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Cirrus Logic Reports Fiscal First Quarter Revenue of $407.3 Million

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

 

Contacts

Investor Contact:

Chelsea Heffernan

Vice President, Investor Relations

Cirrus Logic, Inc.

(512) 851-4125

Investor@cirrus.com