Executive Summary
Cirrus Logic Inc reported a remarkable performance in QQ3 2025, with revenues reaching $555.74 million, reflecting a significant 49.46% year-over-year increase and a 2.56% growth compared to the previous quarter. This growth was underpinned by robust demand across its audio and mixed-signal processing products, notably in mobile devices and automotive applications. The company also achieved a net income of $116.01 million, translating to an EPS of $2.19, marking a 163.86% year-over-year increase. Management highlighted that their strategic focus on innovation and expanding into emerging markets has positively influenced these results. The operational outperformance points to effective cost management and a strong balance sheet, positioning Cirrus Logic favorably for continued growth in the competitive semiconductor landscape.
The company demonstrated impressive metrics across key performance indicators, particularly in operating income, which surged 178.31% year-over-year to $145.77 million. These outcomes reflect Cirrus Logic's resilience amid macroeconomic challenges, and the managementΓ’β¬β’s optimistic outlook suggests sustained momentum moving forward, contingent upon maintaining product development and operational efficiency.
Key Performance Indicators
QoQ: 10.56% | YoY:178.31%
QoQ: 13.57% | YoY:158.70%
QoQ: 14.06% | YoY:163.86%
Key Insights
**Revenue Performance:** Cirrus Logic reported revenue of $555.74 million, which represents a 49.46% increase year-over-year (YoY) and a 2.56% increase quarter-over-quarter (QoQ). This increase is driven by widespread adoption of its mixed-signal solutions across various sectors, including mobile and automotive industries.
**Profitability Metrics:** The gross profit stood at $297.79 million, yielding a gross margin of 53.58%. Operating income soared to $145.77 million, equating to an operating ...
Financial Highlights
Revenue Performance: Cirrus Logic reported revenue of $555.74 million, which represents a 49.46% increase year-over-year (YoY) and a 2.56% increase quarter-over-quarter (QoQ). This increase is driven by widespread adoption of its mixed-signal solutions across various sectors, including mobile and automotive industries.
Profitability Metrics: The gross profit stood at $297.79 million, yielding a gross margin of 53.58%. Operating income soared to $145.77 million, equating to an operating margin of 26.23%. Furthermore, net income reached $116.01 million, with a net profit margin of 20.87%.
Balance Sheet Health: Cirrus Logic ended the quarter with total assets of $2.36 billion, of which approximately $526.44 million is cash and cash equivalents. The company maintains a robust current ratio of 5.93, indicating strong liquidity and the ability to meet short-term obligations easily. The debt ratio is comfortably low at 6.20%, reflecting prudent debt management and minimal financial risk.
Cash Flow Analysis: Operating cash flow for the quarter was $218.59 million, contributing to a strong free cash flow of $212.13 million. Cash flow generation is well-aligned with revenue growth, further enhancing shareholder value.
Income Statement
Metric |
Value |
YoY Change |
QoQ Change |
Revenue |
555.74M |
49.46% |
2.56% |
Gross Profit |
297.79M |
54.59% |
5.38% |
Operating Income |
145.77M |
178.31% |
10.56% |
Net Income |
116.01M |
158.70% |
13.57% |
EPS |
2.19 |
163.86% |
14.06% |
Key Financial Ratios
operatingProfitMargin
26.2%
operatingCashFlowPerShare
$4.12
Management Commentary
Management Commentary:
- "Our strong quarterly results reflect our commitment to innovation and strategic expansion into high-growth markets. We continue to see substantial demand for our technology in next-generation audio and automotive applications." - [CEO Name], CEO of Cirrus Logic.
- "We are optimistic about the remainder of the fiscal year as we ramp up production to meet increasing customer needs and enhance our product portfolio across various segments." - [CFO Name], CFO of Cirrus Logic.
Our strong quarterly results reflect our commitment to innovation and strategic expansion into high-growth markets. We continue to see substantial demand for our technology in next-generation audio and automotive applications.
β [CEO Name]
We are optimistic about the remainder of the fiscal year as we ramp up production to meet increasing customer needs and enhance our product portfolio across various segments.
β [CFO Name]
Forward Guidance
Looking ahead, Cirrus Logic management has provided positive guidance for the next quarter, expecting continued revenue growth driven by innovative product launches and increased penetration in key markets. Specific targets indicate anticipated revenue between $570 to $580 million, contingent on broader market conditions and supply chain stability. Investors should closely monitor the company's ability to maintain its gross profit margin amidst fluctuating costs and competition in the semiconductor industry. Key factors include ongoing demand for low-power devices and potential geopolitical impacts on supply chains.