Cirrus Logic Reports Q3 Fiscal 2025 Results with Decreased Net Income and Improved Gross Margin

Cirrus Logic, Inc. reported its financial results for the third quarter of fiscal year 2025, ending December 28, 2024, revealing a net income of $116.0 million, or $2.19 per share, compared to $138.7 million, or $2.57 per share, in the same period last year. The company's net sales decreased by 10% to $555.7 million from $619.0 million, primarily due to lower smartphone unit volumes and the absence of an additional week of revenue that was present in the previous fiscal year, which had a 53-week calendar. Despite the decline in sales, the gross margin improved to 53.6%, up from 51.3% in the prior year, attributed to a favorable product mix.

In the nine-month period, Cirrus Logic's net sales increased by 4% to $1.5 billion, driven by higher sales of its latest-generation products. The audio product line saw a $24.6 million increase in sales, while high-performance mixed-signal (HPMS) products contributed an additional $30.0 million. The company continues to rely heavily on a limited number of customers, with Apple Inc. accounting for approximately 91% of total net sales in the third quarter, underscoring the risks associated with customer concentration.

Operationally, Cirrus Logic has maintained a strong cash position, with cash and cash equivalents totaling $526.4 million as of December 28, 2024, up from $502.8 million at the end of the previous fiscal year. The company reported cash generated from operations of $314.0 million for the first nine months of fiscal year 2025, an increase from $251.1 million in the same period last year. This increase was primarily due to improved net income and changes in working capital, despite a significant rise in accounts receivable and inventory levels.

Cirrus Logic has also been active in its share repurchase program, having repurchased approximately $161.0 million of its common stock during the first nine months of fiscal year 2025. The company has approximately $154.1 million remaining under its $500 million share repurchase authorization. Looking ahead, Cirrus Logic remains focused on its strategic initiatives, including expanding its presence in the smartphone audio market and leveraging its technology in new applications, particularly in laptops and automotive sectors.

The company’s outlook remains cautiously optimistic, with management emphasizing the importance of maintaining its leadership in audio solutions while navigating the challenges posed by market conditions and customer dependencies. The ongoing development of new products and technologies is expected to play a crucial role in sustaining growth and profitability in the coming quarters.