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FINANCIAL NEWS


    
Cirrus Logic Reports Record Fiscal Second Quarter Revenue of $561.0 Million


AUSTIN, Texas – November 4, 2025 – Cirrus Logic, Inc. (NASDAQ: CRUS) posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the second quarter of fiscal year 2026, which ended September 27, 2025, as well as the company’s current business outlook.
“Cirrus Logic delivered record revenue for the September quarter driven by demand for components shipping into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we also made great progress in our strategy to expand into additional applications and markets. We were pleased with our continued momentum in the PC market as we secured our first mainstream consumer laptop design, expanded our collaboration with leading PC platform vendors, and further developed new products with enhanced audio and voice capture capabilities. Additionally, we saw increased customer interest across our latest general market products that target the professional audio, industrial, automotive, and imaging end markets. With a compelling portfolio of products today and an exciting roadmap for the future, we remain focused on leveraging our mixed-signal processing expertise to expand our addressable market and drive long-term shareholder value.”

Reported Financial Results – Second Quarter FY26
•Revenue of $561.0 million;
•GAAP and non-GAAP gross margin of 52.5 percent;
•GAAP operating expenses of $149.6 million and non-GAAP operating expenses of $127.7 million; and
•GAAP earnings per share of $2.48 and non-GAAP earnings per share of $2.83.

A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release.


Business Outlook – Third Quarter FY26
•Revenue is expected to range between $500 million and $560 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 $151 million and $157 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $128 million and $134 million.

Cirrus Logic will host a live Q&A session at 5 p.m. ET 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.

Investor Contact:                        
Chelsea Heffernan
Vice President, Investor Relations
Cirrus Logic, Inc.                            
(512) 851-4125                            
Investor@cirrus.com


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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 statements about our ability to expand into additional applications and markets and to leverage our mixed-signal processing expertise to expand our addressable market and drive long-term shareholder value; and our estimates for the third 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 third 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.
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Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
Three Months Ended Six Months Ended
Sep. 27,Jun. 28,Sep. 28,Sep. 27,Sep. 28,
20252025202420252024
Q2'26Q1'26Q2'25Q2'26Q2'25
Audio$318,214 $240,043 $316,588 $558,257 $535,558 
High-Performance Mixed-Signal242,746 167,229 225,269 409,975 380,325 
Net sales560,960 407,272 541,857 968,232 915,883 
Cost of sales266,586 193,242 259,267 459,828 444,368 
Gross profit294,374 214,030 282,590 508,404 471,515 
Gross margin52.5 %52.6 %52.2 %52.5 %51.5 %
Research and development110,021 102,892 112,925 212,913 218,288 
Selling, general and administrative39,589 38,744 37,813 78,333 74,583 
Total operating expenses149,610 141,636 150,738 291,246 292,871 
Income from operations144,764 72,394 131,852 217,158 178,644 
Interest income8,695 8,622 8,134 17,317 16,336 
Other income (expense)(63)(388)19 (451)1,628 
Income before income taxes153,396 80,628 140,005 234,024 196,608 
Provision for income taxes21,800 19,931 37,865 41,731 52,373 
Net income $131,596 $60,697 $102,140 $192,293 $144,235 
Basic earnings per share$2.57 $1.17 $1.92 $3.74 $2.70 
Diluted earnings per share:$2.48 $1.14 $1.83 $3.61 $2.59 
Weighted average number of shares:
Basic51,175 51,727 53,275 51,451 53,354 
Diluted53,054 53,319 55,800 53,195 55,753 
Prepared in accordance with Generally Accepted Accounting Principles

