AUSTIN, Texas, May 06, 2025--(BUSINESS WIRE)--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 fourth quarter and full fiscal year 2025, which ended March 29, 2025, as well as the company’s current business outlook.

"Cirrus Logic delivered six percent revenue growth and record earnings per share in FY25. We are pleased with our achievements during the year, with the company making excellent progress executing our strategic growth plan. In FY25, we began shipping the latest generation of our boosted amplifier and our first 22-nanometer smart codec, grew our momentum in the laptop market, and introduced a series of general market components that expand our product portfolio and revenue opportunities across a number of markets," said John Forsyth, Cirrus Logic president and chief executive officer. "With a rich portfolio of products and an exciting pipeline of innovations in development, we look forward to capitalizing on the many opportunities ahead of us to further broaden our technology and market reach."

Reported Financial Results – Fourth Quarter FY25

Revenue of $424.5 million; GAAP and non-GAAP gross margin of 53.4 percent and 53.5 percent; GAAP operating expenses of $140.8 million and non-GAAP operating expenses of $120.0 million; and GAAP earnings per share of $1.31 and non-GAAP earnings per share of $1.67.

Reported Financial Results – Full Fiscal Year 2025

Revenue of $1.90 billion; GAAP and non-GAAP gross margin of 52.5 percent and 52.6 percent; GAAP operating expenses of $585.7 million and non-GAAP operating expenses of $494.1 million; and GAAP earnings per share of $6.00 and non-GAAP earnings per share of $7.54.

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

Business Outlook – First Quarter FY26

Revenue is expected to range between $330 million and $390 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 $141 million and $147 million, including approximately $20 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $119 million and $125 million.

Share Repurchase Authorization

The company also announced that in March 2025 its Board of Directors authorized the repurchase of up to an additional $500 million of the company's common stock. The repurchases are expected to be funded from working capital and anticipated cash flow from operations and may occur from time to time depending on a variety of factors, including general market and economic conditions and other corporate considerations. Repurchases may be affected through a variety of means, including open market purchases, privately negotiated transactions, 10b5-1 plans, or other means, in accordance with applicable securities laws. The Company is not obligated to repurchase any specific amount of shares, and repurchases may be suspended or discontinued at any time without notice.

Story Continues

Cirrus Logic will host a live Q&A session at 5 p.m. EDT 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 ability to capitalize on the many opportunities ahead of us; and our estimates for the first quarter fiscal year 2026 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 first quarter of fiscal year 2026; customer cancellations of orders; the failure to place orders consistent with forecasts; changes in government trade policies, including the imposition of tariffs or export restrictions; and global economic conditions and uncertainty, 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, unless required by law.

Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (in thousands, except per share data; unaudited)  Three Months Ended  Twelve Months Ended Mar. 29,  Dec. 28,  Mar. 30,  Mar. 29,  Mar. 30, 2025    2024    2024    2025    2024  Q4'25  Q3'25  Q4'24  Q4'25  Q4'24 Audio $ 255,326   $ 346,272   $ 226,681   $ 1,137,157   $ 1,083,939  High-Performance Mixed-Signal  169,130    209,466    145,146    758,920    704,951  Net sales  424,456    555,738    371,827    1,896,077    1,788,890  Cost of sales  197,720    257,951    179,202    900,039    872,818  Gross profit  226,736    297,787    192,625    996,038    916,072  Gross margin  53.4 %   53.6 %   51.8 %   52.5 %   51.2 %  Research and development  103,420    112,976    103,383    434,684    426,475  Selling, general and administrative  37,370    39,042    36,866    150,995    144,172  Restructuring costs  —    —    —    —    1,959  Total operating expenses  140,790    152,018    140,249    585,679    572,606   Income from operations  85,946    145,769    52,376    410,359    343,466   Interest income  8,604    8,146    7,360    33,086    20,578  Other income (expense)  55    (214 )   (78 )   1,469    (108 ) Income before income taxes  94,605    153,701    59,658    444,914    363,936  Provision for income taxes  23,338    37,696    14,816    113,407    89,364  Net income $ 71,267   $ 116,005   $ 44,842   $ 331,507   $ 274,572   Basic earnings per share $ 1.35   $ 2.19   $ 0.83   $ 6.24   $ 5.06  Diluted earnings per share: $ 1.31   $ 2.11   $ 0.81   $ 6.00   $ 4.90   Weighted average number of shares:  Basic  52,756    53,081    53,739    53,135    54,290  Diluted  54,324    55,076    55,559    55,241    56,021   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  Twelve Months Ended Mar. 29,  Dec. 28,  Mar. 30,  Mar. 29,  Mar. 30, 2025    2024    2024    2025    2024  Net Income Reconciliation Q4'25  Q3'25  Q4'24  Q4'25  Q4'24 GAAP Net Income $ 71,267   $ 116,005   $ 44,842   $ 331,507   $ 274,572  Amortization of acquisition intangibles  1,647    1,647    1,973    7,130    8,285  Stock-based compensation expense  19,491    20,823    22,158    84,146    89,271  Lease impairment  —    661    —    1,680    —  Restructuring costs  —    —    —    —    1,959  Acquisition-related costs  —    —    —    —    4,105  Adjustment to income taxes  (1,772 )   (827 )   75    (7,866 )   (8,926 ) Non-GAAP Net Income $ 90,633   $ 138,309   $ 69,048   $ 416,597   $ 369,266   Earnings Per Share Reconciliation  GAAP Diluted earnings per share $ 1.31   $ 2.11   $ 0.81   $ 6.00   $ 4.90  Effect of Amortization of acquisition intangibles  0.03    0.03    0.03    0.13    0.15  Effect of Stock-based compensation expense  0.36    0.38    0.40    1.52    1.59  Effect of Lease impairment  —    0.01    —    0.03    —  Effect of Restructuring costs  —    —    —    —    0.04  Effect of Acquisition-related costs  —    —    —    —    0.07  Effect of Adjustment to income taxes  (0.03 )   (0.02 )   —    (0.14 )   (0.16 ) Non-GAAP Diluted earnings per share $ 1.67   $ 2.51   $ 1.24   $ 7.54   $ 6.59   Operating Income Reconciliation  GAAP Operating Income $ 85,946   $ 145,769   $ 52,376   $ 410,359   $ 343,466  GAAP Operating Profit  20.2 %   26.2 %   14.1 %   21.6 %   19.2 % Amortization of acquisition intangibles  1,647    1,647    1,973    7,130    8,285  Stock-based compensation expense - COGS  360    351    362    1,332    1,403  Stock-based compensation expense - R&D  13,079    14,498    15,483    59,184    63,678  Stock-based compensation expense - SG&A  6,052    5,974    6,313    23,630    24,190  Lease impairment  —    661    —    1,680    —  Restructuring costs  —    —    —    —    1,959  Acquisition-related costs  —    —    —    —    4,105  Non-GAAP Operating Income $ 107,084   $ 168,900   $ 76,507   $ 503,315   $ 447,086  Non-GAAP Operating Profit  25.2 %   30.4 %   20.6 %   26.5 %   25.0 %  Operating Expense Reconciliation  GAAP Operating Expenses $ 140,790   $ 152,018   $ 140,249   $ 585,679   $ 572,606  Amortization of acquisition intangibles  (1,647 )   (1,647 )   (1,973 )   (7,130 )   (8,285 ) Stock-based compensation expense - R&D  (13,079 )   (14,498 )   (15,483 )   (59,184 )   (63,678 ) Stock-based compensation expense - SG&A  (6,052 )   (5,974 )   (6,313 )   (23,630 )   (24,190 ) Lease impairment  —    (661 )   —    (1,680 )   —  Restructuring costs  —    —    —    —    (1,959 ) Acquisition-related costs  —    —    —    —    (4,105 ) Non-GAAP Operating Expenses $ 120,012   $ 129,238   $ 116,480   $ 494,055   $ 470,389   Gross Margin/Profit Reconciliation  GAAP Gross Profit $ 226,736   $ 297,787   $ 192,625   $ 996,038   $ 916,072  GAAP Gross Margin  53.4 %   53.6 %   51.8 %   52.5 %   51.2 % Stock-based compensation expense - COGS  360    351    362    1,332    1,403  Non-GAAP Gross Profit $ 227,096   $ 298,138   $ 192,987   $ 997,370   $ 917,475  Non-GAAP Gross Margin  53.5 %   53.6 %   51.9 %   52.6 %   51.3 %  Three Months Ended  Twelve Months Ended Mar. 29,  Dec. 28,  Mar. 30,  Mar. 29,  Mar. 30, 2025    2024    2024    2025    2024  Effective Tax Rate Reconciliation Q4'25  Q3'25  Q4'24  Q4'25  Q4'24 GAAP Tax Expense $ 23,338   $ 37,696   $ 14,816   $ 113,407   $ 89,364  GAAP Effective Tax Rate  24.7 %   24.5 %   24.8 %   25.5 %   24.6 % Adjustments to income taxes  1,772    827    (75 )   7,866    8,926  Non-GAAP Tax Expense $ 25,110   $ 38,523   $ 14,741   $ 121,273   $ 98,290  Non-GAAP Effective Tax Rate  21.7 %   21.8 %   17.6 %   22.5 %   21.0 %  Tax Impact to EPS Reconciliation  GAAP Tax Expense $ 0.43   $ 0.68   $ 0.27   $ 2.05   $ 1.60  Adjustments to income taxes  0.03    0.02    —    0.14    0.16  Non-GAAP Tax Expense $ 0.46   $ 0.70   $ 0.27   $ 2.19   $ 1.76

