EINDHOVEN, The Netherlands, Oct. 27, 2025 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ:NXPI) today reported financial results for the third quarter, which ended September 28, 2025. "NXP reported quarterly revenue of $3.17 billion, exceeding the midpoint of our guidance. We experienced broad-based sequential improvement across all regions and end markets. Our outlook reflects the strength of our company specific growth drivers and signs of a cyclical recovery. We remain focused on disciplined investment and portfolio enhancement to drive profitable growth, while maintaining control over the factors we can influence," said Rafael Sotomayor, NXP President and incoming Chief Executive Officer.
Key Highlights for the Third Quarter 2025:
- Revenue was $3.17 billion, down 2 percent year-on-year;
- GAAP gross margin was 56.3 percent, GAAP operating margin was 28.1 percent and GAAP diluted Net Income per Share was $2.48;
- Non-GAAP gross margin was 57.0 percent, non-GAAP operating margin was 33.8 percent, and non-GAAP diluted Net Income per Share was $3.11;
- Cash flow from operations was $585 million, with net capex investments of $76 million, resulting in non-GAAP free cash flow of $509 million;
- Capital return during the quarter was $310 million, representing 60.9 percent of third quarter non-GAAP free cash flow. Share buybacks were $54 million and dividends paid during the quarter were $256 million. After the end of the third quarter, between September 29, 2025, and October 24, 2025, NXP executed via a 10b5-1 program additional share repurchases totaling $100 million;
- On July 2, 2025, NXP announced its new 18-channel Li-ion battery cell controller BMx7318/7518 IC family, designed for electric vehicle high-voltage battery management systems (HVBMS), industrial energy storage systems (ESS) and 48 V battery management systems. The new IC family meets both automotive ASIL C and industrial SIL 2 functional safety certifications;
- On July 24, 2025, NXP reached a definitive agreement with STMicroelectronics International N.V., under which NXP will sell its MEMS sensors business line for an amount up to $950 million in cash, including $900 million at closing and up to an additional $50 million subject to the achievement of technical milestones. We expect final closing sometime during the first half of 2026;
- On August 19, 2025, NXP closed the pricing of an offering by its subsidiaries NXP B.V., NXP Funding LLC and NXP USA, Inc. of $500 million aggregate principal amount of 4.300% senior unsecured notes due 2028, $300 million aggregate principal amount of 4.850% senior unsecured notes due 2032 and $700 million aggregate principal amount of 5.250% senior unsecured notes due 2035;
- On August 28, 2025, the NXP board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the third quarter of 2025. The interim dividend was paid in cash on October 8, 2025, to shareholders of record as of September 17, 2025;
- On October 24, 2025, NXP closed the previously announced acquisition of Aviva Links for $243 million in cash before closing adjustments. Aviva Links is a provider of Automotive SerDes Alliance (ASA) compliant-in-vehicle connectivity solutions. The Aviva Links acquisition complements and expands NXP's automotive networking solutions in the Automotive and Industrial & IoT end markets; and
- NXP has received all required regulatory approvals for the previously announced acquisition of Kinara, an industry leader in high performance, energy-efficient and programmable discrete neural processing units (NPUs). NXP and Kinara are in the process of completing all required closing conditions.
