Cirrus Logic (CRUS) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue reached $374 million, surpassing guidance due to strong smartphone shipments and HPMS content gains.

• Strategic focus remains on flagship smartphone audio, expanding HPMS content, and diversifying into markets like laptops and data converters.

• Apple accounted for 88% of Q1 FY2025 revenue, highlighting customer concentration.

• Significant product milestones include ramping next-gen custom boosted amplifier and 22nm smart codec, with strong design activity in laptops and new data converter introductions.

• Over 100 PC/laptop designs in progress for 2025, reflecting momentum in non-smartphone markets.

Financial highlights

• Q1 FY2025 revenue was $374 million, up 18% year-over-year, with gross margin at 50.5%-50.6%.

• GAAP net income was $42.1 million; non-GAAP net income was $62.4 million; GAAP EPS was $0.76, non-GAAP EPS was $1.12.

• Operating income was $46.8 million (GAAP) and $71.2 million (non-GAAP); operating margin (GAAP) was 12.5%, non-GAAP 19%.

• Cash and investments totaled $744.6 million; cash and cash equivalents were $491.4 million at quarter end.

• Cash flow from operations was $87.2 million; free cash flow margin was 21% for the quarter.

Outlook and guidance

• Q2 FY2025 revenue expected between $490 million and $550 million.

• GAAP gross margin projected at 50%-52%; non-GAAP OpEx expected at $125-$131 million; GAAP R&D and SG&A at $149-$155 million.

• Inventory expected to increase in Q2 to support new smartphone launches.

• FY2025 non-GAAP tax rate guided at 22%-24%.

• Management believes current liquidity and expected cash earnings are sufficient for both short- and long-term needs.