Earnings release
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NEWS RELEASE Trimble Announces Third Quarter 2026 Results andUpdates Full Year Guidance 2026-11-04 Executing Connect & Scale strategy to compound value across the Trimble-led ecosystem Third quarter results exceeded expectations Record annualized recurring revenue WESTMINSTER, Colo., Nov. 4, 2026 /PRNewswire/ -- Trimble Inc. (Nasdaq: TRMB) today announced nancial results for the third quarter of 2026. Third Quarter 2026 Financial Highlights Revenue of $966.8 million, up 7 percent on a year-over-year basis, up 7 percent on an organic basis Annualized recurring revenue ("ARR") was $2.56 billion, up 11 percent year-over-year, up 10 percent on an organic basis GAAP operating income was $142.0 million, 14.7 percent of revenue, and non-GAAP operating income was $262.6 million, 27.2 percent of revenue GAAP net income was $59.1 million and non-GAAP net income was $200.5 million Diluted earnings per share was $0.25 on a GAAP basis and $0.86 on a non-GAAP basis Adjusted EBITDA was $278.5 million, 28.8 percent of revenue During the third quarter, Trimble repurchased approximately 4.0 million shares for $231.7 million Executive Quote "Our third quarter results surpassed expectations on both revenue and earnings per share, while delivering record annualized recurring revenue of $2.56 billion," said Rob Painter, President and CEO of Trimble. "Our full year 2026 guidance re ects solid execution against our Connect & Scale strategy, which continues to leverage our unique presence across the physical and digital worlds with our unmatched breadth and depth of connected industry data." Forward-Looking Guidance 1
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For the full-year 2026, Trimble expects to report revenue between $3,910 million and $3,940 million, GAAP loss per share of $0.55 to $0.49, and non-GAAP earnings per share of $3.63 to $3.69. GAAP guidance assumes a tax rate range between 618.3 percent and 372.6 percent and non-GAAP guidance assumes a tax rate of 17.2 percent. GAAP loss and non-GAAP earnings per share assume approximately 232 million and 234 million shares outstanding, respectively. For the fourth quarter of 2026, Trimble expects to report revenue between $1,031 million and $1,061 million, GAAP earnings per share of $0.83 to $0.89, and non-GAAP earnings per share of $1.13 to $1.19. GAAP guidance assumes a tax rate of approximately 11.4 percent and non-GAAP guidance assumes a tax rate of 17.1 percent. Both GAAP and non-GAAP earnings per share assume approximately 231 million shares outstanding. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached. Investor Conference Call / Webcast Details Trimble will hold a conference call on November 4, 2026 at 8:00 a.m. ET to review its third quarter of 2026 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, https://investor.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at https://investor.trimble.com. Investors and participants who wish to dial into the call may do so by rst registering at https://events.q4inc.com/analyst/824595803?pwd=vT4bMLRX. Upon registration, dial-in details will be sent via email to the registrant. A replay will also be available on the web at the address above. About Trimble Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: https://www.trimble.com. Safe Harbor Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future nancial and operational results. These forward-looking statements are subject to change, and actual results may materially di er due to certain risks and uncertainties. The Company's results may be adversely a ected if the Company is unable to market, manufacture and ship new products, obtain new customers, e ectively integrate new acquisitions or consummate divestitures in a timely manner, or get the bene ts we are expecting from our joint ventures and partnerships. The Company's results could also be negatively impacted due to the general global macroeconomic outlook, including evolving trade policies, associated supply chain disruptions and shifts in 2
