Cirrus Logic Reports Fiscal First Quarter Revenue of $407.3 Million

About this update from Cirrus Logic, Inc.

AUSTIN, Texas --(BUSINESS WIRE)-- Cirrus Logic, Inc. (NASDAQ: CRUS) today posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the first quarter of fiscal year 2026, which ended June 28, 2025 , as well as the company’s current business outlook. “Cirrus Logic delivered strong financial results for the June quarter driven by robust demand for our custom boosted amplifier and first 22-nanometer smart codec shipping in smartphones,” said John Forsyth , Cirrus Logic president and chief executive officer. “During the quarter, we also executed against our growth strategy to drive product and end-market diversification. Our progress included gaining traction in the laptop market and ramping production of our latest-generation general market components that target the professional audio, automotive, industrial, and imaging end markets. With a growing roadmap of products and a proven track record of execution, we believe Cirrus Logic is well-positioned to grow long-term shareholder value.” Reported Financial Results – First Quarter FY26 Revenue of $407.3 million ; GAAP and non-GAAP gross margin of 52.6 percent; GAAP operating expenses of $141.6 million and non-GAAP operating expenses of $119.5 million ; and GAAP earnings per share of $1.14 and non-GAAP earnings per share of $1.51 . A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release. Business Outlook – Second Quarter FY26 Revenue is expected to range between $510 million and $570 million ; GAAP gross margin is forecasted to be between 51 percent and 53 percent; and Combined GAAP R&D and SG&A expenses are anticipated to range between $153 million and $159 million , including approximately $20 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $131 million and $137 million . Cirrus Logic will host a live Q&A session at 5 p.m. EDT today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com . A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion or by calling (609) 800-9909 or toll-free at (800) 770-2030 (Access Code: 95424). About Cirrus Logic, Inc. Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications. With headquarters in Austin, Texas , Cirrus Logic is recognized globally for its award-winning corporate culture. Cirrus Logic , Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders. Use of non-GAAP Financial Information To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. Safe Harbor Statement Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statement about our ability to grow long-term shareholder value; and our estimates for the second quarter fiscal year 2026 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquired intangibles. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “opportunity,” “estimates,” “intend,” and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the second quarter of fiscal year 2026; customer cancellations of orders; the failure to place orders consistent with forecasts; changes in government trade policies, including the imposition of tariffs or export restrictions; and global economic conditions and uncertainty, along with the risk factors listed in our Form 10-K for the year ended March 29, 2025 and in our other filings with the Securities and Exchange Commission , which are available at www.sec.gov . The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise, unless required by law. Summary Financial Data Follows: CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (in thousands, except per share data; unaudited) Three Months Ended Jun. 28 , Mar. 29 , Jun. 29 , 2025 2025 2024 Q1'26 Q4'25 Q1'25 Audio $ 240,043 $ 255,326 $ 218,970 High-Performance Mixed-Signal 167,229 169,130 155,056 Net sales 407,272 424,456 374,026 Cost of sales 193,242 197,720 185,101 Gross profit 214,030 226,736 188,925 Gross margin 52.6 % 53.4 % 50.5 % Research and development 102,892 103,420 105,363 Selling, general and administrative 38,744 37,370 36,770 Total operating expenses 141,636 140,790 142,133 Income from operations 72,394 85,946 46,792 Interest income 8,622 8,604 8,202 Other income (expense) (388 ) 55 1,609 Income before income taxes 80,628 94,605 56,603 Provision for income taxes 19,931 23,338 14,508 Net income $ 60,697 $ 71,267 $ 42,095 Basic earnings per share $ 1.17 $ 1.35 $ 0.79 Diluted earnings per share: $ 1.14 $ 1.31 $ 0.76 Weighted average number of shares: Basic 51,727 52,756 53,433 Diluted 53,319 54,324 55,665 Prepared in accordance with Generally Accepted Accounting Principles RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in thousands, except per share data; unaudited) (not prepared in accordance with GAAP) Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. Three Months Ended Jun. 28 , Mar. 29 , Jun. 29 , 2025 2025 2024 Net Income Reconciliation Q1'26 Q4'25 Q1'25 GAAP Net Income $ 60,697 $ 71,267 $ 42,095 Amortization of acquisition intangibles 1,647 1,647 1,972 Stock-based compensation expense 20,809 19,491 21,385 Lease impairment — — 1,019 Adjustment to income taxes (2,839 ) (1,772 ) (4,105 ) Non-GAAP Net Income $ 80,314 $ 90,633 $ 62,366 Earnings Per Share Reconciliation GAAP Diluted earnings per share $ 1.14 $ 1.31 $ 0.76 Effect of Amortization of acquisition intangibles 0.03 0.03 0.03 Effect of Stock-based compensation expense 0.39 0.36 0.38 Effect of Lease impairment — — 0.02 Effect of Adjustment to income taxes (0.05 ) (0.03 ) (0.07 ) Non-GAAP Diluted earnings per share $ 1.51 $ 1.67 $ 1.12 Operating Income Reconciliation GAAP Operating Income $ 72,394 $ 85,946 $ 46,792 GAAP Operating Profit 17.8 % 20.2 % 12.5 % Amortization of acquisition intangibles 1,647 1,647 1,972 Stock-based compensation expense - COGS 300 360 266 Stock-based compensation expense - R&D 13,072 13,079 15,763 Stock-based compensation expense - SG&A 7,437 6,052 5,356 Lease impairment — — 1,019 Non-GAAP Operating Income $ 94,850 $ 107,084 $ 71,168 Non-GAAP Operating Profit 23.3 % 25.2 % 19.0 % Operating Expense Reconciliation GAAP Operating Expenses $ 141,636 $ 140,790 $ 142,133 Amortization of acquisition intangibles (1,647 ) (1,647 ) (1,972 ) Stock-based compensation expense - R&D (13,072 ) (13,079 ) (15,763 ) Stock-based compensation expense - SG&A (7,437 ) (6,052 ) (5,356 ) Lease impairment — — 1,019 Non-GAAP Operating Expenses $ 119,480 $ 120,012 $ 118,023 Gross Margin/Profit Reconciliation GAAP Gross Profit $ 214,030 $ 226,736 $ 188,925 GAAP Gross Margin 52.6 % 53.4 % 50.5 % Stock-based compensation expense - COGS 300 360 266 Non-GAAP Gross Profit $ 214,330 $ 227,096 $ 189,191 Non-GAAP Gross Margin 52.6 % 53.5 % 50.6 % Effective Tax Rate Reconciliation GAAP Tax Expense $ 19,931 $ 23,338 $ 14,508 GAAP Effective Tax Rate 24.7 % 24.7 % 25.6 % Adjustments to income taxes 2,839 1,772 4,105 Non-GAAP Tax Expense $ 22,770 $ 25,110 $ 18,613 Non-GAAP Effective Tax Rate 22.1 % 21.7 % 23.0 % Tax Impact to EPS Reconciliation GAAP Tax Expense $ 0.37 $ 0.43 $ 0.26 Adjustments to income taxes 0.05 0.03 0.07 Non-GAAP Tax Expense $ 0.42 $ 0.46 $ 0.33 CONSOLIDATED CONDENSED BALANCE SHEET (in thousands; unaudited) Jun. 28 , Mar. 29 , Jun. 29 , 2025 2025 2024 ASSETS Current assets Cash and cash equivalents $ 548,870 $ 539,620 $ 491,351 Marketable securities 65,925 56,160 25,680 Accounts receivable, net 214,085 216,009 190,079 Inventories 278,984 299,092 232,566 Prepaid wafers 61,934 52,560 84,700 Other current assets 71,324 76,293 77,365 Total current Assets 1,241,122 1,239,734 1,101,741 Long-term marketable securities 232,959 239,036 227,527 Right-of-use lease assets 123,718 126,688 136,295 Property and equipment, net 154,340 159,900 170,953 Intangibles, net 25,718 27,461 27,624 Goodwill 435,936 435,936 435,936 Deferred tax asset 54,037 48,150 54,622 Long-term prepaid wafers — 15,512 50,375 Other