Cirrus Logic (CRUS) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 FY25 revenue of $541.9 million, driven by strong smartphone demand, new product launches, and expansion into the laptop market; Apple accounted for 90% of revenue.

• Launched next-generation custom-boosted amplifier and 22nm smart codec in flagship smartphones; secured first high-volume mainstream laptop/PC design win and began shipping power products to tier-one customers.

• Strategic focus remains on smartphone audio leadership, expanding high-performance mixed-signal content, and entering new markets such as laptops, tablets, wearables, and AR/VR.

Financial highlights

• Q2 FY25 revenue was $541.9M, up 13% year-over-year; GAAP gross margin was 52.2%, up from 51.3% YoY; GAAP net income was $102.1M, and GAAP EPS was $1.83 (non-GAAP: $2.25).

• Non-GAAP operating income reached $156.2M (28.8% of revenue); non-GAAP net income was $125.3M.

• Cash and investments at quarter-end were $706.6M–$707M, down from the prior quarter due to share repurchases; cash and cash equivalents were $445.8M.

• Free cash flow margin was 1% for the quarter; operating cash flow for six months was $95.4M.

• Inventory at $271.8M, with 96 days of inventory, expected to increase into FY 2026 to fulfill wafer commitments.

Outlook and guidance

• Q3 FY25 revenue expected between $480 million and $540 million, with GAAP gross margin guidance of 51%–53%.

• Combined GAAP R&D and SG&A expenses projected at $148M–$154M; non-GAAP operating expense expected at $124M–$130M.

• FY25 non-GAAP tax rate expected at 22%–24%, slightly higher than FY24 due to prior IRS R&D capitalization benefit.