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demand, slowing growth, in ationary pressures, and uctuations in interest rates, which may a ect demand for our products and services, increase our costs and adversely a ect our revenues and pro tability; the pace at which our dealers work through their inventory; changes in our distribution channels; adverse geopolitical tensions and the ongoing impact of volatility and con ict in the political and economic environment, including the ongoing Middle East con ict, and the direct and indirect impact on our business; uctuations in foreign currency exchange rates; the pace that we transition our business model towards a subscription model; the impact and risks of AI and AI- related developments; the impact of acquisitions or divestitures; the potential impact of any stock repurchases under our stock repurchase program; and our ability to maintain e ective internal controls over nancial reporting, including our ability to remediate our material weaknesses in our internal controls over nancial reporting. Any failure to achieve predicted results could negatively impact the Company's revenue, cash ow from operations, and other nancial results. The Company's nancial results will also depend on a number of other factors and risks detailed from time to time in reports led with the U.S. Securities and Exchange Commission, including our quarterly reports on Form 10-Q and our annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements re ect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to re ect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based. FTRMB CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share data)(Unaudited) Third Quarter of First Three Quarters of 2026 2025 2026 2025Revenue: Product $ 324.3 $ 302.5 $ 966.9 $ 866.9Subscription and services 642.5 598.7 1,911.8 1,750.6Total revenue 966.8 901.2 2,878.7 2,617.5Cost of sales: Product 172.4 148.9 490.7 437.0Subscription and services 118.5 114.8 357.9 351.8Amortization of purchased intangible assets 16.8 16.4 49.8 48.9Total cost of sales 307.7 280.1 898.4 837.7Gross margin 659.1 621.1 1,980.3 1,779.8Gross margin (%) 68.2 % 68.9 % 68.8 % 68.0 %Operating expense: Research and development 162.9 152.9 509.5 474.7Sales and marketing 177.7 158.8 530.1 470.4General and administrative 124.7 117.5 401.1 356.6Restructuring 24.9 14.2 40.4 22.7Amortization of purchased intangible assets 26.9 27.2 81.2 79.6Total operating expense 517.1 470.6 1,562.3 1,404.0Operating income 142.0 150.5 418.0 375.8Non-operating (expense) income, net: Goodwill impairment — — (562.0) —Interest expense, net (20.4) (20.7) (60.8) (55.7)Income (loss) from equity method investments, net 0.8 (0.5) 4.2 2.8Other (loss) income, net (1.1) (4.2) 8.4 1.9Total non-operating expense, net (20.7) (25.4) (610.2) (51.0) Income (loss) before taxes 121.3 125.1 (192.2) 324.8Income tax provision 62.2 13.6 121.5 57.4Net income (loss) $ 59.1 $ 111.5 $ (313.7) $ 267.4 Earnings (loss) per share: Basic $ 0.25 $ 0.47 $ (1.34) $ 1.11Diluted $ 0.25 $ 0.46 $ (1.34) $ 1.10Shares used in calculating earnings (loss) per share: Basic 232.4 238.2 233.3 239.9Diluted 233.2 240.4 233.3 242.0 3
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CONDENSED CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited) As of Third Quarter of Year End 2026 2025Assets Current assets: Cash and cash equivalents $ 214.5 $ 253.4Accounts receivable, net 610.9 856.0Inventories 183.4 186.3Prepaid expenses 110.7 102.7Other current assets 236.3 233.5Total current assets 1,355.8 1,631.9Property and equipment, net 182.5 182.8Goodwill 4,822.0 5,239.7Other purchased intangible assets, net 808.1 924.1Deferred income tax assets 290.6 260.0Equity investments 608.4 610.8Other non-current assets 467.7 462.7Total assets $ 8,535.1 $ 9,312.0 Liabilities and Stockholders' Equity Current liabilities: Short-term debt $ 90.2 $ —Accounts payable 219.8 168.3Accrued compensation and benefits 141.8 211.7Deferred revenue 797.8 894.0Income taxes payable 8.7 17.7Other current liabilities 202.2 211.7Total current liabilities 1,460.5 1,503.4Long-term debt 1,443.3 1,392.2Deferred revenue, non-current 122.3 104.7Deferred income tax liabilities 141.7 190.5Other non-current liabilities 391.5 