Credo Technology Group (CRDO) investor relations material

Executive summary

• Achieved record Q3 FY2026 revenue of $407 million, up 51.9% sequentially and 201.5% year-over-year, driven by strong demand from hyperscale customers and new product wins.

• Non-GAAP net income reached $208.8 million, quadrupling year-over-year; GAAP net income was $157.1 million.

• Significant growth in AECs, ICs, and new product families (ZeroFlap optics, ALCs, OmniConnect) expanded total addressable market.

• Completed major equity offerings, including a $736.3 million At-The-Market offering, boosting cash reserves.

• Acquired Hyperlume and Comera to strengthen system-level connectivity and protocol IP capabilities.

Financial highlights

• Q3 revenue: $407 million, up 52% sequentially and over 200% year-over-year.

• Non-GAAP gross margin: 68.6%; GAAP gross margin: 68.5%.

• Non-GAAP operating income: $201.8 million; GAAP operating income margin: 36.8%.

• Cash and equivalents: $1.3 billion at quarter end, up significantly from prior periods.

• Record cash flow from operations: $166.2 million in Q3; free cash flow: $139.7 million.

Outlook and guidance

• Q4 FY2026 revenue expected between $425 million and $435 million.

• Q4 non-GAAP gross margin guidance: 64% to 66%; GAAP gross margin: 63.9%–65.9%.

• Q4 non-GAAP operating expenses: $76 million to $80 million.

• Fiscal 2027 revenue expected to grow more than 50% year-over-year, with sequential growth in the mid-single digits.

• Management expects revenue concentration among a limited number of customers to decrease as adoption broadens.