Snowflake FY25 EBIT walkthrough

Snowflake reports a GAAP operating loss but a positive non-GAAP operating income (adjusted EBIT) after adding back stock-based compensation (including employer payroll taxes on stock-comp), amortization of acquired intangibles, acquisition-related expenses, and restructuring. The SBC add-back is by far the largest single line and is the canonical SaaS adjusted-EBIT example[EDGAR].

Income statement (full-year FY25)

Line (FY25, year ended 31 Jan 2025)$M
Revenue3,626.4
Cost of revenue1,214.7
Gross profit2,411.7
Operating expenses (GAAP)3,867.7
GAAP operating loss(1,456.0)
+ Stock-based compensation1,564.3
+ Amortization of acquired intangibles96.9
+ Acquisition-related expenses7.1
+ Restructuring19.5
Non-GAAP operating income (adjusted EBIT)231.7

Full-year FY25 figures (year ended 31 January 2025) from Snowflake's Q4/FY25 results release; figures may not sum exactly due to rounding. On an operating-margin basis the Rule-of-40 score is ~29% revenue growth (revenue rose from $2,806.5M in FY24) plus a ~6% non-GAAP operating (adjusted EBIT) margin, about 35, i.e. below 40. The Rule of 40 for SaaS is more often measured with free-cash-flow margin than operating margin.

Sourcing notes

Full-year figures are from Snowflake's fourth-quarter and full-year fiscal 2025 results release (year ended 31 January 2025), which ties to the 10-K filed with SEC EDGAR (CIK 0001640147). Figures shown in millions of US dollars unless otherwise noted. The full filing is atEDGAR filings index.

Walker cross-link

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