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


    
Cirrus Logic Reports Record Fiscal First Quarter Revenue of $460 Million


AUSTIN, Texas – August 5, 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 first quarter of fiscal year 2027, which ended June 27, 2026, as well as the company’s current business outlook.
“Cirrus Logic delivered record first quarter revenue and earnings per share in the June quarter,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we experienced strong demand for custom components shipping into smartphones. The company also made meaningful progress executing on key strategic initiatives. In our PC business, we saw considerable interest in our latest smart codec for AI-enabled PCs and are engaged with multiple customers on designs for next calendar year. We also recently taped out a new high-performance analog front-end component targeting metrology applications, further strengthening our general market portfolio. Looking forward, we remain confident in our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come.”

Reported Financial Results – First Quarter FY27
•Revenue of $459.7 million;
•GAAP gross margin of 52.6 percent and non-GAAP gross margin of 52.7 percent;
•GAAP operating expenses of $157.4 million and non-GAAP operating expenses of $135.4 million; and
•GAAP earnings per share of $1.47 and non-GAAP earnings per share of $1.84.

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


Business Outlook – Second Quarter FY27
•Revenue is expected to range between $510 million and $570 million;
•GAAP gross margin is forecasted to be between 52 percent and 54 percent; and
•Combined GAAP R&D and SG&A expenses are anticipated to range between $163 million and $169 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquisition intangibles, resulting in a non-GAAP operating expense range between $140 million and $146 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 ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come; and our estimates for the second quarter fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, amortization of acquisition intangibles, and our resulting non-GAAP operating expense range. 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 2027; customer cancellations of orders; the failure to place orders consistent with forecasts; global economic conditions and uncertainty; and our ability to develop and commercialize products and technologies for new markets, along with the risk factors listed in our Form 10-K for the year ended March 28, 2026 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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CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)
Three Months Ended
Jun. 27,Mar. 28,Jun. 28,
202620262025
Q1'27Q4'26Q1'26
Audio$249,034 $257,220 $240,043 
High-Performance Mixed-Signal210,689 191,303 167,229 
Net sales459,723 448,523 407,272 
Cost of sales217,868 210,881 193,242 
Gross profit241,855 237,642 214,030 
Gross margin52.6 %53.0 %52.6 %
Research and development115,013 107,487 102,892 
Selling, general and administrative42,406 39,860 38,744 
Total operating expenses157,419 147,347 141,636 
Income from operations84,436 90,295 72,394 
Interest income10,082 10,248 8,622 
Other expense(363)(282)(388)
Income before income taxes94,155 100,261 80,628 
Provision for income taxes17,304 18,456 19,931 
Net income $76,851 $81,805 $60,697 
Basic earnings per share$1.52 $1.61 $1.17 
Diluted earnings per share:$1.47 $1.56 $1.14 
Weighted average number of shares:
Basic50,550 50,822 51,727 
Diluted52,353 52,369 53,319 
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. 27,Mar. 28,Jun. 28,
202620262025
Net Income ReconciliationQ1'27Q4'26Q1'26
GAAP Net Income$76,851 $81,805 $60,697 
Amortization of acquisition intangibles1,647 1,647 1,647 
Stock-based compensation expense20,589 19,847 20,809 
Adjustment to income taxes(2,988)(1,020)(2,839)
Non-GAAP Net Income$96,099 $102,279 $80,314 
Earnings Per Share Reconciliation
GAAP Diluted earnings per share$1.47 $1.56 $1.14 
Effect of Amortization of acquisition intangibles0.03 0.03 0.03 
Effect of Stock-based compensation expense0.40 0.38 0.39 
Effect of Adjustment to income taxes(0.06)(0.02)(0.05)
Non-GAAP Diluted earnings per share$1.84 $1.95 $1.51 
Operating Income Reconciliation
GAAP Operating Income$84,436 $90,295 $72,394 
GAAP Operating Profit 18.4 %20.1 %17.8 %
Amortization of acquisition intangibles1,647 1,647 1,647 
Stock-based compensation expense - COGS238 289 300 
Stock-based compensation expense - R&D13,245 12,327 13,072 
Stock-based compensation expense - SG&A7,106 7,231 7,437 
Non-GAAP Operating Income$106,672 $111,789 $94,850 
Non-GAAP Operating Profit23.2 %24.9 %23.3 %
Operating Expense Reconciliation
GAAP Operating Expenses$157,419 $147,347 $141,636 
Amortization of acquisition intangibles(1,647)(1,647)(1,647)
Stock-based compensation expense - R&D(13,245)(12,327)(13,072)
Stock-based compensation expense - SG&A(7,106)(7,231)(7,437)
Non-GAAP Operating Expenses$135,421 $126,142 $119,480 
Gross Margin/Profit Reconciliation
GAAP Gross Profit$241,855 $237,642 $214,030 
GAAP Gross Margin52.6 %53.0 %52.6 %
Stock-based compensation expense - COGS238 289 300 
Non-GAAP Gross Profit$242,093 $237,931 $214,330 
Non-GAAP Gross Margin52.7 %53.0 %52.6 %
Effective Tax Rate Reconciliation
GAAP Tax Expense$17,304 $18,456 $19,931 
GAAP Effective Tax Rate18.4 %18.4 %24.7 %
Adjustments to income taxes2,988 1,020 2,839 
Non-GAAP Tax Expense$20,292 $19,476 $22,770 
Non-GAAP Effective Tax Rate17.4 %16.0 %22.1 %
Tax Impact to EPS Reconciliation
GAAP Tax Expense $0.33 $0.35 $0.37 
Adjustments to income taxes0.06 0.02 0.05 
Non-GAAP Tax Expense$0.39 $0.37 $0.42 
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CONSOLIDATED CONDENSED BALANCE SHEET
 (in thousands; unaudited)
Jun. 27,Mar. 28,Jun. 28,
202620262025
ASSETS
Current assets
Cash and cash equivalents$810,666 $800,930 $548,870 
Marketable securities80,596 86,697 65,925 
Accounts receivable, net253,971 220,149 214,085 
Inventories262,746 240,871 278,984 
Prepaid assets
44,449 47,587 44,243 
Prepaid wafers— 14,733 61,934 
Other current assets21,040 22,741 27,081 
Total current assets
1,473,468 1,433,708 1,241,122 
Long-term marketable securities276,056 266,160 232,959 
Right-of-use lease assets117,066 120,676 123,718 
Property and equipment, net149,845 143,975 154,340 
Intangibles, net19,168 20,727 25,718 
Goodwill435,936 435,936 435,936 
Deferred tax assets54,443 49,824 54,037 
Other assets34,298 18,368 26,887 
 Total assets$2,560,280 $2,489,374 $2,294,717 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$78,090 $80,645 $66,321 
Accrued salaries and benefits44,182 52,723 43,146 
Software license agreements22,091 22,229 21,511 
Current lease liabilities20,761 19,872 21,075 
Other accrued liabilities29,176 19,187 36,625 
Total current liabilities194,300 194,656 188,678 
Non-current lease liabilities109,703 114,105 120,272 
Non-current income taxes47,320 46,721 44,693 
Software license agreements19,826 5,896 10,790 
Total long-term liabilities176,849 166,722 175,755 
Stockholders' equity:
Capital stock1,967,875 1,945,958 1,881,472 
Accumulated earnings
224,213 184,881 49,035 
Accumulated other comprehensive loss
(2,957)(2,843)(223)
Total stockholders' equity2,189,131 2,127,996 1,930,284 
Total liabilities and stockholders' equity$2,560,280 $2,489,374 $2,294,717 
    
