |
352,458 |
|
|
$ |
315,733 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
2.22 |
|
|
$ |
1.67 |
|
|
$ |
4.20 |
|
|
$ |
3.61 |
|
Diluted |
|
$ |
2.21 |
|
|
$ |
1.66 |
|
|
$ |
4.19 |
|
|
$ |
3.60 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
82,626 |
|
|
|
85,453 |
|
|
|
83,115 |
|
|
|
86,655 |
|
Diluted |
|
|
82,935 |
|
|
|
85,869 |
|
|
|
83,447 |
|
|
|
87,019 |
|
TD SYNNEX Corporation |
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Consolidated Statements of Cash Flows |
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(Currency amounts in thousands) |
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(Amounts may not add or compute due to rounding) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
184,921 |
|
|
$ |
143,605 |
|
|
$ |
352,458 |
|
|
$ |
315,733 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
103,595 |
|
|
|
106,287 |
|
|
|
203,305 |
|
|
|
206,906 |
|
Share-based compensation |
|
|
11,950 |
|
|
|
13,430 |
|
|
|
33,811 |
|
|
|
30,920 |
|
Provision for doubtful accounts |
|
|
4,576 |
|
|
|
(6,272 |
) |
|
|
10,942 |
|
|
|
4,922 |
|
Other |
|
|
1,579 |
|
|
|
4,469 |
|
|
|
5,952 |
|
|
|
5,639 |
|
Changes in operating assets and liabilities, net of acquisition of businesses: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(393,970 |
) |
|
|
42,175 |
|
|
|
460,250 |
|
|
|
1,385,250 |
|
Receivables from vendors, net |
|
|
9,599 |
|
|
|
82,541 |
|
|
|
(7,041 |
) |
|
|
128,921 |
|
Inventories |
|
|
(111,776 |
) |
|
|
(17,340 |
) |
|
|
(214,637 |
) |
|
|
24,836 |
|
Accounts payable |
|
|
1,099,965 |
|
|
|
(219,135 |
) |
|
|
(870,147 |
) |
|
|
(1,145,971 |
) |
Other operating assets and liabilities |
|
|
(337,257 |
) |
|
|
(264,468 |
) |
|
|
(149,708 |
) |
|
|
(687,155 |
) |
Net cash provided by (used in) operating activities |
|
|
573,182 |
|
|
|
(114,708 |
) |
|
|
(174,815 |
) |
|
|
270,001 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
|
(30,243 |
) |
|
|
(37,822 |
) |
|
|
(71,768 |
) |
|
|
(78,910 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(666 |
) |
|
|
2,205 |
|
|
|
(4,459 |
) |
|
|
(26,238 |
) |
Other |
|
|
4,363 |
|
|
|
2,730 |
|
|
|
5,149 |
|
|
|
4,351 |
|
Net cash used in investing activities |
|
|
(26,546 |
) |
|
|
(32,887 |
) |
|
|
(71,078 |
) |
|
|
(100,797 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Dividends paid |
|
|
(36,898 |
) |
|
|
(34,191 |
) |
|
|
(74,118 |
) |
|
|
(69,843 |
) |
Proceeds from reissuance of treasury stock |
|
|
2,732 |
|
|
|
2,780 |
|
|
|
12,513 |
|
|
|
5,507 |
|
Repurchases of common stock |
|
|
(148,818 |
) |
|
|
(254,150 |
) |
|
|
(249,328 |
) |
|
|
(453,375 |
) |
Repurchases of common stock for tax withholdings on equity awards |
|
|
(4,582 |
) |
|
|
(1,489 |
) |
|
|
(8,832 |
) |
|
|
(6,287 |
) |
Net (repayments) borrowings on revolving credit loans |
|
|
(212,714 |
) |
|
|
10,622 |
|
|
|
