Cirrus Logic Q4 2025 Earnings Call Transcript

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Provided by Quartr
May 6, 2025
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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Cirrus Logic Fourth Quarter and Full Fiscal Year twenty twenty five Financial Results Q and A Session. At this time, all participants are in a listen only mode. After a brief statement, we will open up the call for questions from analysts. Instructions for queuing up will be provided at that time.

Operator

As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the conference call over to Ms. Chelsea Heffernan, Vice President of Investor Relations. Ms. Heffernan, you may begin.

Chelsea Heffernan
Chelsea Heffernan
VP, IR at Cirrus Logic

Thank you, and good afternoon. Joining me on today's call is John Forsyth, Cirrus Logic's Chief Executive Officer and Jeff Willard, our Chief Financial Officer. Today at approximately four p. M. Eastern Time, we announced our financial results for the fourth quarter and full fiscal year 2025, The shareholder letter discussing our financial results, the earnings press release and the webcast of this Q and A session are all available at the company's Investor Relations website.

Chelsea Heffernan
Chelsea Heffernan
VP, IR at Cirrus Logic

This call will feature questions from the analysts covering our company. Additionally, the results and guidance we will discuss on this call will include non GAAP financial measures that exclude certain items. Reconciliations of these non GAAP measures to their most directly comparable GAAP measures are included in our earnings release and are all available on the company's Investor Relations website. Please note that during this session, we may make projections and other forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially from projections. By providing this information, the company expressly disclaims any obligation to update or revise any projections or forward looking statements, as a result of new developments or otherwise.

Chelsea Heffernan
Chelsea Heffernan
VP, IR at Cirrus Logic

Please refer to the press release and shareholder letter issued today, which are available on the Cirrus Logic website and the latest Form 10 ks as well as other corporate filings registered with the Securities and Exchange Commission for additional discussion of our risk factors that could cause actual results to differ materially from current expectations. Now I'd like to turn the call over to John.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Thank you, Chelsea, and thank you, everyone, for joining today's call. First, let me start by saying welcome to Jeff Woollard, who is joining us for his first earnings call with Cirrus Logic. Since we announced Jeff joining Cirrus back in February, I've learned from the many messages I've received just how highly Jeff is regarded by others in our industry. He brings extensive experience and deep domain knowledge to Cirrus, and we're thrilled to have him as part of the team. Moving on to company performance.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

As you've seen in the press release, in the March, Cirrus Logic delivered revenue of $424,500,000 above the top end of our guidance range. For the full fiscal year 2025, Cirrus Logic delivered revenue of $1,900,000,000 up 6% year over year, driven by revenue associated with our latest generation products and higher smartphone unit volumes. We are also proud to have delivered record GAAP and non GAAP earnings per share for the full fiscal year. Additionally, during the year, we returned two sixty one million dollars of cash to shareholders in the form of share repurchases, another record for Cirrus Logic for a full fiscal year. In a moment, I'll hand the call over to Jeff to walk us through the financial results for the March and the full fiscal year in greater detail.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

But before I do that, I want to touch on the current macroeconomic environment and the subject of tariffs. As I think everyone is aware, the situation is highly dynamic and future trade actions could potentially impact our business. We are closely and thoughtfully monitoring developments. We are also actively working across our supply chain with the goal of supporting our customers' needs as they evolve. And in parallel, we continue to invest in the geographic diversification of our supply chain that I have referenced previously, which we believe will help position the company and our customers to manage potential longer term challenges stemming from the current trade environment.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Now turning to our progress, I'd like to highlight some of the Sirius team's accomplishments over the past four quarters. As many of you are aware, our long term strategy for growth at Cirrus is based on three principles. The first of those is maintaining leadership in our core flagship smartphone audio business. The second, expanding the value and range of high performance mixed signal functionality in which we serve our customers in smartphones and similar products. And the third principle is to leverage that world class expertise and intellectual property in both audio and high performance mixed signal areas in order to grow and broaden our business in new markets.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