Summary of Reported Third Quarter 2025 ($ millions, unaudited) (1)
| Q3 2025 | Q2 2025 | Q3 2024 | Q - Q | Y - Y | |||||||
| Total Revenue | $ | 3,173 | $ | 2,926 | $ | 3,250 | 8% | -2% | |||
| GAAP Gross Profit | $ | 1,787 | $ | 1,562 | $ | 1,866 | 14% | -4% | |||
| Gross Profit Adjustments(i) | $ | (23 | ) | $ | (90 | ) | $ | (26 | ) | ||
| Non-GAAP Gross Profit | $ | 1,810 | $ | 1,652 | $ | 1,892 | 10% | -4% | |||
| GAAP Gross Margin | 56.3 | % | 53.4 | % | 57.4 | % | |||||
| Non-GAAP Gross Margin | 57.0 | % | 56.5 | % | 58.2 | % | |||||
| GAAP Operating Income (Loss) | $ | 893 | $ | 687 | $ | 990 | 30% | -10% | |||
| Operating Income Adjustments(i) | $ | (178 | ) | $ | (248 | ) | $ | (163 | ) | ||
| Non-GAAP Operating Income | $ | 1,071 | $ | 935 | $ | 1,153 | 15% | -7% | |||
| GAAP Operating Margin | 28.1 | % | 23.5 | % | 30.5 | % | |||||
| Non-GAAP Operating Margin | 33.8 | % | 32.0 | % | 35.5 | % | |||||
| GAAP Net Income (Loss) attributable to Stockholders | $ | 631 | $ | 445 | $ | 718 | 42% | -12% | |||
| Net Income Adjustments(i) | $ | (159 | ) | $ | (245 | ) | $ | (172 | ) | ||
| Non-GAAP Net Income (Loss) Attributable to Stockholders | $ | 790 | $ | 690 | $ | 890 | 14% | -11% | |||
| GAAP diluted Net Income (Loss) per Share(ii) | $ | 2.48 | $ | 1.75 | $ | 2.79 | 42% | -11% | |||
| Non-GAAP diluted Net Income (Loss) per Share(ii) | $ | 3.11 | $ | 2.72 | $ | 3.45 | 14% | -10% | |||
| Additional information | |||||||||||
| Q3 2025 | Q2 2025 | Q3 2024 | Q - Q | Y - Y | |||||||
| Automotive | $ | 1,837 | $ | 1,729 | $ | 1,829 | 6% | —% | |||
| Industrial & IoT | $ | 579 | $ | 546 | $ | 563 | 6% | 3% | |||
| Mobile | $ | 430 | $ | 331 | $ | 407 | 30% | 6% | |||
| Comm. Infra. & Other | $ | 327 | $ | 320 | $ | 451 | 2% | -27% | |||
| DIO | 161 | 158 | 149 | ||||||||
| DPO | 58 | 60 | 60 | ||||||||
| DSO | 31 | 33 | 30 | ||||||||
| Cash Conversion Cycle | 134 | 131 | 119 | ||||||||
| Channel Inventory (weeks) | 9 | 9 | 8 | ||||||||
| Gross Financial Leverage(iii) | 2.6x | 2.4x | 1.9x | ||||||||
| Net Financial Leverage(iv) | 1.8x | 1.8x | 1.3x | ||||||||
- Additional Information for the Third Quarter 2025:
- For an explanation of GAAP to non-GAAP adjustments, please see "Non-GAAP Financial Measures".
- Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
- Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
- Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.
