Cirrus Logic Reports Fiscal Second Quarter Revenue of $541.9 Million

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Cirrus Logic, Inc. (NASDAQ: CRUS) today posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the second quarter of fiscal year 2025, which ended September 28, 2024, as well as the company’s current business outlook.

“Cirrus Logic reported record revenue and earnings per share for the September quarter. Revenue was near the top end of our guidance range due to strong demand for products shipping into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “In addition to our outstanding financial results, during the quarter, we started shipping our next-generation custom boosted amplifier and first 22-nanometer smart codec in recently launched smartphones. We also made excellent progress in the laptop market as we secured our first high-volume mainstream design win with our latest PC codec and began shipping our first power product in multiple tier-one customers’ devices. With an extensive product portfolio and a compelling roadmap of future products, we believe Cirrus Logic is well-positioned to capitalize on the many opportunities ahead of us to further broaden our technology and market reach.”

Reported Financial Results – Second Quarter FY25

Revenue of $541.9 million;
GAAP and non-GAAP gross margin of 52.2 percent;
GAAP operating expenses of $150.7 million and non-GAAP operating expenses of $126.8 million; and
GAAP earnings per share of $1.83 and non-GAAP earnings per share of $2.25.

A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release.

Business Outlook – Third Quarter FY25

Revenue is expected to range between $480 million and $540 million;
GAAP gross margin is forecasted to be between 51 percent and 53 percent; and
Combined GAAP R&D and SG&A expenses are anticipated to range between $148 million and $154 million, including approximately $22 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $124 million and $130 million.

Cirrus Logic will host a live Q&A session at 5 p.m. EST today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion or by calling (609) 800-9909 or toll-free at (800) 770-2030 (Access Code: 95424).

About Cirrus Logic, Inc.

Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture.

Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.

Use of non-GAAP Financial Information

To supplement Cirrus Logic’s financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statement about our belief that we are well-positioned to capitalize on the many opportunities ahead of us; and our estimates for the third quarter fiscal year 2025 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquired intangibles. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” “intend,” and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the third quarter of fiscal year 2025, customer cancellations of orders, or the failure to place orders consistent with forecasts, along with the risk factors listed in our Form 10-K for the year ended March 30, 2024 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)

	Three Months Ended									Six Months Ended
	Sep. 28,			Jun. 29,			Sep. 23,			Sep. 28,			Sep. 23,
		2024			2024			2023			2024			2023
	Q2’25			Q1’25			Q2’24			Q2’25			Q2’24
Audio	$	316,588		$	218,970		$	282,855		$	535,558		$	478,661
High-Performance Mixed-Signal		225,269			155,056			198,208			380,325			319,418
Net sales		541,857			374,026			481,063			915,883			798,079
Cost of sales		259,267			185,101			234,467			444,368			392,096
Gross profit		282,590			188,925			246,596			471,515			405,983
Gross margin		52.2	%		50.5	%		51.3	%		51.5	%		50.9	%

Research and development		112,925			105,363			104,205			218,288			210,420
Selling, general and administrative		37,813			36,770			34,323			74,583			69,702
Restructuring costs		—			—			2,319			—			2,319
Total operating expenses		150,738			142,133			140,847			292,871			282,441

Income from operations		131,852			46,792			105,749			178,644			123,542

Interest income		8,134			8,202			3,729			16,336			8,329
Other income (expense)		19			1,609			(70	)		1,628			307
Income before income taxes		140,005			56,603			109,408			196,608			132,178
Provision for income taxes		37,865			14,508			34,001			52,373			41,171
Net income	$	102,140		$	42,095		$	75,407		$	144,235		$	91,007

Basic earnings per share	$	1.92		$	0.79		$	1.38		$	2.70		$	1.66
Diluted earnings per share:	$	1.83		$	0.76		$	1.34		$	2.59		$	1.61

Weighted average number of shares:
Basic		53,275			53,433			54,503			53,354			54,683
Diluted		55,800			55,665			56,278			55,753			56,453

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per share data; unaudited)
(not prepared in accordance with GAAP)

Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

	Three Months Ended									Six Months Ended
	Sep. 28,			Jun. 29,			Sep. 23,			Sep. 28,			Sep. 23,
		2024			2024			2023			2024			2023
Net Income Reconciliation	Q2’25			Q1’25			Q2’24			Q2’25			Q2’24
GAAP Net Income	$	102,140		$	42,095		$	75,407		$	144,235		$	91,007
Amortization of acquisition intangibles		1,864			1,972			2,170			3,836			4,340
Stock-based compensation expense		22,447			21,385			21,331			43,832			44,046
Lease impairment		—			1,019			—			1,019			—
Restructuring costs		—			—			2,319			—			2,319
Acquisition-related costs		—			—			939			—			4,105
Adjustment to income taxes		(1,162	)		(4,105	)		(604	)		(5,267	)		(6,232	)
Non-GAAP Net Income	$	125,289		$	62,366		$	101,562		$	187,655		$	139,585

Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	1.83		$	0.76		$	1.34		$	2.59		$	1.61
Effect of Amortization of acquisition intangibles		0.04			0.03			0.04			0.07			0.08
Effect of Stock-based compensation expense		0.40			0.38			0.38			0.79			0.78
Effect of Lease impairment		—			0.02			—			0.02			—
Effect of Restructuring costs		—			—			0.04			—			0.04
Effect of Acquisition-related costs		—			—			0.01			—			0.07
Effect of Adjustment to income taxes		(0.02	)		(0.07	)		(0.01	)		(0.10	)		(0.11	)
Non-GAAP Diluted earnings per share	$	2.25		$	1.12		$	1.80		$	3.37		$	2.47

Operating Income Reconciliation
GAAP Operating Income	$	131,852		$	46,792		$	105,749		$	178,644		$	123,542
GAAP Operating Profit		24.3	%		12.5	%		22.0	%		19.5	%		15.5	%
Amortization of acquisition intangibles		1,864			1,972			2,170			3,836			4,340
Stock-based compensation expense – COGS		355			266			361			621			646
Stock-based compensation expense – R&D		15,844			15,763			15,472			31,607			31,424
Stock-based compensation expense – SG&A		6,248			5,356			5,498			11,604			11,976
Lease impairment		—			1,019			—			1,019			—
Restructuring costs		—			—			2,319			—			2,319
Acquisition-related costs		—			—			939			—			4,105
Non-GAAP Operating Income	$	156,163		$	71,168		$	132,508		$	227,331		$	178,352
Non-GAAP Operating Profit		28.8	%		19.0	%		27.5	%		24.8	%		22.3	%

Operating Expense Reconciliation
GAAP Operating Expenses	$	150,738		$	142,133		$	140,847		$	292,871		$	282,441
Amortization of acquisition intangibles		(1,864	)		(1,972	)		(2,170	)		(3,836	)		(4,340	)
Stock-based compensation expense – R&D		(15,844	)		(15,763	)		(15,472	)		(31,607	)		(31,424	)
Stock-based compensation expense – SG&A		(6,248	)		(5,356	)		(5,498	)		(11,604	)		(11,976	)
Lease impairment		—			1,019			—			1,019			—
Restructuring costs		—			—			(2,319	)		—			(2,319	)
Acquisition-related costs		—			—			(939	)		—			(4,105	)
Non-GAAP Operating Expenses	$	126,782		$	118,023		$	114,449		$	244,805		$	228,277

Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	282,590		$	188,925		$	246,596		$	471,515		$	405,983
GAAP Gross Margin		52.2	%		50.5	%		51.3	%		51.5	%		50.9	%
Stock-based compensation expense – COGS		355			266			361			621			646
Non-GAAP Gross Profit	$	282,945		$	189,191		$	246,957		$	472,136		$	406,629
Non-GAAP Gross Margin		52.2	%		50.6	%		51.3	%		51.5	%		51.0	%


	Three Months Ended									Six Months Ended
	Sep. 28,			Jun. 29,			Sep. 23,			Sep. 28,			Sep. 23,
		2024			2024			2023			2024			2023
Effective Tax Rate Reconciliation	Q2’25			Q1’25			Q2’24			Q2’25			Q2’24
GAAP Tax Expense	$	37,865		$	14,508		$	34,001		$	52,373		$	41,171
GAAP Effective Tax Rate		27.0	%		25.6	%		31.1	%		26.6	%		31.1	%
Adjustments to income taxes		1,162			4,105			604			5,267			6,232
Non-GAAP Tax Expense	$	39,027		$	18,613		$	34,605		$	57,640		$	47,403
Non-GAAP Effective Tax Rate		23.8	%		23.0	%		25.4	%		23.5	%		25.4	%

Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.68		$	0.26		$	0.60		$	0.94		$	0.73
Adjustments to income taxes		0.02			0.07			0.01			0.10			0.11
Non-GAAP Tax Expense	$	0.70		$	0.33		$	0.61		$	1.04		$	0.84

CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)

