Company: IOT
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0001642896-25-000074
Chunk: 115

Company: Samsara Inc.
Filing Date: 2025-09-09
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 performance and facilitate period-to-period comparisons of operations. The following table presents a reconciliation of our non-GAAP operating income to our GAAP loss from operations for the periods presented (in thousands, except percentages):

Three Months EndedAugust 2, 2025August 3, 2024Loss from operations$(26,619)$(58,194)Add:Stock-based compensation expense-related charges (1)86,317 75,746 Non-GAAP operating income$59,698 $17,552 GAAP operating margin(7%)(19%)Non-GAAP operating margin15%6%

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(1)Stock-based compensation expense-related charges included approximately $4.4 million and $3.6 million of employer taxes on employee equity transactions for the three months ended August 2, 2025 and August 3, 2024, respectively.

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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 loss for the periods presented (in thousands, except percentages):

Three Months EndedAugust 2, 2025August 3, 2024Net loss$(16,800)$(49,610)Add:Stock-based compensation expense-related charges86,317 75,746 Non-GAAP net income (1)$69,517 $26,136 

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(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