208,708 |
|
|
|
(45,433 |
) |
Principal payments on long-term debt |
|
|
(14,914 |
) |
|
|
(766,510 |
) |
|
|
(15,541 |
) |
|
|
(784,714 |
) |
Borrowings on long-term debt |
|
|
— |
|
|
|
1,349,376 |
|
|
|
— |
|
|
|
1,349,376 |
|
Cash paid for debt issuance costs |
|
|
— |
|
|
|
(12,715 |
) |
|
|
— |
|
|
|
(12,715 |
) |
Net cash (used in) provided by financing activities |
|
|
(415,194 |
) |
|
|
293,723 |
|
|
|
(126,598 |
) |
|
|
(17,484 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
93,794 |
|
|
|
(3,426 |
) |
|
|
80,212 |
|
|
|
(11,848 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
225,236 |
|
|
|
142,702 |
|
|
|
(292,279 |
) |
|
|
139,872 |
|
Cash and cash equivalents at beginning of period |
|
|
541,863 |
|
|
|
1,030,946 |
|
|
|
1,059,378 |
|
|
|
1,033,776 |
|
Cash and cash equivalents at end of period |
|
$ |
767,099 |
|
|
$ |
1,173,648 |
|
|
$ |
767,099 |
|
|
$ |
1,173,648 |
|
TD SYNNEX Corporation |
||||||||||
Regional Financial Highlights - Fiscal 2025 Second Quarter |
||||||||||
(Currency in millions) |
||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||
|
|
Q2 FY25 |
|
Q2 FY24 |
|
Net Change from Q2 FY24 |
||||
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
9,009.2 |
|
|
$ |
8,557.6 |
|
|
5.3 % |
Non-GAAP gross billings(1) |
|
$ |
13,345.6 |
|
|
$ |
12,247.2 |
|
|
9.0 % |
Operating income |
|
$ |
252.6 |
|
|
$ |
209.3 |
|
|
20.7 % |
Non-GAAP operating income(1) |
|
$ |
301.3 |
|
|
$ |
285.1 |
|
|
5.7 % |
Operating margin |
|
|
2.80 |
% |
|
|
2.45 |
% |
|
35 bps |
Non-GAAP operating margin(1) |
|
|
3.34 |
% |
|
|
3.33 |
% |
|
1 bps |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
4,890.0 |
|
|
$ |
4,426.8 |
|
|
10.5 % |
Non-GAAP gross billings(1) |
|
$ |
6,843.0 |
|
|
$ |
5,861.9 |
|
|
16.7 % |
Operating income |
|
$ |
50.3 |
|
|
$ |
34.4 |
|
|
46.4 % |
Non-GAAP operating income(1) |
|
$ |
85.8 |
|
|
$ |
80.8 |
|
|
6.1 % |
Operating margin |
|
|
1.03 |
% |
|
|
0.78 |
% |
|
25 bps |
Non-GAAP operating margin(1) |
|
|
1.75 |
% |
|
|
1.83 |
% |
|
(8) bps |
|
|
|
|
|
|
|
||||
APJ |
|
|
|
|
|
|
||||
Revenue |
|
$ |
1,047.1 |
|
|
$ |
963.6 |
|
|
8.7 % |
Non-GAAP gross billings(1) |
|
$ |
1,458.9 |
|
|
$ |
1,195.5 |
|
|
22.0 % |
Operating income |
|
$ |
25.2 |
|
|
$ |
20.3 |
|
|
24.0 % |
Non-GAAP operating income(1) |
|
$ |
26.9 |
|
|
$ |
22.1 |
|
|
22.0 % |
Operating margin |
|
|
2.40 |
% |
|
|
2.11 |
% |
|
29 bps |
Non-GAAP operating margin(1) |
|
|
2.57 |
% |
|
|
2.29 |
% |
|
28 bps |
(1) A reconciliation of TD SYNNEX’s GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release. |
||||||||||
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Currency in thousands) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Revenue in constant currency |
|
|
|
|
|
|
|
|
||||||||
Consolidated |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
14,946,315 |
|
|
$ |
13,947,908 |