Guidance for the Fourth Quarter 2025: ($ millions, except Per Share data) (1)
| GAAP | Reconciliation | non-GAAP | ||||||||||||
| Low | Mid | High | Low | Mid | High | |||||||||
| Total Revenue | $3,200 | $3,300 | $3,400 | $3,200 | $3,300 | $3,400 | ||||||||
| Q-Q | 1% | 4% | 7% | 1% | 4% | 7% | ||||||||
| Y-Y | 3% | 6% | 9% | 3% | 6% | 9% | ||||||||
| Gross Profit | $1,796 | $1,870 | $1,944 | $(28) | $1,824 | $1,898 | $1,972 | |||||||
| Gross Margin | 56.1% | 56.7% | 57.2% | 57.0% | 57.5% | 58.0% | ||||||||
| Operating Income (loss) | $878 | $942 | $1,006 | $(199) | $1,077 | $1,141 | $1,205 | |||||||
| Operating Margin | 27.4% | 28.5% | 29.6% | 33.7% | 34.6% | 35.4% | ||||||||
| Financial Income (expense) | $(112) | $(112) | $(112) | $(9) | $(103) | $(103) | $(103) | |||||||
| Tax rate | 17.5%-18.5% | 17.5%-18.5% | ||||||||||||
| Equity-accounted investees | $(4) | $(4) | $(4) | $(1) | $(3) | $(3) | $(3) | |||||||
| Non-controlling interests | $(14) | $(14) | $(14) | $(14) | $(14) | $(14) | ||||||||
| Shares - diluted | 254.3 | 254.3 | 254.3 | 254.3 | 254.3 | 254.3 | ||||||||
| Earnings Per Share - diluted | $2.40 | $2.61 | $2.81 | $3.07 | $3.28 | $3.49 | ||||||||
Note (1) Additional Information:
- GAAP Gross Profit is expected to include Purchase Price Accounting ("PPA") effects, $(6) million; Share-based Compensation, $(15) million; Other Incidentals, $(7) million;
- GAAP Operating Income (loss) is expected to include PPA effects, $(42) million; Share-based Compensation, $(118) million; Restructuring and Other Incidentals, $(39) million;
- GAAP Financial Income (expense) is expected to include Other financial expense $(9) million;
- GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(1) million;
- GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.
NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Non-GAAP Financial Measures" below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.
Non-GAAP Financial Measures
In managing NXP's business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles ("GAAP"). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company's results of operations and the factors and trends affecting NXP's business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP's underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled "Financial Reconciliation of GAAP to non-GAAP Results (unaudited)." Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP's operations.
In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to non-foundry equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share - Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.
The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).
Conference Call and Webcast Information
The company will host a conference call with the financial community on Tuesday, October 28, 2025 at 8:00 a.m. U.S. Eastern Daylight Time (EDT) to review the third quarter 2025 results in detail.
Interested parties may preregister to obtain a user-specific access code for the call here.
The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ:NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.61 billion in 2024. Find out more at www.nxp.com.
Forward-looking Statements
This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP's products are incorporated; global trade disputes, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers' equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.
| For further information, please contact: | |
