Cirrus Logic Soars: Net Income Up 29% on Strong Sales Growth

TL;DR

**CRUS is crushing it with strong sales and profit growth, signaling a bullish outlook for this chipmaker.**

AI Summary

Cirrus Logic, Inc. (CRUS) reported a strong financial performance for the three and six months ended September 27, 2025. Net sales increased by 3.5% to $560.96 million for the three months ended September 27, 2025, up from $541.86 million in the prior year period. Net income saw a significant jump of 28.8% to $131.60 million for the three-month period, compared to $102.14 million in the same period last year. For the six months ended September 27, 2025, net sales rose to $968.23 million from $915.88 million, and net income increased by 33.3% to $192.29 million from $144.24 million. The company's cash and cash equivalents increased to $593.48 million as of September 27, 2025, from $539.62 million at March 29, 2025. Accounts receivable, net, increased significantly to $355.40 million from $216.01 million, attributed to the timing of collections and billings. Inventories decreased to $236.41 million from $299.09 million, indicating improved inventory management. The company also repurchased and retired $139.99 million of common stock during the six-month period, demonstrating a commitment to shareholder returns.

Why It Matters

This strong performance from Cirrus Logic signals robust demand for its semiconductor products, which is crucial for investors looking for growth in the competitive chip sector. The significant increase in net income and sales, coupled with a substantial stock repurchase program, suggests management confidence and a healthy financial position, potentially attracting more institutional investment. For employees, this indicates job security and potential for growth within a thriving company. Customers benefit from a stable supplier, while the broader market sees a key player in the semiconductor industry demonstrating resilience and growth, potentially influencing sector sentiment positively amidst ongoing supply chain dynamics.

Risk Assessment

Risk Level: medium — While the company shows strong financial performance, the significant increase in accounts receivable to $355.40 million from $216.01 million could indicate potential future cash flow challenges if collections slow. Additionally, the company's reliance on foreign currency forward contracts, while intended to mitigate risk, introduces derivative instrument risk, as evidenced by a $(266) thousand loss recognized in income for the three months ended September 27, 2025.

Analyst Insight

Investors should consider increasing their exposure to CRUS, given the strong net income growth of 28.8% and a robust stock repurchase program of $139.99 million. Monitor accounts receivable closely in future filings for any signs of prolonged collection issues, but the current inventory reduction suggests efficient operations.

Financial Highlights

debt To Equity

0.09

revenue

$968.23M

operating Margin

22.4%

total Assets

$2,429.68M

total Debt

$176.92M

net Income

$192.29M

eps

$3.61

gross Margin

52.5%

cash Position

$593.48M

revenue Growth

+5.7%

Key Numbers

• $560.96M — Net Sales (3 months) (Increased by 3.5% from $541.86M year-over-year)
• $131.60M — Net Income (3 months) (Increased by 28.8% from $102.14M year-over-year)
• $968.23M — Net Sales (6 months) (Increased from $915.88M year-over-year)
• $192.29M — Net Income (6 months) (Increased by 33.3% from $144.24M year-over-year)
• $2.48 — Diluted EPS (3 months) (Increased from $1.83 year-over-year)
• $3.61 — Diluted EPS (6 months) (Increased from $2.59 year-over-year)
• $593.48M — Cash and Cash Equivalents (Increased from $539.62M at March 29, 2025)
• $355.40M — Accounts Receivable, net (Increased from $216.01M at March 29, 2025)
• $236.41M — Inventories (Decreased from $299.09M at March 29, 2025)
• $139.99M — Common Stock Repurchases (For the six months ended September 27, 2025)

Key Players & Entities

• CIRRUS LOGIC, INC. (company) — Registrant
• NASDAQ Global Select Market (regulator) — Exchange where common stock is registered
• $560,960 (dollar_amount) — Net sales for three months ended September 27, 2025
• $541,857 (dollar_amount) — Net sales for three months ended September 28, 2024
• $131,596 (dollar_amount) — Net income for three months ended September 27, 2025
• $102,140 (dollar_amount) — Net income for three months ended September 28, 2024
• $593,476 (dollar_amount) — Cash and cash equivalents as of September 27, 2025
• $355,397 (dollar_amount) — Accounts receivable, net, as of September 27, 2025
• $236,409 (dollar_amount) — Inventories as of September 27, 2025
• $139,985 (dollar_amount) — Repurchase and retirement of common stock for six months ended September 27, 2025

