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SNDK, Sandisk Corporation

Sandisk is a leading developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology.

As of February 21, 2025, we separated from WDC (the "separation") and became a standalone publicly traded company, trading under the stock symbol "SNDK" on the Nasdaq Global Select Market.

With a differentiated innovation engine driving advancements in storage and semiconductor technologies, our broad and ever-expanding portfolio delivers powerful flash storage solutions for AI workloads in datacenters, edge devices, and consumers.

Latest annual: FY2025 10-K

SNDK · Sandisk Corporation

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$7.4B

+10.4% YoY

Vital signs · TTM, with 3-yr average

Revenue $13.2B 3-yr avg $6.7B

Operating margin 40.7% 3-yr avg −19.7%

Owner-earnings margin 34% 3-yr avg −8%

Free cash flow margin 34% 3-yr avg −8%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Client (56%), Consumer (31%) and Cloud (13%).
What moves the needle: Operating margin has run around −19% through the cycle on a 16% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Inventory runs near 28% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 3 lines, the largest Client at 56%.

Revenue by product line, FY2025

Client56%$4.1B
Consumer31%$2.3B
Cloud13%$960M

By geographyChina28%United States20%Hong Kong SAR China18%EMEA17%Rest of Asia15%Other2%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2023–2025

realized figures from each filing · older years to the left

2023’23	2024’24	2025’25	TTMTTMApr 2026
				Income statement
$6.1B	$6.7B	$7.4B	$13.2B	RevenueRevenue
7%	16%	30%	56%	Gross marginGross mgn
9%	7%	8%	5%	SG&A / revenueSG&A/rev
19%	16%	15%	10%	R&D / revenueR&D/rev
($2.0B)	($468M)	($1.4B)	$5.4B	Operating incomeOp. inc.
−33.4%	−7.0%	−18.7%	40.7%	Operating marginOp. mgn
($2.1B)	($672M)	($1.6B)	$4.5B	Net incomeNet inc.
				Cash flow & returns
($713M)	($309M)	$84M	$4.6B	Operating cash flowOp. cash
$448M	$224M	$163M	$148M	DepreciationDeprec.
$817M	($10M)	$1.4B	($230M)	Working capital & otherWC & other
$219M	$166M	$204M	$179M	CapexCapex
3.6%	2.5%	2.8%	1.4%	Capex / revenueCapex/rev
($932M)	($475M)	($79M)	$4.5B	Owner earningsOwner earn.
−15.3%	−7.1%	−1.1%	33.8%	Owner earnings marginOE mgn
($932M)	($475M)	($120M)	$4.5B	Free cash flowFCF
−15.3%	−7.1%	−1.6%	33.8%	Free cash flow marginFCF mgn
-19%	-6%	-18%	33%	Return on equityROE
−19%	−6%	−18%	33%	Retained to equityRetained/eq
				Balance sheet
$292M	$328M	$1.5B	$3.7B	Cash & investmentsCash+inv
—	$935M	$1.1B	$2.7B	ReceivablesReceiv.
—	$2.0B	$2.1B	$2.2B	InventoryInvent.
—	$2.9B	$3.1B	$5.0B	Operating working capitalOper. WC
—	$3.5B	$5.1B	$9.2B	Current assetsCur. assets
—	$2.1B	$1.4B	$1.9B	Current liabilitiesCur. liab.
—	1.7×	3.6×	4.8×	Current ratioCurr. ratio
—	$7.2B	$5.0B	$5.0B	GoodwillGoodwill
—	$13.5B	$13.0B	$17.1B	Total assetsAssets
-65.6×	-11.7×	-21.9×	47.9×	Interest coverageInt. cov.
$11.4B	$11.1B	$9.2B	$13.8B	Shareholders’ equityEquity
2.7%	2.2%	2.5%	1.6%	Stock comp / revenueSBC/rev
$671M	—	$1.8B	—	Goodwill written downGW imp.
				Per share
145M	145M	145M	154M	Shares out (diluted)Shares
$41.97	$45.95	$50.72	$85.61	Revenue / shareRev/sh
$-14.78	$-4.63	$-11.32	$29.27	EPS (diluted)EPS
$-6.43	$-3.28	$-0.54	$28.96	Owner earnings / shareOE/sh
$-6.43	$-3.28	$-0.83	$28.96	Free cash flow / shareFCF/sh
$1.51	$1.14	$1.41	$1.16	Cap. spending / shareCapex/sh
$78.89	$76.43	$63.56	$89.46	Book value / shareBVPS

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue+10.4%
“Net Revenue Net revenue increased 10%, or $692 million, in 2025 compared to 2024, primarily due to a 6% increase in exabytes sold due to stronger demand in our Cloud end market and a 4% increase in average selling prices (“ASP”) per gigabyte due to enhanced pricing as the supply-demand balance improved.”
✓ figure matches the filed record
Client+1.4%
“Client revenue increased 1%, or $58 million, in 2025 compared to 2024, primarily due to an 8% increase in ASP per gigabyte, partially offset by a 7% decrease in exabytes sold.”
✓ figure matches the filed record
Consumer0.0%
“Consumer revenue decreased $1 million in 2025 compared to 2024, primarily due to a 6% increase in exabytes sold, offset by a 7% decrease in ASP per gigabyte due to pricing pressure.”
✓ figure matches the filed record
Cloud+195.4%
“Cloud revenue increased 195%, or $635 million, in 2025 compared to 2024, primarily due to a 153% increase in exabytes sold due to increased enterprise SSD shipments to data center customers and a 17% increase in ASP per gigabyte due to improved pricing.”
✓ figure matches the filed record

The record, charted

FY2023–2025

Each measure over its full record; the current point and the worst year marked.

