Broadcom — Jun 5, 2025 release

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP — UNAUDITED (IN MILLIONS) Fiscal Quarter Ended Two Fiscal Quarters Ended May 4, 2025 February 2, 2025 May 5, 2024 May 4, 2025 May 5, 2024 Gross margin on GAAP basis $ 10,197  $ 10,145  $ 7,776  $ 20,342  $ 15,151  Amortization of acquisition-related intangible assets 1,483  1,484  1,516  2,967  2,896  Stock-based compensation expense 203  153  170  356  331  Restructuring charges 28  14  53  42  145  Acquisition-related costs —  —  3  —  9  Gross margin on non-GAAP basis $ 11,911  $ 11,796  $ 9,518  $ 23,707  $ 18,532  Research and development on GAAP basis $ 2,693  $ 2,253  $ 2,415  $ 4,946  $ 4,723  Stock-based compensation expense 1,169  822  881  1,991  1,744  Acquisition-related costs —  —  —  —  1  Research and development on non-GAAP basis $ 1,524  $ 1,431  $ 1,534  $ 2,955  $ 2,978  Selling, general and administrative expense on GAAP basis $ 1,083  $ 949  $ 1,277  $ 2,032  $ 2,849  Stock-based compensation expense 399  305  352  704  900  Acquisition-related costs 90  107  87  197  372  Selling, general and administrative expense on non-GAAP basis $ 594  $ 537  $ 838  $ 1,131  $ 1,577  Total operating expenses on GAAP basis $ 4,368  $ 3,885  $ 4,811  $ 8,253  $ 10,103  Amortization of acquisition-related intangible assets 506  511  827  1,017  1,619  Stock-based compensation expense 1,568  1,127  1,233  2,695  2,644  Restructuring and other charges 86  172  292  258  912  Acquisition-related costs 90  107  87  197  373  Total operating expenses on non-GAAP basis $ 2,118  $ 1,968  $ 2,372  $ 4,086  $ 4,555  Operating income on GAAP basis $ 5,829  $ 6,260  $ 2,965  $ 12,089  $ 5,048  Amortization of acquisition-related intangible assets 1,989  1,995  2,343  3,984  4,515  Stock-based compensation expense 1,771  1,280  1,403  3,051  2,975  Restructuring and other charges 114  186  345  300  1,057  Acquisition-related costs 90  107  90  197  382  Operating income on non-GAAP basis $ 9,793  $ 9,828  $ 7,146  $ 19,621  $ 13,977  Interest expense on GAAP basis $ (769) $ (873) $ (1,047) $ (1,642) $ (1,973) Loss on debt extinguishment —  65  22  65  22  Interest expense on non-GAAP basis $ (769) $ (808) $ (1,025) $ (1,577) $ (1,951) Other income, net on GAAP basis $ 25  $ 103  $ 87  $ 128  $ 272  (Gains) losses on investments 9  4  9  13  (24) Other (3) (31) —  (34) —  Other income, net on non-GAAP basis $ 31  $ 76  $ 96  $ 107  $ 248  Fiscal Quarter Ended Two Fiscal Quarters Ended May 4, 2025 February 2, 2025 May 5, 2024 May 4, 2025 May 5, 2024 Provision for (benefit from) income taxes on GAAP basis $ 120  $ (13) $ (116) $ 107  $ (48) Non-GAAP tax reconciling adjustments 1,148  1,286  939  2,434  1,674  Provision for income taxes on non-GAAP basis $ 1,268  $ 1,273  $ 823  $ 2,541  $ 1,626  Net income on GAAP basis $ 4,965  $ 5,503  $ 2,121  $ 10,468  $ 3,446  Amortization of acquisition-related intangible assets 1,989  1,995  2,343  3,984  4,515  Stock-based compensation expense 1,771  1,280  1,403  3,051  2,975  Restructuring and other charges 114  186  345  300  1,057  Acquisition-related costs 90  107  90  197  382  Loss on debt extinguishment —  65  22  65  22  (Gains) losses on investments 9  4  9  13  (24) Other (3) (31) —  (34) —  Non-GAAP tax reconciling adjustments (1,148) (1,286) (939) (2,434) (1,674) Income from discontinued operations, net of income taxes —  —  —  —  (51) Net income on non-GAAP basis $ 7,787  $ 7,823  $ 5,394  $ 15,610  $ 10,648  Net income on GAAP basis $ 4,965  $ 5,503  $ 2,121  $ 10,468  $ 3,446  Non-GAAP Adjustments: Amortization of acquisition-related intangible assets 1,989  1,995  2,343  3,984  4,515  Stock-based compensation expense 1,771  1,280  1,403  3,051  2,975  Restructuring and other charges 114  186  345  300  1,057  Acquisition-related costs 90  107  90  197  382  Loss on debt extinguishment —  65  22  65  22  (Gains) losses on investments 9  4  9  13  (24) Other (3) (31) —  (34) —  Non-GAAP tax reconciling adjustments (1,148) (1,286) (939) (2,434) (1,674) Income from discontinued operations, net of income taxes —  —  —  —  (51) Other Adjustments: Interest expense 769  808  1,025  1,577  1,951  Provision for income taxes on non-GAAP basis 1,268  1,273  823  2,541  1,626  Depreciation 142  142  149  284  288  Amortization of purchased intangibles and right-of-use assets 35  37  38  72  72  Adjusted EBITDA $ 10,001  $ 10,083  $ 7,429  $ 20,084  $ 14,585  Weighted-average shares used in per share calculations - diluted on GAAP basis 4,826  4,836  4,799  4,831  4,730  Non-GAAP adjustment (1) 111  59  117  85  115  Weighted-average shares used in per share calculations - diluted on non-GAAP basis 4,937  4,895  4,916  4,916  4,845  Net cash provided by operating activities $ 6,555  $ 6,113  $ 4,580  $ 12,668  $ 9,395  Purchases of property, plant and equipment (144) (100) (132) (244) (254) Free cash flow $ 6,411  $ 6,013  $ 4,448  $ 12,424  $ 9,141   Fiscal Quarter Ending August 3, Expected average diluted share count (2) : 2025 Weighted-average shares used in per share calculation - diluted on GAAP basis 4,842  Non-GAAP adjustment (1) 129  Weighted-average shares used in per share calculation - diluted on non-GAAP basis 4,971  (1) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. (2) Excludes the effects of potential share repurchases. BROADCOM INC. CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (IN MILLIONS) May 4, 2025 November 3, 2024 ASSETS Current assets: Cash and cash equivalents $ 9,472  $ 9,348  Trade accounts receivable, net 5,563  4,416  Inventory 2,017  1,760  Other current assets 5,129  4,071  Total current assets 22,181  19,595  Long-term assets: Property, plant and equipment, net 2,462  2,521  Goodwill 97,801  97,873  Intangible assets, net 36,393  40,583  Other long-term assets 5,793  5,073  Total assets $ 164,630  $ 165,645  LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 1,297  $ 1,662  Employee compensation and benefits 1,266  1,971  Short-term debt 5,531  1,271  Ot