Revenue performance: 1H3 2025 QQ3 revenue of $1.641 billion, YoY -1.56%, QoQ -1.03%. Gross profit $1.145 billion, gross margin 69.77% (0.698), YoY gross profit change -2.05%, QoQ -2.72%. Operating income $362 million, operating margin 22.06% (0.221), YoY -1.09%, QoQ +4.93%. Net income $299 million, net margin 18.22% (0.182), YoY +2.75%, QoQ flat. EPS (GAAP) $1.47, diluted $1.44, YoY EPS +4.26%, QoQ +0.00%. EBITDA $446 million, EBITDA margin 27.18% (0.272).
Cash flow and capital allocation: Operating cash flow $385 million; capex $47 million; free cash flow $338 million ($1.66 per share). Net income translated into strong operating cash generation, supporting a robust free cash flow envelope. Financing activity reflects $200 million of share repurchases and $106 million of dividends; net debt stood at approximately $0.739 billion after a combination of cash on hand and modest leverage.
Balance sheet health: Cash and cash equivalents $1.511 billion; total cash and short-term investments $2.261 billion; total assets $8.989 billion. Total debt around $2.25 billion; current liabilities $4.195 billion and current assets $3.909 billion yield a current ratio of 0.932 and quick ratio of 0.868, suggesting liquidity while indicating some short-term working capital pressures. Net debt to EBITDA remains manageable given the scale of operations, with a debt-to-capitalization of 0.693 and a debt-to-equity ratio of 2.26. Equity stands at $0.995 billion; non-current assets include $2.723 billion of goodwill.
Valuation and market metrics: Price-to-book ~25.83x; price-to-sales ~15.66x; P/E ~21.49x; dividend yield ~0.41%. Cash flow strength and a durable gross margin support a favorable long‑term valuation narrative, albeit at elevated multiples typical of enterprise storage and data-management franchises.