Cirrus Logic (CRUS) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $555.7 million, surpassing guidance due to strong smartphone demand and momentum in the laptop segment.

• Gross margin improved to 53.6% in Q3 FY25, reflecting a favorable product mix and new product launches, including a 22nm smart codec and custom-boosted amplifier.

• Apple accounted for 91% of Q3 FY25 revenue, highlighting significant customer concentration risk.

• Strategic progress made in flagship smartphone audio, HPMS, and expansion into laptops and automotive, with increased design wins in laptops.

• Leadership transition announced: Jeff Woolard to join as CFO, succeeding interim CFO Ulf Habermann.

Financial highlights

• Q3 FY25 revenue was $555.7 million, up from $541.9 million in Q2 but down 10% year-over-year due to lower smartphone unit volumes and a shorter quarter.

• Non-GAAP gross profit was $298.1 million with a gross margin of 53.6%, a record high.

• GAAP net income was $116.0 million; non-GAAP net income was $138.3 million; GAAP EPS was $2.11, non-GAAP EPS was $2.51.

• Cash and investments ended at $816.6 million, up from $707 million in the prior quarter; cash and cash equivalents at quarter-end were $526.4 million.

• Free cash flow margin was 38% for the quarter and 25% for the trailing 12 months.

Outlook and guidance

• Q4 FY25 revenue expected between $350 million and $410 million.

• GAAP gross margin guidance: 51%-53%; non-GAAP operating expense: $119 million-$125 million; GAAP R&D and SG&A: $141M–$147M.

• FY25 non-GAAP tax rate expected at 22%-24%.

• Inventory expected to increase and peak in the first half of FY26 due to demand fulfillment and wafer commitments.

• Management expects sufficient liquidity for both short- and long-term needs, supported by strong cash flow, cash balances, and a $300M undrawn credit facility.