The sharp drop of **$348 million** in cash and equivalents during Q1 2025 was primarily due to several net cash flow factors. **Operating activities** generated **$3,244 million** in net cash driven by strong net income and adjustments for non-cash items.  **[0000723125-24-000046_a2025q1ex991-pressrelease.htm:2]** **[0000723125-24-000047_mu-20241128.htm:9]**  However, this was mostly offset by **investing activities**, which used **$3,148 million** mainly for property, plant, and equipment expenditures, and by **financing activities** that used **$422 million** for dividend payments and debt repayments.  **[0000723125-24-000047_mu-20241128.htm:32]** **[0000723125-24-000047_mu-20241128.htm:9]**  Additionally, there was a **$29 million** negative impact from currency exchange rate changes, further contributing to the decline.  **[0000723125-24-000047_mu-20241128.htm:32]** **[0000723125-24-000047_mu-20241128.htm:9]** 

Why did Cash and equivalents drop so sharply in Q1 2025?

The jump in total assets was driven by **substantial receivables growth** (increasing from **$2,443 million** to **$6,615 million**), **increased capital investments in property, plant, and equipment** (rising from **$37,928 million** to **$39,749 million** due to **$8.1 billion** in capital expenditures), a **slight adjustment to inventories** (from **$8,387 million** to **$8,875 million**), and an overall **robust revenue growth of 93% YoY** in Q4 2024.  **[0000723125-24-000027_mu-20240829.htm:92]** **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:0]** **[MU_3402083_5]** 

What drove the jump in Total assets in Q4 2024?

The documents do not provide specific reasons for the increase in **current debt** to **$533 million** in Q1 2025. Although it is noted that the current debt rose from **$431 million** as of August 29, 2024, to **$533 million** as of November 28, 2024, no detailed explanation for this change is provided.  **[0000723125-24-000046_a2025q1ex991-pressrelease.htm:2]** **[0000723125-24-000047_mu-20241128.htm:8]** 

What caused the increase in Current debt in Q1 2025?

Other current assets nearly doubled in Q2 2024 because the income tax benefit recorded during that period significantly increased these assets, rising from **$820 million as of August 31, 2023** to **$1,690 million as of February 29, 2024**.  **[0000723125-24-000007_mu-20240229.htm:8]** **[0000723125-24-000007_mu-20240229.htm:39]** 

Why did Other current assets nearly double in Q2 2024?

c4da482ef52be2e68cd61e7989a65ef1f5c62bd0ffba9454c7d4542df56b57d1

**Micron Technology’s Q4 2024 revenue jump was driven by several key factors.** The company experienced **strong DRAM revenue growth**, with DRAM revenue reaching **$5.3 billion**—up **93% year-over-year**—which accounted for **69% of total revenue**. In addition, there was **record NAND revenue** of **$2.4 billion** (+**96% year-over-year**), which set a new quarterly record. The improvement was also supported by **strong data center demand**—including robust performance in data center SSD and high-bandwidth memory (HBM) products—as well as **higher pricing and an improved product mix** in both DRAM and NAND segments. Collectively, these factors fueled the **significant revenue increase in Q4 2024**.  **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:0]** **[MU_3402083_5]** **[MU_3402083_2]** 

What drove the significant jump in Revenue in Q4 2024?

The turnaround in **Operating Income in Q2 2024** was driven by several factors. First, **revenue growth** played a key role with increased DRAM and NAND sales, where higher average selling prices and increased shipments significantly boosted revenues.  **[0000723125-24-000007_mu-20240229.htm:31]** **[0000723125-24-000007_mu-20240229.htm:7]**  Improved market conditions leading to a **recovery in average selling prices**, particularly due to a tighter supply-demand balance and strong AI server demand, also contributed to the improvement.  **[0000723125-24-000004_a2024q2ex991-pressrelease.htm:0]** **[MU_3378593_6]** **[MU_3378593_1]**  Additionally, **manufacturing cost reductions** through advancements in technology nodes and effective **operating expense management** helped lower costs during the quarter.  **[MU_3378593_1]** **[0000723125-24-000004_a2024q2ex991-pressrelease.htm:0]**  Furthermore, the clearing of previously written-down inventories and marked improvements in segment performance, especially within the Compute and Networking Business Unit (which turned from a loss to a profit), further contributed to the positive shift.  **[MU_3378593_6]** **[0000723125-24-000007_mu-20240229.htm:34]** 

What factors contributed to the turnaround in Operating Income in Q2 2024?