| Investors: Jeff Palmer [email protected] +1 408 205 0687 | Media: Paige Iven [email protected] +1 817 975 0602 |
NXP-CORP
NXP Semiconductors
Table 1: Condensed consolidated statement of operations (unaudited)
| ($ in millions except share data) | Three months ended | ||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | |||||||||
| Revenue | $ | 3,173 | $ | 2,926 | $ | 3,250 | |||||
| Cost of revenue | (1,386 | ) | (1,364 | ) | (1,384 | ) | |||||
| Gross profit | 1,787 | 1,562 | 1,866 | ||||||||
| Research and development | (575 | ) | (573 | ) | (577 | ) | |||||
| Selling, general and administrative | (286 | ) | (278 | ) | (265 | ) | |||||
| Amortization of acquisition-related intangible assets | (31 | ) | (25 | ) | (29 | ) | |||||
| Total operating expenses | (892 | ) | (876 | ) | (871 | ) | |||||
| Other income (expense) | (2 | ) | 1 | (5 | ) | ||||||
| Operating income (loss) | 893 | 687 | 990 | ||||||||
| Financial income (expense): | |||||||||||
| Other financial income (expense) | (98 | ) | (86 | ) | (82 | ) | |||||
| Income (loss) before income taxes | 795 | 601 | 908 | ||||||||
| Benefit (provision) for income taxes | (148 | ) | (116 | ) | (173 | ) | |||||
| Results relating to equity-accounted investees | (1 | ) | (28 | ) | (6 | ) | |||||
| Net income (loss) | 646 | 457 | 729 | ||||||||
| Less: Net income (loss) attributable to non-controlling interests | 15 | 12 | 11 | ||||||||
| Net income (loss) attributable to stockholders | 631 | 445 | 718 | ||||||||
| Earnings per share data: | |||||||||||
| Net income (loss) per common share attributable to stockholders in $ | |||||||||||
| Basic | $ | 2.50 | $ | 1.76 | $ | 2.82 | |||||
| Diluted | $ | 2.48 | $ | 1.75 | $ | 2.79 | |||||
| Weighted average number of shares of common stock outstanding during the period (in thousands): | |||||||||||
| Basic | 252,170 | 252,418 | 254,458 | ||||||||
| Diluted | 254,310 | 253,844 | 257,717 | ||||||||
NXP Semiconductors
Table 2: Condensed consolidated balance sheet (unaudited)
| ($ in millions) | As of | |||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 3,454 | $ | 3,170 | $ | 2,748 | ||||||
| Short-term deposits | 500 | — | 400 | |||||||||
| Accounts receivable, net | 1,095 | 1,071 | 1,070 | |||||||||
| Assets held for sale | 292 | 294 | — | |||||||||
| Inventories, net | 2,452 | 2,361 | 2,234 | |||||||||
| Other current assets | 716 | 790 | 574 | |||||||||
| Total current assets | 8,509 | 7,686 | 7,026 | |||||||||
| Non-current assets: | ||||||||||||
| Deferred tax assets | 1,313 | 1,306 | 1,131 | |||||||||
| Other non-current assets | 2,186 | 1,909 | 1,510 | |||||||||
| Property, plant and equipment, net | 3,086 | 3,130 | 3,309 | |||||||||
| Identified intangible assets, net | 1,139 | 1,121 | 735 | |||||||||
| Goodwill | 10,121 | 10,098 | 9,958 | |||||||||
| Total non-current assets | 17,845 | 17,564 | 16,643 | |||||||||
| Total assets | 26,354 | 25,250 | 23,669 | |||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 886 | 892 | 899 | |||||||||
| Restructuring liabilities-current | 49 | 65 | 52 | |||||||||
| Other current liabilities | 1,384 | 1,471 | 1,542 | |||||||||
| Short-term debt | 1,264 | 1,999 | 499 | |||||||||
| Total current liabilities | 3,583 | 4,427 | 2,992 | |||||||||
| Non-current liabilities: | ||||||||||||
| Long-term debt | 10,971 | 9,479 | 9,683 | |||||||||
| Restructuring liabilities | 60 | 60 | 4 | |||||||||
| Other non-current liabilities | 1,313 | 1,348 | 1,246 | |||||||||
| Total non-current liabilities | 12,344 | 10,887 | 10,933 | |||||||||