285.0Total liabilities 3,559.3 3,475.8Stockholders' equity: Common stock 0.2 0.2Additional paid-in-capital 2,497.4 2,437.9Retained earnings 2,572.2 3,387.6Accumulated other comprehensive (loss) income (94.0) 10.5Total stockholders' equity 4,975.8 5,836.2Total liabilities and stockholders' equity $ 8,535.1 $ 9,312.0 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited) First Three Quarters of 2026 2025Cash flow from operating activities: Net (loss) income $ (313.7) $ 267.4Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 151.7 149.3Goodwill impairment 562.0 —Deferred income taxes (71.1) (24.3)Stock-based compensation 118.3 111.1Other, net 12.8 53.5(Increase) decrease in assets: Accounts receivable, net 235.9 195.0Inventories 7.0 17.3Other current and non-current assets (30.2) (31.1)Increase (decrease) in liabilities: Accounts payable 51.7 (13.6)Accrued compensation and benefits (67.8) (71.8)Deferred revenue (82.3) (71.1)Income taxes payable (9.0) (311.5)Other current and non-current liabilities 99.4 (44.3)Net cash provided by operating activities 664.7 225.9Cash flow from investing activities: 4
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Divestitures of businesses, net of cash divested (2.0) (6.5)Acquisitions of businesses, net of cash acquired (236.5) (4.4)Purchases of property and equipment (21.1) (19.7)Other, net (0.9) (5.5)Net cash used in investing activities (260.5) (36.1)Cash flow from financing activities: Issuance of common stock, net of tax withholdings (15.7) 1.1Repurchases of common stock (552.9) (727.4)Proceeds from debt and revolving credit lines 1,158.7 577.2Payments on debt and revolving credit lines (1,018.5) (577.2)Other, net (7.9) (3.0)Net cash used in financing activities (436.3) (729.3)Effect of exchange rate changes on cash and cash equivalents (6.8) 24.4Net decrease in cash and cash equivalents (38.9) (515.1)Cash and cash equivalents - beginning of period 253.4 747.8Cash and cash equivalents - end of period $ 214.5 $ 232.7 (1) Includes $9.0 million of cash and cash equivalents classified as held for sale as of January 3, 2025. REPORTING SEGMENTS(In millions)(Unaudited) Reportable Segments AECO Field Systems T<hird Quarter of 2026 Segment revenue $ 395.0 $ 435.8 $ 136.0Cost of sales 63.9 189.6 31.0Operating expense 198.9 117.5 69.3Operating income $ 132.2 $ 128.7 $ 35.7 Operating income % 33.5 % 29.5 % 26.3 % Third Quarter of 2025 Segment revenue $ 358.5 $ 408.7 $ 134.0Cost of sales 58.7 167.4 32.3Operating expense 185.9 104.6 67.1Operating income $ 113.9 $ 136.7 $ 34.6 Operating income % 31.8 % 33.4 % 25.8 % Reportable Segments AECO Field Systems T&LFirst Three Quarters of 2026 Segment revenue $ 1,174.6 $ 1,287.5 $ 416.6Cost of sales 187.8 541.9 99.5Operating expense 612.5 353.1 213.7Operating income $ 374.3 $ 392.5 $ 103.4 Operating income % 31.9 % 30.5 % 24.8 % First Three Quarters of 2025 Segment revenue $ 1,044.2 $ 1,160.6 $ 412.7Cost of sales 177.3 483.5 110.5Operating expense 555.0 312.8 212.9Operating income $ 311.9 $ 364.3 $ 89.3 Operating income % 29.9 % 31.4 % 21.6 % GAAP TO NON-GAAP RECONCILIATION(Dollars in millions, except per share data)(Unaudited) (1) 5
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Third Quarter of First Three Quarters of 2026 2025 2026 2025 Dollar Amount % of Revenue Dollar Amount % of Revenue Dollar Amount % of Revenue Dollar Amount % of RevenueREVENUE: GAAP revenue: $ 966.8 $ 901.2 $ 2,878.7 $ 2,617.5 GROSS MARGIN: GAAP gross margin: $ 659.1 68.2 % $ 621.1 68.9 % $ 1,980.3 68.8 % $ 1,779.8 68.0 % Amortization of purchased intangible assets (A) 16.8 16.4 49.8 48.9 Stock-based compensation / deferred compensation (C) 3.5 3.7 11.5 12.2 Restructuring and other costs (D) 1.9 0.8 4.7 1.4 Non-GAAP gross margin: $ 681.3 70.5 % $ 642.0 71.2 % $ 2,046.3 71.1 % $ 1,842.3 70.4 % OPERATING EXPENSES: GAAP operating expenses: $ 517.1 53.5 % $ 470.6 52.2 % $ 1,562.3 54.3 % $ 1,404.0 53.6 % Amortization of purchased intangible assets (A) (26.9) (27.2) (81.2) (79.6) Acquisition / divestiture items (B) (13.1) (1.3) (42.9) (12.9) Stock-based compensation / deferred compensation (C) (29.6) (32.9) (109.6) (102.7) Restructuring and other costs (D) (28.8) (21.4) (48.7) (41.5) Non-GAAP operating expenses: $ 418.7 43.3 % $ 387.8 43.0 % $ 1,279.9 44.5 % $ 1,167.3 44.6 % OPERATING INCOME: GAAP operating income: $ 142.0 14.7 % $ 150.5 16.7 % $ 418.0 14.5 % $ 375.8 14.4 % Amortization of purchased intangible assets (A) 43.7 43.6 131.0 128.5 Acquisition / divestiture items (B) 13.1 1.3 42.9 12.9 Stock-based compensation / deferred compensation (C) 33.1 36.6 121.1 114.9 Restructuring and other costs (D) 30.7 22.2 53.4 42.9 Non-GAAP operating income: $ 262.6 27.2 % $ 254.2 28.2 % $ 766.4 26.6 % $ 675.0 25.8 % NON-OPERATING EXPENSE, NET: GAAP non-operating expense, net: $ (20.7) $ (25.4) $ (610.2) $ (51.0) Acquisition / divestiture items (B) (2.9) 6.2 (12.5) (1.7) Deferred compensation (C) 0.1 (1.9) (2.8) (3.9) Restructuring and other costs (D) 2.7 2.9 7.4 5.8 Goodwill impairment (E) — — 562.0 — Non-GAAP non-operating expense, net: $ (20.8) $ (18.2) $ (56.1) $ (50.8) Tax Rate % Tax Rate % Tax Rate % Tax Rate % (G) (G) (G) (G)INCOME TAX PROVISION: GAAP income tax provision: $ 62.2 51.3 % $ 13.6 10.9 % $ 121.5 (63.2) % $ 57.4 17.7 % Non-GAAP items tax effected (F) (20.9) 27.7 1.1 51.3 Non-GAAP income tax provision: $ 41.3 17.1 % $ 41.3 17.5 % $ 122.6 17.3 % $ 108.7 17.4 % NET INCOME (LOSS): GAAP net income (loss): $ 59.1 $ 111.5 $ (313.7) $ 267.4 Amortization of purchased intangible assets (A) 43.7 43.6 131.0 128.5 Acquisition / divestiture items (B) 10.2 7.5 30.4 11.2 Stock-based compensation (C) 33.2 34.7 118.3 111.0 Restructuring and other costs (D) 33.4 25.1 60.8 48.7 Goodwill impairment (E) — — 562.0 — Non-GAAP tax adjustments (F) 20.9 (27.7) (1.1) (51.3) Non-GAAP net income: $ 200.5 $ 194.7 $ 587.7 $ 515.5 DILUTED NET INCOME (LOSS) PER SHARE: GAAP diluted net income (loss) per share: $ 0.25 $ 0.46 $ (1.34) $ 1.10 Amortization of purchased intangible assets (A) 0.19 0.18 0.56 0.53 Acquisition / divestiture items (B) 0.04 0.03 0.13 0.05 Stock-based compensation (C) 0.15 0.15 0.50 0.46 Restructuring and other costs (D) 0.14 0.10 0.26 0.20 Goodwill impairment (E) — — 2.40 — Non-GAAP tax adjustments (F) 0.09 (0.11) — (0.21) Non-GAAP diluted net income per share: $ 0.86 $ 0.81 $ 2.51 $ 2.13 ADJUSTED EBITDA: GAAP operating income: $ 142.0 14.7 % $ 150.5 16.7 % $ 418.0 14.5 % $ 375.8 14.4 % Amortization of purchased intangible assets (A) 43.7 43.6 131.0 128.5 Acquisition / divestiture items (B) 13.1 1.3 42.9 12.9 Stock-based compensation / deferred compensation (C) 33.1 36.6 121.1 114.9 Restructuring and other costs (D) 30.7 22.2 53.4 42.9 Non-GAAP operating income: 262.6 27.2 % 254.2 28.2 % 766.4 26.6 % 675.0 25.8 % Depreciation expense and cloud computing amortization 12.3 12.3 36.1 36.6 Income from equity method investments, net 3.6 2.9 11.7 9.8 Adjusted EBITDA: $ 278.5 28.8 % $ 269.4 29.9 % $ 814.2 28.3 % $ 721.4 27.6 % First Three Quarters of 2026 2025 FREE CASH FLOW: Net cash provided by operating activities $ 664.7 $ 225.9 Capital expenditures 21.1 19.7 Free cash flow $ 643.6 $ 206.2 Fourth Quarter of 2026 Year 2026 Low End High End Low End High End FORECASTED DILUTED NET INCOME (LOSS) PER SHARE: Forecasted GAAP diluted net income (loss) per share: $ 0.83 $ 0.89 $ (0.55) $ (0.49) Amortization of purchased intangible assets (A) 0.18 0.18 0.75 0.75 Acquisition / divestiture items (B) 0.03 0.03 0.16 0.16 Stock-based compensation (C) 0.15 0.15 0.66 0.66 Restructuring and other costs (D) 0.06 0.06 0.32 0.32 Goodwill impairment (E) — — 2.42 2.42 Non-GAAP tax adjustments (F) (0.12) (0.12) (0.13) (0.13) 6
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Forecasted non-GAAP diluted net income per share: $ 1.13 $ 1.19 $ 3.63 $ 3.69 FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION This press release includes GAAP nancial measures as well as non-GAAP nancial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP measures. We believe non-GAAP nancial measures provide useful information to investors and others in understanding our "core operating performance", which excludes (i) the e ect of non-cash items and certain variable charges not expected to recur and (ii) transactions that are not meaningful in comparison to our past operating performance or not re ective of ongoing