|
|
$ |
29,478,022 |
|
|
$ |
27,923,161 |
|
Impact of changes in foreign currencies |
|
|
(114,574 |
) |
|
|
— |
|
|
|
169,122 |
|
|
|
— |
|
Revenue in constant currency |
|
$ |
14,831,741 |
|
|
$ |
13,947,908 |
|
|
$ |
29,647,144 |
|
|
$ |
27,923,161 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
9,009,195 |
|
|
$ |
8,557,573 |
|
|
$ |
17,398,533 |
|
|
$ |
16,460,669 |
|
Impact of changes in foreign currencies |
|
|
38,184 |
|
|
|
— |
|
|
|
104,423 |
|
|
|
— |
|
Revenue in constant currency |
|
$ |
9,047,379 |
|
|
$ |
8,557,573 |
|
|
$ |
17,502,956 |
|
|
$ |
16,460,669 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
4,889,997 |
|
|
$ |
4,426,775 |
|
|
$ |
10,027,762 |
|
|
$ |
9,544,027 |
|
Impact of changes in foreign currencies |
|
|
(142,261 |
) |
|
|
— |
|
|
|
56,417 |
|
|
|
— |
|
Revenue in constant currency |
|
$ |
4,747,736 |
|
|
$ |
4,426,775 |
|
|
$ |
10,084,179 |
|
|
$ |
9,544,027 |
|
|
|
|
|
|
|
|
|
|
||||||||
APJ |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
1,047,123 |
|
|
$ |
963,560 |
|
|
$ |
2,051,727 |
|
|
$ |
1,918,465 |
|
Impact of changes in foreign currencies |
|
|
(10,497 |
) |
|
|
— |
|
|
|
8,282 |
|
|
|
— |
|
Revenue in constant currency |
|
$ |
1,036,626 |
|
|
$ |
963,560 |
|
$ |
2,060,009 |
|
$ |
1,918,465 |
|||
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Currency in thousands) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Non-GAAP gross billings |
|
|
|
|
|
|
|
|
||||||||
Consolidated |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
14,946,315 |
|
|
$ |
13,947,908 |
|
|
$ |
29,478,022 |
|
|
$ |
27,923,161 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
6,701,215 |
|
|
|
5,356,701 |
|
|
|
12,887,704 |
|
|
|
10,648,181 |
|
Non-GAAP gross billings |
|
$ |
21,647,530 |
|
|
$ |
19,304,609 |
|
|
$ |
42,365,726 |
|
|
$ |
38,571,342 |
|
Impact of changes in foreign currencies |
|
|
(153,712 |
) |
|
|
— |
|
|
|
227,642 |
|
|
|
— |
|
Non-GAAP gross billings in constant currency |
|
$ |
21,493,818 |
|
|
$ |
19,304,609 |
|
|
$ |
42,593,368 |
|
|
$ |
38,571,342 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
9,009,195 |
|
|
$ |
8,557,573 |
|
|
$ |
17,398,533 |
|
|
$ |
16,460,669 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
4,336,436 |
|
|
|
3,689,627 |
|
|
|
8,392,915 |
|
|
|
7,292,874 |
|
Non-GAAP gross billings |
|
$ |
13,345,631 |
|
|
$ |
12,247,200 |
|
|
$ |
25,791,448 |
|
|
$ |
23,753,543 |
|
Impact of changes in foreign currencies |
|
|
58,669 |
|
|
|
— |
|
|
|
164,813 |
|
|
|
— |
|
Non-GAAP gross billings in constant currency |
|
$ |
13,404,300 |
|
|
$ |
12,247,200 |
|
|
$ |
25,956,261 |
|
|
$ |
23,753,543 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
4,889,997 |
|
|
$ |
4,426,775 |
|
|
$ |
10,027,762 |
|
|
$ |
9,544,027 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
1,953,011 |
|
|
|
1,435,171 |
|
|
