"To maintain leadership in our core flagship smartphone audio business is our primary goal while diversifying into new markets like laptops," said CEO John Forsyth.
— John Forsyth
03Detailed Report
CRUS
Cirrus Logic Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Cirrus Logic Inc (CRUS) has announced impressive financial results for Q2 2025, achieving a record revenue of $541.9 million, reflecting a 45% increase sequentially and a 13% increase year-over-year (YoY). This noteworthy performance is attributed to robust demand for the company’s audio components within the smartphone sector, highlighting an ongoing recovery and expansion in product adoption. Amidst rising competition, management's strategic focus on innovation and market diversification—particularly in smartphone audio and next-generation mixed signal products—positions Cirrus Logic favorably for sustained growth.
Additionally, the company emphasized its commitment to establishing long-term revenue streams through its latest product launches, including a 22-nanometer smart codec and enhanced boosted amplifiers. Moving forward, management anticipates continued demand driven by upcoming smartphone models while also navigating supply chain dynamics and inventory management in the context of fluctuating market conditions. Investors should closely monitor industry trends and Cirrus Logic’s operational developments as it seeks to capitalize on significant growth opportunities in new markets and product segments.
Key Performance Indicators
Revenue
Decreasing
541.86M
QoQ: 44.87% | YoY: -12.46%
Gross Profit
Decreasing
282.59M
52.15% margin
QoQ: 49.58% | YoY: -10.99%
Operating Income
Decreasing
131.85M
QoQ: 181.78% | YoY: -21.30%
Net Income
Decreasing
102.14M
QoQ: 142.64% | YoY: -26.37%
EPS
Decreasing
1.92
QoQ: 143.04% | YoY: -25.29%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Overview:
- Revenue: $541.9 million, up 45% QoQ and 13% YoY.
- Gross Profit: $282.6 million, with a gross margin of 52.2%.
- Operating Income: $156.2 million, representing 28.8% of revenue.
- Net Income: $125.3 million, leading to an EPS of $2.25, up from previous quarters.
- Cash Position: $706.6 million in cash and investments, no debt outstanding.
- Free Cash Flow Margin: Roughly 1%, indicating cashflow optimization.
Key Trends:
- Revenue growth primarily driven by new product launches and increasing adoption in smartphones. Management noted that the September quarter had one additional week of production, contributing to higher revenue recognition.
- Cost control measures have been effective, reflected in improvements in operating income despite rising operating expenses.
- Continued focus on inventory management with increased levels attributed to fulfilling long-term commitments in supply chains, particularly with GlobalFoundries.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
541.86M
-12.46%
44.87%
Gross Profit
282.59M
-10.99%
49.58%
Operating Income
131.85M
-21.30%
181.78%
Net Income
102.14M
-26.37%
142.64%
EPS
1.92
-25.29%
143.04%
Key Financial Ratios
Gross Profit Margin
Good
52.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
24.30%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
18.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
4.34%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
5.30%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
5.34
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.08
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
15.86x
P/E ratio in line with market averages
Price to Book
Premium
3.36x
Trading at premium to book value, reflects strong intangibles or growth
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