Key Takeaways Cirrus Logic expanded its collaboration with GlobalFoundries to accelerate semiconductor innovation.CRUS and GFS are advancing BCD and GaN technologies to boost efficiency and performance.New U.S. manufacturing in New York adds supply chain resilience alongside Singapore and Germany.Cirrus Logic Inc. ((CRUS) recently expanded its long-standing collaboration with GlobalFoundries ((GFS), which specializes in semiconductor manufacturing. The initiative is set to boost the development and commerci ...

Cirrus Logic (CRUS) Conference August 12, 2025 12:30 PM ET Company ParticipantsCarl Alberty - EVP - Mixed-Signal ProductsJeff Woolard - EVP & CFOConference Call ParticipantsJohn Vinh - MD & Senior Research AnalystJohn VinhOkay. Good morning, everybody. My name is John Vin. I cover semis here at KeyBanc Capital Markets. We're pleased to have Cirrus Logic with us this morning.We have Jeff Willard, CFO and Kala Birligi, VP of Mixed Signal. Welcome guys.Carl AlbertyThank you.Jeff WoolardThank you. Thanks for ha ...

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Shares of Cirrus Logic (NASDAQ: CRUS ) have been struggling a bit in recent years. At the start of 2022, I believed that diversification efforts were paying off. Unlike most of its technology peer ...

Financial Data and Key Metrics Changes - In Q1 fiscal 2026, the company reported revenue of $407.3 million, exceeding the top end of guidance, driven by strong smartphone demand [6][14] - Sequentially, revenue decreased by 4% primarily due to lower smartphone unit volumes [14] - Year-over-year, sales increased by 9%, attributed to the latest generation products and higher smartphone unit volumes [14] - Non-GAAP gross profit was $214.3 million with a gross margin of 52.6%, reflecting a favorable product mix year-over-year [15] - Non-GAAP operating income was $94.9 million, representing 23.3% of revenue [18] - Non-GAAP net income was $80.3 million, resulting in earnings per share of $1.51 [18] - The company ended the quarter with $847.8 million in cash and investments, up $12.9 million from the prior quarter [19] Business Line Data and Key Metrics Changes - The flagship smartphone audio business saw positive impacts from new custom boosted amplifiers and a 22nm smart codec [7][8] - The camera controller product line continued to perform well, indicating potential for further value addition [10] - The company ramped production of new ADCs, DACs, and an ultra-high-performance audio codec, expanding its professional audio portfolio [12] Market Data and Key Metrics Changes - Strong engagement with laptop customers was noted, with new PC amplifiers and codecs designed into several laptops expected to ship in late calendar 2025 [11] - The automotive market remains in early stages, with ongoing efforts to reinvigorate product offerings [31] Company Strategy and Development Direction - The company aims to maintain leadership in smartphone audio, expand high-performance mixed-signal solutions, and leverage expertise in new markets [7] - Investments are being made in battery, power, and sensing technologies to diversify revenue streams [10] - The company is focusing on enhancing audio experiences in laptops and addressing challenges in the automotive sector [11][31] Management Comments on Operating Environment and Future Outlook - Management highlighted strong smartphone demand as a key driver of performance, with expectations for continued robust demand [27] - The company anticipates a shift in sales seasonality towards the first half of the fiscal year due to various factors, including camera content shipping earlier [41][44] - The impact of new legislation on R&D expenditures is being evaluated, but not yet reflected in guidance [22] Other Important Information - The company utilized $100 million for share repurchases in Q1, with $454.1 million remaining on its repurchase authorization [20] - Guidance for Q2 fiscal 2026 expects revenue between $510 million and $570 million, with a gross margin of 51% to 53% [21] Q&A Session Summary Question: What drove the significant delta between expected and actual results? - Management attributed the delta to strong smartphone demand and increased content shipping, with some contribution from tariff-related pull-ins [27][28] Question: How is the diversification effort outside the largest customer progressing? - Management expressed excitement about automotive opportunities and noted strong engagement in the PC market, with expectations for revenue growth [30][31][34] Question: How should the seasonality of revenue be viewed? - Management indicated a potential shift to a 45-55 profile for revenue distribution between the first and second halves of the year, influenced by camera content and pull-ins [50] Question: Are there new AI opportunities being explored? - Management sees potential in voice-centric devices and power-efficient technologies to support AI features, aiming to enhance user experiences across devices [47][48]

