EPS of $1.31 increased by 62.7% from previous year
Gross margin of 53.4%
Net income of 71.27M
""Our approach to running the business is to manage and invest for the long term, and we anticipate that the investments that we are making in these areas will contribute to further revenue opportunities in the future."" - John Forsyth, CEO
Cirrus Logic Inc (CRUS) reported strong financial results for the fourth quarter of fiscal year 2025, with revenue reaching $424.5 million, surpassing guidance by leveraging higher smartphone volumes and the success of new generation products. The company generated record GAAP and non-GAAP earnings per share (EPS) of $1.67 and $7.54 respectively for FY2025, up 62.65% year-over-year. Despite a seasonal sequential revenue decline of 24% due to reduced smartphone demand, year-over-year revenue grew by 14%, underscoring strong market resilience. Management highlighted ongoing investments in supply chain diversification and product innovation, particularly in audio and high-performance mixed-signal applications, to position the company for sustained revenue growth in a dynamic macroeconomic environment.
Key Performance Indicators
Revenue
424.46M
QoQ: -23.62% | YoY:14.15%
Gross Profit
226.74M
53.42% margin
QoQ: -23.86% | YoY:17.71%
Operating Income
85.95M
QoQ: -41.04% | YoY:64.09%
Net Income
71.27M
QoQ: -38.57% | YoY:58.93%
EPS
1.35
QoQ: -38.36% | YoY:62.65%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $424.5 million
Gross Profit: $226.7 million (Gross Margin: 53.5%)
Operating Income: $85.9 million (Operating Margin: 20.2%)
Net Income: $71.3 million (Net Margin: 16.7%)
EPS: $1.67 (up 62.65% YoY)
Financial Highlights
Q4 FY2025 Financial Metrics:
- Revenue: $424.5 million
- Gross Profit: $226.7 million (Gross Margin: 53.5%)
- Operating Income: $85.9 million (Operating Margin: 20.2%)
- Net Income: $71.3 million (Net Margin: 16.7%)
- EPS: $1.67 (up 62.65% YoY)
Trends:
- YoY revenue growth of 14% and operating income growth of 64.09% reflects improvement in product mix and volume.
- Sequential decrease in revenue (-24%) linked to lower smartphone unit sales and inventory corrections in the supply chain.
- Gross margin improvement from a favorable product mix, despite higher supply chain costs and unfavorable inventory expenses impacting the Q4 outcome.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
424.46M
14.15%
-23.62%
Gross Profit
226.74M
17.71%
-23.86%
Operating Income
85.95M
64.09%
-41.04%
Net Income
71.27M
58.93%
-38.57%
EPS
1.35
62.65%
-38.36%
Key Financial Ratios
currentRatio
6.35
grossProfitMargin
53.4%
operatingProfitMargin
20.2%
netProfitMargin
16.8%
returnOnAssets
3.06%
returnOnEquity
3.66%
debtEquityRatio
0.07
operatingCashFlowPerShare
$2.47
freeCashFlowPerShare
$2.41
priceToBookRatio
2.69
priceEarningsRatio
18.42
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management commentary on performance and strategic initiatives:
- John Forsyth, CEO: "We delivered revenue of $424.5 million, above the top end of our guidance. For FY2025, we are proud of our record earnings per share and cash returned to shareholders, reaching $261 million in share repurchases."
- Jeff Woolard, CFO: "Our Q4 revenue performance was enhanced by higher smartphone unit volumes. Despite a sequential drop, our full-year revenue of $1.9 billion reflects a strategic focus on next-gen products."
- On tariffs and supply chain: Forsyth emphasized that the team is "actively monitoring the current dynamic trade environment and diversifying our supply chain to support customer needs as they evolve."
"Our approach to running the business is to manage and invest for the long term, and we anticipate that the investments that we are making in these areas will contribute to further revenue opportunities in the future."
— John Forsyth, CEO
"We believe there’s a good long-term opportunity in the automotive space. We're seeing solid customer engagement already, though it typically takes longer to mature into significant revenue streams."
— John Forsyth, CEO
Forward Guidance
Looking ahead to Q1 FY2026, Cirrus Logic anticipates revenue between $330 million and $390 million, reflecting a sequential decline of 15% and a slight year-over-year decrease. Management indicates this guidance incorporates expectations of stabilized demand, especially in the smartphone sector, while cautioning that macroeconomic conditions could change. The focus will continue to be on managing inventory levels and fulfilling long-term supply agreements. Investors should monitor the progress in revenue diversification outside of smartphones, particularly in laptops and automotive markets, as well as the success of new product launches that may significantly impact future profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CRUS Focus
53.42%
20.20%
3.66%
18.42%
SWKS
41.90%
5.80%
0.96%
65.40%
QRVO
45.30%
3.25%
0.93%
53.90%
ADI
58.00%
23.30%
1.36%
58.50%
LSCC
61.10%
-10.40%
2.32%
122.84%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Cirrus Logic Inc demonstrates a solid investment thesis based on its innovative product pipeline and strong financial health. While near-term challenges due to macroeconomic conditions and seasonality exist, the company's strategic focus on diversification and managing its supply chain effectively positions it well for future growth. Investors should keep an eye on the execution of the upcoming product launches in the automotive and laptop markets, as they represent not only diversification opportunities but potential new revenue streams that could significantly impact Cirrus Logic's market position against its peers.
Key Investment Factors
Growth Potential
Cirrus Logic's investment in high-performance mixed-signal assets and a strong R&D pipeline for new audio technologies provide significant growth prospects, particularly in the automotive and laptop markets. Management believes these segments could substantially expand the addressable market over the next several years.
Profitability Risk
Potential threats include global supply chain disruptions due to tariffs and geopolitical issues, alongside heavy dependence on a small number of major customers, representing 89% of revenue. This concentration can lead to volatility in financial performance if demand shifts.
Financial Position
Cirrus Logic maintains a robust balance sheet with $539.6 million in cash and cash equivalents, no debt, and a current ratio of 6.35, indicating excellent liquidity and financial health. However, inventory levels increased, signaling either a buildup in expectations for demand or potential inefficiencies in sales management.
SWOT Analysis
Strengths
Strong financial results with record EPS and revenue growth
Robust liquidity with no debt and substantial cash reserves
Leadership in audio processing technology with innovative product offerings
Weaknesses
High customer concentration (89% of revenue from largest customer)
Potential risks from global supply chain dependencies and tariffs
Sequential revenue declines during seasonal shifts in smartphone demand
Opportunities
Expansion into automotive and laptop sectors providing diversification
Continued development of next-generation products expected to drive future revenue
Ongoing investments in high-performance mixed-signal solutions may unlock new markets
Threats
Emerging competition in semiconductor industry
Macroeconomic uncertainties and trade tensions impacting supply chain
Dependence on cyclical demand from smartphone market may lead to revenue volatility