	Sep. 28,		Mar. 30,			Sep. 23,
	2024		2024			2023
ASSETS
Current assets
Cash and cash equivalents	$	445,759	$	502,764		$	277,805
Marketable securities		32,499		23,778			34,636
Accounts receivable, net		324,098		162,478			271,894
Inventories		271,765		227,248			328,930
Prepaid wafers		71,740		86,679			79,468
Other current assets		79,044		103,245			104,138
Total current Assets		1,224,905		1,106,192			1,096,871

Long-term marketable securities		228,302		173,374			40,042
Right-of-use lease assets		133,316		138,288			144,104
Property and equipment, net		168,265		170,175			171,047
Intangibles, net		25,700		29,578			33,801
Goodwill		435,936		435,936			435,936
Deferred tax asset		48,619		48,649			44,126
Long-term prepaid wafers		37,804		60,750			94,474
Other assets		53,292		68,634			44,052
Total assets	$	2,356,139	$	2,231,576		$	2,104,453

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	91,899	$	55,545		$	87,340
Accrued salaries and benefits		51,861		47,612			46,504
Lease liability		22,800		20,640			19,859
Other accrued liabilities		62,716		62,596			47,487
Total current liabilities		229,276		186,393			201,190

Non-current lease liability		129,806		134,576			136,042
Non-current income taxes		42,683		52,013			51,589
Other long-term liabilities		26,247		41,580			7,277
Total long-term liabilities		198,736		228,169			194,908

Stockholders’ equity:
Capital stock		1,819,589		1,760,701			1,712,710
Accumulated earnings (deficit)		107,233		58,916			(1,213	)
Accumulated other comprehensive income (loss)		1,305		(2,603	)		(3,142	)
Total stockholders’ equity		1,928,127		1,817,014			1,708,355
Total liabilities and stockholders’ equity	$	2,356,139	$	2,231,576		$	2,104,453

Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)

	Three Months Ended

	Sep. 28,			Sep. 23,
		2024			2023
	Q2’25			Q2’24
Cash flows from operating activities:
Net income	$	102,140		$	75,407
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		12,618			11,610
Stock-based compensation expense		22,447			21,331
Deferred income taxes		4,984			810
Loss on retirement or write-off of long-lived assets		12			58
Other non-cash charges		87			274
Restructuring costs		—			2,319
Net change in operating assets and liabilities:
Accounts receivable, net		(134,019	)		(86,046	)
Inventories		(39,199	)		(27,974	)
Prepaid wafers		25,531			21,058
Other assets		(341	)		(14,392	)
Accounts payable and other accrued liabilities		27,268			10,200
Income taxes payable		(13,297	)		(12,859	)
Acquisition-related liabilities		—			(24,527	)
Net cash provided by (used in) operating activities		8,231			(22,731	)
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities		835			7,194
Purchases of available-for-sale marketable securities		(3,577	)		(7,819	)
Purchases of property, equipment and software		(2,670	)		(8,470	)
Investments in technology		(70	)		(57	)
Net cash used in investing activities		(5,482	)		(9,152	)
Cash flows from financing activities:
Net proceeds from the issuance of common stock		4,859			—
Repurchase of stock to satisfy employee tax withholding obligations		(3,207	)		(2,082	)
Repurchase and retirement of common stock		(49,993	)		(40,576	)
Net cash used in financing activities		(48,341	)		(42,658	)
Net decrease in cash and cash equivalents		(45,592	)		(74,541	)
Cash and cash equivalents at beginning of period		491,351			352,346
Cash and cash equivalents at end of period	$	445,759		$	277,805

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands; unaudited)

Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue.

	Twelve Months Ended			Three Months Ended

	Sep. 28,			Sep. 28,			Jun. 29,			Mar. 30,			Dec. 30,
		2024			2024			2024			2024			2023
	Q2’25			Q2’25			Q1’25			Q4’24			Q3’24

Net cash provided by operating activities (GAAP)	$	579,610		$	8,231		$	87,161		$	170,526		$	313,692
Capital expenditures		(30,393	)		(2,740	)		(10,145	)		(7,695	)		(9,813	)
Free Cash Flow (Non-GAAP)	$	549,217		$	5,491		$	77,016		$	162,831		$	303,879

Cash Flow from Operations as a Percentage of Revenue (GAAP)		30	%		2	%		23	%		46	%		51	%
Capital Expenditures as a Percentage of Revenue (GAAP)		2	%		1	%		3	%		2	%		2	%
Free Cash Flow Margin (Non-GAAP)		29	%		1	%		21	%		44	%		49	%

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)

		Q3 FY25
		Guidance
Operating Expense Reconciliation
GAAP Operating Expenses		$148 – 154
Stock-based compensation expense		(22)
Amortization of acquisition intangibles		(2)
Non-GAAP Operating Expenses		$124 – 130

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