I want to now speak to our recent progress in each of those areas. In our flagship smartphone audio business over the past year, most notably, we began shipping two new generation products, a boosted amplifier and a smart codec. The boosted amplifier introduced a highly innovative new architecture, significantly improving system performance and efficiency while saving board space and delivering enhanced value to our customer. The smart codec is Cirrus Logic's first twenty two nanometer product and delivers meaningful advances in audio and mixed signal processing capabilities. These new components represent the culmination of years of engineering dedication and close collaboration with our customer.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

We anticipate that the products will ship from multiple smartphone generations, providing a sustained revenue contribution in the coming years and allowing us to target our R and D resources on customer needs in new areas where we believe we can drive further innovation and growth. Looking beyond audio and smartphones, we also made significant investments in certain high performance mixed signal areas, where we believe our mixed signal design and signal processing expertise can meaningfully enhance our customers' products. Our progress in this area is evident in the continued success of our camera controller product line. And this year, we benefited from an increase in unit shipments of our camera controllers. We also believe that advanced battery and related technologies represent excellent opportunities for us.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

And during the year, we continue to invest in several exciting R and D programs that are focused on these areas. While new product introductions in these domains are a little further out, we made excellent progress in the development of key intellectual property in these areas in FY 2025. Our approach to running the business is to manage and invest for the long term, and we anticipate that the investments that we are making in these areas today will contribute to product diversification and the expansion of our revenue opportunities in the future. The third element of our strategy is growing in new applications and markets outside of smartphones. We continue to be excited about the opportunities we see in the laptop business, and we are currently on track with our expectations in this market.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

During the year, we passed several important milestones, which included securing our first high volume mainstream design win with our latest PC codec, increasing our direct engagement with PC OEMs, delivering new generation products to our customers, significantly expanding our pipeline of design wins and our funnel of opportunities, and further expanding our presence in leading reference designs. Beyond laptops, we also invested in our general market business, which spans a large number of customers across the professional audio, automotive, industrial, and imaging end markets. Following the launch of our latest generation of analog to digital converters last year, this fiscal year, we also added a series of new digital to analog converters and an ultra high performance audio codec to this product family. We also sampled our latest timing products and a family of high performance analog front end products targeting imaging applications. These components all offer sustained differentiation with enhanced performance, lower power consumption and new features, and we have received outstanding customer feedback on each of them.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

We believe they can be valuable contributors to our profitability in years to come. To summarize our progress over the past year, we're proud to have delivered strong financial results while also continuing our track record of combining innovation with disciplined execution. With an extensive intellectual property portfolio and our design innovation in both existing and new technology areas, we believe Sirius Logic is well positioned to continue to diversify our product portfolio and to expand our addressable market in the future. And with that, let me now turn the call over to Jeff to provide some color on our financial results for the fourth quarter and the full fiscal year 2025 as well as the outlook for the first quarter of fiscal twenty twenty six.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

Thank you, John. Good afternoon, everyone. I'll start with a summary of our financial results for both our fiscal Q4 as well as our full fiscal year 2025 and then provide guidance for our Q1 fiscal year twenty twenty six. Revenue in Q4 fiscal year twenty twenty five was above the high end of guidance range at four and twenty four point five million dollars as a result of stronger than expected smartphone volumes. On a sequential basis, revenue was down 24% due primarily to a reduction in smartphone volumes.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

On a year over year basis, revenue was up 14% due to our higher smartphone unit volumes as well as an increase in revenue associated with our latest generation products. Fiscal year twenty twenty five revenue of $1,900,000,000 was up 6% from a year ago. The increase was driven by revenue associated with our latest generation products and higher smartphone unit volumes. Turning to gross profit and gross margin. Non GAAP gross profit in the March was 227,100,000.0 and non GAAP gross margin was 53.5%.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

On a year over year basis, gross margin increased largely due to more favorable product mix. Non GAAP gross profit for the fiscal year '20 '20 '5 was $997,400,000 and non GAAP gross margin was 52.6%. The year over year increase in gross margin reflects more favorable product mix. This was partially offset by unfavorable inventory reserve expense and higher supply chain costs. Now I'll turn to operating expenses.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

