Cirrus Logic Inc (CRUS) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic Advancements

Date:

  • Revenue: $541.9 million, up 45% sequentially and 13% year-over-year.

  • Gross Profit: $282.9 million (non-GAAP).

  • Gross Margin: 52.2% (non-GAAP), up 160 basis points sequentially and 90 basis points year-over-year.

  • Operating Expenses: $126.8 million (non-GAAP), up $8.8 million sequentially and $12.3 million year-over-year.

  • Operating Income: $156.2 million (non-GAAP), representing 28.8% of revenue.

  • Net Income: $125.3 million (non-GAAP).

  • Earnings Per Share: $2.25 (non-GAAP), a record for the September quarter.

  • Cash and Investments: $706.6 million, down $38 million from the prior quarter.

  • Inventory: $271.8 million, with 96 days of inventory.

  • Cash Flow from Operations: $8.2 million for the September quarter.

  • CapEx: $2.7 million for the September quarter.

  • Free Cash Flow Margin: Approximately 1% for the September quarter.

  • Share Repurchases: $50 million spent to repurchase approximately 356,000 shares.

  • Guidance for Q3 FY25 Revenue: Expected to range from $480 million to $540 million.

  • Guidance for Q3 FY25 Gross Margin: Expected to range from 51% to 53% (GAAP).

  • Guidance for Q3 FY25 Operating Expenses: Expected to range from $124 million to $130 million (non-GAAP).

  • Guidance for FY25 Tax Rate: Expected to be approximately 22% to 24% (non-GAAP).

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Cirrus Logic Inc (NASDAQ:CRUS) delivered record revenue and earnings per share for the September quarter, with revenue reaching $541.9 million, near the top end of their guidance range.

  • The company successfully began shipping its next-generation custom boosted amplifier and its first 22 nanometer smart codec in newly launched smartphones, showcasing significant engineering advancements.

  • There is continued success in the high-performance mixed signal solutions area, particularly with the camera controller product line, which has seen increased value over time.

  • Cirrus Logic Inc (NASDAQ:CRUS) secured its first high-volume mainstream design win with its latest PC codec, indicating progress in the laptop market.

  • The company maintains a strong balance sheet with $706.6 million in cash and investments and no debt outstanding, allowing for continued share repurchases and strategic investments.

  • The December quarter guidance reflects a larger than typical seasonal decline, influenced by a shift in fiscal year timing and previous high Android production.

  • Non-GAAP operating expenses increased year-over-year due to higher employee-related expenses, increased variable compensation, and higher product development costs.

  • The company anticipates a slight increase in inventory dollars moving into FY26, which could impact cash flow and operational flexibility.

  • Cash flow from operations was relatively low at $8.2 million for the September quarter, resulting in a non-GAAP free cash flow margin of roughly 1%.

  • There is uncertainty in the March quarter outlook due to variable demand during the holiday period, making it challenging to predict future performance accurately.

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