EX-99.1 2 pressrelease.htm EX-99.1 Document
Exhibit 99.1
    
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FINANCIAL NEWS


    
Cirrus Logic Reports Fiscal First Quarter Revenue of $407.3 Million


AUSTIN, Texas – August 5, 2025 – Cirrus Logic, Inc. (NASDAQ: CRUS) today posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the first quarter of fiscal year 2026, which ended June 28, 2025, as well as the company’s current business outlook.
“Cirrus Logic delivered strong financial results for the June quarter driven by robust demand for our custom boosted amplifier and first 22-nanometer smart codec shipping in smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we also executed against our growth strategy to drive product and end-market diversification. Our progress included gaining traction in the laptop market and ramping production of our latest-generation general market components that target the professional audio, automotive, industrial, and imaging end markets. With a growing roadmap of products and a proven track record of execution, we believe Cirrus Logic is well-positioned to grow long-term shareholder value.”

Reported Financial Results – First Quarter FY26
•Revenue of $407.3 million;
•GAAP and non-GAAP gross margin of 52.6 percent;
•GAAP operating expenses of $141.6 million and non-GAAP operating expenses of $119.5 million; and
•GAAP earnings per share of $1.14 and non-GAAP earnings per share of $1.51.

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



Business Outlook – Second Quarter FY26
•Revenue is expected to range between $510 million and $570 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 $153 million and $159 million, including approximately $20 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $131 million and $137 million.

Cirrus Logic will host a live Q&A session at 5 p.m. EDT 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 statement about our ability to grow long-term shareholder value; and our estimates for the second 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 second 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
Jun. 28,Mar. 29,Jun. 29,
202520252024
Q1'26Q4'25Q1'25
Audio$240,043 $255,326 $218,970 
High-Performance Mixed-Signal167,229 169,130 155,056 
Net sales407,272 424,456 374,026 
Cost of sales193,242 197,720 185,101 
Gross profit214,030 226,736 188,925 
Gross margin52.6 %53.4 %50.5 %
Research and development102,892 103,420 105,363 
Selling, general and administrative38,744 37,370 36,770 
Total operating expenses141,636 140,790 142,133 
Income from operations72,394 85,946 46,792 
Interest income8,622 8,604 8,202 
Other income (expense)(388)55 1,609 
Income before income taxes80,628 94,605 56,603 
Provision for income taxes19,931 23,338 14,508 
Net income $60,697 $71,267 $42,095 
Basic earnings per share$1.17 $1.35 $0.79 
Diluted earnings per share:$1.14 $1.31 $0.76 
Weighted average number of shares:
Basic51,727 52,756 53,433 
Diluted53,319 54,324 55,665 
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
Jun. 28,Mar. 29,Jun. 29,
202520252024
Net Income ReconciliationQ1'26Q4'25Q1'25
GAAP Net Income$60,697 $71,267 $42,095 
Amortization of acquisition intangibles1,647 1,647 1,972 
Stock-based compensation expense20,809 19,491 21,385 
Lease impairment— — 1,019 
Adjustment to income taxes(2,839)(1,772)(4,105)
Non-GAAP Net Income$80,314 $90,633 $62,366 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$1.14 $1.31 $0.76 
Effect of Amortization of acquisition intangibles0.03 0.03 0.03 
Effect of Stock-based compensation expense0.39 0.36 0.38 
Effect of Lease impairment— — 0.02 
Effect of Adjustment to income taxes(0.05)(0.03)(0.07)
Non-GAAP Diluted earnings per share$1.51 $1.67 $1.12 
Operating Income Reconciliation
GAAP Operating Income$72,394 $85,946 $46,792 
GAAP Operating Profit 17.8 %20.2 %12.5 %
Amortization of acquisition intangibles1,647 1,647 1,972 
Stock-based compensation expense - COGS300 360 266 
Stock-based compensation expense - R&D13,072 13,079 15,763 
Stock-based compensation expense - SG&A7,437 6,052 5,356 
Lease impairment— — 1,019 
Non-GAAP Operating Income$94,850 $107,084 $71,168 
Non-GAAP Operating Profit23.3 %25.2 %19.0 %
Operating Expense Reconciliation
GAAP Operating Expenses$141,636 $140,790 $142,133 
Amortization of acquisition intangibles(1,647)(1,647)(1,972)
Stock-based compensation expense - R&D(13,072)(13,079)(15,763)
Stock-based compensation expense - SG&A(7,437)(6,052)(5,356)
Lease impairment— — 1,019 
Non-GAAP Operating Expenses$119,480 $120,012 $118,023 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$214,030 $226,736 $188,925 
GAAP Gross Margin52.6 %53.4 %50.5 %
Stock-based compensation expense - COGS300 360 266 
Non-GAAP Gross Profit$214,330 $227,096 $189,191 
Non-GAAP Gross Margin52.6 %53.5 %50.6 %
Effective Tax Rate Reconciliation
GAAP Tax Expense$19,931 $23,338 $14,508 
GAAP Effective Tax Rate24.7 %24.7 %25.6 %
Adjustments to income taxes2,839 1,772 4,105 
Non-GAAP Tax Expense$22,770 $25,110 $18,613 
Non-GAAP Effective Tax Rate22.1 %21.7 %23.0 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.37 $0.43 $0.26 
Adjustments to income taxes0.05 0.03 0.07 
Non-GAAP Tax Expense$0.42 $0.46 $0.33 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Jun. 28,Mar. 29,Jun. 29,
202520252024
ASSETS
Current assets
Cash and cash equivalents$548,870 $539,620 $491,351 
Marketable securities65,925 56,160 25,680 
Accounts receivable, net214,085 216,009 190,079 
Inventories278,984 299,092 232,566 
Prepaid wafers61,934 52,560 84,700 
Other current assets71,324 76,293 77,365 
Total current Assets1,241,122 1,239,734 1,101,741 
Long-term marketable securities232,959 239,036 227,527 
Right-of-use lease assets123,718 126,688 136,295 
Property and equipment, net154,340 159,900 170,953 
Intangibles, net25,718 27,461 27,624 
Goodwill435,936 435,936 435,936 
Deferred tax asset54,037 48,150 54,622 
Long-term prepaid wafers— 15,512 50,375 
Other assets26,887 34,656 60,552 
 Total assets$2,294,717 $2,327,073 $2,265,625 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$66,321 $63,162 $77,562 
Accrued salaries and benefits43,146 52,075 41,101 
Lease liability21,075 21,811 22,058 
Other accrued liabilities58,136 58,140 61,021 
Total current liabilities188,678 195,188 201,742 
Non-current lease liability120,272 121,908 132,016 
Non-current income taxes44,693 44,040 52,704 
Other long-term liabilities10,790 16,488 31,533 
Total long-term liabilities175,755 182,436 216,253 
Stockholders' equity:
Capital stock1,881,472 1,860,281 1,792,283 
Accumulated earnings
49,035 90,351 58,591 
Accumulated other comprehensive loss
(223)(1,183)(3,244)
Total stockholders' equity1,930,284 1,949,449 1,847,630 
Total liabilities and stockholders' equity$2,294,717 $2,327,073 $2,265,625 
    
