Cirrus Logic Q4 FY25 slides: Revenue hits $1.90B for fiscal year, mixed-signal strategy advances

Published 06/05/2025, 21:30
Cirrus Logic Q4 FY25 slides: Revenue hits $1.90B for fiscal year, mixed-signal strategy advances

Cirrus Logic Inc (NASDAQ:CRUS) reported solid fourth-quarter and full-year fiscal 2025 results in its May 6, 2025 investor presentation, highlighting revenue growth and strategic expansion beyond its core audio business into high-performance mixed-signal products.

Executive Summary

The Austin, Texas-based semiconductor company achieved $424.5 million in revenue for Q4 FY25, contributing to full-year revenue of $1.90 billion. Gross margin for the quarter stood at 53.4%, while the company generated $130 million in cash from operations.

In after-hours trading following the presentation, Cirrus Logic shares jumped 5.15% to $103.80, suggesting investors responded positively to the results and outlook.

Quarterly Performance Highlights

Cirrus Logic’s Q4 FY25 results showed continued strength in both its audio and high-performance mixed-signal (HPMS) segments. The company reported gross margin of 53.4% and combined R&D and SG&A expenses of $140.8 million, which included $19.1 million in stock-based compensation and $1.6 million in amortization of acquisition intangibles.

As shown in the following revenue breakdown chart, audio products contributed $254 million (60%) to Q4 revenue, while HPMS products accounted for $170 million (40%):

The company’s revenue mix demonstrates its ongoing strategic shift, with HPMS products representing a growing portion of overall sales. However, customer concentration remains high, with the company noting that its largest customer represented 88% of total revenue in Q4 FY25.

Profitability metrics also showed improvement year-over-year:

Strategic Initiatives

Cirrus Logic’s presentation emphasized its three-pronged growth strategy: maintaining leadership in smartphone audio, increasing HPMS content in smartphones, and leveraging its expertise to expand into additional applications and markets.

The company’s strategic direction is illustrated in this growth strategy diagram:

A key element of this strategy involves expanding the company’s served addressable market (SAM). Cirrus Logic projects its total SAM will more than double from $4.0 billion in 2023 to $9.0 billion by 2028, with particularly strong growth in the HPMS segment:

The company has demonstrated a consistent track record of expanding its content within smartphones, starting with amplifiers and smart codecs in 2012 and progressively adding haptic drivers, camera controllers, and power ICs. This expansion has increased Cirrus Logic’s dollar content per device, helping drive revenue growth even in a maturing smartphone market.

Market Opportunity (SO:FTCE11B)

Beyond smartphones, Cirrus Logic is targeting significant growth opportunities in laptops, tablets, wearables, gaming, and AR/VR devices. The company estimates the PC market alone represents a served addressable market of approximately $1 billion by 2028.

The laptop opportunity is detailed in the following slide:

Cirrus Logic’s strategy for laptops involves increasing value per device, expanding its footprint across mainstream to high-end models, and developing new products to address varying feature and cost requirements.

Financial Position and Capital Allocation

The company continues to generate strong cash flow, with $130 million from operations in Q4 FY25 and $1.7 billion over the past five fiscal years. Total (EPA:TTEF) cash and investments reached $835 million at the end of Q4, up from $817 million in the previous quarter.

Cirrus Logic’s capital allocation priorities and cash position are summarized here:

The company remains committed to returning capital to shareholders through share repurchases. In Q4, it utilized $100 million to repurchase 927,248 shares at an average price of $107.85. For the full fiscal year 2025, Cirrus Logic used $261 million to repurchase approximately 2.3 million shares at an average price of $112.33.

In March 2025, the Board of Directors authorized an additional $500 million for share repurchases, supplementing the $54.1 million remaining from the July 2022 authorization. Subsequent to Q4, the company repurchased an additional 296,689 shares for $25 million at an average price of $84.26.

Outlook and Forward-Looking Statements

For the first quarter of fiscal 2026, Cirrus Logic provided the following guidance:

The projected revenue range of $330-390 million represents a sequential decline from Q4 FY25, likely reflecting seasonal patterns in the smartphone market. Gross margin is expected to remain strong at 51-53%.

Long-term, Cirrus Logic aims to drive shareholder value through revenue growth, operating profit expansion, and continued strong cash flow generation. The company is investing significantly in intellectual property and new technologies on advanced mixed-signal nodes, with high-performance mixed-signal representing its largest area of investment.

Cirrus Logic’s detailed financial information provides a comprehensive view of its recent performance and trajectory:

As Cirrus Logic continues executing its diversification strategy, investors will be watching for progress in expanding beyond its core smartphone audio business and reducing customer concentration risk, while maintaining the strong margins and cash generation that have characterized its financial performance.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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