FAQ

Risk Factors

• Dependence on Key Customers [high — market]: The company's revenue is significantly concentrated among a few major customers. For the six months ended September 27, 2025, sales to the largest customer represented 39% of net sales. A substantial decrease in sales to, or loss of, any of these key customers could materially and adversely affect revenue and profitability.
• Competition in Semiconductor Market [high — market]: The semiconductor industry is highly competitive, characterized by rapid technological change, price erosion, and aggressive competition. Cirrus Logic faces competition from larger, more diversified companies and smaller, specialized firms, which could impact market share and pricing power.
• Supply Chain Disruptions [medium — operational]: The company relies on a limited number of third-party foundries and assembly/test facilities. Disruptions in these supply chains, whether due to natural disasters, geopolitical events, or capacity constraints, could impact the company's ability to meet customer demand and fulfill orders.
• Inventory Management [medium — financial]: While inventories decreased to $236.41 million from $299.09 million, effective inventory management is crucial. Significant increases in inventory levels could lead to obsolescence and write-downs, impacting profitability. Conversely, insufficient inventory could lead to lost sales.
• International Trade and Tariffs [medium — regulatory]: The company operates globally and is subject to various international trade regulations, tariffs, and export controls. Changes in trade policies or imposition of new tariffs could increase costs and impact the competitiveness of its products.
• Product Development and Innovation [high — operational]: The company's success depends on its ability to develop and introduce new products with advanced features that meet evolving market demands. Failure to innovate or keep pace with technological advancements could lead to a decline in market position.

Industry Context

Cirrus Logic operates in the highly competitive semiconductor industry, particularly in the analog and mixed-signal chip market for consumer electronics. Key trends include the increasing demand for high-performance audio, power management, and sensing solutions in smartphones, wearables, and other connected devices. The industry is characterized by rapid innovation cycles, significant R&D investment, and consolidation.

Regulatory Implications

The company is subject to U.S. and international regulations concerning trade, export controls, and data privacy. Changes in geopolitical relations or trade policies, such as tariffs or sanctions, could impact supply chains and market access. Compliance with evolving environmental, social, and governance (ESG) standards is also becoming increasingly important for investors and customers.

What Investors Should Do

1. Monitor customer concentration
2. Evaluate R&D effectiveness
3. Analyze inventory trends
4. Assess share repurchase program

Key Dates

• 2025-09-27: End of Q2 Fiscal Year 2025 — Reported strong net sales of $560.96M and net income of $131.60M for the quarter, showing year-over-year growth.
• 2025-03-29: End of Q4 Fiscal Year 2025 — Company's cash and cash equivalents stood at $539.62M prior to the reported period's increase.
• 2025-09-27: Consolidated Condensed Balance Sheets Date — Reflects current asset and liability positions, including increased cash and receivables, and decreased inventory.
• 2025-09-27: Consolidated Condensed Statements of Income Date — Details the revenue and net income performance for the three and six-month periods.
• 2025-09-27: Consolidated Condensed Statements of Cash Flows Date — Shows cash generated from operations and used for investing and financing activities, including stock repurchases.

Glossary

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair market value of its net identifiable assets. (Represents a significant portion of the company's assets ($435.94M), indicating past acquisitions.)

Right-of-use lease assets

Assets recognized by a lessee under a lease, representing their right to use an underlying asset for the lease term. (Part of the company's long-term assets, reflecting obligations under lease agreements.)

Accumulated earnings

The total cumulative net income of a company that has not been distributed to shareholders as dividends. (Shows the company's retained profitability, which increased significantly to $139.03M.)

Diluted earnings per share (EPS)

A measure of profitability that includes the effect of all potential common shares (like stock options and convertible securities) that could be issued. (Indicates the company's profitability on a per-share basis, accounting for potential dilution, and showed an increase to $2.48 for the quarter.)

Prepaid wafers

Payments made in advance for semiconductor wafers, which are the raw material for integrated circuits. (Represents a significant component of current assets, reflecting commitments to suppliers.)

Year-Over-Year Comparison

Compared to the prior year's filing period, Cirrus Logic demonstrates robust growth. Net sales for the six months ended September 27, 2025, increased by 5.7% to $968.23 million from $915.88 million, while net income saw a substantial rise of 33.3% to $192.29 million from $144.24 million. This improved profitability is reflected in the diluted EPS, which grew from $2.59 to $3.61. The balance sheet shows a healthier cash position ($593.48M vs. $539.62M) and improved inventory management (down to $236.41M from $299.09M), although accounts receivable increased significantly, likely due to billing cycles.