| Non-controlling interests | 382 | 367 | 338 | |||||||||
| Stockholders' equity | 10,045 | 9,569 | 9,406 | |||||||||
| Total equity | 10,427 | 9,936 | 9,744 | |||||||||
| Total liabilities and equity | 26,354 | 25,250 | 23,669 | |||||||||
NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 646 | $ | 457 | $ | 729 | |||||
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||
| Depreciation and amortization | 201 | 207 | 218 | ||||||||
| Share-based compensation | 118 | 117 | 115 | ||||||||
| Amortization of discount (premium) on debt, net | 1 | — | — | ||||||||
| Amortization of debt issuance costs | 2 | 2 | 2 | ||||||||
| Net (gain) loss on sale of assets | (1 | ) | (6 | ) | — | ||||||
| Results relating to equity-accounted investees | 1 | 28 | 6 | ||||||||
| (Gain) loss on equity securities, net | (1 | ) | (3 | ) | 7 | ||||||
| Deferred tax expense (benefit) | (8 | ) | 3 | (40 | ) | ||||||
| Changes in operating assets and liabilities: | |||||||||||
| (Increase) decrease in receivables and other current assets | 54 | (106 | ) | (167 | ) | ||||||
| (Increase) decrease in inventories | (96 | ) | (90 | ) | (86 | ) | |||||
| Increase (decrease) in accounts payable and other liabilities | (219 | ) | 33 | 118 | |||||||
| (Increase) decrease in other non-current assets | (123 | ) | 131 | (134 | ) | ||||||
| Exchange differences | 8 | 9 | 7 | ||||||||
| Other items | 2 | (3 | ) | 4 | |||||||
| Net cash provided by (used for) operating activities | 585 | 779 | 779 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of identified intangible assets | (23 | ) | (37 | ) | (26 | ) | |||||
| Capital expenditures on property, plant and equipment | (77 | ) | (83 | ) | (186 | ) | |||||
| Proceeds from the disposals of property, plant and equipment | 1 | — | — | ||||||||
| Purchase of interests in businesses, net of cash acquired | (11 | ) | (679 | ) | — | ||||||
| Investment in short-term deposits | (500 | ) | — | — | |||||||
| Purchase of investments | (173 | ) | (93 | ) | (159 | ) | |||||
| Net cash provided by (used for) investing activities | (783 | ) | (892 | ) | (371 | ) | |||||
| Cash flows from financing activities: | |||||||||||
| Repurchase of long-term debt | — | (500 | ) | — | |||||||
| Proceeds from the issuance of long-term debt | 1,498 | — | — | ||||||||
| Cash paid for debt issuance costs | (8 | ) | — | — | |||||||
| Proceeds from the issuance of commercial paper notes | 215 | 1,565 | — | ||||||||
| Repayment of commercial paper notes | (950 | ) | (1,315 | ) | — | ||||||
| Dividends paid to common stockholders | (256 | ) | (257 | ) | (259 | ) | |||||
| Proceeds from issuance of common stock through stock plans | 38 | 2 | 39 | ||||||||
| Purchase of treasury shares and restricted stock unit withholdings | (54 | ) | (204 | ) | (305 | ) | |||||
| Other, net | (1 | ) | — | (1 | ) | ||||||
| Net cash provided by (used for) financing activities | 482 | (709 | ) | (526 | ) | ||||||
| Effect of changes in exchange rates on cash positions | — | 4 | 7 | ||||||||
| Increase (decrease) in cash and cash equivalents | 284 | (818 | ) | (111 | ) | ||||||
| Cash and cash equivalents at beginning of period | 3,170 | 3,988 | 2,859 | ||||||||
| Cash and cash equivalents at end of period | 3,454 | 3,170 | 2,748 | ||||||||
| Net cash paid during the period for: | |||||||||||
| Interest | 44 | 109 | 27 | ||||||||
| Income taxes, net of refunds | 174 | 167 | 196 | ||||||||
| Net gain (loss) on sale of assets: | |||||||||||
| Cash proceeds from the sale of assets | 1 | 6 | — | ||||||||
