Cirrus Logic Reports 13% Revenue Growth in Q2 and 15% in H1 Fiscal 2025, Driven by Strong Demand for Audio and HPMS Products

Cirrus Logic, Inc. reported significant financial growth for the second quarter and first half of fiscal year 2025, ending September 28, 2024. Net sales for the three months reached $541.9 million, a 13% increase from $481.1 million in the same period of the previous year. For the first six months, net sales totaled $915.9 million, up 15% from $798.1 million year-over-year. The growth was primarily driven by increased sales in both Audio Products and High-Performance Mixed-Signal (HPMS) products, attributed to higher smartphone unit volumes and the introduction of next-generation products.

Gross profit for the second quarter was $282.6 million, compared to $246.6 million in the prior year, reflecting a gross margin improvement to 52.2% from 51.3%. For the first half, gross profit rose to $471.5 million, with a gross margin of 51.5%, up from 50.9% in the previous year. Operating income for the second quarter was $131.9 million, representing 24% of net sales, an increase from 22% in the prior year. Net income for the quarter was $102.1 million, or $1.92 per share, compared to $75.4 million, or $1.38 per share, in the same quarter last year.

The company’s total assets increased to $2.36 billion as of September 28, 2024, up from $2.23 billion at the end of the previous fiscal period. Cash and cash equivalents decreased to $445.8 million from $502.8 million, while accounts receivable surged to $324.1 million from $162.5 million, indicating a significant increase in sales activity.

Cirrus Logic also undertook strategic initiatives, including a workforce reduction of approximately 5% of its global employees, incurring $2.3 million in severance costs. The company has focused on maintaining its leadership in smartphone audio and expanding into new markets with innovative components. Recent product developments include the shipment of a next-generation custom boosted amplifier and a 22-nanometer smart codec for smartphones, as well as a high-volume design win for a PC codec.

The company continues to rely heavily on a limited number of key customers, with Apple Inc. representing approximately 90% of total net sales in the second quarter. This concentration poses risks related to pricing pressure and demand fluctuations. Despite these challenges, Cirrus Logic's financial performance reflects a robust operational strategy and a commitment to innovation in its product offerings.