AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 19/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Customized enterprise integration and shared project workflows support switching friction; exclusive technology supply adds limited contractual protection. Direct evidence of migration difficulty or broad technological exclusivity is absent.
durability · 2/4 · Multi-year organic ARR growth and contracted obligations support persistence, but subscriptions typically expire after one to three years and renewal is optional. The seven-year supply arrangement protects only a specific relationship.
customer dependency · 2/4 · Integration into customized workflows and continuing subscription demand indicate operational relevance. Dependency is inferred; neither renewal rates nor the cost of replacement is measured.
erosion resilience · 2/4 · Recent competitive wins and subscription growth show resilience, balanced against historical adverse competition and plausible AI and positioning substitutes. Generic substitution risks are not treated as realized losses.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · The older filing acknowledges historical competitive outcomes involving price reductions, reduced margins or lost share, supporting a weak assessment rather than missing evidence alone. The alternatives are not disaggregated, and current net pricing is undisclosed. Recent gross-margin gains are attributed to mix, amortization and divestitures.
retention · 2/4 · Organic ARR growth, subscription growth and contractual obligations provide indirect evidence of continuing demand. New sales and subscription conversion may contribute, so these are not renewal-rate measurements; customers remain free not to renew.
margin resilience · 2/4 · Annual margin improvement and higher first-half operating income demonstrate operating resilience, while second-quarter operating margin declined with higher expenses. Mix and portfolio changes materially affect the comparison, limiting attribution to pricing.
contractual freedom · 2/4 · Mixed contractual freedom: quotations are generally non-binding, and Trimble expressly retains rights to change payment terms and demand advance payment or security. However, accepted order terms, including prices, are fixed and final, constraining repricing. These terms exclude Service Agreements and defer to conflicting software User Agreements; subscription repricing rights and escalators remain undisclosed in the supplied evidence.
Predictability87
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 2.57
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.53
Financial strength53
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 59.18
- netDebtEbitGrade
- 61.53
- interestCoverageGrade
- 63.25
- currentRatioGrade
- 26.84
- Debt / FCF (x)
- 3.86
- Net debt / operating income (x)
- 1.92
- Interest coverage (x)
- 7.96
- Current ratio (x)
- 1.09
Capital allocation70
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 7.33
- 3-year average dilution (%)
- -1.27
- 3-year average SBC / revenue (%)
- 4.07
- cashConversionGrade
- 63.12
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual debt repayment and $515.0 million of first-half 2026 operating cash flow provide positive evidence, although lower cash taxes aided cash generation. Against this stand $316.9 million of repurchases, a $246.4 million credit-financed acquisition, higher outstanding debt and a $562.0 million goodwill impairment. Acquisition returns and repurchase value creation remain unestablished.
incentive alignment · 3/4 · Actual 2025 performance awards use equally weighted relative TSR and ARR goals measured over three years. Ownership requirements and prohibitions on hedging and pledging reinforce alignment. This supports strong incentive design, without establishing actual ownership compliance or eventual vesting outcomes.
execution · 2/4 · Multi-year organic ARR growth, 6% organic revenue growth in 2025 and recent competitive wins demonstrate commercial execution. Transportation and Logistics missed its 2025 ARR and operating-income targets, while reporting-control remediation remains incomplete. Assessment uses operating outcomes rather than management reputation.
governance · 1/4 · An independent compensation committee and assigned audit oversight are positive structures, but an adverse auditor opinion on internal controls and continuing remediation are concrete weaknesses. The disclosed deficiencies did not cause a material 2025 misstatement, which limits but does not remove the concern.
Evidence
Ranging from embedded, real-time firmware to software that integrates data with large-scale enterprise back-office systems, many of our solutions are extensible and can be tailored by users for customized business processes and workflows.
Business: enterprise integration and customized workflows · Filed 26/02/2024
For example, our flagship design and construction platform solution, Trimble Connect, enables entire project teams to collaborate in real-time between the office and the field to make efficient decisions around 1 Table of Contents the same data-rich design model enhanced by our cloud capabilities.
Business strategy: shared project model and office-to-field collaboration · Filed 25/02/2026
Since 2020, Trimble has completed 23 divestitures and 13 acquisitions, while achieving 14% organic compound annual growth of annualized recurring revenue (“ARR”), and an increase of 4 percentage points in our adjusted EBITDA margin.