Non GAAP operating expenses for the fourth quarter were $120,000,000 On a sequential basis, OpEx was down $9,200,000 primarily due to lower employee related expenses, variable compensation and product development costs, which were largely associated with the timing of tape outs. On a year over year basis, operating expense was up $3,500,000 mostly due to higher employee related expenses and variable comp. The increase was partially offset by a reduction in product development costs, primarily associated with the development and qualification of new products. Non GAAP operating income for the quarter was $107,100,000 or 25.2% of revenue. For fiscal year twenty twenty five, non GAAP operating expenses were 494,100,000 up $23,700,000 primarily due to an increase in employee related expenses and variable compensation.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

Non GAAP operating income for the fiscal year twenty twenty five was $503,300,000 As a result, fiscal year twenty twenty five operating margin came in at 26.5%, up from 25% the prior year. Turning now to taxes. For the March, our non GAAP tax rate was 21.7%. However, for fiscal year twenty twenty five, GAAP effective tax rate was approximately 22.5% for the lower end of our guidance range. And lastly, on the P and L, non GAAP net income in the fourth quarter was $90,600,000 or $1.67 per share.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

For fiscal year twenty twenty five, non GAAP net income was $416,600,000 resulting in record earnings per share of $7.54 up from $6.59 in our fiscal year twenty twenty four. Let me now turn to the balance sheet. Our balance sheet continued to remain strong, and we ended the fiscal year twenty twenty five with nearly $835,000,000 in cash and investments. Our ending cash balance was up $134,900,000 from the prior year primarily due to strong cash flow from operations, which was partially offset by stock repurchases. We continue to have no debt outstanding.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

Inventory balance at the end of the fourth quarter was $299,100,000 up from $275,600,000 in Q3 fiscal year twenty twenty five. Days of inventory was up forty days sequentially, and we ended the quarter with approximately one hundred and thirty eight days of inventory. Looking ahead, in Q1 fiscal year twenty twenty six, we expect inventory to decrease slightly as we continue to fulfill demand and manage our wafer purchase commitments for our long term capacity agreement with GlobalFoundries. Turning to cash flow. Cash flow from operations was $130,400,000 in the March and CapEx was approximately $9,200,000 resulting in a non GAAP free cash flow margin for the quarter of approximately 29%.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

For the twelve month period ending in the March, cash flow from operations was $444,400,000 and CapEx was approximately $28,800,000 resulting in a non GAAP free cash flow margin of 22%. On the share buyback front, in Q4, we utilized $100,000,000 to repurchase approximately 927,000 shares of our common stock at an average price of $107.85 For the fiscal year twenty twenty five, we returned $261,000,000 of cash to shareholders as we purchased 2,300,000.0 shares at an average price of $112.33 At the end of Q4 fiscal year twenty twenty five, the company had 54,100,000 remaining on its July 2022 share repurchase authorization. Subsequent to Q4 fiscal year twenty twenty five, the company utilized an additional $25,000,000 to repurchase approximately 297,000 shares at an average price of $84.26 under a rule 10b5-one trading plan. Furthermore, in March 2025, the Board of Directors authorized the company to repurchase up to an additional 500,000,000 of Cirrus Logic common stock. We expect to continue to return capital in the form of stock repurchases, which we believe provide a long term benefit to shareholders going forward.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

Before we provide guidance for the first quarter, I would like to reiterate what John said earlier. We are closely monitoring the current macroeconomic and trade environment, including the potential impact of tariffs. Our outlook for the upcoming quarter is based on our current assessment of the environment as it stands today. And now to guidance. For Q1 fiscal year twenty twenty six, we expect revenue in the range of $330,000,000 to $390,000,000 down 15% sequentially and 4% year over year at the midpoint.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

We expect gross margin to range from 51% to 53%. Non GAAP operating expense is expected to range from $119,000,000 to $125,000,000 up sequentially largely due to employee expenses. We expect our fiscal year twenty twenty six non GAAP tax rate to be approximately 21% to 23%. In closing, we delivered solid financial results and made significant progress executing on our strategy to drive product and revenue diversification. Going forward, we will continue to invest in our existing business in key areas that we believe will grow shareholder value.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

And before we begin q and a, I would like to note, while we understand there is interest related to our largest customer in accordance with Cirrus Logic company policy, we will not discuss specifics about our business relationship. With that, let me turn the call over to Chelsea to start the q and a session.