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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 Six Months Ended
Sep. 27,Jun. 28,Sep. 28,Sep. 27,Sep. 28,
20252025202420252024
Net Income ReconciliationQ2'26Q1'26Q2'25Q2'26Q2'25
GAAP Net Income$131,596 $60,697 $102,140 $192,293 $144,235 
Amortization of acquisition intangibles1,648 1,647 1,864 3,295 3,836 
Stock-based compensation expense20,597 20,809 22,447 41,406 43,832 
Lease impairment— — — — 1,019 
Adjustment to income taxes(3,861)(2,839)(1,162)(6,700)(5,267)
Non-GAAP Net Income$149,980 $80,314 $125,289 $230,294 $187,655 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$2.48 $1.14 $1.83 $3.61 $2.59 
Effect of Amortization of acquisition intangibles0.03 0.03 0.04 0.06 0.07 
Effect of Stock-based compensation expense0.39 0.39 0.40 0.78 0.79 
Effect of Lease impairment— — — — 0.02 
Effect of Adjustment to income taxes(0.07)(0.05)(0.02)(0.12)(0.10)
Non-GAAP Diluted earnings per share$2.83 $1.51 $2.25 $4.33 $3.37 
Operating Income Reconciliation
GAAP Operating Income$144,764 $72,394 $131,852 $217,158 $178,644 
GAAP Operating Profit 25.8 %17.8 %24.3 %22.4 %19.5 %
Amortization of acquisition intangibles1,648 1,647 1,864 3,295 3,836 
Stock-based compensation expense - COGS363 300 355 663 621 
Stock-based compensation expense - R&D13,019 13,072 15,844 26,091 31,607 
Stock-based compensation expense - SG&A7,215 7,437 6,248 14,652 11,604 
Lease impairment— — — — 1,019 
Non-GAAP Operating Income$167,009 $94,850 $156,163 $261,859 $227,331 
Non-GAAP Operating Profit29.8 %23.3 %28.8 %27.0 %24.8 %
Operating Expense Reconciliation
GAAP Operating Expenses$149,610 $141,636 $150,738 $291,246 $292,871 
Amortization of acquisition intangibles(1,648)(1,647)(1,864)(3,295)(3,836)
Stock-based compensation expense - R&D(13,019)(13,072)(15,844)(26,091)(31,607)
Stock-based compensation expense - SG&A(7,215)(7,437)(6,248)(14,652)(11,604)
Lease impairment— — — — 1,019 
Non-GAAP Operating Expenses$127,728 $119,480 $126,782 $247,208 $244,805 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$294,374 $214,030 $282,590 $508,404 $471,515 
GAAP Gross Margin52.5 %52.6 %52.2 %52.5 %51.5 %
Stock-based compensation expense - COGS363 300 355 663 621 
Non-GAAP Gross Profit$294,737 $214,330 $282,945 $509,067 $472,136 
Non-GAAP Gross Margin52.5 %52.6 %52.2 %52.6 %51.5 %
Effective Tax Rate Reconciliation
GAAP Tax Expense$21,800 $19,931 $37,865 $41,731 $52,373 
GAAP Effective Tax Rate14.2 %24.7 %27.0 %17.8 %26.6 %
Adjustments to income taxes3,861 2,839 1,162 6,700 5,267 
Non-GAAP Tax Expense$25,661 $22,770 $39,027 $48,431 $57,640 
Non-GAAP Effective Tax Rate14.6 %22.1 %23.8 %17.4 %23.5 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.41 $0.37 $0.68 $0.78 $0.94 
Adjustments to income taxes0.07 0.05 0.02 0.12 0.10 
Non-GAAP Tax Expense$0.48 $0.42 $0.70 $0.90 $1.04 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Sep. 27,Mar. 29,Sep. 28,
202520252024
ASSETS
Current assets
Cash and cash equivalents$593,476 $539,620 $445,759 
Marketable securities52,424 56,160 32,499 
Accounts receivable, net355,397 216,009 324,098 
Inventories236,409 299,092 271,765 
Prepaid wafers45,056 52,560 71,740 
Other current assets84,238 76,293 79,044 
Total current Assets1,367,000 1,239,734 1,224,905 
Long-term marketable securities250,146 239,036 228,302 
Right-of-use lease assets125,315 126,688 133,316 
Property and equipment, net151,154 159,900 168,265 
Intangibles, net24,451 27,461 25,700 
Goodwill435,936 435,936 435,936 
Deferred tax asset46,511 48,150 48,619 
Long-term prepaid wafers— 15,512 37,804 
Other assets29,170 34,656 53,292 
 Total assets$2,429,683 $2,327,073 $2,356,139 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$79,974 $63,162 $91,899 
Accrued salaries and benefits52,689 52,075 51,861 
Lease liability19,481 21,811 22,800 
Other accrued liabilities58,179 58,140 62,716 
Total current liabilities210,323 195,188 229,276 
Non-current lease liability120,985 121,908 129,806 
Non-current income taxes45,357 44,040 42,683 
Other long-term liabilities10,576 16,488 26,247 
Total long-term liabilities176,918 182,436 198,736 
Stockholders' equity:
Capital stock1,903,638 1,860,281 1,819,589 
Accumulated earnings
139,025 90,351 107,233 
Accumulated other comprehensive (loss) income
(221)(1,183)1,305 
Total stockholders' equity2,042,442 1,949,449 1,928,127 
Total liabilities and stockholders' equity$2,429,683 $2,327,073 $2,356,139 
    
Prepared in accordance with Generally Accepted Accounting Principles


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Sep. 27,Sep. 28,
20252024
Q2'26Q2'25
Cash flows from operating activities:
Net income$131,596 $102,140 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization12,704 12,618 
Stock-based compensation expense20,597 22,447 
Deferred income taxes7,470 4,984 
Loss on retirement or write-off of long-lived assets— 12 
Other non-cash charges68 87 
Net change in operating assets and liabilities:
Accounts receivable, net(141,312)(134,019)
Inventories42,575 (39,199)
Prepaid wafers16,878 25,531 
Other assets(8,485)(341)
Accounts payable and other accrued liabilities29,451 27,268 
Income taxes payable(19,328)(13,297)
Net cash provided by operating activities
92,214 8,231 
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities39,752 835 
Purchases of available-for-sale marketable securities(43,171)(3,577)
Purchases of property, equipment and software(3,868)(2,670)
Investments in technology(642)(70)
Net cash used in investing activities(7,929)(5,482)
Cash flows from financing activities:
Net proceeds from the issuance of common stock
1,568 4,859 
Repurchase of stock to satisfy employee tax withholding obligations(1,261)(3,207)
Repurchase and retirement of common stock(39,986)(49,993)
Net cash used in financing activities(39,679)(48,341)
Net increase (decrease) in cash and cash equivalents
44,606 (45,592)
Cash and cash equivalents at beginning of period548,870 491,351 
Cash and cash equivalents at end of period$593,476 $445,759 
Prepared in accordance with Generally Accepted Accounting Principles
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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 EndedThree Months Ended
Sep. 27,Sep. 27,Jun. 28,Mar. 29,Dec. 28,
20252025202520252024
Q2'26Q2'26Q1'26Q4'25Q3'25
Net cash provided by operating activities (GAAP)
$557,319 $92,214 $116,131 $130,386 $218,588 
Capital expenditures(23,148)(4,510)(2,770)(9,181)(6,687)
Free Cash Flow (Non-GAAP)$534,171 $87,704 $113,361 $121,205 $211,901 
Cash Flow from Operations as a Percentage of Revenue (GAAP)29 %16 %29 %31 %39 %
Capital Expenditures as a Percentage of Revenue (GAAP)1 %1 %1 %2 %1 %
Free Cash Flow Margin (Non-GAAP)27 %16 %28 %29 %38 %

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q3 FY26
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$151 - 157
Stock-based compensation expense(21)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$128 - 134
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