|
3,702,424 |
|
|
|
2,919,298 |
|
Non-GAAP gross billings |
|
$ |
6,843,008 |
|
|
$ |
5,861,946 |
|
|
$ |
13,730,186 |
|
|
$ |
12,463,325 |
|
Impact of changes in foreign currencies |
|
|
(201,688 |
) |
|
|
— |
|
|
|
49,943 |
|
|
|
— |
|
Non-GAAP gross billings in constant currency |
|
$ |
6,641,320 |
|
|
$ |
5,861,946 |
|
|
$ |
13,780,129 |
|
|
$ |
12,463,325 |
|
|
|
|
|
|
|
|
|
|
||||||||
APJ |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
1,047,123 |
|
|
$ |
963,560 |
|
|
$ |
2,051,727 |
|
|
$ |
1,918,465 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
411,768 |
|
|
|
231,903 |
|
|
|
792,365 |
|
|
|
436,009 |
|
Non-GAAP gross billings |
|
$ |
1,458,891 |
|
|
$ |
1,195,463 |
|
|
$ |
2,844,092 |
|
|
$ |
2,354,474 |
|
Impact of changes in foreign currencies |
|
|
(10,693 |
) |
|
|
— |
|
|
|
12,886 |
|
|
|
— |
|
Non-GAAP gross billings in constant currency |
|
$ |
1,448,198 |
|
|
$ |
1,195,463 |
|
$ |
2,856,978 |
|
$ |
2,354,474 |
|||
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Currency in thousands) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Adjusted selling, general and administrative expenses |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
14,946,315 |
|
|
$ |
13,947,908 |
|
|
$ |
29,478,022 |
|
|
$ |
27,923,161 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
6,701,215 |
|
|
|
5,356,701 |
|
|
|
12,887,704 |
|
|
|
10,648,181 |
|
Non-GAAP gross billings |
|
$ |
21,647,530 |
|
|
$ |
19,304,609 |
|
|
$ |
42,365,726 |
|
|
$ |
38,571,342 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
$ |
1,046,373 |
|
|
$ |
973,547 |
|
|
$ |
2,044,379 |
|
|
$ |
1,979,313 |
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses(1) |
|
$ |
717,570 |
|
|
$ |
671,714 |
|
|
$ |
1,410,055 |
|
|
$ |
1,343,259 |
|
Amortization of intangibles |
|
|
(73,282 |
) |
|
|
(72,759 |
) |
|
|
(144,689 |
) |
|
|
(145,636 |
) |
Share-based compensation |
|
|
(11,950 |
) |
|
|
(13,430 |
) |
|
|
(33,811 |
) |
|
|
(30,920 |
) |
Adjusted selling, general and administrative expenses |
|
$ |
632,338 |
|
|
$ |
585,525 |
|
|
$ |
1,231,555 |
|
|
$ |
1,166,703 |
|
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses(1) as a percentage of revenue |
|
|
4.80 |
% |
|
|
4.82 |
% |
|
|
4.78 |
% |
|
|
4.81 |
% |
Adjusted selling, general and administrative expenses as a percentage of non-GAAP gross billings |
|
|
2.92 |
% |
|
|
3.03 |
% |
|
|
2.91 |
% |
|
|
3.02 |
% |
Selling, general and administrative expenses(1) as a percentage of gross profit |
|
|
68.6 |
% |
|
|
69.0 |
% |
|
|
69.0 |
% |
|
|
67.9 |
% |
Adjusted selling, general and administrative expenses as a percentage of gross profit |
|
|
60.4 |
% |
|
|
60.1 |
% |
|
|
60.2 |
% |
|
|
58.9 |
% |
(1) Excludes acquisition, integration and restructuring costs, which are presented separately on the Consolidated Statements of Operations. |
||||||||||||||||