Chelsea Heffernan
Chelsea Heffernan
VP, IR at Cirrus Logic

Thanks, Jeff. We will now start the q and a portion of the earnings call. Please limit yourself to a single question and one follow-up. Operator, we are now ready to take questions.

Operator

Thank you. Your first question comes from Gary Mobley with Loop Capital. Your line is open.

Gary Mobley
Managing Director & Senior Equity Analyst at Loop Capital

Good afternoon, everybody. Thanks for taking my question. I didn't see your 10 ks filing. Perhaps it's not out yet, but maybe if you can give us a preview into what your largest customer represented for your fiscal year twenty five revenue? And then more broadly, you know, for all your customers, did you see any pull forward in the fourth quarter in their production perhaps to get ahead of some tariff dates?

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Yeah. Gary, on the customer concentration figure for the full year, I think that's 89%. And regarding the pull forwards, within the March, it's obviously difficult for us to determine with certainty without a very accurate view of sell through, but we believe we saw it to a very limited extent. That's to say, some of our customers, I think, pulled forward some quantity of shipments seemingly very small into the March in order to have additional inventory in light of anticipated tariffs. But we don't believe we saw any clear signs that there were pull ins of the size that were material to the results that we're reporting today.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

And it's worth keeping in mind on that front that, of course, the tariffs themselves were announced after the end of the March. So we believe that was a very limited impact on these numbers.

Gary Mobley
Managing Director & Senior Equity Analyst at Loop Capital

Okay. Thank you, John. As my follow-up, I wanted to ask for a progress report on your PC related traction now that we're at end of the fiscal year. And maybe you can give us a sense of the materiality of it for the full fiscal year and and perhaps what you may might be counting on for the current fiscal year we're just now starting.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Yeah. Absolutely. We're definitely still very pleased with our progress here and excited about the opportunity ahead of us. On the revenue side, we had indicated that our expectations for fiscal twenty five were to achieve low tens of millions of dollars revenue. That's what I'd put out there previously, and we tracked to what we said on that front.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

In fiscal twenty six, we expect to double our fiscal twenty five revenue in the laptop space as we see more designs coming to market. And then as we look further forward, we believe that that revenue number will continue to grow in the years to come. Over the past year, we also saw a significant expansion of our funnel of design activity, which as you know is a very good leading indicator of progress. So to give some color around that, on that front, we saw the number of programs and the number of SKUs that we're a part of continue to increase over the period. To put it in context, in fiscal 'twenty four, we were shipping in a high double digit number of SKUs.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

We grew that significantly in fiscal twenty twenty five. And then in fiscal twenty twenty six, we expect to be shipping in well over 150 different SKUs across the major laptop OEMs. That also is complemented by the fact that more of those SKUs represent products in categories beyond the flagship and the premium categories. So as we penetrate into the mainstream product categories, we also expect that volumes and hence revenues will increase. So between those indicators in the funnel and the revenue and then our continued close partnerships on reference designs, we certainly think we're very well placed for sustained growth in the future in this space.

Gary Mobley
Managing Director & Senior Equity Analyst at Loop Capital

Thanks again.

Operator

The next question comes from Christopher Rolland with Susquehanna. Your line is open.

Aren Nakpil
Equity Research Associate at Susquehanna International Group

Hi. This is Aaron Nachtville in for Chris Rolland. Thanks for taking the question. You had previously talked about HPMS surpassing audio. Is that still the expectation?

