Qorvo (QRVO) Q3 2025 earnings summary

Executive summary

• Fiscal Q3 2025 revenue was $916.3M, with non-GAAP diluted EPS of $1.61, both exceeding guidance; GAAP gross margin was 42.7% and non-GAAP gross margin was 46.5%.

• Strategic focus is on premium and flagship Android tiers, defense and aerospace, and expanding automotive and ultra-wideband solutions, while reducing exposure to mass-market Android.

• Workforce reduction, restructuring, and divestiture of the silicon carbide business were implemented to improve profitability and gross margin.

• Operating income reached $53.0M (GAAP) and $177.9M (non-GAAP), reversing a prior year loss.

• Largest customer accounted for ~50% of sales; record Defense & Aerospace revenue achieved.

Financial highlights

• Q3 FY2025 revenue: $916.3M (down 14.7% year-over-year); non-GAAP gross margin: 46.5%; GAAP gross margin: 42.7%.

• Q3 operating income: $53.0M (GAAP), $177.9M (non-GAAP); Q3 net income: $41.3M (GAAP), $152.8M (non-GAAP).

• Free cash flow for the quarter was $176.3M; operating cash flow was $214M.

• Ended the quarter with $769.4M in cash and equivalents and $1.5B in long-term debt.

• $308.3M in share repurchases YTD; $100M repurchased in Q3 at $73 per share.

Outlook and guidance

• March 2025 quarter revenue expected at ~$850M (±$25M), non-GAAP gross margin between 43%-44%, and non-GAAP EPS between $0.90 and $1.10.

• Fiscal 2026: ACG revenue to decline single digits, CSG and HPA to grow 10%-12% (excluding silicon carbide).

• Gross margin projected to expand by 150 basis points in fiscal 2026 on flat revenue; high-40% gross margin targeted for strong quarters in FY26.

• Non-GAAP operating expenses to average ~$250M per quarter in fiscal 2026.

• Sufficient liquidity projected, with $769.4M in cash and $325M undrawn credit facility.