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CIRRUS LOGIC, INC. (CRUS)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 revenue was $424.5M, up 14% YoY and down 24% QoQ, above the top end of guidance; GAAP EPS was $1.31 and non-GAAP EPS was $1.67, with GAAP and non-GAAP gross margin at 53.4% and 53.5% respectively .
  • Results beat Wall Street consensus: revenue $424.5M vs $380.31M*, GAAP EPS $1.31 vs $1.175*, and non-GAAP EPS $1.67 vs $1.175*; management attributed the beat to stronger-than-expected smartphone volumes .
  • Q1 FY26 guidance: revenue $330–$390M (down ~15% QoQ at midpoint), GM 51–53%, and non-GAAP OpEx $119–$125M; management flagged dynamic tariff risks and supply-chain geographic diversification .
  • Capital return: Board authorized up to $500M in new share repurchases; $100M repurchased in Q4 and $25M subsequent under a 10b5-1 plan .
  • Stock-reaction catalysts: consensus beat, new buyback authorization, laptop momentum (FY26 laptop revenue expected to double from FY25), and continued camera-controller proliferation including into lower-priced devices .

What Went Well and What Went Wrong

What Went Well

  • Above-guidance quarter: “Revenue of $424.5 million… above the top end of our guidance range” driven by stronger smartphone volumes .
  • Product execution: Began shipping latest-gen boosted amplifier and first 22nm smart codec; “record earnings per share in FY25” .
  • Diversification momentum: Secured first high-volume mainstream PC codec design win; shipping to each of the top five laptop OEMs; FY26 laptop revenue expected to double FY25 .

What Went Wrong

  • Sequential decline and inventory build: Revenue fell 24% QoQ; inventory rose to $299.1M with ~138 days, though expected to decrease slightly in Q1 FY26 .
  • Tariff uncertainty: Management highlighted a “highly dynamic” trade environment with potential tariff impacts, prompting supply-chain diversification efforts .
  • Elevated tax burden: Effective tax rates remained unfavorably impacted by TCJA R&D capitalization; FY26 non-GAAP tax rate guided to ~21–23% .

Financial Results

Quarterly Financials vs Prior Periods

MetricQ4 FY24Q2 FY25Q3 FY25Q4 FY25
Revenue ($USD Millions)$371.8 $541.9 $555.7 $424.5
GAAP Diluted EPS ($USD)$0.81 $1.83 $2.11 $1.31
Non-GAAP Diluted EPS ($USD)$1.24 $2.25 $2.51 $1.67
GAAP Gross Margin %51.8% 52.2% 53.6% 53.4%
Non-GAAP Gross Margin %51.9% 52.2% 53.6% 53.5%

Results vs Wall Street Consensus (S&P Global)

MetricActual Q4 FY25Consensus Q4 FY25Beat/(Miss)
Revenue ($USD Millions)$424.5 $380.31*+$44.19
GAAP Diluted EPS ($USD)$1.31 $1.175*+$0.135
Non-GAAP Diluted EPS ($USD)$1.67 $1.175*+$0.495

Values retrieved from S&P Global.*

Segment Breakdown (Revenue)

Segment ($USD Millions)Q4 FY24Q3 FY25Q4 FY25
Audio$226.7 $346.3 $255.3
High-Performance Mixed-Signal (HPMS)$145.1 $209.5 $169.1

Note: Mix was 62% Audio / 38% HPMS in Q3 FY25 and 60% Audio / 40% HPMS in Q4 FY25 .

KPIs (Q4 FY25)

KPIQ4 FY25
Cash from Operations ($USD Millions)$130.386
Free Cash Flow ($USD Millions)$121.205
Free Cash Flow Margin (%)29%
Inventory ($USD Millions)$299.092
Days of Inventory (days)~138
Share Repurchases ($USD Millions)$100.0
Cash & Investments ($USD Millions, end of FY25)~$834.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Revenue ($USD Millions)Q4 FY25$350–$410 $424.5 (actual) N/A (beat vs guidance)
GAAP Gross Margin %Q4 FY2551–53% 53.4% (actual) N/A
Combined GAAP R&D + SG&A ($USD Millions)Q4 FY25$141–$147 $140.8 (actual) N/A
Non-GAAP Operating Expenses ($USD Millions)Q4 FY25$119–$125 $120.0 (actual) N/A
Revenue ($USD Millions)Q1 FY26N/A$330–$390 New
GAAP Gross Margin %Q1 FY26N/A51–53% New
Combined GAAP R&D + SG&A ($USD Millions)Q1 FY26N/A$141–$147 New
Non-GAAP Operating Expenses ($USD Millions)Q1 FY26N/A$119–$125 New
Non-GAAP Effective Tax Rate (%)FY26N/A~21–23% New