Prepared in accordance with Generally Accepted Accounting Principles


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Jun. 28,Jun. 29,
20252024
Q1'26Q1'25
Cash flows from operating activities:
Net income$60,697 $42,095 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization13,173 12,359 
Stock-based compensation expense20,809 21,385 
Deferred income taxes(5,938)(5,897)
Other non-cash charges(16)1,104 
Net change in operating assets and liabilities:
Accounts receivable, net1,924 (27,601)
Inventories20,108 (5,318)
Prepaid wafers6,138 12,354 
Other assets2,014 (5,459)
Accounts payable and other accrued liabilities(8,806)12,037 
Income taxes payable6,028 30,102 
Net cash provided by operating activities
116,131 87,161 
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities22,990 12,646 
Purchases of available-for-sale marketable securities(26,435)(69,060)
Purchases of property, equipment and software(2,638)(9,990)
Investments in technology(132)(155)
Net cash used in investing activities(6,215)(66,559)
Cash flows from financing activities:
Net proceeds from the issuance of common stock
382 10,196 
Repurchase of stock to satisfy employee tax withholding obligations(1,049)(1,219)
Repurchase and retirement of common stock(99,999)(40,992)
Net cash used in financing activities(100,666)(32,015)
Net increase (decrease) in cash and cash equivalents
9,250 (11,413)
Cash and cash equivalents at beginning of period539,620 502,764 
Cash and cash equivalents at end of period$548,870 $491,351 
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
Jun. 28,Jun. 28,Mar. 29,Dec. 28,Sep. 28,
20252025202520242024
Q1'26Q1'26Q4'25Q3'25Q2'25
Net cash provided by operating activities (GAAP)
$473,336 $116,131 $130,386 $218,588 $8,231 
Capital expenditures(21,378)(2,770)(9,181)(6,687)(2,740)
Free Cash Flow (Non-GAAP)$451,958 $113,361 $121,205 $211,901 $5,491 
Cash Flow from Operations as a Percentage of Revenue (GAAP)25 %29 %31 %39 %2 %
Capital Expenditures as a Percentage of Revenue (GAAP)1 %1 %2 %1 %1 %
Free Cash Flow Margin (Non-GAAP)23 %28 %29 %38 %1 %

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q2 FY26
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$153 - 159
Stock-based compensation expense(20)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$131 - 137
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