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 third quarter of fiscal year 2025, which ended December 28, 2024, as well as the company's current business outlook.

"Cirrus Logic delivered revenue significantly above the top end of our guidance range in the December quarter as shipments into smartphones exceeded our expectations," said John Forsyth, Cirrus Logic president and chief executive officer. "During the quarter, we experienced strong demand for our smartphone audio components, including our latest-generation custom boosted amplifier and first 22-nanometer smart codec. Additionally, we gained momentum in our laptop business as we were featured as part of the Intel Arrow Lake reference design, began sampling our latest amplifier and codec specifically designed for laptops, and expanded our breadth of content across a variety of devices. With a compelling 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 – Third Quarter FY25

Revenue of $555.7 million;
GAAP and non-GAAP gross margin of 53.6 percent;
GAAP operating expenses of $152.0 million and non-GAAP operating expenses of $129.2 million; and
GAAP earnings per share of $2.11 and non-GAAP earnings per share of $2.51.

A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release.

Business Outlook – Fourth Quarter FY25

Revenue is expected to range between $350 million and $410 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 $141 million and $147 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 $119 million and $125 million.

Cirrus Logic will host a live Q&A session at 5 p.m. EST 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 belief that we are well-positioned to grow long-term shareholder value; and our estimates for the fourth quarter fiscal year 2025 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 fourth quarter of fiscal year 2025, customer cancellations of orders, or the failure to place orders consistent with forecasts, along with the risk factors listed in our Form 10-K for the year ended March 30, 2024 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.

Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)

	Three Months Ended									Nine Months Ended
	Dec. 28,			Sep. 28,			Dec. 30,			Dec. 28,			Dec. 30,
		2024			2024			2023			2024			2023
	Q3'25			Q2'25			Q3'24			Q3'25			Q3'24
Audio	$	346,272		$	316,588		$	378,597		$	881,830		$	857,258
High-Performance Mixed-Signal		209,466			225,269			240,387			589,791			559,805
Net sales		555,738			541,857			618,984			1,471,621			1,417,063
Cost of sales		257,951			259,267			301,520			702,319			693,616
Gross profit		297,787			282,590			317,464			769,302			723,447
Gross margin		53.6	%		52.2	%		51.3	%		52.3	%		51.1	%

Research and development		112,976			112,925			112,672			331,264			323,092
Selling, general and administrative		39,042			37,813			37,604			113,625			107,306
Restructuring costs		—			—			(360	)		—			1,959
Total operating expenses		152,018			150,738			149,916			444,889			432,357

Income from operations		145,769			131,852			167,548			324,413			291,090

Interest income		8,146			8,134			4,889			24,482			13,218
Other income (expense)		(214	)		19			(337	)		1,414			(30	)
Income before income taxes		153,701			140,005			172,100			350,309			304,278
Provision for income taxes		37,696			37,865			33,377			90,069			74,548
Net income	$	116,005		$	102,140		$	138,723		$	260,240		$	229,730

Basic earnings per share	$	2.19		$	1.92		$	2.57		$	4.89		$	4.22
Diluted earnings per share:	$	2.11		$	1.83		$	2.50		$	4.69		$	4.09

Weighted average number of shares:
Basic		53,081			53,275			54,016			53,263			54,449
Diluted		55,076			55,800			55,592			55,529			56,160

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									Nine Months Ended
	Dec. 28,			Sep. 28,			Dec. 30,			Dec. 28,			Dec. 30,
		2024			2024			2023			2024			2023
Net Income Reconciliation	Q3'25			Q2'25			Q3'24			Q3'25			Q3'24
GAAP Net Income	$	116,005		$	102,140		$	138,723		$	260,240		$	229,730
Amortization of acquisition intangibles		1,647			1,864			1,972			5,483			6,312
Stock-based compensation expense		20,823			22,447			23,067			64,655			67,113
Lease impairment		661			—			—			1,680			—
Restructuring costs		—			—			(360	)		—			1,959
Acquisition-related costs		—			—			—			—			4,105
Adjustment to income taxes		(827	)		(1,162	)		(2,769	)		(6,094	)		(9,001	)
Non-GAAP Net Income	$	138,309		$	125,289		$	160,633		$	325,964		$	300,218

Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	2.11		$	1.83		$	2.50		$	4.69		$	4.09
Effect of Amortization of acquisition intangibles		0.03			0.04			0.04			0.10			0.11
Effect of Stock-based compensation expense		0.38			0.40			0.41			1.16			1.20
Effect of Lease impairment		0.01			—			—			0.03			—
Effect of Restructuring costs		—			—			(0.01	)		—			0.04
Effect of Acquisition-related costs		—			—			—			—			0.07
Effect of Adjustment to income taxes		(0.02	)		(0.02	)		(0.05	)		(0.11	)		(0.16	)
Non-GAAP Diluted earnings per share	$	2.51		$	2.25		$	2.89		$	5.87		$	5.35

Operating Income Reconciliation
GAAP Operating Income	$	145,769		$	131,852		$	167,548		$	324,413		$	291,090
GAAP Operating Profit		26.2	%		24.3	%		27.1	%		22.0	%		20.5	%
Amortization of acquisition intangibles		1,647			1,864			1,972			5,483			6,312
Stock-based compensation expense - COGS		351			355			395			972			1,041
Stock-based compensation expense - R&D		14,498			15,844			16,771			46,105			48,195
Stock-based compensation expense - SG&A		5,974			6,248			5,901			17,578			17,877
Lease impairment		661			—			—			1,680			—
Restructuring costs		—			—			(360	)		—			1,959
Acquisition-related costs		—			—			—			—			4,105
Non-GAAP Operating Income	$	168,900		$	156,163		$	192,227		$	396,231		$	370,579
Non-GAAP Operating Profit		30.4	%		28.8	%		31.1	%		26.9	%		26.2	%

Operating Expense Reconciliation
GAAP Operating Expenses	$	152,018		$	150,738		$	149,916		$	444,889		$	432,357
Amortization of acquisition intangibles		(1,647	)		(1,864	)		(1,972	)		(5,483	)		(6,312	)
Stock-based compensation expense - R&D		(14,498	)		(15,844	)		(16,771	)		(46,105	)		(48,195	)
Stock-based compensation expense - SG&A		(5,974	)		(6,248	)		(5,901	)		(17,578	)		(17,877	)
Lease impairment		661			—			—			1,680			—
Restructuring costs		—			—			360			—			(1,959	)
Acquisition-related costs		—			—			—			—			(4,105	)
Non-GAAP Operating Expenses	$	129,238		$	126,782		$	125,632		$	374,043		$	353,909

Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	297,787		$	282,590		$	317,464		$	769,302		$	723,447
GAAP Gross Margin		53.6	%		52.2	%		51.3	%		52.3	%		51.1	%
Stock-based compensation expense - COGS		351			355			395			972			1,041
Non-GAAP Gross Profit	$	298,138		$	282,945		$	317,859		$	770,274		$	724,488
Non-GAAP Gross Margin		53.6	%		52.2	%		51.4	%		52.3	%		51.1	%


	Three Months Ended									Nine Months Ended
	Dec. 28,			Sep. 28,			Dec. 30,			Dec. 28,			Dec. 30,
		2024			2024			2023			2024			2023
Effective Tax Rate Reconciliation	Q3'25			Q2'25			Q3'24			Q3'25			Q3'24
GAAP Tax Expense	$	37,696		$	37,865		$	33,377		$	90,069		$	74,548
GAAP Effective Tax Rate		24.5	%		27.0	%		19.4	%		25.7	%		24.5	%
Adjustments to income taxes		827			1,162			2,769			6,094			9,001
Non-GAAP Tax Expense	$	38,523		$	39,027		$	36,146		$	96,163		$	83,549
Non-GAAP Effective Tax Rate		21.8	%		23.8	%		18.4	%		22.8	%		21.8	%

Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.68		$	0.68		$	0.60		$	1.62		$	1.33
Adjustments to income taxes		0.02			0.02			0.05			0.11			0.16
Non-GAAP Tax Expense	$	0.70		$	0.70		$	0.65		$	1.73		$	1.49


CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)

	Dec. 28,			Mar. 30,			Dec. 30,
		2024			2024			2023
ASSETS
Current assets
Cash and cash equivalents	$	526,444		$	502,764		$	483,931
Marketable securities		37,535			23,778			32,842
Accounts receivable, net		261,943			162,478			217,269
Inventories		275,558			227,248			256,675
Prepaid wafers		66,113			86,679			84,854
Other current assets		82,857			103,245			109,814
Total current Assets		1,250,450			1,106,192			1,185,385

