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


    
Cirrus Logic Reports Fiscal Third Quarter Revenue of $580.6 Million


AUSTIN, Texas – February 3, 2026 – 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 third quarter of fiscal year 2026, which ended December 27, 2025, as well as the company’s current business outlook.
“Cirrus Logic delivered revenue above the high end of our guidance range for the December quarter driven by stronger-than-anticipated demand for components shipping into smartphones and a favorable mix of end devices,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we also made solid progress executing on our strategy to expand our addressable market and drive product diversification. This included sampling a new component designed to enable and enhance the use of voice as an interface for AI-enabled PCs and ramping our latest-generation amplifier and codec in mainstream PC platforms. We also added new product families targeting prosumer and automotive that will broaden our general market offerings across a wider range of applications. As we look ahead, we expect to continue to capitalize on our extensive intellectual property portfolio and deep engineering expertise to position the company for long-term success.”

Reported Financial Results – Third Quarter FY26
•Revenue of $580.6 million;
•GAAP and non-GAAP gross margin of 53.1 percent;
•GAAP operating expenses of $155.2 million and non-GAAP operating expenses of $133.0 million; and
•GAAP earnings per share of $2.66 and non-GAAP earnings per share of $2.97.

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


Business Outlook – Fourth Quarter FY26
•Revenue is expected to range between $410 million and $470 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 $147 million and $153 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 $124 million and $130 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.

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 strategy to expand our addressable market and drive product diversification; our ability to broaden our general market offerings across a wider range of applications; our ability to capitalize on our extensive intellectual property portfolio and deep engineering expertise to position the company for long-term success; and our estimates for the fourth 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 fourth 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 Nine Months Ended
Dec. 27,Sep. 27,Dec. 28,Dec. 27,Dec. 28,
20252025202420252024
Q3'26Q2'26Q3'25Q3'26Q3'25
Audio$344,455 $318,214 $346,272 $902,713 $881,830 
High-Performance Mixed-Signal236,169 242,746 209,466 646,143 589,791 
Net sales580,624 560,960 555,738 1,548,856 1,471,621 
Cost of sales272,498 266,586 257,951 732,326 702,319 
Gross profit308,126 294,374 297,787 816,530 769,302 
Gross margin53.1 %52.5 %53.6 %52.7 %52.3 %
Research and development113,553 110,021 112,976 326,466 331,264 
Selling, general and administrative41,646 39,589 39,042 119,979 113,625 
Total operating expenses155,199 149,610 152,018 446,445 444,889 
Income from operations152,927 144,764 145,769 370,085 324,413 
Interest income9,276 8,695 8,146 26,593 24,482 
Other income (expense)246 (63)(214)(205)1,414 
Income before income taxes162,449 153,396 153,701 396,473 350,309 
Provision for income taxes22,139 21,800 37,696 63,870 90,069 
Net income $140,310 $131,596 $116,005 $332,603 $260,240 
Basic earnings per share$2.75 $2.57 $2.19 $6.48 $4.89 
Diluted earnings per share:$2.66 $2.48 $2.11 $6.27 $4.69 
Weighted average number of shares:
Basic51,037 51,175 53,081 51,313 53,263 
Diluted52,698 53,054 55,076 53,041 55,529 
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 Nine Months Ended
Dec. 27,Sep. 27,Dec. 28,Dec. 27,Dec. 28,
20252025202420252024
Net Income ReconciliationQ3'26Q2'26Q3'25Q3'26Q3'25
GAAP Net Income$140,310 $131,596 $116,005 $332,603 $260,240 
Amortization of acquisition intangibles1,648 1,648 1,647 4,943 5,483 
Stock-based compensation expense20,558 20,597 20,823 61,964 64,655 
Lease impairment— — 661 — 1,680 
Adjustment to income taxes(5,818)(3,861)(827)(12,518)(6,094)
Non-GAAP Net Income$156,698 $149,980 $138,309 $386,992 $325,964 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$2.66 $2.48 $2.11 $6.27 $4.69 
Effect of Amortization of acquisition intangibles0.03 0.03 0.03 0.09 0.10 
Effect of Stock-based compensation expense0.39 0.39 0.38 1.17 1.16 
Effect of Lease impairment— — 0.01 — 0.03 
Effect of Adjustment to income taxes(0.11)(0.07)(0.02)(0.23)(0.11)
Non-GAAP Diluted earnings per share$2.97 $2.83 $2.51 $7.30 $5.87 
Operating Income Reconciliation
GAAP Operating Income$152,927 $144,764 $145,769 $370,085 $324,413 
GAAP Operating Profit 26.3 %25.8 %26.2 %23.9 %22.0 %
Amortization of acquisition intangibles1,648 1,648 1,647 4,943 5,483 
Stock-based compensation expense - COGS24 363 351 687 972 
Stock-based compensation expense - R&D13,280 13,019 14,498 39,371 46,105 
Stock-based compensation expense - SG&A7,254 7,215 5,974 21,906 17,578 
Lease impairment— — 661 — 1,680 
Non-GAAP Operating Income$175,133 $167,009 $168,900 $436,992 $396,231 
Non-GAAP Operating Profit30.2 %29.8 %30.4 %28.2 %26.9 %
Operating Expense Reconciliation
GAAP Operating Expenses$155,199 $149,610 $152,018 $446,445 $444,889 
Amortization of acquisition intangibles(1,648)(1,648)(1,647)(4,943)(5,483)
Stock-based compensation expense - R&D(13,280)(13,019)(14,498)(39,371)(46,105)
Stock-based compensation expense - SG&A(7,254)(7,215)(5,974)(21,906)(17,578)
Lease impairment— — 661 — 1,680 
Non-GAAP Operating Expenses$133,017 $127,728 $129,238 $380,225 $374,043 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$308,126 $294,374 $297,787 $816,530 $769,302 
GAAP Gross Margin53.1 %52.5 %53.6 %52.7 %52.3 %
Stock-based compensation expense - COGS24 363 351 687 972 
Non-GAAP Gross Profit$308,150 $294,737 $298,138 $817,217 $770,274 
Non-GAAP Gross Margin53.1 %52.5 %53.6 %52.8 %52.3 %
Effective Tax Rate Reconciliation
GAAP Tax Expense$22,139 $21,800 $37,696 $63,870 $90,069 
GAAP Effective Tax Rate13.6 %14.2 %24.5 %16.1 %25.7 %
Adjustments to income taxes5,818 3,861 827 12,518 6,094 
Non-GAAP Tax Expense$27,957 $25,661 $38,523 $76,388 $96,163 
Non-GAAP Effective Tax Rate15.1 %14.6 %21.8 %16.5 %22.8 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.42 $0.41 $0.68 $1.20 $1.62 
Adjustments to income taxes0.11 0.07 0.02 0.23 0.11 
Non-GAAP Tax Expense$0.53 $0.48 $0.70 $1.43 $1.73 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Dec. 27,Mar. 29,Dec. 28,
202520252024
ASSETS
Current assets
Cash and cash equivalents$778,083 $539,620 $526,444 
Marketable securities44,280 56,160 37,535 
Accounts receivable, net278,989 216,009 261,943 
Inventories189,483 299,092 275,558 
Prepaid assets
54,373 48,236 51,323 
Prepaid wafers32,873 52,560 66,113 
Other current assets31,268 28,057 31,534 
Total current assets
1,409,349 1,239,734 1,250,450 
Long-term marketable securities259,564 239,036 252,594 
Right-of-use lease assets123,432 126,688 129,597 
Property and equipment, net148,352 159,900 163,837 
Intangibles, net22,619 27,461 23,957 
Goodwill435,936 435,936 435,936 
Deferred tax asset38,247 48,150 40,895 
Long-term prepaid wafers— 15,512 23,020 
Other assets19,021 34,656 42,954 
 Total assets$2,456,520 $2,327,073 $2,363,240 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$68,863 $63,162 $77,907 
Accrued salaries and benefits49,769 52,075 48,029 
Software license agreements26,803 26,745 26,985 
Lease liability19,713 21,811 21,858 
Other accrued liabilities19,043 31,395 36,134 
Total current liabilities184,191 195,188 210,913 
Non-current lease liability117,599 121,908 124,622 
Non-current income taxes46,033 44,040 43,401 
Other long-term liabilities5,468 16,488 21,506 
Total long-term liabilities169,100 182,436 189,529 
Stockholders' equity:
Capital stock1,925,238 1,860,281 1,840,791 
Accumulated earnings
178,693 90,351 124,101 
Accumulated other comprehensive loss
(702)(1,183)(2,094)
Total stockholders' equity2,103,229 1,949,449 1,962,798 
Total liabilities and stockholders' equity$2,456,520 $2,327,073 $2,363,240 
    