nancial results. Lastly, we believe that our core operating performance o ers a supplemental measure for period- to-period comparisons and can be used to evaluate our historical and prospective nancial performance, as well as our performance relative to competitors. The non-GAAP de nitions and explanations to the adjustments to comparable GAAP measures are included below: Non-GAAP De nitions Non-GAAP gross margin We de ne Non-GAAP gross margin as GAAP gross margin, excluding the e ects of amortization of purchased intangible assets, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors bene t by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions, and manufacturing costs in uence our business. Non-GAAP operating expenses We de ne Non-GAAP operating expenses as GAAP operating expenses, excluding the e ects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue. Non-GAAP operating income We de ne Non-GAAP operating income as GAAP operating income, excluding the e ects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors bene t by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and spending. Non-GAAP non-operating expense, net We de ne Non-GAAP non-operating expense, net as GAAP non-operating expense, net, excluding goodwill impairment, acquisition/divestiture items, deferred compensation, and restructuring and other costs. We believe this measure helps investors evaluate our non-operating expense trends. 7
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Non-GAAP income tax provision We de ne non-GAAP income tax provision as the GAAP income tax provision adjusted for the tax e ects of the non- GAAP pre-tax adjustments (A) through (E), excluding certain tax charges and bene ts such as net deferred tax impacts resulting from tax amortization related to a non-U.S. intercompany transfer of intellectual property and certain acquisitions, deferred tax impacts from net controlled foreign corporation tested income ("net CFC tested income", formerly referred to as global intangible low-taxed income or "GILTI"), signi cant reserve releases upon the expiration of statute of limitations and audit closures, and tax law changes. We believe this measure helps investors because it provides for consistent treatment of excluded items in our non-GAAP presentation. Non-GAAP net income We de ne Non-GAAP net income as GAAP net income (loss), excluding the e ects of goodwill impairment, amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. This measure provides a supplemental view of net income trends, which are driven by non-GAAP income before taxes and our non-GAAP tax rate. Non-GAAP diluted net income per share We de ne Non-GAAP diluted net income per share as GAAP diluted net income (loss) per share, excluding the e ects of goodwill impairment, amortization of purchased intangible assets, acquisition/divestiture items, stock- based compensation, restructuring and other costs, and non-GAAP tax adjustments. We believe our investors bene t by understanding our non-GAAP operating performance as re ected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the Company. Adjusted EBITDA We de ne Adjusted EBITDA as non-GAAP operating income plus depreciation expense, cloud computing amortization, and income from equity method investments, net, which excludes our proportionate share of items such as amortization of purchased intangibles, stock-based compensation, and restructuring costs. Other companies may de ne Adjusted EBITDA di erently. Adjusted EBITDA is a performance measure that we believe o ers a useful view of the overall operations of our business because it facilitates operating performance comparisons by removing potential di erences caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes, depreciation, amortization of purchased intangibles and cloud computing costs, and income from equity method investments, net. Free cash ow We de ne free cash ow as cash ow from operating activities minus capital expenditures. We believe this measure is important to investors evaluating our generation of cash ow. Explanations of Non-GAAP adjustments 8