| Non-cash investing activities: | |||||||||||
| Non-cash capital expenditures | 112 | 103 | 125 | ||||||||
NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)
| ($ in millions except share data) | Three months ended | ||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | |||||||||
| GAAP Gross Profit | $ | 1,787 | $ | 1,562 | $ | 1,866 | |||||
| PPA Effects | (6 | ) | (7 | ) | (12 | ) | |||||
| Restructuring | — | (61 | ) | — | |||||||
| Share-based compensation | (15 | ) | (14 | ) | (14 | ) | |||||
| Other incidentals | (2 | ) | (8 | ) | — | ||||||
| Non-GAAP Gross Profit | $ | 1,810 | $ | 1,652 | $ | 1,892 | |||||
| GAAP Gross margin | 56.3 | % | 53.4 | % | 57.4 | % | |||||
| Non-GAAP Gross margin | 57.0 | % | 56.5 | % | 58.2 | % | |||||
| GAAP Research and development | $ | (575 | ) | $ | (573 | ) | $ | (577 | ) | ||
| Restructuring | (1 | ) | (3 | ) | — | ||||||
| Share-based compensation | (57 | ) | (58 | ) | (58 | ) | |||||
| Other incidentals | (2 | ) | (7 | ) | — | ||||||
| Non-GAAP Research and development | $ | (515 | ) | $ | (505 | ) | $ | (519 | ) | ||
| GAAP Selling, general and administrative | $ | (286 | ) | $ | (278 | ) | $ | (265 | ) | ||
| PPA effects | (1 | ) | — | (1 | ) | ||||||
| Restructuring | (2 | ) | (3 | ) | — | ||||||
| Share-based compensation | (46 | ) | (45 | ) | (43 | ) | |||||
| Other incidentals | (14 | ) | (15 | ) | (2 | ) | |||||
| Non-GAAP Selling, general and administrative | $ | (223 | ) | $ | (215 | ) | $ | (219 | ) | ||
| GAAP Operating income (loss) | $ | 893 | $ | 687 | $ | 990 | |||||
| PPA effects | (38 | ) | (32 | ) | (42 | ) | |||||
| Restructuring | (3 | ) | (67 | ) | — | ||||||
| Share-based compensation | (118 | ) | (117 | ) | (115 | ) | |||||
| Other incidentals | (19 | ) | (32 | ) | (6 | ) | |||||
| Non-GAAP Operating income (loss) | $ | 1,071 | $ | 935 | $ | 1,153 | |||||
| GAAP Operating margin | 28.1 | % | 23.5 | % | 30.5 | % | |||||
| Non-GAAP Operating margin | 33.8 | % | 32.0 | % | 35.5 | % | |||||
| GAAP Income tax benefit (provision) | $ | (148 | ) | $ | (116 | ) | $ | (173 | ) | ||
| Income tax effect | 25 | 32 | 9 | ||||||||
| Non-GAAP Income tax benefit (provision) | $ | (173 | ) | $ | (148 | ) | $ | (182 | ) | ||
| GAAP Net income (loss) attributable to stockholders | $ | 631 | $ | 445 | $ | 718 | |||||
| PPA Effects | (38 | ) | (32 | ) | (42 | ) | |||||
| Restructuring | (3 | ) | (67 | ) | — | ||||||
| Share-based compensation | (118 | ) | (117 | ) | (115 | ) | |||||
| Other incidentals | (19 | ) | (32 | ) | (6 | ) | |||||
| Other adjustments: | |||||||||||
| Adjustments to financial income (expense) | (7 | ) | (1 | ) | (12 | ) | |||||
| Income tax effect | 25 | 32 | 9 | ||||||||
| Results relating to equity-accounted investees, excluding Foundry investees1 | 1 | (28 | ) | (6 | ) | ||||||
| Non-GAAP Net income (loss) attributable to stockholders | $ | 790 | $ | 690 | $ | 890 | |||||
| Additional Information: | |||||||||||
| |||||||||||
| GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 2.48 | $ | 1.75 | $ | 2.79 | |||||
| PPA Effects | (0.15 | ) | (0.12 | ) | (0.16 | ) | |||||
| Restructuring | (0.01 | ) | (0.27 | ) | — | ||||||
| Share-based compensation | (0.47 | ) | (0.46 | ) | (0.45 | ) | |||||
| Other incidentals | (0.08 | ) | (0.13 | ) | (0.02 | ) | |||||
| Other adjustments: | |||||||||||
| Adjustments to financial income (expense) | (0.02 | ) | — | (0.05 | ) | ||||||
| Income tax effect | 0.10 | 0.12 | 0.04 | ||||||||
