NVIDIA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) (Unaudited) Three Months Ended Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 GAAP gross profit $ 26,156 $ 22,574 $ 13,400 $ 69,135 $ 27,510 GAAP gross margin 74.6 % 75.1 % 74.0 % 75.8 % 70.9 % Acquisition-related and other costs (A) 116 118 119 355 358 Stock-based compensation expense (B) 50 40 38 125 96 Other (C) — (3) 26 (4) 36 Non-GAAP gross profit $ 26,322 $ 22,729 $ 13,583 $ 69,611 $ 28,000 Non-GAAP gross margin 75.0 % 75.7 % 75.0 % 76.4 % 72.1 % GAAP operating expenses $ 4,287 $ 3,932 $ 2,983 $ 11,716 $ 8,152 Stock-based compensation expense (B) (1,202) (1,114) (941) (3,291) (2,459) Acquisition-related and other costs (A) (39) (26) (16) (86) (88) Other (C) — — — — 10 Non-GAAP operating expenses $ 3,046 $ 2,792 $ 2,026 $ 8,339 $ 5,615 GAAP operating income $ 21,869 $ 18,642 $ 10,417 $ 57,419 $ 19,358 Total impact of non-GAAP adjustments to operating income 1,407 1,295 1,140 3,853 3,027 Non-GAAP operating income $ 23,276 $ 19,937 $ 11,557 $ 61,272 $ 22,385 GAAP other income (expense), net $ 447 $ 572 $ 105 $ 1,390 $ 354 (Gains) losses from non-affiliated investments and publicly-held equity securities, net (37) (193) 69 (302) 23 Interest expense related to amortization of debt discount 1 1 1 3 3 Non-GAAP other income (expense), net $ 411 $ 380 $ 175 $ 1,091 $ 380 GAAP net income $ 19,309 $ 16,599 $ 9,243 $ 50,789 $ 17,475 Total pre-tax impact of non-GAAP adjustments 1,371 1,103 1,210 3,554 3,053 Income tax impact of non-GAAP adjustments (D) (670) (750) (433) (2,144) (1,055) Non-GAAP net income $ 20,010 $ 16,952 $ 10,020 $ 52,199 $ 19,473 Three Months Ended Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 Diluted net income per share (E) GAAP $ 0.78 $ 0.67 $ 0.37 $ 2.04 $ 0.70 Non-GAAP $ 0.81 $ 0.68 $ 0.40 $ 2.10 $ 0.78 Weighted average shares used in diluted net income per share computation (E) 24,774 24,848 24,940 24,837 24,940 GAAP net cash provided by operating activities $ 17,629 $ 14,489 $ 7,333 $ 47,460 $ 16,591 Purchases related to property and equipment and intangible assets (813) (977) (278) (2,159) (815) Principal payments on property and equipment and intangible assets (29) (29) (13) (97) (44) Free cash flow $ 16,787 $ 13,483 $ 7,042 $ 45,204 $ 15,732 (A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items: Three Months Ended Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 Cost of revenue $ 116 $ 118 $ 119 $ 355 $ 358 Research and development $ 23 $ 17 $ 12 $ 52 $ 37 Sales, general and administrative $ 16 $ 9 $ 4 $ 34 $ 51 (B) Stock-based compensation consists of the following: Three Months Ended Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 Cost of revenue $ 50 $ 40 $ 38 $ 125 $ 96 Research and development $ 910 $ 832 $ 701 $ 2,469 $ 1,826 Sales, general and administrative $ 292 $ 282 $ 240 $ 822 $ 633 (C) Other consists of IP-related costs and assets held for sale related adjustments (D) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09). (E) Reflects a ten-for-one stock split on June 7, 2024 NVIDIA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK Q4 FY2025 Outlook ($ in millions) GAAP gross margin 73.0 % Impact of stock-based compensation expense, acquisition-related costs, and other costs 0.5 % Non-GAAP gross margin 73.5 % GAAP operating expenses $ 4,750 Stock-based compensation expense, acquisition-related costs, and other costs (1,350) Non-GAAP operating expenses $ 3,400

the item shown at left

other guidance in this release

Text is the filed exhibit, verbatim.