Long-term marketable securities		252,594			173,374			70,260
Right-of-use lease assets		129,597			138,288			140,993
Property and equipment, net		163,837			170,175			167,579
Intangibles, net		23,957			29,578			31,677
Goodwill		435,936			435,936			435,936
Deferred tax asset		40,895			48,649			34,116
Long-term prepaid wafers		23,020			60,750			73,492
Other assets		42,954			68,634			77,675
Total assets	$	2,363,240		$	2,231,576		$	2,217,113

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	77,907		$	55,545		$	56,231
Accrued salaries and benefits		48,029			47,612			44,352
Lease liability		21,858			20,640			19,906
Other accrued liabilities		63,119			62,596			58,105
Total current liabilities		210,913			186,393			178,594

Non-current lease liability		124,622			134,576			138,415
Non-current income taxes		43,401			52,013			52,247
Other long-term liabilities		21,506			41,580			47,097
Total long-term liabilities		189,529			228,169			237,759

Stockholders' equity:
Capital stock		1,840,791			1,760,701			1,735,824
Accumulated earnings		124,101			58,916			66,633
Accumulated other comprehensive loss		(2,094	)		(2,603	)		(1,697	)
Total stockholders' equity		1,962,798			1,817,014			1,800,760
Total liabilities and stockholders' equity	$	2,363,240		$	2,231,576		$	2,217,113

Prepared in accordance with Generally Accepted Accounting Principles


CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)

	Three Months Ended

	Dec. 28,			Dec. 30,
		2024			2023
	Q3'25			Q3'24
Cash flows from operating activities:
Net income	$	116,005		$	138,723
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,824			12,732
Stock-based compensation expense		20,823			23,067
Deferred income taxes		8,379			9,723
Loss on retirement or write-off of long-lived assets		369			10
Other non-cash charges		(379	)		668
Restructuring costs		—			(360	)
Net change in operating assets and liabilities:
Accounts receivable, net		62,155			54,048
Inventories		(3,793	)		72,257
Prepaid wafers		20,411			15,596
Other assets		1,720			17,973
Accounts payable and other accrued liabilities		(21,556	)		(32,123	)
Income taxes payable		1,630			1,378
Net cash provided by operating activities		218,588			313,692
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities		12,423			5,176
Purchases of available-for-sale marketable securities		(44,868	)		(32,334	)
Purchases of property, equipment and software		(6,687	)		(9,813	)
Net cash used in investing activities		(39,132	)		(36,971	)
Cash flows from financing activities:
Net proceeds from the issuance of common stock		378			50
Repurchase of stock to satisfy employee tax withholding obligations		(29,112	)		(13,722	)
Repurchase and retirement of common stock		(70,037	)		(56,923	)
Net cash used in financing activities		(98,771	)		(70,595	)
Net increase in cash and cash equivalents		80,685			206,126
Cash and cash equivalents at beginning of period		445,759			277,805
Cash and cash equivalents at end of period	$	526,444		$	483,931

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

	Dec. 28,			Dec. 28,			Sep. 28,			Jun. 29,			Mar. 30,
		2024			2024			2024			2024			2024
	Q3'25			Q3'25			Q2'25			Q1'25			Q4'24

Net cash provided by operating activities (GAAP)	$	484,506		$	218,588		$	8,231		$	87,161		$	170,526
Capital expenditures		(27,267	)		(6,687	)		(2,740	)		(10,145	)		(7,695	)
Free Cash Flow (Non-GAAP)	$	457,239		$	211,901		$	5,491		$	77,016		$	162,831

Cash Flow from Operations as a Percentage of Revenue (GAAP)		26	%		39	%		2	%		23	%		46	%
Capital Expenditures as a Percentage of Revenue (GAAP)		1	%		1	%		1	%		3	%		2	%
Free Cash Flow Margin (Non-GAAP)		25	%		38	%		1	%		21	%		44	%


RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)

		Q4 FY25
		Guidance
Operating Expense Reconciliation
GAAP Operating Expenses		$141 - 147
Stock-based compensation expense		(20)
Amortization of acquisition intangibles		(2)
Non-GAAP Operating Expenses		$119 - 125

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Investor Contact:

Chelsea Heffernan

Vice President, Investor Relations

Cirrus Logic, Inc.

(512) 851-4125

Investor@cirrus.com

Cirrus Logic Reports Fiscal Third Quarter Revenue of $555.7 Million