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(A) Amortization of purchased intangible assets. Non-GAAP gross margin and operating expenses exclude the amortization ofpurchased intangible assets, which primarily represents technology and/or customer relationships already developed. (B) Acquisition / divestiture items. Non-GAAP gross margin and operating expenses exclude costs consisting of external and incrementalcosts resulting directly from acquisitions, divestitures, and strategic investment activities such as legal, due diligence, integration, and othercosts, including the acceleration of acquisition stock awards and adjustments to the fair value of earn-out liabilities. Non-GAAP non-operatingexpense, net, excludes one-time acquisition/divestiture charges, including foreign currency exchange rate gains/losses related to anacquisition, divestiture gains/losses, and strategic investment gains/losses. These are one-time costs that vary significantly in amount andtiming and are not indicative of our core operating performance. (C) Stock-based compensation / deferred compensation. Non-GAAP gross margin and operating expenses exclude stock-basedcompensation and income or expense associated with movement in our non-qualified deferred compensation plan liabilities. Changes in non-qualified deferred compensation plan assets, included in non-operating expense, net, offset the income or expense in the plan liabilities. (D) Restructuring and other costs. Non-GAAP gross margin and operating expenses exclude restructuring costs composed of terminationbenefits related to reductions in employee headcount and other cost-saving initiatives, costs related to executive severance agreements,closure or exit of facilities, and cancellation of certain contracts, and other costs composed of one-time incremental expenses resulting fromthe re-audit and related remediation of control deficiencies. Non-GAAP non-operating expense net, excludes our proportionate share of itemsrecorded in income from equity method investment items, such as goodwill impairment, amortization of purchased intangibles, stock-basedcompensation, and restructuring costs. (E) Goodwill Impairment. Non-GAAP non-operating expense, net excludes the goodwill impairment charge related to our T&L segment. Theimpairment was triggered by a sustained decline in market capitalization and stock price reflecting heightened macroeconomic uncertainty andlower market multiples for software businesses. (F) Non-GAAP items tax effected. This amount represents the income tax effect of non-GAAP pre-tax adjustments, excluding certain taxcharges and benefits, which reconcile the GAAP income tax provision to the non-GAAP income tax provision. (G) Tax rate percentages. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes andnon-GAAP income tax provision as a percentage of non-GAAP income before taxes. OTHER KEY METRICS Annualized Recurring Revenue In addition to providing non-GAAP nancial measures, Trimble provides an ARR performance measure in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. ARR represents the estimated annualized value of recurring revenue. ARR is calculated by taking our subscription and maintenance and support revenue for the current quarter and adding the portion of the contract value of all our term licenses attributable to the current quarter, then dividing that sum by the number of days in the quarter and then multiplying that quotient by 365. ARR should be viewed independently of revenue and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items. Organic Annualized Recurring Revenue Organic annualized recurring revenue refers to annualized recurring revenue excluding the impacts of (i) foreign currency translation and (ii) acquisitions and divestitures that closed in the prior 12 months. Organic Revenue Organic revenue refers to revenue excluding the impacts of (i) foreign currency translation and (ii) acquisitions and divestitures that closed in the prior 12 months. View original content to download multimedia:https://www.prnewswire.com/news-releases/trimble-announces- 9
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third-quarter-2026-results-and-updates-full-year-guidance-302928841.html SOURCE Trimble 10