Company: IOT
Filing Date: 2025-12-09
Form Type: 10-Q
Source: 0001628280-25-056069
Chunk: 124

Company: Samsara Inc.
Filing Date: 2025-12-09
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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370)Add:Stock-based compensation expense-related charges (1)81,513 77,677 Lease modification, impairment, and related charges— 3,609 Non-GAAP operating income$79,792 $33,916 GAAP operating margin0%(15%)Non-GAAP operating margin19%11%

__________

(1)Stock-based compensation expense-related charges included approximately $2.7 million and $4.5 million of employer taxes on employee equity transactions for the three months ended November 1, 2025 and November 2, 2024, respectively.

31

Non-GAAP Net Income (Loss)

We define non-GAAP net income (loss) as net income (loss) excluding the effect of stock-based compensation expense-related charges, lease modification, impairment, and related charges, and legal settlements. We use non-GAAP net income (loss) in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that non-GAAP net income (loss) provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP net income to our GAAP net income (loss) for the periods presented (in thousands, except percentages):

Three Months EndedNovember 1, 2025November 2, 2024Net income (loss)$7,766 $(37,806)Add:Stock-based compensation expense-related charges81,513 77,677 Lease modification, impairment, and related charges— 3,609 Non-GAAP net income (1)$89,279 $43,480 

__________

(1)There were no material income tax effects on our non-GAAP adjustments for all periods presented.

Non-GAAP Liquidity Financial Measures

Free Cash Flow and Free Cash Flow Margin

We define free cash flow as net cash provided by (used in) operating activities reduced by cash used for purchases of property and equipment. Free cash flow margin is calculated as free cash flow as a percentage of total revenue. We believe that free cash flow and free cash flow margin, even if negative, are useful in evaluating liquidity and provide information to management and investors about our ability to fund future operating needs and strategic initiatives. The following table presents a reconciliation of free cash flow to net cash provided by operating activities for the periods presented (in thousands, except percentages):

Nine Months EndedNovember 1, 2025November 2, 2024Net