assets 26,887 34,656 60,552 Total assets $ 2,294,717 $ 2,327,073 $ 2,265,625 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 66,321 $ 63,162 $ 77,562 Accrued salaries and benefits 43,146 52,075 41,101 Lease liability 21,075 21,811 22,058 Other accrued liabilities 58,136 58,140 61,021 Total current liabilities 188,678 195,188 201,742 Non-current lease liability 120,272 121,908 132,016 Non-current income taxes 44,693 44,040 52,704 Other long-term liabilities 10,790 16,488 31,533 Total long-term liabilities 175,755 182,436 216,253 Stockholders' equity: Capital stock 1,881,472 1,860,281 1,792,283 Accumulated earnings 49,035 90,351 58,591 Accumulated other comprehensive loss (223 ) (1,183 ) (3,244 ) Total stockholders' equity 1,930,284 1,949,449 1,847,630 Total liabilities and stockholders' equity $ 2,294,717 $ 2,327,073 $ 2,265,625 Prepared in accordance with Generally Accepted Accounting Principles CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (in thousands; unaudited) Three Months Ended Jun. 28 , Jun. 29 , 2025 2024 Q1'26 Q1'25 Cash flows from operating activities: Net income $ 60,697 $ 42,095 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 13,173 12,359 Stock-based compensation expense 20,809 21,385 Deferred income taxes (5,938 ) (5,897 ) Other non-cash charges (16 ) 1,104 Net change in operating assets and liabilities: Accounts receivable, net 1,924 (27,601 ) Inventories 20,108 (5,318 ) Prepaid wafers 6,138 12,354 Other assets 2,014 (5,459 ) Accounts payable and other accrued liabilities (8,806 ) 12,037 Income taxes payable 6,028 30,102 Net cash provided by operating activities 116,131 87,161 Cash flows from investing activities: Maturities and sales of available-for-sale marketable securities 22,990 12,646 Purchases of available-for-sale marketable securities (26,435 ) (69,060 ) Purchases of property, equipment and software (2,638 ) (9,990 ) Investments in technology (132 ) (155 ) Net cash used in investing activities (6,215 ) (66,559 ) Cash flows from financing activities: Net proceeds from the issuance of common stock 382 10,196 Repurchase of stock to satisfy employee tax withholding obligations (1,049 ) (1,219 ) Repurchase and retirement of common stock (99,999 ) (40,992 ) Net cash used in financing activities (100,666 ) (32,015 ) Net increase (decrease) in cash and cash equivalents 9,250 (11,413 ) Cash and cash equivalents at beginning of period 539,620 502,764 Cash and cash equivalents at end of period $ 548,870 $ 491,351 Prepared in accordance with Generally Accepted Accounting Principles RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in thousands; unaudited) Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue. Twelve Months Ended Three Months Ended Jun. 28 , Jun. 28 , Mar. 29 , Dec. 28 , Sep. 28 , 2025 2025 2025 2024 2024 Q1'26 Q1'26 Q4'25 Q3'25 Q2'25 Net cash provided by operating activities (GAAP) $ 473,336 $ 116,131 $ 130,386 $ 218,588 $ 8,231 Capital expenditures (21,378 ) (2,770 ) (9,181 ) (6,687 ) (2,740 ) Free Cash Flow (Non-GAAP) $ 451,958 $ 113,361 $ 121,205 $ 211,901 $ 5,491 Cash Flow from Operations as a Percentage of Revenue (GAAP) 25 % 29 % 31 % 39 % 2 % Capital Expenditures as a Percentage of Revenue (GAAP) 1 % 1 % 2 % 1 % 1 % Free Cash Flow Margin (Non-GAAP) 23 % 28 % 29 % 38 % 1 % RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in millions; unaudited) (not prepared in accordance with GAAP) Q2 FY26 Guidance Operating Expense Reconciliation GAAP Operating Expenses $153 - 159 Stock-based compensation expense (20) Amortization of acquisition intangibles (2) Non-GAAP Operating Expenses $131 - 137 View source version on businesswire.com : https://www.businesswire.com/news/home/20250805289506/en/ Investor Contact: Chelsea Heffernan Vice President, Investor Relations Cirrus Logic, Inc. (512) 851-4125 [email protected] Source: Cirrus Logic, Inc.

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