Kioxia (285A) Q4 2025 earnings summary

Executive summary

• Achieved record high revenue and net income for FY2024, driven by demand recovery, higher ASPs, increased bit shipments, and strong Data Center/Enterprise SSD sales.

• Operating profit reached 451.7 billion yen, reversing a prior year loss, mainly due to revenue growth and absence of underutilization costs.

• Maintained positive free cash flow for five consecutive quarters, enabling debt repayment and balance sheet strengthening.

• The Memory business remains the sole reportable segment, with SSD & Storage, Smart Devices, and Other as key product categories.

• Flash memory market saw recovery in bit shipments and ASPs, with strong data center demand, while PC and smartphone demand moderated in H2.

Financial highlights

• FY2024 revenue rose 58.5% year-over-year to 1,706.5 billion yen; non-GAAP net income reached 266.0 billion yen, reversing a prior year loss.

• Gross profit for FY2025 was 569.4 billion yen, compared to a gross loss of 129.3 billion yen in FY2024.

• Adjusted gross margin for FY2024 was 38%; non-GAAP operating margin was 27%.

• Free cash flow for FY2024 was 303.4 billion yen, a record high.

• Basic earnings per share improved to 519.96 yen from a loss of 470.97 yen.

Outlook and guidance

• Q1 FY2025 revenue guidance: 295.0–325.0 billion yen; non-GAAP operating profit: 13.0–35.0 billion yen; net income: 0.0–14.0 billion yen.

• Minimal impact expected from tariffs in Q1; monitoring end-market demand, especially for smartphones and PCs.

• Demand for data center and enterprise SSDs to remain strong; PC and smartphone demand to stay relatively weak as inventory adjustments wind down.

• Inventory levels for smartphone and PC customers stabilizing, but macroeconomic uncertainties cloud recovery pace.