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Currency in thousands) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Non-GAAP operating income & non-GAAP operating margin - Consolidated |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
14,946,315 |
|
|
$ |
13,947,908 |
|
|
$ |
29,478,022 |
|
|
$ |
27,923,161 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
328,139 |
|
|
$ |
263,948 |
|
|
$ |
632,598 |
|
|
$ |
566,520 |
|
Acquisition, integration and restructuring costs |
|
|
664 |
|
|
|
37,885 |
|
|
|
1,726 |
|
|
|
69,534 |
|
Amortization of intangibles |
|
|
73,282 |
|
|
|
72,759 |
|
|
|
144,689 |
|
|
|
145,636 |
|
Share-based compensation |
|
|
11,950 |
|
|
|
13,430 |
|
|
|
33,811 |
|
|
|
30,920 |
|
Non-GAAP operating income |
|
$ |
414,035 |
|
|
$ |
388,022 |
|
|
$ |
812,824 |
|
|
$ |
812,610 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
|
2.20 |
% |
|
|
1.89 |
% |
|
|
2.15 |
% |
|
|
2.03 |
% |
Non-GAAP operating margin |
|
|
2.77 |
% |
|
|
2.78 |
% |
|
|
2.76 |
% |
|
|
2.91 |
% |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Non-GAAP operating income & non-GAAP operating margin - |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
9,009,195 |
|
|
$ |
8,557,573 |
|
|
$ |
17,398,533 |
|
|
$ |
16,460,669 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
252,646 |
|
|
$ |
209,284 |
|
|
$ |
446,368 |
|
|
$ |
368,966 |
|
Acquisition, integration and restructuring costs |
|
|
58 |
|
|
|
25,395 |
|
|
|
382 |
|
|
|
52,767 |
|
Amortization of intangibles |
|
|
40,488 |
|
|
|
41,518 |
|
|
|
80,905 |
|
|
|
82,971 |
|
Share-based compensation |
|
|
8,133 |
|
|
|
8,925 |
|
|
|
21,784 |
|
|
|
20,723 |
|
Non-GAAP operating income |
|
$ |
301,325 |
|
|
$ |
285,122 |
|
|
$ |
549,439 |
|
|
$ |
525,427 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
|
2.80 |
% |
|
|
2.45 |
% |
|
|
2.57 |
% |
|
|
2.24 |
% |
Non-GAAP operating margin |
|
|
3.34 |
% |
|
|
3.33 |
% |
|
|
3.16 |
% |
|
|
3.19 |
% |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Non-GAAP operating income & non-GAAP operating margin - |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
4,889,997 |
|
|
$ |
4,426,775 |
|
|
$ |
10,027,762 |
|
|
$ |
9,544,027 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
50,312 |
|
|
$ |
34,360 |
|
|
$ |
136,204 |
|
|
$ |
142,685 |
|
Acquisition, integration and restructuring costs |
|
|
499 |
|
|
|
12,049 |
|
|
|
1,125 |
|
|
|
16,001 |
|
Amortization of intangibles |
|
|
31,988 |
|
|
|
30,621 |
|
|
|
62,177 |
|
|
|
61,423 |
|
Share-based compensation |
|
|
2,999 |
|
|
|
3,811 |
|
|
|
9,859 |
|
|
|
8,574 |
|
Non-GAAP operating income |
|
$ |
85,798 |
|
|
$ |
80,841 |
|
|
$ |
209,365 |
|
|
$ |
228,683 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
|
1.03 |
% |
|
|
0.78 |
% |
|
|
1.36 |
% |
|
|
1.50 |
% |
Non-GAAP operating margin |
|
|
1.75 |
% |
|
|
1.83 |
