Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

91ab3be2076f18603f4866880ab8799b65e5eb0652e04855702092db018e250d

Increase in engineering time for product engineering services (percentage)

107c239eed19db85edd40fd21fdddebc09e02bdb0d0110370b009f5fb375b130

Operating cash flow in Q3 2024 was negative, at **($1,036 thousand)**.  **[0001628280-24-007677_crdo-20240127.htm:5]**  However, the documents do not provide Q3‑specific reasons; they instead offer a detailed explanation for the nine‑month period ending January 27, 2024. For that period, factors such as a significant **net loss** and less favorable working capital adjustments contributed to reduced operating cash, despite benefits from large **non‑cash adjustments** and better working capital management.  **[0001628280-24-007677_crdo-20240127.htm:5]** **[0001628280-24-007677_crdo-20240127.htm:33]**  It can be inferred that similar factors—namely the impact of operating losses and working capital changes—likely played a role in the Q3 result, but the documents don’t specify additional or unique drivers for Q3 2024.

Why was operating cash flow negative in Q3 2024?

In Q1 2025, the sharp decline in operating cash flow was driven primarily by a **net loss of $9.5 million** and **working capital outflows of $21.5 million**. The working capital changes included an **increase in accounts receivable of $12.2 million**, an **increase in inventory of $5.4 million**, a **decrease in accrued expenses, compensation, and other liabilities of $3.7 million**, and an **increase in contract assets of $2.8 million**. These factors were partially offset by **$23.8 million of non-cash items** that, nonetheless, couldn't overcome the negative impact of the net loss and working capital adjustments.  **[0001628280-24-039309_credoq12025ex-991.htm:0]** **[0001628280-24-039562_crdo-20240803.htm:22]** 

What drove the sharp decline in operating cash flow in Q1 2025?

The drastic increase in investing cash outflows in **Q3 2024** was primarily caused by a **substantial rise in the purchases of short-term investments**. Specifically, CRDO significantly increased its outlay on short-term investments, which led to a much larger cash outflow compared to previous periods. Although there was some offset from cash received through maturities of these investments and a reduction in spending on property and equipment, the overwhelming effect of the higher expenditures on short-term investments is what drove the drastic change.  **[0001628280-24-007677_crdo-20240127.htm:5]** **[0001628280-24-007677_crdo-20240127.htm:33]** 

What caused the drastic increase in investing cash outflows in Q3 2024?

In Q3 2024, Credo Technology Group’s financing cash flow surged primarily due to **net proceeds of $173,636 thousand** from a follow-on public offering combined with **$4,685 thousand** received from employee share incentive plans. These significant inflows were partially offset by **$3,052 thousand** in payments for technology license obligations, but the overall effect was a dramatic increase compared to the previous period.  **[0001628280-24-007677_crdo-20240127.htm:34]** **[0001628280-24-007677_crdo-20240127.htm:32]** **[0001628280-24-007677_crdo-20240127.htm:5]** 

Why did financing cash flow surge in Q3 2024?

47b4a6909517b651a9652778e5c9ebb2355ed3d4ca8009088286746fc3c33f34

The sharp decline in **Cash and Cash Equivalents** in Q4 2024 was primarily driven by several factors. Despite a significant improvement in net cash provided by operating activities (**$32,737** versus a negative cash flow of **$(24,615)** previously) and a strong inflow from financing activities (**$175,276**, largely due to proceeds from a public offering), the major factor was the large outflow in investing activities. The company significantly increased its use of cash in investing activities, highlighted by purchases of short-term investments amounting to **$(403,587)**, which, along with other investing cash outflows (**$(249,485)**), overwhelmed the positive cash flows from operations and financing. A minor negative effect from exchange rate changes (**$(169)**) also contributed to the decline, resulting in the cash balance dropping from **$108,583** at the beginning of FY 2024 to **$66,942** by the end of Q4 2024.  **[0001628280-24-029629_crdo-20240427.htm:103]** 

Why did Cash and Cash Equivalents drop so sharply in Q4 2024?

The significant jump in **Total Assets** in Q3 2024 was driven primarily by increases in several key areas. **Short-term investments** rose from **$109,228 thousand** to **$313,061 thousand**, **contract assets** increased from **$9,445 thousand** to **$17,909 thousand**, and **other non-current assets** grew from **$13,975 thousand** to **$22,490 thousand**. These changes collectively contributed to the overall increase in Total Assets.  **[0001628280-24-007214_credoq32024ex-991.htm:4]** **[0001628280-24-007677_crdo-20240127.htm:3]** 

What drove the significant jump in Total Assets in Q3 2024?