Share count

145Mpeak FY2023

Gross margin

30%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($79M)owner earningsvs.($1.6B)net incomelow FY2023

Owner-earnings bridge

FY2023–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned ($79M) of owner earnings, the operating cash left after the $163M it takes just to hold its position. It put $41M more into growth; free cash flow, after that spending, was ($120M).

	FY2025	FY2024	FY2023
Reported net income	($1.6B)	($672M)	($2.1B)
Depreciation & amortizationnon-cash charge added back	+$163M	+$224M	+$448M
Stock-based compensationreal costnon-cash, but a real cost	+$182M	+$149M	+$165M
Working capital & othertiming of cash in and out, other non-cash items	+$1.4B	−$10M	+$817M
Cash from operations	$84M	($309M)	($713M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$163M	−$166M	−$219M
Owner earnings	($79M)	($475M)	($932M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$41M	—	—
Free cash flow	($120M)	($475M)	($932M)
Owner-earnings marginowner earnings ÷ revenue	-1%	-7%	-15%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $163M, roughly its depreciation, the rate its assets wear out). The other $41M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $182M), owner earnings is nearer ($261M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -21.9×

Does not cover its interest

Operating income ($1.4B) ÷ interest expense $63M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $368M

Net debt against an operating loss

Cash $1.5B − debt $1.8B

What this means
Netting $1.5B of cash and short-term investments against $1.8B of debt leaves $368M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -11%

Below average through the cycle

3-yr median, range -14%–-3%; -11% latest = NOPAT ($1.1B) ÷ invested capital $9.6B

Industry peers: median 18%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 3 years (it ran -11% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -7%

Consumes cash through the cycle

3-yr median margin, range -15%–-1%; latest ($79M) = operating cash $84M − maintenance capex $163M

Industry peers: median 12%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -1% of revenue this year, a -7% median across 3 years. Treating stock comp as the real expense it is (less $182M of SBC) leaves ($261M).
Are earnings backed by cash? $84M

Loss, but cash-generative

Net income ($1.6B) · cash from operations $84M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 1.25×

Expanding

Capex $204M ÷ depreciation $163M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 3 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $7.4B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.56×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $1.8B vs $3.7B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-10.03/share (latest year $-11.08), the averaged base the calculator's gate runs on, and book value is $62.23/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“The rapid pace of innovation driven by AI, global research and development competition, evolving models of work, and intensifying customer demands for faster, more efficient solutions has significantly raised the bar for the type of technical expertise required to power current and next-generation technologies.…”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 3, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$9.2B

Cash & short-term investments$3.7B
Receivables$2.7B
Inventory$2.2B
Other current assets$469M

Current liabilities$1.9B

Other current liabilities$1.9B

Current ratio4.78×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.62×stricter: inventory excluded

Cash ratio1.95×strictest: cash alone against what's due

Working capital$7.3Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+251.0%the freshest read on whether the business is still growing

Current ratio, recent quarters1.7× → 4.8×

Deeper floors

Tangible book value$8.8Bequity stripped of goodwill & intangibles

Net current asset value$5.9BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$207M$207M of it operating leases

Deferred revenue$511Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Acquisitions & goodwill

from the balance sheet & the 3-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill$5.0B38% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity54%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$0over 3 years buying other businesses, against $589M of capital spent building

$2.5B written down across 2 years (2023, 2025): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 3-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$182M
The slice of the business handed to employees in shares this year, 2% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$2.0B · 15% of revenue on the largest customer (TTM)
“For 2023, one customer accounted for 15% of our net revenue.”verify →
Which reported numbers are a judgment call?
Management names Revenue recognition, Inventory, Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Technology Hardware

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
WDCWestern Digital Corporation	$9.5B	28%	7.2%	6%	4%
STXSeagate Technology Holdings PLC	$9.1B	28%	13.2%	29%	11%
ANETArista Networks Inc.	$9.0B	64%	32.4%	33%	33%
SNDKSandisk Corporation	$7.4B	16%	-18.7%	-11%	-7%
XRXXerox Holdings Corporation	$7.0B	—	-0.4%	-2%	8%
NTAPNetApp Inc.	$6.9B	67%	18.8%	70%	20%
FTNTFortinet Inc.	$6.8B	77%	20.5%	—	36%
PEverpure Inc.	$3.7B	69%	-8.1%	-12%	12%
Group median	—	64%	10.2%	6%	11%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Sandisk Corporation has delivered.

Today’s price $

Base Normalize · through-cycle (($509M)) Net of stock comp (−$214M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $4.5B on 148M shares outstanding, per the 10-Q cover, as of 2026-04-24; net cash $3.7B. The if-converted diluted count is 154M, 4% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh SNDK against another business →

The owners of SNDK: the meeting and the votes →

Cite: Owner Scorecard, "Sandisk Corporation (SNDK), the owner's record," https://ownerscorecard.com/c/SNDK, data as of 2026-07-09.

Manual order: ← SNDA its page in the Manual SNDR →

Industry order: ← SMCIP the Technology Hardware chapter SSYS →