% |
|
|
2.09 |
% |
|
|
2.40 |
% |
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Currency in thousands) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Non-GAAP operating income & non-GAAP operating margin - APJ |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
1,047,123 |
|
|
$ |
963,560 |
|
|
$ |
2,051,727 |
|
|
$ |
1,918,465 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
$ |
25,181 |
|
|
$ |
20,304 |
|
|
$ |
50,026 |
|
|
$ |
54,869 |
|
Acquisition, integration and restructuring costs |
|
|
107 |
|
|
|
441 |
|
|
|
219 |
|
|
|
766 |
|
Amortization of intangibles |
|
|
806 |
|
|
|
620 |
|
|
|
1,607 |
|
|
|
1,242 |
|
Share-based compensation |
|
|
818 |
|
|
|
694 |
|
|
|
2,168 |
|
|
|
1,623 |
|
Non-GAAP operating income |
|
$ |
26,912 |
|
|
$ |
22,059 |
|
|
$ |
54,020 |
|
|
$ |
58,500 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating margin |
|
|
2.40 |
% |
|
|
2.11 |
% |
|
|
2.44 |
% |
|
|
2.86 |
% |
Non-GAAP operating margin |
|
|
2.57 |
% |
|
|
2.29 |
% |
|
|
2.63 |
% |
|
|
3.05 |
% |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
EBITDA & adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
184,921 |
|
|
$ |
143,605 |
|
|
$ |
352,458 |
|
|
$ |
315,733 |
|
Interest expense and finance charges, net |
|
|
89,982 |
|
|
|
76,701 |
|
|
|
177,862 |
|
|
|
152,592 |
|
Provision for income taxes |
|
|
53,157 |
|
|
|
40,551 |
|
|
|
100,503 |
|
|
|
92,220 |
|
Depreciation(1) |
|
|
30,313 |
|
|
|
33,528 |
|
|
|
58,616 |
|
|
|
61,270 |
|
Amortization of intangibles |
|
|
73,282 |
|
|
|
72,759 |
|
|
|
144,689 |
|
|
|
145,636 |
|
EBITDA |
|
$ |
431,655 |
|
|
$ |
367,144 |
|
|
$ |
834,128 |
|
|
$ |
767,451 |
|
Other expense, net |
|
|
79 |
|
|
|
3,091 |
|
|
|
1,775 |
|
|
|
5,975 |
|
Acquisition, integration and restructuring costs |
|
|
664 |
|
|
|
32,794 |
|
|
|
1,726 |
|
|
|
64,048 |
|
Share-based compensation |
|
|
11,950 |
|
|
|
13,430 |
|
|
|
33,811 |
|
|
|
30,920 |
|
Adjusted EBITDA |
|
$ |
444,348 |
|
|
$ |
416,459 |
|
|
$ |
871,440 |
|
|
$ |
868,394 |
|
(1) Includes depreciation recorded in acquisition, integration, and restructuring costs. |
||||||||||||||||
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Currency in thousands, except per share amounts) |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Non-GAAP net income & non-GAAP diluted EPS(1) |
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
184,921 |
|
|
$ |
143,605 |
|
|
$ |
352,458 |
|
|
$ |
315,733 |
|
Acquisition, integration and restructuring costs |
|
|
664 |
|
|
|
37,885 |
|
|
|
1,726 |
|
|
|
69,534 |
|
Amortization of intangibles |
|
|
73,282 |
|
|
|
72,759 |
|
|
|
144,689 |
|
|
|
145,636 |
|
Share-based compensation |
|
|
11,950 |
|
|
|
13,430 |
|
|
|
33,811 |
|
|
|
30,920 |
|
Income taxes related to the above |
|
|
(20,300 |
) |
|
|
(30,818 |
) |
|
|
(44,796 |
) |
|
|
(58,739 |
) |