Company performance highlights: portfolio transactions and organic ARR growth since 2020 · Filed 09/04/2026
NOTE 11. DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS Deferred Revenue Changes in our deferred revenue during the second quarter of 2026 and 2025 were as follows: Second Quarter of First Two Quarters of (In millions) 2026 2025 2026 2025 Beginning balance of the period $ 970.7 $ 892.8 $ 998.7 $ 896.0 Revenue recognized from prior year-end (231.1) (218.5) (592.0) (546.0) Billings net of revenue recognized from current year and other 207.5 207.9 540.4 532.2 Ending balance of the period $ 947.1 $ 882.2 $ 947.1 $ 882.2 Remaining Performance Obligations At the end of the second quarter of 2026, approximately $2.0 billion of revenue was expected to be recognized from remaining performance obligations for which goods or services had not been delivered, primarily subscription, software, and software maintenance, and to a lesser extent, hardware and professional services contracts.
Note 11: deferred revenue and remaining performance obligations · Filed 12/08/2026
Organic subscription and services revenue increased primarily due to strong software term license and subscription growth across all segments, particularly in AECO.
MD&A: organic subscription and services growth across segments · Filed 25/02/2026
Our customers have no obligation to renew their agreements for our subscription services after the expiration of their initial contract period, which typically ranges from one to three years, so we must continually provide compelling solutions, improvements, and customer support to retain customer subscriptions.
Risk factors: subscription duration and absence of renewal obligation · Filed 25/02/2026
We generally have an open application programming interface philosophy and open vendor environment, which leads to increased adoption of our software and analytics offerings.
Business: open interfaces and vendor environment · Filed 26/02/2024
Generative AI may also enable other parties to rapidly develop products and functionality that compete with our product offerings.
Competition risks: generative AI and competing functionality · Filed 25/02/2026
Our products, which commonly use GNSS for basic location information, may be subject to competition from alternative location technologies such as simultaneous location and mapping technology.
Competition risks: alternative location technologies · Filed 25/02/2026
Such competition has in the past resulted, and in the future may result, in price reductions, reduced margins, or loss of market share, any of which could decrease our revenue and growth rates.
Competition risks: historical and potential adverse competitive outcomes · Filed 25/04/2025
•a seven-year renewable supply agreement (the “Supply Agreement”) through which we will provide key GNSS and guidance technologies to PTx Trimble for use in professional agriculture machines sold by AGCO, on an exclusive basis with limited exceptions;
Ag divestiture arrangements: seven-year exclusive technology supply · Filed 25/04/2025
•a technology transfer and license agreement to govern the licensing of certain non-divested intellectual property and technology for use by PTx Trimble in the agriculture field and, upon expiration of the Supply Agreement, to govern fixed and variable royalty payments made to us by PTx Trimble;
Ag divestiture arrangements: retained technology licensing and royalties · Filed 25/04/2025
30 Table of Contents Gross Margin Gross margin and gross margin as a percentage of revenue increased due to the improved mix of higher margin subscription and software term license sales, lower intangible amortization expense due to fully amortized intangibles, as well as the divestiture of lower margin businesses.
MD&A: gross-margin improvement from mix, amortization and divestitures · Filed 25/02/2026
5 Table of Contents TRIMBLE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Second Quarter of First Two Quarters of (In millions, except per share amounts) 2026 2025 2026 2025 Revenue: Product $ 331.4 $ 292.8 $ 642.6 $ 564.4 Subscription and services 640.6 582.9 1,269.3 1,151.9 Total revenue 972.0 875.7 1,911.9 1,716.3 Cost of sales: Product 160.1 144.4 318.3 288.1 Subscription and services 120.1 117.3 239.4 237.0 Amortization of purchased intangible assets 16.9 16.1 33.0 32.5 Total cost of sales 297.1 277.8 590.7 557.6 Gross margin 674.9 597.9 1,321.2 1,158.7 Operating expense: Research and development 177.1 163.3 346.6 321.8 Sales and marketing 176.3 158.4 352.4 311.6 General and administrative 149.7 117.6 276.4 239.1 Restructuring 12.6 4.0 15.5 8.5 Amortization of purchased intangible assets 27.2 26.8 54.3 52.4 Total operating expense 542.9 470.1 1,045.2 933.4 Operating income 132.0 127.8 276.0 225.3 Non-operating (expense) income, net: Goodwill impairment (562.0) — (562.0) — Interest expense, net (20.9) (19.4) (40.4) (35.0) Income from equity method investments, net 2.6 2.3 3.4 3.3 Other income, net 3.5 2.6 9.5 6.1 Total non-operating expense, net (576.8) (14.5) (589.5) (25.6) (Loss) income before taxes (444.8) 113.3 (313.5) 199.7 Income tax provision 26.9 24.1 59.3 43.8 Net (loss) income $ (471.7) $ 89.2 $ (372.8) $ 155.9 Loss (earnings) per share: Basic $ (2.02) $ 0.37 $ (1.60) $ 0.65 Diluted $ (2.02) $ 0.37 $ (1.60) $ 0.64 Shares used in calculating (loss) earnings per share: Basic 233.0 238.1 233.7 240.7 Diluted 233.0 239.6 233.7 242.9 See accompanying Notes to the Condensed Consolidated Financial Statements.