Aren Nakpil
Equity Research Associate at Susquehanna International Group

And is there a rough time frame for that transition? Audio and HPMS have had this sixty forty split for some for some time. So, when do you foresee that kind of flipping?

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Yeah. Thanks, Aaron. To the first part of the question, I do see that happening over time. I haven't put a particular time frame on it. As long as we can continue to grow both, we're not going to get too worked up about at what point that transition takes place.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

But I've highlighted that in the past really as a way of indicating that we believe HPMS opens up a ton of new SAM expansion and growth opportunity for us. And that's been a very important part of the company's story over the past few years and it will continue to be going forward. I think we're at a period where, to your point, yes, there's a bit of a pause in that ratio. HPMS has been growing very rapidly and we're at a bit of a kind of pause in that ratio between the two. But that's to put that in context, a lot of that is because we're in a year where we've undergone a major refresh of our audio based content.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

So with the new codec and new boosted amplifiers coming out last fall, those represented a growth in the value of our audio content, which of course we're super happy about and we expect those to run for several years. But they definitely represented a step up in the value of the audio content, which obviously has a knock on effect in that in relation to the HPMS audio balance.

Aren Nakpil
Equity Research Associate at Susquehanna International Group

Great. And as my follow-up, you know, auto is a new market for you guys. So how large of an opportunity is this for the company, and when can you start seeing revenues here?

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

So we've actually been shipping products into audio for some time, but they have principally been what we would regard as legacy products. The reason you've heard a little bit more from us on this topic more recently is because we started to refresh some of those products and look at where there may be other additional opportunities in the automotive space for us. So I guess the some of the examples there would be the timing products we announced late last year, which we've already seen very good customer engagement and some adoption of in the auto space. And we've also launched in the past year new high performance audio products where one of the key target markets for those is again in the automotive space. We do think there's a good long term opportunity here.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

I'm going to hedge a little on the time frame for that becoming a real needle mover because, of course, auto can take a while. But the foundations are very attractive to us. We believe we can bring innovative audio solutions, timing solutions, haptic solutions and products in other areas that can really make a difference in automotive. And when we kind of step back from it and look at the overall opportunity, it certainly has the potential to represent the best part of $1,000,000,000 additional SAM for us in the coming years.

Operator

Your next question comes from Thomas O'Malley with Barclays. Line is open.

Thomas O'Malley
Thomas O'Malley
Director - Equity Research at Barclays

Hey, guys. Thanks for taking my question. I, I wanted to understand to the extent that you can, the camera controller content road map in the future. Obviously, you don't talk about specific customers, but I had to notice from some tear downs over the last couple of months that it does look like you've seen some proliferation in the low end of the portfolio with camera controller content. So, like, you know, should we be thinking about, you know, the future of camera controllers being something where you need multiple across each camera?

Thomas O'Malley
Thomas O'Malley
Director - Equity Research at Barclays

Have you kind of reached a point where that doesn't continue? But to the best of your extent, like, you know, to the best of your ability, can you kind of describe, you know, where does that camera controller content hit a wall? Just because I'm seeing some really nice gains there already, and was surprised to see it this year as well. You guys hadn't talked about it at the low end, at least.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Yeah. Thanks, Tom. I I guess one thing you may be alluding to there is that when we had the last call, there was a certain product which wasn't on the market and hadn't been torn down from any by anybody, which is now on the market and represents the first time we've had camera controller content in a in a kind of lower priced phone from from one of our more significant customers. And we were obviously delighted about that. That was pretty significant to us.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

But then to your broader question, we see a considerable continued opportunity in this space. I think the way to think about it is that there are at least three vectors by which we can grow value here. One, of course, is attach rate. And as attach rate increases, that's good for us, but you may also be thinking about whether or not that represents saturation. However, we've also seen in the evolution of our camera controllers generation by generation that there is value in increasing the processing that the the product can do and in providing, for example, additional channels to drive more lens elements or increased drive strength to to drive different kinds of mechanical components within the camera assembly.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

All of those things have been a part of the story of what got us to where we are today with camera controller content. And when we look out into the future, those factors will continue to be highly relevant for us. So we have a rich roadmap. We've got plenty of stuff in development there that we believe will continue to grow value for us in this space.

