Broadcom — Sep 4, 2025 release

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP — UNAUDITED (IN MILLIONS) Fiscal Quarter Ended Three Fiscal Quarters Ended August 3, 2025 May 4, 2025 August 4, 2024 August 3, 2025 August 4, 2024 Gross margin on GAAP basis $ 10,703  $ 10,197  $ 8,356  $ 31,045  $ 23,507  Amortization of acquisition-related intangible assets 1,519  1,483  1,525  4,486  4,421  Stock-based compensation expense 251  203  174  607  505  Restructuring charges 26  28  58  68  203  Acquisition-related costs —  —  —  —  9  Gross margin on non-GAAP basis $ 12,499  $ 11,911  $ 10,113  $ 36,206  $ 28,645  Research and development on GAAP basis $ 3,050  $ 2,693  $ 2,353  $ 7,996  $ 7,076  Stock-based compensation expense 1,573  1,169  877  3,564  2,621  Acquisition-related costs —  —  2  —  3  Research and development on non-GAAP basis $ 1,477  $ 1,524  $ 1,474  $ 4,432  $ 4,452  Selling, general and administrative expense on GAAP basis $ 1,072  $ 1,083  $ 1,100  $ 3,104  $ 3,949  Stock-based compensation expense 498  399  330  1,202  1,230  Acquisition-related costs 7  90  79  204  451  Selling, general and administrative expense on non-GAAP basis $ 567  $ 594  $ 691  $ 1,698  $ 2,268  Total operating expenses on GAAP basis $ 4,816  $ 4,368  $ 4,568  $ 13,069  $ 14,671  Amortization of acquisition-related intangible assets 507  506  812  1,524  2,431  Stock-based compensation expense 2,071  1,568  1,207  4,766  3,851  Restructuring and other charges 187  86  303  445  1,215  Acquisition-related costs 7  90  81  204  454  Total operating expenses on non-GAAP basis $ 2,044  $ 2,118  $ 2,165  $ 6,130  $ 6,720  Operating income on GAAP basis $ 5,887  $ 5,829  $ 3,788  $ 17,976  $ 8,836  Amortization of acquisition-related intangible assets 2,026  1,989  2,337  6,010  6,852  Stock-based compensation expense 2,322  1,771  1,381  5,373  4,356  Restructuring and other charges 213  114  361  513  1,418  Acquisition-related costs 7  90  81  204  463  Operating income on non-GAAP basis $ 10,455  $ 9,793  $ 7,948  $ 30,076  $ 21,925  Interest expense on GAAP basis $ (807) $ (769) $ (1,064) $ (2,449) $ (3,037) Loss on debt extinguishment 53  —  83  118  105  Interest expense on non-GAAP basis $ (754) $ (769) $ (981) $ (2,331) $ (2,932) Other income, net on GAAP basis $ 205  $ 25  $ 82  $ 333  $ 354  (Gains) losses on investments 10  9  6  23  (18) Gain from sale of business (163) —  —  (163) —  Other 19  (3) —  (15) —  Other income, net on non-GAAP basis $ 71  $ 31  $ 88  $ 178  $ 336  Fiscal Quarter Ended Three Fiscal Quarters Ended August 3, 2025 May 4, 2025 August 4, 2024 August 3, 2025 August 4, 2024 Provision for income taxes on GAAP basis $ 1,145  $ 120  $ 4,238  $ 1,252  $ 4,190  Non-GAAP tax reconciling adjustments (1) 223  1,148  (3,303) 2,657  (1,629) Provision for income taxes on non-GAAP basis $ 1,368  $ 1,268  $ 935  $ 3,909  $ 2,561  Net income (loss) on GAAP basis $ 4,140  $ 4,965  $ (1,875) $ 14,608  $ 1,571  Amortization of acquisition-related intangible assets 2,026  1,989  2,337  6,010  6,852  Stock-based compensation expense 2,322  1,771  1,381  5,373  4,356  Restructuring and other charges 213  114  361  513  1,418  Acquisition-related costs 7  90  81  204  463  Loss on debt extinguishment 53  —  83  118  105  (Gains) losses on investments 10  9  6  23  (18) Gain from sale of business (163) —  —  (163) —  Other 19  (3) —  (15) —  Non-GAAP tax reconciling adjustments (1) (223) (1,148) 3,303  (2,657) 1,629  Loss from discontinued operations, net of income taxes —  —  443  —  392  Net income on non-GAAP basis $ 8,404  $ 7,787  $ 6,120  $ 24,014  $ 16,768  Net income (loss) on GAAP basis $ 4,140  $ 4,965  $ (1,875) $ 14,608  $ 1,571  Non-GAAP Adjustments: Amortization of acquisition-related intangible assets 2,026  1,989  2,337  6,010  6,852  Stock-based compensation expense 2,322  1,771  1,381  5,373  4,356  Restructuring and other charges 213  114  361  513  1,418  Acquisition-related costs 7  90  81  204  463  Loss on debt extinguishment 53  —  83  118  105  (Gains) losses on investments 10  9  6  23  (18) Gain from sale of business (163) —  —  (163) —  Other 19  (3) —  (15) —  Non-GAAP tax reconciling adjustments (1) (223) (1,148) 3,303  (2,657) 1,629  Loss from discontinued operations, net of income taxes —  —  443  —  392  Other Adjustments: Interest expense 754  769  981  2,331  2,932  Provision for income taxes on non-GAAP basis 1,368  1,268  935  3,909  2,561  Depreciation 142  142  149  426  437  Amortization of purchased intangibles and right-of-use assets 34  35  38  106  110  Adjusted EBITDA $ 10,702  $ 10,001  $ 8,223  $ 30,786  $ 22,808  Weighted-average shares used in per share calculations - diluted on GAAP basis 4,860  4,826  4,663  4,841  4,762  Non-GAAP adjustment (2) 112  111  254  94  106  Weighted-average shares used in per share calculations - diluted on non-GAAP basis 4,972  4,937  4,917  4,935  4,868  Net cash provided by operating activities $ 7,166  $ 6,555  $ 4,963  $ 19,834  $ 14,358  Purchases of property, plant and equipment (142) (144) (172) (386) (426) Free cash flow $ 7,024  $ 6,411  $ 4,791  $ 19,448  $ 13,932   Fiscal Quarter Ending November 2, Expected average diluted share count (3) : 2025 Weighted-average shares used in per share calculation - diluted on GAAP basis 4,881  Non-GAAP adjustment (2) 89  Weighted-average shares used in per share calculation - diluted on non-GAAP basis 4,970  (1) Non-GAAP tax reconciling adjustments included a one-time discrete non-cash tax provision of $4.5 billion from the impact of an intra-group transfer of certain IP rights to the United States as a result of supply chain realignment for the fiscal quarter and three fiscal quarters ended August 4, 2024. (2) 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. For the fiscal quarter ended August 4, 2024, non-GAAP adjustment included the dilutive effect of the equity awards that were antidilutive on a GAAP basis. (3) Excludes the effects of potential share repurchases. BROADCOM INC. CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (IN MILLIONS) August 3, 2025 November 3, 2024 ASSETS Current assets: Cash and cash equivalents $ 10,718  $ 9,348  Trade accounts receivable, net 6,494  4,416  Inventory 2,180  1,760