The sharp rebound in **net income** during Q2 2024 was driven by a combination of factors. **Improved market conditions**, including strong AI server demand and a healthier overall market environment, boosted the prices for DRAM and NAND products.  **[0000723125-24-000004_a2024q2ex991-pressrelease.htm:0]** **[MU_3378593_1]**  **Revenue growth** also played a crucial role, as the company experienced significant increases in bit shipments and average selling prices, with DRAM and NAND revenues rising by **53%** and **77%** respectively.  **[0000723125-24-000004_a2024q2ex991-pressrelease.htm:0]** **[0000723125-24-000007_mu-20240229.htm:31]** **[MU_3378593_5]**  Additionally, effective **cost management** through manufacturing cost reductions and the favorable impact of selling previously written-down inventories improved margins, while a significant **tax benefit** of **$622 million** further enhanced profitability.  **[0000723125-24-000007_mu-20240229.htm:7]** **[MU_3378593_5]** 

Why did Net Income rebound so sharply in Q2 2024?

The marked improvement in EPS in Q1 2025 was primarily driven by **record revenue growth** and improved operational efficiencies. **Micron Technology** experienced a revenue jump to **$8.71 billion** from **$4.73 billion** year-over-year, largely fueled by strong demand in the data center segment that grew over 400%.  **[0000723125-24-000046_a2025q1ex991-pressrelease.htm:0]** **[MU_3411865_5]**  This robust revenue performance contributed to an enhanced **gross margin of 39.5%**, a significant turnaround from a negative margin in Q1 2024. In addition, **operating income turned positive** with **$2.174 billion** compared to an operating loss of **$1.128 billion** previously, and **net income improved** to **$1.870 billion** from a net loss of **$1.234 billion**.  **[0000723125-24-000047_mu-20241128.htm:7]** **[0000723125-24-000046_a2025q1ex991-pressrelease.htm:0]**  Furthermore, the benefit from **tax incentives**, reflected in an effective tax rate of **13.2%** and a tax provision reduction of **$212 million**, also played a key role in boosting EPS.  **[0000723125-24-000047_mu-20241128.htm:20]** 

What contributed to the marked improvement in EPS in Q1 2025?

The substantial recovery in gross margin in Q4 2024 was driven by several key factors. **Higher pricing** for DRAM and NAND—with DRAM prices increasing in the **mid-teens percentage range** and NAND prices in the **high single-digit percentage range**—improved the product mix.  **[MU_3402083_5]** **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:2]**  **Increased revenue** from strong demand in data center DRAM, NAND, and SSD products further supported this recovery, with Q4 2024 revenue rising to **$7.75 billion** compared to lower figures in prior periods.  **[MU_3402083_5]** **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:0]**  Additionally, **manufacturing cost reductions** and gains from the sale of written-down inventories played a role in boosting margins.  **[0000723125-24-000027_mu-20240829.htm:75]**  A strategic **shift to higher-value products** like HBM, high-capacity DRAM, and data center SSDs also contributed, along with an **improved supply-demand dynamic** in leading-edge nodes.  **[MU_3402083_2]** **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:0]** **[MU_3402083_11]** **[MU_3402083_17]** 

What factors led to the substantial recovery in Gross Margin in Q4 2024?

0622691de146cebe04088b7bc8f128684f6823349be1121f2abeb16a34b9a6cf

The operating cash flow jump in **FY 2024** was primarily driven by several factors: an **improved net income**—a shift from a **GAAP net loss of $5,833 million in FY 2023** to a **GAAP net income of $778 million in FY 2024**—which greatly enhanced operating cash flows; substantial **non-cash adjustments**, particularly consistent **depreciation and amortization expenses of $7,780 million**, helped support the cash flow; favorable changes in operating assets and liabilities, notably **increases in accounts payable and accrued expenses by $1,915 million** and in **other current liabilities by $989 million** (driven by customer prepayments), which boosted cash inflows; and improved **inventory management**, as the company avoided the **$1.83 billion inventory write-downs** recorded in the previous year, further contributing to the significant increase in cash flows.  **[0000723125-24-000027_mu-20240829.htm:94]** **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:3]** 

What factors drove the operating cash flow jump in FY 2024?

Micron Technology’s operating cash flow surged in Q4 2024 primarily due to a marked turnaround in profitability, enhanced working capital management, and significant non-cash adjustments. The company shifted from a net loss of **$1,430 million** in Q4 2023 to reporting a **GAAP net income of $887 million** in Q4 2024, which directly improved the cash flows from operations.  **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:0]** **[0000723125-24-000023_a2024q4ex991-pressrelease.htm:5]**  Additionally, non-cash charges, notably **depreciation and amortization of $2,030 million**, bolstered the operating cash flow, while more efficient management of receivables and inventories reduced cash flow drag. Furthermore, **record revenue of $7.75 billion** driven by strong demand for data center DRAM and NAND products also played a crucial role in this significant improvement.  **[0000723125-24-000047_mu-20241128.htm:9]** 

Why did operating cash flow surge in Q4 2024?

