Credo Technology Group Holding Ltd reported significant financial growth for the fiscal year ending May 3, 2025, with total revenue reaching $436.8 million, a 126.3% increase from $193.0 million in the previous fiscal year. The surge in revenue was primarily driven by a substantial rise in product sales, which accounted for 94.4% of total revenue, reflecting a 184.2% increase to $412.2 million. In contrast, revenue from product engineering services and IP licenses saw declines, contributing 2.8% and 2.9% of total revenue, respectively. The company achieved a net income of $52.2 million, a notable recovery from a net loss of $28.4 million in fiscal 2024.
The company's operational metrics indicate a strong performance, with product sales significantly bolstered by increased unit shipments of Active Electrical Cables (AECs), which contributed over 95% of the increase in product sales revenue. The gross margin improved to 64.8%, up from 61.9% in the previous year, attributed to enhanced operating leverage as the business scaled. Research and development expenses rose to $146.0 million, reflecting a 52.8% increase, driven by higher personnel costs and increased design activities.
Credo's customer base remains concentrated, with the top ten customers accounting for approximately 90% of total revenue in fiscal 2025. Notably, one customer represented 67% of total revenue, highlighting the risks associated with customer dependency. The company anticipates that as it expands its product adoption and customer base, this concentration may decrease over time. Geographically, 85% of revenue was generated from customers outside North America, primarily in Asia, underscoring the company's international market presence.
Looking ahead, Credo plans to continue investing in research and development to enhance its product offerings and maintain its competitive edge in the high-speed connectivity market. The company aims to broaden its portfolio and deepen relationships with existing customers while also targeting new customer acquisition. Despite the positive outlook, the company acknowledges potential risks, including macroeconomic factors, customer concentration, and the competitive landscape, which could impact future performance.
About Credo Technology Group Holding Ltd
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