Qorvo Reports Q3 Fiscal 2025 Results with Revenue Decline and Profitability Turnaround

Qorvo, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a revenue of $916.3 million, a decrease of 14.7% compared to $1.1 billion in the same quarter of the previous year. The decline was attributed to a shift among smartphone customers towards lower RF content 5G devices, although revenue from defense and aerospace sectors saw an increase. The company's gross profit for the quarter was $391.4 million, resulting in a gross margin of 42.7%, up from 36.1% in the prior year, primarily due to a favorable business mix.

In terms of profitability, Qorvo reported an operating income of $53.0 million, a significant turnaround from an operating loss of $41.6 million in the same quarter last year. The net income for the quarter was $41.3 million, translating to a net income per diluted share of $0.43, compared to a net loss of $126.9 million, or a loss of $1.31 per share, in the prior year. The company’s operating expenses decreased to $338.4 million from $429.4 million, largely due to a reduction in other operating expenses, which included restructuring-related charges.

Strategically, Qorvo has been active in restructuring its operations, including the divestiture of its assembly and test operations in China, which was completed in early fiscal 2025 for approximately $232 million. Additionally, the company has entered into a definitive agreement to divest its silicon carbide power device business for about $115 million, which is expected to close in early 2025. These moves are part of Qorvo's broader strategy to streamline operations and focus on core business areas.

Operationally, Qorvo's workforce has been impacted by restructuring initiatives, with a focus on optimizing its manufacturing footprint and reducing costs. The company reported a headcount reduction primarily targeting its mass-market Android business. As of December 28, 2024, Qorvo had approximately 93.4 million shares outstanding, reflecting ongoing share repurchase activities, with about $998.6 million remaining authorized for repurchases under its current program.

Looking ahead, Qorvo anticipates continued challenges in the smartphone market due to shifts in customer preferences but expects growth in defense and aerospace sectors. The company remains focused on enhancing its product offerings and operational efficiencies while navigating the evolving market landscape.