The leap in operating cash flow in Q1 2025 was primarily driven by a **substantial improvement in net income**—a shift from a net loss of **$1,234 million** in Q1 2024 to a net income of **$1,870 million** in Q1 2025—which significantly boosted cash flows. Additionally, **increased depreciation and amortization** (rising from **$1,915 million** to **$2,030 million**) and higher **stock-based compensation** (from **$188 million** to **$220 million**) contributed positively. Changes in operating assets and liabilities, including variations in receivables, inventories, and adjustments for accounts payable/accrued expenses and other current liabilities, also played a role in the overall improvement.  **[0000723125-24-000047_mu-20241128.htm:9]** 

What caused the leap in operating cash flow in Q1 2025?

dafd393f5cc787cbb961779491764ea9d154aab03a31e121986703a6dc0338eb

Revenue (USD, millions)

Cost of goods sold (USD, millions)

Gross margin (USD, millions)

Research and development (USD, millions)

Selling, general, and administrative (USD, millions)

Other operating (income) expense, net (USD, millions)

Operating income (loss) (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Other non-operating income (expense), net (USD, millions)

Income tax (provision) benefit (USD, millions)

Equity in net income (loss) of equity method investees (USD, millions)

Net income (loss) (USD, millions)

Earnings (loss) per share Basic (USD)

Earnings (loss) per share Diluted (USD)

Number of shares used in per share calculations Basic (Millions)

Number of shares used in per share calculations Diluted (Millions)

085ac37068f26757567c7eecef9080b729c6f0dafa059b49fb27c43d2c604c11

Cash and equivalents (USD, millions)

Short-term investments (USD, millions)

Receivables (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Long-term marketable investments (USD, millions)

Property, plant, and equipment (USD, millions)

Operating lease right-of-use assets (USD, millions)

Intangible assets (USD, millions)

Deferred tax assets (USD, millions)

Goodwill (USD, millions)

Other noncurrent assets (USD, millions)

Total assets (USD, millions)

Accounts payable and accrued expenses (USD, millions)

Current debt (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Noncurrent operating lease liabilities (USD, millions)

Noncurrent unearned government incentives (USD, millions)

Other noncurrent liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock (USD, millions)

Additional capital (USD, millions)

Retained earnings (USD, millions)

Treasury stock (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

73ba4e4c80d553b7462ec690882cbc1c9afaee3d7fbe0c15d2e55b0d33d73877

Net income (loss) [USD, millions]

Depreciation expense and amortization of intangible assets [USD, millions]

Stock-based compensation [USD, millions]

Change in Receivables [USD, millions]

Change in Inventories [USD, millions]

Change in Accounts payable and accrued expenses [USD, millions]

Change in Other current liabilities [USD, millions]

Change in Other operating assets and liabilities - Other [USD, millions]

Net cash provided by operating activities [USD, millions]

Expenditures for property, plant, and equipment [USD, millions]

Purchases of available-for-sale securities [USD, millions]

Proceeds from maturities and sales of available-for-sale securities [USD, millions]

Proceeds from government incentives [USD, millions]

Other investing cash flows [USD, millions]

Net cash provided by (used for) investing activities [USD, millions]

Payments of dividends to shareholders [USD, millions]

Repayments of debt [USD, millions]

Payments on equipment purchase contracts [USD, millions]

Other financing cash flows [USD, millions]

Net cash provided by (used for) financing activities [USD, millions]

Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash [USD, millions]

Net increase (decrease) in cash, cash equivalents, and restricted cash [USD, millions]

Change in Other current assets [USD, millions]

Proceeds from issuance of debt [USD, millions]

Cash, cash equivalents, and restricted cash at beginning of period [USD, millions]

Cash, cash equivalents, and restricted cash at end of period [USD, millions]

661be6cd6a714a18b4cd2ff5184b2ecb9ee415e69827cb01a13d6e9ee1b8b760

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

e2cf5a167946fdea498fecf4be9f918007857411787ed1f8445c5534f4d1edad

Total Revenue

COGS

SG&A

Interest Expense

Operating Income (EBIT)

Net Income

742e1212c2eb96c5b409b3d3fa7ca72d1ef9ed43d1734ecbb9f40abaea1a4354

a0cb4b7c01cdc2866a01a638b52609ffbb5e08a610de4056050fa4b1bffc26d5

Compute and Networking

Mobile

Embedded

Storage

All Other

- DRAM

- NAND

- Trade Non-Volatile Memory

- Non-Trade Non-Volatile Memory

- Other (primarily 3D XPoint memory and NOR)

ac924b247c78ce4e527088fd7cb0d5b4229358daa750d7f54ff2691f808b0565

United States

Taiwan

Mainland China

Other Asia Pacific

Hong Kong

Japan

Europe

Other

7cc910decc163a44e265c59c6d47c114cf701c776236d5c7e171f12a244cb401

MICRON TECHNOLOGY (MU)

Financials