Thomas O'Malley
Thomas O'Malley
Director - Equity Research at Barclays

Gotcha. Super helpful. And, if I look at the last fiscal year, you guys look like you grew your largest customer nearly double digits, which is kinda what you described. Very strong content year to the point that you were just making about audio versus HPMS. Obviously, there's some in both, but a big contributing factor there.

Thomas O'Malley
Thomas O'Malley
Director - Equity Research at Barclays

If you look at the future and you look at content broadly, when you look at the next fiscal year, can you just as we're starting here, give us a feel for what we should be thinking about? You were very communicative last year, obviously, the codec and the AMP upgrades. But this year, I think there's just been a little less detail. To the extent that you can, you know, give us a little color on just the base case expectations for this year, that'd be super helpful. Thank you.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Yeah. Sure. Look, I think I actually have been communicative. It may just not be quite so much of an eye catching story this cycle. But to be clear, we're always walking a very, very thoughtful line.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

We do not want to disclose anything about our customers' products, obviously. And this year, for us, is more of a waterfall year. We're on the back of a very big audio component refresh across the major audio components. And as we get into further cycles of those products being in the market, representing more of the SKUs that are on sale, that's all good for us. So that's very attractive.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

And then as we go forward in future years, we do believe there's opportunity to continue to grow value, as I said, in the camera control space. And then we think long term, there's plenty of growth opportunity in power and battery related features as well.

Chelsea Heffernan
Chelsea Heffernan
VP, IR at Cirrus Logic

Operator, this will be our last question.

Operator

Thank you. Your last question will come from Tore Svanberg with Stifel. Your line is open.

Tore Svanberg
Tore Svanberg
Managing Director at Stifel Financial

Yes. Thank you. John, I know you commented on sort of maybe some pull ins from customers in the March. What about what you've seen so far in the June? Obviously, anything that is reflected in your guidance, but just wondering if you've seen any abnormal behavior in bookings from your customers.

Tore Svanberg
Tore Svanberg
Managing Director at Stifel Financial

And what are some of the variables that you are contemplating as we navigate through this quarter? Is it mainly your customers moving manufacturing? Or what exactly are you eyeing to get a better read on what's going on near term?

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

Yeah. This is Jeff. For for the June, you know, we're we're guiding with what we see from what our customers are telling us. Are they pulling in or not? It looks pretty normal from a quarter for us.

Jeff Woolard
Jeff Woolard
EVP & CFO at Cirrus Logic

So things look relatively stable. As far as the geographic question, customers have been trying to diversify and move some of their supply chains. And our approach is we are geographically distributed. We are trying to increase that. But we want to make sure we engage with our customers where their supply chain is and where they need us.

Tore Svanberg
Tore Svanberg
Managing Director at Stifel Financial

Great. Thank you for that, Jeff. And for you, John, I know you mentioned that you shared in the letter some of these general purpose or general market products. What exactly are your ambitions there? Mean, is this something that eventually can become 10% of your revenues?

Tore Svanberg
Tore Svanberg
Managing Director at Stifel Financial

I mean, I know that's probably premature now, but it does sound like you're trying to leverage your IP to do more. And related to that, I also saw you're sampling some timing products. Is is that tied to the IP that you had for MEMS based my microphones, or are these completely different IP blocks?

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Yeah. Sorry. On the timing side, no. Completely different, completely non MEMS and happy that that's the case. But regarding the the more general comment about the the that part of our business, Could it be 10% in the long run?

