Masimo : FY2017 to Q4 2020 Supplemental Financial Information

MASIMO CORPORATION

SUPPLEMENTAL NON-GAAP INFORMATION (unaudited in thousands, except per share amounts)(1) (2)

All statements other than statements of historical facts included in this Supplemental Non-GAAP information that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our expectations for full fiscal year GAAP and non-GAAP 2020 total revenue, product revenue, royalty and other revenues, gross profit/margin, selling, general and administrative operating expenses, research and development operating expenses, litigation settlement, award and/or defense costs, operating expenses, operating income/margin, net income, diluted earnings per share, non-operating income, provision for income taxes, adjusted free cash flow; our long-term outlook; demand for our products; anticipated revenue and earnings growth; our financial condition, results of operations and business generally; expectations regarding our ability to design and deliver innovative new noninvasive technologies and reduce the cost of care; and demand for our technologies. These forward-looking statements are based on management's current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to: our dependence on Masimo SET® and Masimo rainbow SET™ products and technologies for substantially all of our revenue; any failure in protecting our intellectual property exposure to competitors' assertions of intellectual property claims; the highly competitive nature of the markets in which we sell our products and technologies; any failure to continue developing innovative products and technologies; the lack of acceptance of any of our current or future products and technologies; obtaining regulatory approval of our current and future products and technologies; the risk that the implementation of our international realignment will not continue to produce anticipated operational and financial benefits, including a continued lower effective tax rate; the loss of our customers; the failure to retain and recruit senior management; product liability claims exposure; a failure to obtain expected returns from the amount of intangible assets we have recorded; the maintenance of our brand; the amount and type of equity awards that we may grant to employees and service providers in the future; our ongoing litigation and related matters; and other factors discussed in the "Risk Factors" section of our most recent periodic reports filed with the Securities and Exchange Commission ("SEC"), including our most recent Form 10-K and Form 10-Q, all of which you may obtain for free on the SEC's website atwww.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

For additional information related to the definitions of our Non-GAAP measures, please visit the Investor Relations section of the Company's website atwww.masimo.com.

GAAP TOTAL REVENUE

GAAP revenue

Product revenue

Royalty and other revenue GAAP total revenue

RECONCILIATION OF GAAP GROSS PROFIT/MARGIN TO NON-GAAP GROSS PROFIT/MARGIN:

GAAP gross profit/margin Non-GAAP adjustments:

Royalty and other revenue, net of related costs Acquisition & investment related costs

Total non-GAAP gross profit/margin adjustments Non-GAAP gross profit/margin

Non-GAAP gross margin % (4)

RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES:

GAAP selling, general and administrative operating expenses

Non-GAAP adjustments:

Acquisition & investment related costs

Non-GAAP selling, general and administrative operating expenses

Non-GAAP selling, general, and administrative operating expenses % (4)

GAAP research and development operating expenses

Non-GAAP adjustments:

Acquisition & investment related costs

Non-GAAP research and development operating expenses

Non-GAAP research and development operating expenses % (4)

GAAP litigation settlement, award and/or defense costs

Non-GAAP adjustments:

Litigation damages, awards and settlements

Non-GAAP litigation settlement, award and/or defense costs

GAAP operating expenses

Non-GAAP adjustments:

Acquisition & investment related costs Litigation damages, awards and settlements

Total non-GAAP operating expense adjustments Non-GAAP operating expenses

Non-GAAP operating expenses % (4)

RECONCILIATION OF GAAP OPERATING INCOME/MARGIN TO NON-GAAP OPERATING INCOME/MARGIN:

GAAP operating income/margin Non-GAAP adjustments:

Royalty and other revenue, net of related costs Acquisition & investment related costs Litigation damages, awards and settlements

Total non-GAAP operating income/margin adjustments Non-GAAP operating income/margin

Non-GAAP operating income % (4)

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME:

GAAP net income Non-GAAP adjustments:

Royalty and other revenue, net of related costs Acquisition & investment related costs:

Cost of goods sold

Operating expenses

Subtotal - Acquisition & investment related costs

Litigation damages, awards and settlements

Operating expenses

Non-operating other (income) expense:

Realized and unrealized foreign currency gains or losses # Tax impact of non-GAAP net income adjustments

Expiration of certain statues of limitation related to unique and non-recurring tax positions 980E0xcess tax benefits from stock-based compensation

2017 U.S. Tax Reform

Total non-GAAP net income adjustments

Non-GAAP net income

RECONCILIATION OF GAAP NET INCOME PER DILUTED SHARE TO NON-GAAP NET INCOME PER DILUTED SHARE:

GAAP net income per diluted share Non-GAAP adjustments:

Royalty and other revenue, net of related costs Acquisition & investment related costs Litigation damages, awards and settlements

Realized and unrealized foreign currency gains or losses Tax impact of non-GAAP net income adjustments

Expiration of certain statues of limitation related to unique and non-recurring tax positions 980E0xcess tax benefits from stock-based compensation

2017 U.S. Tax Reform

Total non-GAAP net income per diluted share adjustments Non-GAAP net income per diluted share

Weighted average shares outstanding - diluted

RECONCILIATION OF GAAP NON-OPERATING INCOME (EXPENSE) TO NON-GAAP NON-OPERATING INCOME (EXPENSE):

GAAP Non-operating income (expense) Non-GAAP adjustments:

Realized and unrealized foreign currency gains or losses Non-GAAP non-operating income (expense)

RECONCILIATION OF GAAP PROVISION FOR INCOME TAXES TO NON-GAAP PROVISION FOR INCOME TAXES:

GAAP provision for income taxes

Non-GAAP adjustments:

Excess tax benefits from stock-based compensation Tax impact of pre-tax non-GAAP adjustments

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Expiration of certain statues of limitation related to unique and non-recurring tax positions 2017 U.S. Tax Reform

Total non-GAAP provision for income tax adjustments Non-GAAP provision for income taxes

RECONCILIATION OF FREE CASH FLOW TO ADJUSTED FREE CASH FLOW

Net cash provided by operating activities

Net cash provided by operating activities Purchases of property and equipment, net

Free cash flow

Litigation damages, awards and settlements

Tax payments related to litigation awards and damages

Adjusted free cash flow

• (1) Totals may not foot due to rounding

• (2) Quarterly reported amounts may vary from amounts previously reported due to rounding conventions.

• (3) Consistent with guidance provided on January 13, 2021

• (4) Calculated as a percentage of Product Revenue