Unaudited statements of operations: revenue, expenses, operating income and goodwill impairment · Filed 12/08/2026
Operating income as a percentage of revenue decreased for the second quarter due to higher operating expenses.
MD&A: second-quarter operating-margin decline · Filed 12/08/2026
Field Systems Second Quarter of 2026 First Two Quarters of 2026 Change versus the corresponding period in 2025 % Change % Change Change in Revenue - Field Systems 13 % 13 % Foreign currency exchange 1 % 1 % Organic growth 12 % 12 % Organic revenue increased for the second quarter and first two quarters primarily driven by hardware sales growth in Civil Construction and Surveying solutions due to strong end-user demand and competitive wins, and to a lesser extent, term license growth.
Field Systems: organic growth, end-user demand and competitive wins · Filed 12/08/2026
T&L Second Quarter of 2026 First Two Quarters of 2026 Change versus the corresponding period in 2025 % Change % Change Change in Revenue - T&L 6 % 1 % Divestitures — % (8) % Foreign currency exchange 1 % 3 % Organic growth 5 % 6 % Organic revenue increased for the second quarter and first two quarters primarily driven by subscription revenue growth from Transporeon.
Transportation and Logistics: organic growth and subscription demand · Filed 12/08/2026
25 Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of Second Quarter of Year End 2026 2025 Dollar Change % Change (In millions, except percentages) Cash and cash equivalents $ 214.4 $ 253.4 $ (39.0) (15) % As a percentage of total assets 2.5 % 2.7 % Principal balance of outstanding debt $ 1,466.4 $ 1,400.0 $ 66.4 5 % First Two Quarters of 2026 2025 Dollar Change % Change (In millions) Net cash provided by operating activities $ 515.0 $ 102.1 $ 412.9 404 % Net cash used in investing activities (245.3) (27.2) (218.1) 802 % Net cash used in financing activities (302.4) (582.6) 280.2 (48) % Effect of exchange rate changes on cash and cash equivalents (6.3) 25.8 (32.1) (124) % Net decrease in cash and cash equivalents $ (39.0) $ (481.9) Operating Activities The increase in cash provided by operating activities was primarily driven by lower cash taxes paid and higher operating income.
Liquidity and capital resources: operating cash flow, debt and cash · Filed 12/08/2026
During the first two quarters of 2026, we repurchased approximately 4.7 million shares of common stock in open market purchases at an average price of $67.59 per share for a total of $316.9 million, excluding related excise taxes.
Note 2: actual first-half 2026 stock repurchases · Filed 12/08/2026
(“Document Crunch”) for consideration of $246.4 million for 100% of the equity interests in Document Crunch.
Note 3: Document Crunch acquisition consideration · Filed 12/08/2026
We financed the acquisition by borrowing from our credit facilities (see Note 9, Debt).
Note 3: acquisition financing through credit facilities · Filed 12/08/2026
(E).Goodwill Impairment. Non-GAAP non-operating expense, net excludes the goodwill impairment charge related to our T&L segment.
Non-GAAP reconciliation: Transportation and Logistics goodwill impairment · Filed 12/08/2026
The impairment was triggered by a sustained decline in market capitalization and stock price reflecting heightened macroeconomic uncertainty and lower market multiples for software businesses.
Goodwill impairment: disclosed triggering circumstances · Filed 12/08/2026
•PRSUs. The People & Compensation Committee determined that PRSU awards granted in 2025 would be based on achievement of goals for relative TSR, to align outcomes to the market, and goals for annualized recurring revenue, to align outcomes to driving business results, with equal weighting between these goals, and both goals measured over three years.
2025 long-term compensation: granted performance awards and three-year goals · Filed 09/04/2026
Maintain a stock ownership policy. We maintain a stock ownership policy that requires our Named Executive Officers and other key executives to maintain a significant ownership level of our common stock.