Prepared in accordance with Generally Accepted Accounting Principles


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CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
Dec. 27,Dec. 28,
20252024
Q3'26Q3'25
Cash flows from operating activities:
Net income$140,310 $116,005 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization13,077 12,824 
Stock-based compensation expense20,558 20,823 
Deferred income taxes8,292 8,379 
Loss on retirement or write-off of long-lived assets— 369 
Other non-cash charges(26)(379)
Net change in operating assets and liabilities:
Accounts receivable, net76,408 62,155 
Inventories46,926 (3,793)
Prepaid wafers12,183 20,411 
Other assets8,791 1,720 
Accounts payable and other accrued liabilities(30,468)(21,556)
Income taxes payable(5,217)1,630 
Net cash provided by operating activities
290,834 218,588 
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities50,697 12,423 
Purchases of available-for-sale marketable securities(52,104)(44,868)
Purchases of property, equipment and software(5,086)(6,687)
Investments in technology(74)— 
Net cash used in investing activities(6,567)(39,132)
Cash flows from financing activities:
Net proceeds from the issuance of common stock
1,042 378 
Repurchase of stock to satisfy employee tax withholding obligations(30,722)(29,112)
Repurchase and retirement of common stock(69,980)(70,037)
Net cash used in financing activities(99,660)(98,771)
Net increase in cash and cash equivalents
184,607 80,685 
Cash and cash equivalents at beginning of period593,476 445,759 
Cash and cash equivalents at end of period$778,083 $526,444 
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
Dec. 27,Dec. 27,Sep. 27,Jun. 28,Mar. 29,
20252025202520252025
Q3'26Q3'26Q2'26Q1'26Q4'25
Net cash provided by operating activities (GAAP)
$629,565 $290,834 $92,214 $116,131 $130,386 
Capital expenditures(21,621)(5,160)(4,510)(2,770)(9,181)
Free Cash Flow (Non-GAAP)$607,944 $285,674 $87,704 $113,361 $121,205 
Cash Flow from Operations as a Percentage of Revenue (GAAP)32 %50 %16 %29 %31 %
Capital Expenditures as a Percentage of Revenue (GAAP)1 %1 %1 %1 %2 %
Free Cash Flow Margin (Non-GAAP)31 %49 %16 %28 %29 %

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q4 FY26
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$147 - 153
Stock-based compensation expense(21)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$124 - 130
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