Sandisk's 49/100 score combines strong liquidity with an FY2025 operating loss and negative free cash flow. Data coverage is only 60%: because the company separated from Western Digital in February 2025, several long-term growth, share-count and valuation measures use neutral scores.
What does Sandisk do?
Sandisk develops, manufactures and sells NAND flash data-storage devices and solutions across datacentre, edge and consumer markets. Much of its manufacturing is conducted through Flash Ventures with Kioxia in Japan. The structure shares technology and capacity, while making partnership, supply and investment commitments important.
Sandisk became an independent public company after separating from Western Digital on 21 February 2025. Earlier statements are historical carve-out financials derived from WDC records; management explicitly says they may not fully represent the costs of a standalone company.
What do the FY2025 financials show?
Net revenue increased 10% to $7.36 billion. Gross profit was $2.21 billion and gross margin 30.1%. However, $1.13 billion of R&D, $573 million of selling and administrative expense and a $1.8 billion goodwill impairment contributed to a model-calculated -18.7% operating margin and a $1.64 billion net loss.
Operating activities generated $84 million of cash and property investment was $204 million, producing negative $120 million of free cash flow under Vestorvia's method. Year-end current assets were $5.09 billion, current liabilities $1.43 billion and cash $1.48 billion. That is why the balance-sheet group remains strong despite weak profitability.
Why do the five categories produce this result?
Growth 60/100: 2025 revenue increased 10% and revenue rose in every year in the available three-year table. Two measures remain neutral because a sufficient five-year revenue and net-income history is unavailable.
Profitability 11/100: A 30.1% gross margin indicates positive product economics, but the negative operating margin and approximate -11.4% ROIC show that capital did not earn a positive FY2025 return. The goodwill impairment materially affects this comparison.
Cash flow 12/100: Negative free cash flow is the principal weakness. Capital allocation uses a neutral score because data is insufficient, so a score of 12 does not imply strong cash generation.
Balance sheet 100/100: The current ratio is 3.56 and liquidity provides a wide buffer over short-term obligations. The group result is capped at 100 for readability. With no positive free cash flow, a cash-based debt repayment ratio cannot be calculated.
Shareholder policy 59/100: Stock-based compensation appears controlled at 2.5% of revenue. Two measures remain neutral because a long share-count series and sufficient SEC public-float valuation data are unavailable.
Critical combinations
- Revenue growth + improving gross margin
- High current ratio + meaningful cash buffer
- Low stock compensation + standalone discipline
- Cyclical pricing + high inventory
- Negative operating margin + negative free cash flow
- Short standalone history + missing long-term measures
Q3 FY2026 current context
The company reported $5.95 billion of Q3 FY2026 revenue, a 78.4% GAAP gross margin and $3.62 billion of GAAP net income. Datacentre revenue was $1.47 billion, Edge $3.66 billion and Consumer $820 million. The sharp improvement came with higher pricing and mix, but one quarter should not be treated as a permanent normal in a cyclical NAND market.
The FY2025 score does not describe Sandisk's current earnings power on its own; separation effects and a short data history limit the result. Long-term monitoring should combine pricing, gross margin, inventory, free cash flow and datacentre mix. This is not investment advice.
Frequently asked questions
Why does Sandisk's score have only 60% coverage?
The company became independent in February 2025, leaving several five-year and public-company series incomplete; six measures use neutral scores.
Are Q3 FY2026 results included in the 49 score?
No. The score uses FY2025 10-K data; Q3 FY2026 is separately labelled current context.
Where the figures come from
- Sandisk FY 2025 Form 10-K, SEC — fiscal year ended 27 June 2025; primary source for the score.
- Sandisk Q3 FY 2026 Form 10-Q, SEC — interim period ended 3 April 2026.
- Sandisk Q3 FY 2026 results — current business-mix context; not included in the FY2025 score.
- Category scores are each group's measure points divided by its maximum points. The composite balance-sheet result is capped at 100 for readability.