Earnings Call Themes & Trends

TopicQ2 FY25 (Nov-2024)Q3 FY25 (Feb-2025)Q4 FY25 (May-2025)Trend
Smartphone audio refreshBegan shipping next-gen boosted amp + first 22nm smart codec Continued strong demand for latest-gen audio components Products shipping; revenue above guidance driven by smartphone volumes Positive
Camera controllersMore favorable mix; content value increasing Value of camera content rising; roadmap expansion First-time content in lower-priced phone at key customer Positive
LaptopsEarly traction; new codec + power chips; “low tens of millions” FY25 target Shipping to each top-5 OEM; broader content in Arrow/Lunar Lake FY26 laptop revenue expected to double FY25; >150 SKUs Strongly positive
Supply chain/tariffsNot emphasizedNot emphasizedDynamic tariffs; geographic diversification underway Watch item
R&D executionOngoing programs in power/battery Product sampling (timing/data converters); OpEx guided OpEx down QoQ on tape-out timing; continued investment Stable
Tax rate/TCJAFY25 non-GAAP 22–24% guided FY25 non-GAAP 22–24% reiterated FY26 non-GAAP ~21–23% guided; TCJA capitalization impact persists Improving (slightly)

Management Commentary

  • “Cirrus Logic delivered six percent revenue growth and record earnings per share in FY25… we began shipping the latest generation of our boosted amplifier and our first 22-nanometer smart codec” — John Forsyth, CEO .
  • “Revenue in Q4… was above the high end of the guidance range… stronger-than-expected smartphone volumes” — Jeff Woolard, CFO .
  • “The [tariff] situation is highly dynamic… we continue to invest in the geographic diversification of our supply chain” — John Forsyth .
  • “For Q1 fiscal year 2026, we expect revenue in the range of $330 million to $390 million… gross margin 51% to 53%… non-GAAP operating expense $119 million to $125 million” — Jeff Woolard .
  • “We expect to double our fiscal ’25 revenue in the laptop space [in FY26]… shipping in well over 150 different SKUs” — John Forsyth .
  • “First time we’ve had camera controller content in a lower-priced phone from one of our most significant customers” — John Forsyth .

Q&A Highlights

  • Customer concentration: Largest customer represented ~89% of FY25 revenue; limited Q4 pull-forward ahead of tariffs .
  • Laptops: FY25 achieved “low tens of millions”; FY26 laptop revenue expected to double as SKUs broaden beyond premium to mainstream .
  • HPMS vs Audio: HPMS expected to surpass audio over time, current ratio paused given major audio refresh; continued SAM expansion via HPMS .
  • Automotive opportunity: ~$1B additional SAM potential across audio, timing, haptics, power; needle-moving revenue will take time due to auto cycles .
  • Inventory and supply-chain: ~138 DoI at Q4; expecting slight inventory decrease in Q1 FY26; pursue geographic diversification aligned with customers .

Estimates Context

  • Q4 FY25 beat: revenue $424.5M vs $380.31M*, GAAP EPS $1.31 vs $1.175*, non-GAAP EPS $1.67 vs $1.175* .
  • Estimate coverage: Q4 FY25 had 5 revenue estimates and 6 EPS estimates; forward quarters have 6 revenue and 7 EPS estimates*.
  • Forward view: Q1 FY26 consensus revenue ~$364.97M* vs company guidance $330–$390M, consensus EPS ~$1.095*; management guides non-GAAP tax 21–23% .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Strong execution: Above-guidance quarter and consensus beat driven by smartphone volumes; gross margin resilience at 53.4% GAAP/53.5% non-GAAP .
  • Capital return: New $500M buyback authorization plus $100M repurchased in Q4 and $25M post-quarter; underscores balance-sheet strength ($835M cash/investments, no debt) .
  • Diversification accelerating: FY26 laptop revenue expected to double FY25 with >150 SKUs; broader PC content across codec, amplifiers, power converters .
  • Camera controllers expanding: First content in lower-priced tier at key customer; multiple growth vectors (attach rate, channels, drive strength) .
  • Near-term caution: Q1 FY26 guide implies ~15% QoQ decline at midpoint; inventory high (~138 DoI) but expected to ease; watch tariff developments .
  • Tax headwinds moderating: FY26 non-GAAP tax rate guided to ~21–23% (TCJA R&D capitalization impact diminishing over time) .
  • Concentration risk persists: One customer was 88% of Q4 revenue and 89% for FY25; design activity remains strong, but dependency remains an ongoing consideration .