Executive compensation policies: stock ownership requirement · Filed 09/04/2026
We prohibit our executive officers, the members of our Board, and other employees from hedging or pledging our equity securities.
Executive compensation policies: hedging and pledging prohibition · Filed 09/04/2026
(Dollars in millions) Threshold (0.5x) ($) Target (1x) ($) Maximum (2x) ($) Results ($) Payout rates T&L sector targets weight Bookings (annual contract value) 25% 76 84 92 88 1.47 Operating Income 40% 119 125 136 119 0.50 ARR 35% 477 497 522 483 0.63 weight Combined sector payout rate (weighted average of T&L payout rates) 0.790 60% Combined corporate payout rate (from Corporate targets table above) 1.386 40% Weighted average of T&L sector payout rate and corporate payout rate 1.028 The following table shows the results against targets in 2025 for the AECO sector performance metrics, applicable to Mr.
2025 compensation results: Transportation and Logistics performance against targets · Filed 09/04/2026
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of January 2, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 25, 2026 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.
Independent auditor report: adverse internal-control opinion dated February 25, 2026 · Filed 25/02/2026
The control deficiencies did not result in a material misstatement to the consolidated financial statements as of and for the year ended January 2, 2026.
Controls and procedures: no material 2025 misstatement from identified deficiencies · Filed 25/02/2026
The material weaknesses will not be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.
Controls and procedures: remediation remains subject to operating-effectiveness testing · Filed 12/08/2026
All People & Compensation Committee members are independent as defined by applicable Nasdaq rules and listing standards.
Governance: compensation committee independence · Filed 09/04/2026
The Audit Committee has oversight of the Company’s financial matters, internal controls, financial reporting, and internal investigations relating to financial misconduct.
Governance: audit committee oversight responsibilities · Filed 09/04/2026
This network effect also means that the willingness of developers, partners, and end users to engage increases as the number of network participants grows, which further enhances the platform experience and end-user value.
Strategy: management assertion of network effects · Filed 09/04/2026
This data estate based in the physical world creates a unique competitive advantage as a primary source that empowers Trimble AI solutions for our customers.
Business: management assertion of an AI data advantage · Filed 25/02/2026
In our software and subscription services businesses, we face competition from a group of large, well-established companies, particularly in the areas of design software, enterprise resource planning (“ERP”) solutions, and collaboration and project management offerings.
Competition risks: established software suppliers without individual names · Filed 25/02/2026
The increase in cash used in financing activities was primarily driven by the $1.7 billion repayment of debt in the current year, as compared to the prior year’s $2.0 billion of proceeds from the issuance of debt for the acquisition of Transporeon, partially offset by the $500.0 million repayment of debt.
Liquidity: actual debt repayment following acquisition financing · Filed 25/04/2025
2025 Change versus 2024 % Change Change in revenue (3) % Acquisitions 1 % Divestitures (10) % Organic growth 6 % Annualized Recurring Revenue (ARR) ARR represents the estimated annualized value of recurring revenue.
Organic revenue reconciliation: 2025 growth and portfolio effects · Filed 09/04/2026
2. General
2.1 Quotes, Validity of Orders: Our quotations are non-binding unless otherwise expressly stipulated in writing.
Section 2.1, Quotes, Validity of Orders · Retrieved 19/10/2026
2.2 Basic Order Terms: All orders must include the following information: (i) the Products and Software ordered and quantities, (ii) Trimble part number(s), (iii) prices, and (iv) delivery instructions, (collectively, “Basic Order Terms”).
Section 2.2, Basic Order Terms · Retrieved 19/10/2026
All Basic Order Terms are fixed and final upon our acceptance of the order.
Section 2.2, accepted order terms · Retrieved 19/10/2026
6.2 We have the continuing right to review your credit and change your payment terms, and may at any time demand advance payment, satisfactory security (such as, but not limited to, a confirmed, irrevocable letter of credit acceptable to us), or a guarantee of prompt payment prior to shipment or service activation.
Section 6.2, credit and payment terms · Retrieved 19/10/2026
These Terms do not apply to Service Agreements which have their own terms and conditions.
Scope exclusion for Service Agreements · Retrieved 19/10/2026
If there is a conflict or inconsistency between these Terms and those of a User Agreement, the terms of the User Agreement will control.
Precedence of software User Agreements · Retrieved 19/10/2026