Non-GAAP net income |
|
$ |
250,517 |
|
|
$ |
236,861 |
|
|
$ |
487,888 |
|
|
$ |
503,084 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS(1) |
|
$ |
2.21 |
|
|
$ |
1.66 |
|
|
$ |
4.19 |
|
|
$ |
3.60 |
|
Acquisition, integration and restructuring costs |
|
|
0.01 |
|
|
|
0.44 |
|
|
|
0.02 |
|
|
|
0.79 |
|
Amortization of intangibles |
|
|
0.87 |
|
|
|
0.84 |
|
|
|
1.71 |
|
|
|
1.66 |
|
Share-based compensation |
|
|
0.14 |
|
|
|
0.15 |
|
|
|
0.40 |
|
|
|
0.35 |
|
Income taxes related to the above |
|
|
(0.24 |
) |
|
|
(0.36 |
) |
|
|
(0.53 |
) |
|
|
(0.67 |
) |
Non-GAAP Diluted EPS(1) |
|
$ |
2.99 |
|
|
$ |
2.73 |
|
|
$ |
5.79 |
|
|
$ |
5.73 |
|
(1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For purposes of calculating Diluted EPS, net income allocated to participating securities was approximately |
||||||||||||||||
TD SYNNEX Corporation |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP financial measures |
||||||||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(Currency in thousands) |
|
May 31, 2025 |
|
May 31, 2024 |
|
May 31, 2025 |
|
May 31, 2024 |
||||||||
Free cash flow |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
|
$ |
573,182 |
|
|
$ |
(114,708 |
) |
|
$ |
(174,815 |
) |
|
$ |
270,001 |
|
Purchases of property and equipment |
|
|
(30,243 |
) |
|
|
(37,822 |
) |
|
|
(71,768 |
) |
|
|
(78,910 |
) |
Free cash flow |
|
$ |
542,939 |
|
|
$ |
(152,530 |
) |
|
$ |
(246,583 |
) |
|
$ |
191,091 |
|
|
|
Forecast |
||||||
|
|
Three Months Ending |
||||||
(Currency in millions, except per share amounts) |
|
August 31, 2025 |
||||||
Non-GAAP net income and non-GAAP Diluted EPS |
|
Low |
|
High |
||||
Net income |
|
$ |
159 |
|
|
$ |
200 |
|
Amortization of intangibles |
|
|
75 |
|
|
|
75 |
|
Share-based compensation |
|
|
13 |
|
|
|
13 |
|
Income taxes related to the above |
|
|
(20 |
) |
|
|
(20 |
) |
Non-GAAP net income |
|
$ |
227 |
|
|
$ |
268 |
|
|
|
|
|
|
||||
Diluted EPS(1) |
|
$ |
1.93 |
|
|
$ |
2.43 |
|
Amortization of intangibles |
|
|
0.91 |
|
|
|
0.91 |
|
Share-based compensation |
|
|
0.15 |
|
|
|
0.15 |
|
Income taxes related to the above |
|
|
(0.24 |
) |
|
|
(0.24 |
) |
Non-GAAP Diluted EPS(1) |
|
$ |
2.75 |
|
|
$ |
3.25 |
|
(1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. Net income allocable to participating securities is estimated to be approximately |
||||||||
|
|
Forecast |
||||||
|
|
Three Months Ending |
||||||
(Currency in billions) |
|
August 31, 2025 |
||||||
Non-GAAP gross billings |
|
Low |
|
High |
||||
Revenue |
|
$ |
14.7 |
|
|
$ |
15.5 |
|
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts |
|
|
6.3 |
|
|
|
6.5 |
|
Non-GAAP gross billings |
|
$ |
21.0 |
|
$ |
22.0 |
|
|
TD SYNNEX Corporation |
||||||||
Calculation of Financial Metrics |
||||||||
Return on Invested Capital (“ROIC”) |
||||||||
(Currency in thousands) |
||||||||