Key Financial Figures

• $0.001 — ange on which registered Common stock, $0.001 par value CRUS The NASDAQ Global Select

Filing Documents

• crus-20250927.htm (10-Q) — 857KB
• ex311-crusq226.htm (EX-31.1) — 10KB
• ex312-crusq226.htm (EX-31.2) — 10KB
• ex321-crusq226.htm (EX-32.1) — 6KB
• ex322-crusq226.htm (EX-32.2) — 6KB
• 0000772406-25-000041.txt ( ) — 4952KB
• crus-20250927.xsd (EX-101.SCH) — 33KB
• crus-20250927_cal.xml (EX-101.CAL) — 55KB
• crus-20250927_def.xml (EX-101.DEF) — 103KB
• crus-20250927_lab.xml (EX-101.LAB) — 437KB
• crus-20250927_pre.xml (EX-101.PRE) — 293KB
• crus-20250927_htm.xml (XML) — 671KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Condensed Balance Sheets - September 27, 2025 (unaudited) and March 29, 2025 3 Consolidated Condensed Statements of Income (unaudited) - Three and Six Months Ended September 27, 2025 and September 28, 2024 4 Consolidated Condensed Statements of Comprehensive Income (unaudited) - Three and Six Months Ended September 27, 2025 and September 28, 2024 5 Consolidated Condensed Statements of Cash Flows (unaudited) - Six Months Ended September 27, 2025 and September 28, 2024 6 Consolidated Condensed Statements of Stockholders' Equity (unaudited) - Three and Six Months Ended September 27, 2025 and September 28, 2024 7 Notes to Consolidated Condensed Financial Statements (unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk 21

Item 3. Quantitative and Qualitative Disclosures about Market Risk 21

Controls and Procedures 22

Item 4. Controls and Procedures 22

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings 22

Item 1. Legal Proceedings 22

Risk Factors 22

Item 1A. Risk Factors 22

Unregistered Sales of Equity Securities and Use of Proceeds 24

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24

Defaults Upon Senior Securities 25

Item 3. Defaults Upon Senior Securities 25

Mine Safety Disclosures 25

Item 4. Mine Safety Disclosures 25

Other Information 25

Item 5. Other Information 25

Exhibits 26

Item 6. Exhibits 26 Signatures 26 2

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 27, March 29, 2025 2025 (unaudited) Assets Current assets: Cash and cash equivalents $ 593,476 $ 539,620 Marketable securities 52,424 56,160 Accounts receivable, net 355,397 216,009 Inventories 236,409 299,092 Prepaid assets 51,657 48,236 Prepaid wafers 45,056 52,560 Other current assets 32,581 28,057 Total current assets 1,367,000 1,239,734 Long-term marketable securities 250,146 239,036 Right-of-use lease assets 125,315 126,688 Property and equipment, net 151,154 159,900 Intangibles, net 24,451 27,461 Goodwill 435,936 435,936 Deferred tax assets 46,511 48,150 Long-term prepaid wafers — 15,512 Other assets 29,170 34,656 Total assets $ 2,429,683 $ 2,327,073 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 79,974 $ 63,162 Accrued salaries and benefits 52,689 52,075 Software license agreements 26,803 26,745 Current lease liabilities 19,481 21,811 Other accrued liabilities 31,376 31,395 Total current liabilities 210,323 195,188 Long-term liabilities: Non-current lease liabilities 120,985 121,908 Non-current income taxes 45,357 44,040 Software license agreements 10,576 16,488 Total long-term liabilities 176,918 182,436 Stockholders' equity: Capital stock 1,903,638 1,860,281 Accumulated earnings 139,025 90,351 Accumulated other comprehensive loss ( 221 ) ( 1,183 ) Total stockholders' equity 2,042,442 1,949,449 Total liabilities and stockholders' equity $ 2,429,683 $ 2,327,073 The accompanying notes are an integral part of these consolidated condensed financial statements. 3 CIRRUS LOGIC, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share amounts; unaudited) Three Months Ended Six Months Ended September 27, September 28, September 27, September 28, 2025 2024 2025 2024 Net sales $ 560,960 $ 541,857 $ 968,232 $ 915,883 Cost of sales 266,586 25

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