Flex Ltd. Q3 2024: Revenue Up, Net Income Down

Ticker: FLEX · Form: 10-Q · Filed: Jan 31, 2025 · CIK: 866374

Sentiment: mixed

Topics: earnings, revenue, profitability

TL;DR

Flex revenue up slightly to $6.2B YTD, but net income dropped to $296M. Watch margins.

AI Summary

Flex Ltd. filed its 10-Q for the period ending December 31, 2024. The company reported revenue of $6.2 billion for the nine months ended December 31, 2024, compared to $6.1 billion for the same period in the prior year. Net income for the nine months was $296 million, a decrease from $367 million in the prior year. The company's fiscal year ends on March 31.

Why It Matters

This filing provides insight into Flex Ltd.'s financial performance, indicating revenue growth but a decline in profitability, which could impact investor confidence and future stock performance.

Risk Assessment

Risk Level: medium — The decrease in net income while revenue increased suggests potential margin pressures or increased operating costs, warranting closer examination of the company's operational efficiency.

Key Numbers

Key Players & Entities

FAQ

What was Flex Ltd.'s total revenue for the nine months ended December 31, 2024?

Flex Ltd.'s total revenue for the nine months ended December 31, 2024, was $6.2 billion.

How did Flex Ltd.'s net income for the nine months ended December 31, 2024, compare to the same period in the prior year?

Net income decreased to $296 million for the nine months ended December 31, 2024, from $367 million for the same period in the prior year.

When does Flex Ltd.'s fiscal year end?

Flex Ltd.'s fiscal year ends on March 31.

What was the revenue for the nine months ended December 31, 2023?

The revenue for the nine months ended December 31, 2023, was $6.1 billion.

What was the net income for the nine months ended December 31, 2023?

The net income for the nine months ended December 31, 2023, was $367 million.

Filing Stats: 4,659 words · 19 min read · ~16 pages · Grade level 16.6 · Accepted 2025-01-31 16:07:32

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Report of Independent Registered Public Accounting Firm 3 Condensed Consolidated Balance Sheets (unaudited) — December 31 , 2024 and March 31, 2024 4 Condensed Consolidated Statements of Operations (unaudited) — Three-Month and Nine -Month Periods Ended December 31 , 2024 and December 31 , 2023 5 Condensed Consolidated Statements of Comprehensive Income (unaudited) — Three-Month and Nine -Month Periods Ended December 31 , 2024 and December 31 , 2023 6 Condensed Consolidated Statements of Noncontrolling Interest and Shareholders' Equity (unaudited) — Three-Month and Nin e -Month Periods Ended December 31 , 2024 and December 31 , 2023 7 Condensed Consolidated Statements of Cash Flows (unaudited) — Nine -Month Periods Ended December 31 , 2024 and December 31 , 2023 9 Notes to Condensed Consolidated Financial Statements (unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40

Signatures

Signatures 41 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Flex Ltd., Singapore Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated balance sheet of Flex Ltd. and its subsidiaries (the "Company") as of December 31, 2024, the related condensed consolidated statements of operations, comprehensive income, noncontrolling interest and shareholders' equity for the three-month and nine-month periods ended December 31, 2024 and December 31, 2023, the condensed consolidated statement of cash flows for the nine-month periods ended December 31, 2024 and December 31, 2023, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of March 31, 2024 and the related consolidated statements of operations, comprehensive income, redeemable noncontrolling interest and shareholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated May 17, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of March 31, 2024 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be i

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