Kioxia (285A) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥342.8bn, down 1.2% QoQ and 20% YoY, mainly due to lower ASPs and FX effects.

• Q1 FY2025 results exceeded the upper end of guidance, showing clear recovery since Q3 FY24.

• Free cash flow remained positive for six consecutive quarters, with improved cash flow generation.

• Operating profit was ¥44.9bn, down 64% YoY but up sequentially, aided by higher ASPs and absence of one-time tax charge.

• Completed major refinancing in July, including repurchase of all preferred shares, new USD notes, and term loans.

Financial highlights

• Non-GAAP operating profit reached ¥45.2bn (OPM 13.2%, up 2.4pt QoQ), down 64% YoY but up 21% sequentially.

• Non-GAAP net income was ¥18.5bn (NIM 5.4%, up 1.6pt QoQ), down 74% YoY and 10% sequentially.

• Non-GAAP EBITDA for Q1 was ¥124.9bn (36% margin).

• Free cash flow for Q1 was ¥27.0bn, positive for six consecutive quarters.

• Cash and cash equivalents at quarter-end were ¥178.4bn, up ¥10.5bn from previous fiscal year-end.

Outlook and guidance

• Q2 FY2025 revenue guidance: ¥420.0–470.0bn; non-GAAP operating profit: ¥49.0–83.0bn.

• Q2 non-GAAP net income guidance: ¥17.0–41.0bn, including a one-off refinancing impact of -¥10.0bn.

• Substantial QoQ growth in revenue and profit expected in Q2, driven by strong data center and enterprise SSD demand.

• Bit growth in NAND market for CY2025 expected in low 10% range.

• Finance costs will rise by ¥13bn in Q2 due to refinancing.