Marvell Technology Reports $5.77 Billion Revenue with 4.7% Growth and $885 Million Net Loss

Marvell Technology, Inc. reported a net revenue of $5.77 billion for the fiscal year ending February 1, 2025, marking a 4.7% increase from $5.51 billion in the previous fiscal year. The growth was primarily driven by a significant 88% surge in sales from the data center segment, which accounted for 72% of total revenue. However, this increase was partially offset by declines in other segments, including a 68% drop in carrier infrastructure sales and a 49% decrease in both enterprise networking and consumer markets. The company recorded a net loss of $885 million, an improvement from a loss of $933 million in fiscal 2024.

In terms of operational changes, Marvell initiated a restructuring plan in the third quarter of fiscal 2025 aimed at reallocating resources towards the data center market while reducing investments in other areas. This restructuring resulted in $711.8 million in related charges, primarily due to impairments of acquired intangible assets and other non-current assets. The company also reported a significant increase in its research and development expenses, which rose to $1.95 billion, reflecting a focus on enhancing its product offerings in high-demand areas such as artificial intelligence.

Marvell's customer base remains concentrated, with its top ten customers accounting for 81% of total revenue in fiscal 2025. Notably, a single distributor represented 34% of total revenue, highlighting the risks associated with customer dependency. The company has been actively managing its credit risk by monitoring the financial health of its customers and diversifying its customer base. As of February 1, 2025, Marvell employed 7,042 people, with a significant portion based in the Americas and Asia-Pacific regions.

Looking ahead, Marvell anticipates continued challenges due to U.S. government export restrictions affecting certain customers in China, which may lead to inventory accumulation and a shift towards developing indigenous solutions. The company is also preparing for potential impacts from evolving tax regulations, particularly those related to the OECD's global minimum tax framework, which could affect its effective tax rate and overall financial performance. Despite these challenges, Marvell remains committed to its strategic initiatives and expects to leverage its strengths in the data center and AI markets to drive future growth.