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. 27,Jun. 28,
20262025
Q1'27Q1'26
Cash flows from operating activities:
Net income$76,851 $60,697 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization13,156 13,173 
Stock-based compensation expense20,589 20,809 
Deferred income taxes(4,600)(5,938)
Gain on retirement or write-off of long-lived assets(67)— 
Other non-cash adjustments152 (16)
Net change in operating assets and liabilities:
Accounts receivable(33,822)1,924 
Inventories(21,875)20,108 
Prepaid wafers14,733 6,138 
Other assets3,723 2,014 
Accounts payable and other accrued liabilities(7,976)(8,806)
Income taxes payable3,264 6,028 
Net cash provided by operating activities
64,128 116,131 
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities47,044 22,990 
Purchases of available-for-sale marketable securities(50,930)(26,435)
Purchases of property, equipment and software(15,143)(2,638)
Investments in technology(361)(132)
Net cash used in investing activities(19,390)(6,215)
Cash flows from financing activities:
Debt issuance costs(2,057)— 
Net proceeds from the issuance of common stock
1,329 382 
Repurchase of stock to satisfy employee tax withholding obligations(2,774)(1,049)
Repurchase and retirement of common stock(31,500)(99,999)
Net cash used in financing activities(35,002)(100,666)
Net increase in cash and cash equivalents
9,736 9,250 
Cash and cash equivalents at beginning of period800,930 539,620 
Cash and cash equivalents at end of period$810,666 $548,870 
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. 27,Jun. 27,Mar. 28,Dec. 27,Sep. 27,
20262026202620252025
Q1'27Q1'27Q4'26Q3'26Q2'26
Net cash provided by operating activities (GAAP)
$598,596 $64,128 $151,420 $290,834 $92,214 
Capital expenditures(27,570)(15,504)(2,396)(5,160)(4,510)
Free Cash Flow (Non-GAAP)$571,026 $48,624 $149,024 $285,674 $87,704 
Cash Flow from Operations as a Percentage of Revenue (GAAP)29 %14 %34 %50 %16 %
Capital Expenditures as a Percentage of Revenue (GAAP)1 %3 %1 %1 %1 %
Free Cash Flow Margin (Non-GAAP)28 %11 %33 %49 %16 %

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RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
Q2 FY27
Guidance
Operating Expense Reconciliation
GAAP Operating Expenses$163 - 169
Stock-based compensation expense(21)
Amortization of acquisition intangibles(2)
Non-GAAP Operating Expenses$140 - 146
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