CONSOLIDATED CONDENSED BALANCE SHEET (in thousands; unaudited)  Mar. 29,  Dec. 28,  Mar. 30, 2025    2024    2024  ASSETS  Current assets  Cash and cash equivalents  $ 539,620   $ 526,444   $ 502,764  Marketable securities   56,160    37,535    23,778  Accounts receivable, net   216,009    261,943    162,478  Inventories   299,092    275,558    227,248  Prepaid wafers   52,560    66,113    86,679  Other current assets   76,293    82,857    103,245  Total current Assets   1,239,734    1,250,450    1,106,192   Long-term marketable securities   239,036    252,594    173,374  Right-of-use lease assets   126,688    129,597    138,288  Property and equipment, net   159,900    163,837    170,175  Intangibles, net   27,461    23,957    29,578  Goodwill   435,936    435,936    435,936  Deferred tax asset   48,150    40,895    48,649  Long-term prepaid wafers   15,512    23,020    60,750  Other assets   34,656    42,954    68,634  Total assets  $ 2,327,073   $ 2,363,240   $ 2,231,576   LIABILITIES AND STOCKHOLDERS' EQUITY  Current liabilities  Accounts payable  $ 63,162   $ 77,907   $ 55,545  Accrued salaries and benefits   52,075    48,029    47,612  Lease liability   21,811    21,858    20,640  Other accrued liabilities   58,140    63,119    62,596  Total current liabilities   195,188    210,913    186,393   Non-current lease liability   121,908    124,622    134,576  Non-current income taxes   44,040    43,401    52,013  Other long-term liabilities   16,488    21,506    41,580  Total long-term liabilities   182,436    189,529    228,169   Stockholders' equity:  Capital stock   1,860,281    1,840,791    1,760,701  Accumulated earnings   90,351    124,101    58,916  Accumulated other comprehensive loss   (1,183 )   (2,094 )   (2,603 ) Total stockholders' equity   1,949,449    1,962,798    1,817,014  Total liabilities and stockholders' equity  $ 2,327,073   $ 2,363,240   $ 2,231,576   Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (in thousands; unaudited)  Three Months Ended  Mar. 29,  Mar. 30, 2025    2024  Q4'25  Q4'24 Cash flows from operating activities:  Net income  $ 71,267   $ 44,842  Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization   13,150    12,009  Stock-based compensation expense   19,491    22,158  Deferred income taxes   (7,497 )   (14,426 ) Loss on retirement or write-off of long-lived assets   1    2  Other non-cash charges   (33 )   86  Net change in operating assets and liabilities:  Accounts receivable, net   45,934    54,791  Inventories   (23,534 )   29,427  Prepaid wafers   21,061    10,917  Other assets   11,341    6,621  Accounts payable and other accrued liabilities   (17,937 )   (2,411 ) Income taxes payable   (2,858 )   6,510  Net cash provided by operating activities   130,386    170,526  Cash flows from investing activities:  Maturities and sales of available-for-sale marketable securities   9,392    13,614  Purchases of available-for-sale marketable securities   (13,322 )   (108,174 ) Purchases of property, equipment and software   (3,429 )   (7,057 ) Investments in technology   (5,752 )   (638 ) Net cash used in investing activities   (13,111 )   (102,255 ) Cash flows from financing activities:  Issuance of common stock, net of shares withheld for taxes   —    2,719  Repurchase of stock to satisfy employee tax withholding obligations   (4,099 )   (2,165 ) Repurchase and retirement of common stock   (100,000 )   (49,992 ) Net cash used in financing activities   (104,099 )   (49,438 ) Net increase in cash and cash equivalents   13,176    18,833  Cash and cash equivalents at beginning of period   526,444    483,931  Cash and cash equivalents at end of period  $ 539,620   $ 502,764   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  Mar. 29,  Mar. 29,  Dec. 28,  Sep. 28,  Jun. 29, 2025    2025    2024    2024    2024  Q4'25  Q4'25  Q3'25  Q2'25  Q1'25  Net cash provided by operating activities (GAAP)  $ 444,366   $ 130,386   $ 218,588   $ 8,231   $ 87,161  Capital expenditures   (28,753 )   (9,181 )   (6,687 )   (2,740 )   (10,145 ) Free Cash Flow (Non-GAAP)  $ 415,613   $ 121,205   $ 211,901   $ 5,491   $ 77,016   Cash Flow from Operations as a Percentage of Revenue (GAAP)   23 %   31 %   39 %   2 %   23 % Capital Expenditures as a Percentage of Revenue (GAAP)   2 %   2 %   1 %   1 %   3 % Free Cash Flow Margin (Non-GAAP)   22 %   29 %   38 %   1 %   21 %

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in millions; unaudited) (not prepared in accordance with GAAP)  Q1 FY26 Guidance Operating Expense Reconciliation  GAAP Operating Expenses  $141 - 147 Stock-based compensation expense  (20) Amortization of acquisition intangibles  (2) Non-GAAP Operating Expenses  $119 - 125

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Contacts

Investor Contact: 
Chelsea Heffernan
Vice President, Investor Relations
Cirrus Logic, Inc.
(512) 851-4125
[email protected]