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

I don't see why not. If we look at that guess if I back up, I can explain to you what we're trying to do there and how we got here. We historically had a kind of long tail catalog business, which, certainly has in the past represented, if you go back a bit, has been, like, 15% of our business at, at one point, but it was relatively uninvested in. And the reason for that was when we were a smaller company with less r and d bandwidth, we were just running to keep up with our largest customers. As we've we've scaled and as we've seen our our IP and the kind of catalog of IP that we have expand further and further, we've recognized that there are opportunities in that space to to leverage some of what we've had what we have and and kind of breathe more life into into some of the business that we've got there.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

So it's certainly the case when we're doing a lot of custom silicon to some of our largest customers, that those can be very, very kind of sinusoidal in in terms of the resource demands on the organization. So you go through periods where you need a huge spike in in r and d bandwidth, and then that backs off. And and you have, something of a kind of downslope in terms of the r and d demand. So one of the things that we started looking at a little while ago was to what extent we could exploit that along with the cutting edge IP we've been developing in a lot of our kind of larger business to go after segments within that kind of general market business. And to date, that's produced some very good results.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

If you judge those results by customer engagement and customer adoption across a series of very high performance audio products, timing products, and analog front ends for imaging applications in variety of verticals. We've really had a lot of interest there. And so any one of those doesn't move the needle from a revenue point of view, but they are really healthy gross margin, well above the corporate average gross margin, and they run for a very long time. Once they get designed in, they typically run and run. So our approach there is that over time, as we continue to leverage our IP and resources to build that up, it can be a very, very healthy complement to the rest of our business.

Chelsea Heffernan
Chelsea Heffernan
VP, IR at Cirrus Logic

Great. With that, we'll end the Q and A session. And I will now turn the call back to John for closing remarks.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

Thanks, Chelsea. In summary, we're pleased to have reported solid results for the quarter and to have made significant progress across our main areas of strategic focus in fiscal twenty twenty five. I'd like to extend my appreciation to the entire Cirrus Logic team and to our supply chain partners and our customers around the world. Their commitment, support and partnership, coupled with our outstanding execution, drove these results. We're excited about the opportunities in front of us, and we thank you for your continued interest in our progress.

John Forsyth
John Forsyth
President & CEO at Cirrus Logic

I'd like to thank everyone for participating today. Goodbye.

Operator

This concludes today's conference call. Thank you for joining. You may now disconnect.

Executives
    • Chelsea Heffernan
      Chelsea Heffernan
      VP, IR
    • John Forsyth
      John Forsyth
      President & CEO
    • Jeff Woolard
      Jeff Woolard
      EVP & CFO
Analysts
    • Gary Mobley
      Managing Director & Senior Equity Analyst at Loop Capital
    • Aren Nakpil
      Equity Research Associate at Susquehanna International Group
    • Thomas O'Malley
      Director - Equity Research at Barclays
    • Tore Svanberg
      Managing Director at Stifel Financial
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Key Takeaways

  • Cirrus Logic reported Q4 revenue of $424.5 million, above the top end of guidance, and full-year 2025 revenue of $1.9 billion (up 6% YoY), while delivering record GAAP and non-GAAP earnings per share and returning $261 million in share repurchases.
  • The company began shipping two new smartphone audio products—a boosted amplifier with improved efficiency and a 22 nm smart codec—and expects these to contribute multi-generation revenue and free R&D resources for new innovations.
  • In high-performance mixed-signal, Cirrus Logic saw increased camera controller shipments and advanced its R&D in battery and related technologies, building IP that should drive future product diversification.
  • Cirrus expanded in laptops with low-tens-of-millions in FY25 revenue, expects to double laptop revenue in FY26, and broadened its general-market portfolio with new ADCs, DACs, codecs, timing and analog front-ends receiving strong customer feedback.
  • For Q1 FY26, the company guides to revenue of $330 million–$390 million (down 15% QoQ, 4% YoY at midpoint), gross margins of 51%–53%, and non-GAAP OpEx of $119 million–$125 million, while actively monitoring macroeconomic and trade risks and diversifying its supply chain.
A.I. generated. May contain errors.
Earnings Conference Call
Cirrus Logic Q4 2025
00:00 / 00:00

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