Cirrus Logic (CRUS) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 FY25 revenue of $541.9 million, driven by strong smartphone demand and new product launches, with Apple accounting for 90% of revenue.

• Launched next-generation custom-boosted amplifier and 22nm smart codec in flagship smartphones, and secured first high-volume mainstream laptop/PC design win.

• Strategic focus on smartphone audio leadership, expanding high-performance mixed-signal content, and growth in laptops and new markets.

• Largest customer concentration risk remains, with 90% of Q2 FY25 revenue from Apple.

• Continued investment in R&D, M&A, and product diversification to support technology portfolio and market expansion.

Financial highlights

• Q2 FY25 revenue was $541.9M, up 13% year-over-year, with gross margin at 52.2% (up from 51.3% YoY); net income was $102.1M, and EPS was $1.83 GAAP/$2.25 non-GAAP.

• Non-GAAP operating income reached $156.2M (28.8% of revenue); non-GAAP net income was $125.3M.

• Cash and investments at quarter-end were $706.6M–$707M, with cash flow from operations at $8M for the quarter.

• Inventory at $271.8M, with days of inventory at 96; free cash flow margin was 1% for the quarter.

• Share repurchases in Q2 FY25 totaled $40.6M–$50M, with $224.1M remaining in authorization.

Outlook and guidance

• Q3 FY25 revenue expected between $480M and $540M, with GAAP gross margin guidance of 51%–53%.

• Combined R&D/SG&A expenses for Q3 FY25 projected at $148M–$154M; non-GAAP operating expense expected at $124M–$130M.

• Non-GAAP tax rate for FY25 projected at 22%–24%, slightly higher than FY24.

• Inventory expected to increase into early FY26 to fulfill demand and wafer purchase commitments.

• No specific quantitative forward guidance provided in some filings.