(Amounts may not add or compute due to rounding) |
||||||||
|
|
May 31, 2025 |
|
May 31, 2024 |
||||
ROIC |
|
|
|
|
||||
Operating income (trailing fiscal four quarters) |
|
$ |
1,260,289 |
|
|
$ |
1,093,507 |
|
Income taxes on operating income(1) |
|
|
(256,291 |
) |
|
|
(220,648 |
) |
Operating income after taxes |
|
$ |
1,003,998 |
|
|
$ |
872,859 |
|
|
|
|
|
|
||||
Total invested capital comprising equity and borrowings, less cash (last five quarters average) |
|
$ |
11,427,978 |
|
|
$ |
11,281,778 |
|
|
|
|
|
|
||||
ROIC |
|
|
8.8 |
% |
|
|
7.7 |
% |
|
|
|
|
|
||||
Adjusted ROIC |
|
|
|
|
||||
Non-GAAP operating income (trailing fiscal four quarters) |
|
$ |
1,627,244 |
|
|
$ |
1,635,994 |
|
Income taxes on non-GAAP operating income(1) |
|
|
(358,374 |
) |
|
|
(365,917 |
) |
Non-GAAP operating income after taxes |
|
$ |
1,268,870 |
|
|
$ |
1,270,077 |
|
|
|
|
|
|
||||
Total invested capital comprising equity and borrowings, less cash (last five quarters average) |
|
$ |
11,427,978 |
|
|
$ |
11,281,778 |
|
Tax effected impact of cumulative non-GAAP adjustments (last five quarters average) |
|
|
1,602,973 |
|
|
|
1,272,871 |
|
Total non-GAAP invested capital (last five quarters average) |
|
$ |
13,030,951 |
|
|
$ |
12,554,649 |
|
|
|
|
|
|
||||
Adjusted ROIC |
|
|
9.7 |
% |
|
|
10.1 |
% |
(1) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods. |
||||||||
TD SYNNEX Corporation |
||||||||||
Calculation of Financial Metrics |
||||||||||
Cash Conversion Cycle |
||||||||||
(Currency in thousands) |
||||||||||
(Amounts may not add or compute due to rounding) |
||||||||||
|
|
|
|
Three Months Ended |
||||||
|
|
|
|
May 31, 2025 |
|
May 31, 2024 |
||||
Days sales outstanding |
|
|
|
|
|
|
||||
Revenue |
|
(a) |
|
$ |
14,946,315 |
|
|
$ |
13,947,908 |
|
Accounts receivable, net |
|
(b) |
|
|
10,127,960 |
|
|
|
8,852,525 |
|
Days sales outstanding |
|
(c) = ((b)/(a))*the number of days during the period |
|
|
62 |
|
|
|
59 |
|
|
|
|
|
|
|
|
||||
Days inventory outstanding |
|
|
|
|
|
|
||||
Cost of revenue |
|
(d) |
|
$ |
13,899,942 |
|
|
$ |
12,974,361 |
|
Inventories |
|
(e) |
|
|
8,655,741 |
|
|
|
7,098,247 |
|
Days inventory outstanding |
|
(f) = ((e)/(d))*the number of days during the period |
|
|
57 |
|
|
|
50 |
|
|
|
|
|
|
|
|
||||
Days payable outstanding |
|
|
|
|
|
|
||||
Cost of revenue |
|
(g) |
|
$ |
13,899,942 |
|
|
$ |
12,974,361 |
|
Accounts payable |
|
(h) |
|
|
14,542,575 |
|
|
|
12,134,581 |
|
Days payable outstanding |
|
(i) = ((h)/(g))*the number of days during the period |
|
|
96 |
|
|
|
86 |
|
|
|
|
|
|
|
|
||||
Cash conversion cycle |
|
(j) = (c)+(f)-(i) |
|
|
23 |
|
|
23 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250624077539/en/
David
Investor Relations
510-668-8436
IR@tdsynnex.com
Bobby Eagle
Global Corporate Communications
727-538-5864
bobby.eagle@tdsynnex.com
Source: TD SYNNEX