The increased Total Liabilities in Q1 2025 were primarily driven by significant rises in **Accounts Payable**, **Other Non-Current Liabilities**, and **Non-Current Operating Lease Liabilities**. Specifically, **Accounts Payable** increased markedly, which suggests higher obligations to suppliers or vendors. In addition, the uptick in **Other Non-Current Liabilities** indicates the company incurred greater long-term obligations, and the growth in **Non-Current Operating Lease Liabilities** reflects the impact of new or updated lease agreements during the period.  **[0001628280-24-039309_credoq12025ex-991.htm:4]** **[0001628280-24-039562_crdo-20240803.htm:3]** 

What factors contributed to the increased Total Liabilities in Q1 2025?

ea349b24f79ba8c08a986e93385754139c9794bafeaea962eb90186b592aa9d0

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

D&A (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

37c3c9288a8e383b4854f8a0365fe4ff0c9b4f46bc1f6c7dddba64992cd7bfc8

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

6260213388537a58e437e8bc3c53255fc77525a59a76b6bc8b94c803ccfe5b31

Net loss (USD, thousands)

Depreciation and amortization (USD, thousands)

Share-based compensation (USD, thousands)

Warrant contra revenue (USD, thousands)

Write-downs for excess and obsolete inventory (USD, thousands)

Net cash provided by operating activities (USD, thousands)

Purchases of property and equipment (USD, thousands)

Maturities of short-term investments (USD, thousands)

Purchases of short-term investments (USD, thousands)

Net cash provided by (used in) investing activities (USD, thousands)

Payments on technology license obligations (USD, thousands)

Proceeds from employee share incentive plans (USD, thousands)

Tax withheld related to RSU settlement (USD, thousands)

Net cash provided by financing activities (USD, thousands)

Effect of exchange rate changes on cash (USD, thousands)

Net increase in cash and cash equivalents (USD, thousands)

Purchases of property and equipment included in accounts payable, accrued expenses and other liabilities (USD, thousands)

Accounts receivable (USD, thousands)

Inventories (USD, thousands)

Contract assets (USD, thousands)

Prepaid and other current assets (USD, thousands)

Other non-current assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses, compensation and other liabilities (USD, thousands)

Deferred revenue (USD, thousands)

Cash and cash equivalents at beginning of the period (USD, thousands)

Cash and cash equivalents at end of the period (USD, thousands)

f3b12c1f2e6467a439dee510bd9f67b99e2260a8692fbd076ae11d926e18d2ea

Revenue: Product sales (USD, thousands)

Revenue: Product engineering services (USD, thousands)

Revenue: IP license (USD, thousands)

Revenue: IP license engineering services (USD, thousands)

Cost of revenue: Cost of product sales revenue (USD, thousands)

Cost of revenue: Cost of product engineering services revenue (USD, thousands)

Cost of revenue: Cost of IP license revenue (USD, thousands)

Cost of revenue: Cost of IP license engineering services revenue (USD, thousands)

Total Cost of Revenue (USD, thousands)

Gross Profit (USD, thousands)

Operating expenses: Research and development (USD, thousands)

Operating expenses: Selling, general and administrative (USD, thousands)

Operating expenses: Impairment charges (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Loss (USD, thousands)

Other income (expense), net (USD, thousands)

Loss before income taxes (USD, thousands)

Provision (benefit) for income taxes (USD, thousands)

Net Loss (USD, thousands)

Net loss per share: Basic and diluted (USD)

Weighted-average shares: Basic and diluted (thousands)

05c3da4a3b25fc32ca4ac2f7bd7632dff5848faebc93807b26bc6817318288f8

Short-term Investments (USD, thousands)

Contract Assets (USD, thousands)

Prepaid Expenses and Other Current Assets (USD, thousands)

Total Current Assets (USD, thousands)

Property and Equipment, Net (USD, thousands)

Right of Use Assets (USD, thousands)

Other Non-current Assets (USD, thousands)

Total Assets (USD, thousands)

Accrued Compensation and Benefits (USD, thousands)

Accrued Expenses and Other Current Liabilities (USD, thousands)

Deferred Revenue (USD, thousands)

Total Current Liabilities (USD, thousands)

Non-current Operating Lease Liabilities (USD, thousands)

Other Non-current Liabilities (USD, thousands)

Total Liabilities (USD, thousands)

Ordinary Shares (USD, thousands)

Additional Paid in Capital (USD, thousands)

Accumulated Other Comprehensive Loss (USD, thousands)

Accumulated Deficit (USD, thousands)

Total Shareholders' Equity (USD, thousands)

Total Liabilities and Shareholders' Equity (USD, thousands)

0523cfa6eef2736f79807b3d7fb8fc4bfe7aa731425d50b791d9369aa51b6415

Product Sales

- Product Engineering Services

- IP License

IP License Engineering Services

Total Revenue

f88688081a3f86ca8758b0c494bffcbce4cb2c884968d14e4cb63bb62687457e

Hong Kong

United States

Mainland China

Taiwan

Rest of World

Singapore

Mexico

5d7e64e58725120d3b2eb4da2dbe3365d73ce008b84062c0c54e49c0afecd08c

Credo Technology Group Holding Ltd (CRDO)

Financials