| Results relating to equity-accounted investees, excluding Foundry investees1 | — | (0.11 | ) | (0.02 | ) | ||||||
| Non-GAAP net income (loss) per common share attributable to stockholders - diluted | $ | 3.11 | $ | 2.72 | $ | 3.45 | |||||
| Additional Information: | |||||||||||
| |||||||||||
NXP Semiconductors
Table 5: Financial Reconciliation of GAAP to non-GAAP Financial income (expense) (unaudited)
| ($ in millions) | Three months ended | |||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | ||||||||||
| GAAP Financial income (expense) | $ | (98 | ) | $ | (86 | ) | $ | (82 | ) | |||
| Foreign exchange loss | (6 | ) | (7 | ) | (3 | ) | ||||||
| Other financial expense | (1 | ) | 6 | (9 | ) | |||||||
| Non-GAAP Financial income (expense) | $ | (91 | ) | $ | (85 | ) | $ | (70 | ) | |||
NXP Semiconductors
Table 6: Financial Reconciliation of GAAP to non-GAAP Other income (expense) (unaudited)
| ($ in millions) | Three months ended | |||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | ||||||||||
| GAAP Other income (expense) | $ | (2 | ) | $ | 1 | $ | (5 | ) | ||||
| Other incidentals | (1 | ) | (2 | ) | (4 | ) | ||||||
| Non-GAAP Other income (expense) | $ | (1 | ) | $ | 3 | $ | (1 | ) | ||||
NXP Semiconductors
Table 7: Financial Reconciliation of GAAP to non-GAAP Results relating to equity-accounted investees (unaudited)
| ($ in millions) | Three months ended | |||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | ||||||||||
| GAAP Results relating to equity-accounted investees | $ | (1 | ) | $ | (28 | ) | $ | (6 | ) | |||
| Results of equity-accounted investees, excluding Foundry investees1 | 1 | (28 | ) | (6 | ) | |||||||
| Non-GAAP Results relating to equity-accounted investees | $ | (2 | ) | $ | — | $ | — | |||||
| Additional Information: | ||||||||||||
| ||||||||||||
NXP Semiconductors
Table 8: Adjusted EBITDA and Free Cash Flow (unaudited)
| ($ in millions) | Three months ended | ||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | |||||||||
| GAAP Net income (loss) | $ | 646 | $ | 457 | $ | 729 | |||||
| Reconciling items to EBITDA (Non-GAAP) | |||||||||||
| Financial (income) expense | 98 | 86 | 82 | ||||||||
| (Benefit) provision for income taxes | 148 | 116 | 173 | ||||||||
| Depreciation and impairment | 132 | 143 | 149 | ||||||||
| Amortization | 69 | 64 | 69 | ||||||||
| EBITDA (Non-GAAP) | $ | 1,093 | $ | 866 | $ | 1,202 | |||||
| Reconciling items to adjusted EBITDA (Non-GAAP) | |||||||||||
| Results of equity-accounted investees, excluding Foundry investees1 | (1 | ) | 28 | 6 | |||||||
| Restructuring | 3 | 67 | — | ||||||||
| Share-based compensation | 118 | 117 | 115 | ||||||||
| Other incidental items2 | 19 | 25 | 6 | ||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 1,232 | $ | 1,103 | $ | 1,329 | |||||
| Trailing twelve month adjusted EBITDA (Non-GAAP) | $ | 4,648 | $ | 4,745 | $ | 5,235 | |||||
| Additional Information: | |||||||||||
| |||||||||||
| – other incidental items | — | 7 | — | ||||||||
| ($ in millions) | Three months ended | ||||||||||
| September 28, 2025 | June 29, 2025 | September 29, 2024 | |||||||||
| Net cash provided by (used for) operating activities | $ | 585 | $ | 779 | $ | 779 | |||||
| Net capital expenditures on property, plant and equipment | (76 | ) | (83 | ) | (186 | ) | |||||
| Non-GAAP free cash flow | $ | 509 | $ | 696 | $ | 593 | |||||
| Trailing twelve month non-GAAP free cash flow | $ | 1,924 | $ | 2,008 | $ | 2,759 | |||||
| Trailing twelve month non-GAAP free cash flow as percent of Revenue | 16 | % | 17 | % | 21 | % | |||||