Financial Data and Key Metrics Changes - In Q1 fiscal 2026, the company reported revenue of $407.3 million, exceeding the top end of guidance, driven by strong smartphone demand [6][14] - Sequentially, revenue decreased by 4% primarily due to lower smartphone unit volumes [14] - Year-over-year, sales increased by 9%, attributed to the latest generation products and higher smartphone unit volumes [14] - Non-GAAP gross profit was $214.3 million with a gross margin of 52.6%, showing a decrease sequentially due to a less favorable product mix [15] - Non-GAAP operating income was $94.9 million, representing 23.3% of revenue [16] - Non-GAAP net income was $80.3 million, resulting in earnings per share of $1.51 [17] - The company ended the quarter with $847.8 million in cash and investments, up $12.9 million from the prior quarter [18] Business Line Data and Key Metrics Changes - The flagship smartphone audio business saw positive impacts from new products, including a custom boosted amplifier and a 22nm smart codec [7][8] - The camera controller product line continued to perform well, indicating potential for further growth in system performance and advanced camera functionality [10] - The company ramped production of new ADCs, DACs, and an ultra-high-performance audio codec, expanding its professional audio portfolio [12] Market Data and Key Metrics Changes - The company is experiencing strong engagement with laptop customers, with new products expected to ship in late calendar 2025 [11] - The automotive market remains in early stages, with ongoing efforts to reinvigorate product offerings [30] - The company is expanding its general market business across professional audio, automotive, industrial, and imaging end markets [12] Company Strategy and Development Direction - The long-term growth strategy is based on maintaining leadership in smartphone audio, expanding mixed-signal solutions, and leveraging expertise in new markets [7] - The company aims to diversify revenue streams by enhancing capabilities in battery, power, and sensing technologies [10] - Collaborations, such as with Compound, aim to address audio challenges in laptops, indicating a focus on improving customer experiences [11] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for smartphones, which significantly impacted performance, with no unexpected content surprises [25] - The company anticipates a shift in sales seasonality, with more weight towards the first half of the fiscal year [20][42] - The recent legislation regarding R&D expenditures is under evaluation for its impact on future guidance [21] Other Important Information - The company utilized $100 million for share repurchases in Q1, with $454.1 million remaining on its repurchase authorization [19] - The company will participate in the KeyBank Technology Leadership Forum on August 12 [52] Q&A Session Summary Question: What drove the delta between expected and actual results? - Management attributed the delta to strong smartphone demand and increased content shipping, with some pull-in effects from customer demand [25][26] Question: How is the diversification effort outside the largest customer progressing? - Management expressed excitement about automotive opportunities and noted ongoing design activity in the PC space, with expectations for revenue growth [28][30] Question: Can you qualify the magnitude of the volume and content differential? - Management indicated that several factors, including pull-ins and longer supply chain processes for camera content, are influencing the seasonality of demand [39][41] Question: Are there new AI opportunities being explored? - Management highlighted the potential for AI features in voice-centric devices and emphasized the importance of power efficiency in supporting AI applications [45][46]

Company Overview - Cirrus Logic was founded in 1984 and is listed on NASDAQ as CRUS[5] - The company's FY25 revenue was $1.90 billion[5] - Cirrus Logic has approximately 4,210 pending and issued patents worldwide[5] Growth Strategy - The company's three-pronged strategy includes maintaining its leadership in smartphone audio, increasing HPMS content in smartphones, and expanding into additional applications and markets[22] - Cirrus Logic is expanding its SAM (Serviceable Available Market) in a vast mixed-signal market, projecting the audio and high-performance mixed-signal market to reach $8.5 billion in 2029, compared to $6.8 billion in 2025[24] - The company is focused on expanding into laptops, tablets, wearables, gaming, and AR/VR, as well as professional audio, automotive, industrial, and imaging end markets[35] - The PC SAM (Serviceable Available Market) is approximately $1.2 billion, comprising ~$440 million in audio SAM and ~$800 million in HPMS SAM[37] Financial Performance - In Q1 FY26, Cirrus Logic's revenue was $407.3 million, with a gross margin of 52.6% and combined R&D/SG&A expenses of $141.6 million[48] - The company's Q2 FY26 guidance projects revenue between $510 million and $570 million, with a gross margin between 51% and 53% and combined R&D/SG&A expenses between $153 million and $159 million[48] - In Q1 FY26, the company's largest customer represented 86% of total revenue[52] - The company generated $1.7 billion of operating cash flow over the last 5 full fiscal years[58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ____ to ____ Commission File Number 0-17795 CIRRUS LOGIC, INC. (Exact name of registrant as specified in its charter) | Delaware | | | 77-0024818 | | --- | --- | --- | --- | ...

Exhibit 99.2 Q1 FY26 Letter to Shareholders August 5, 2025 August 5, 2025 Dear Shareholders, | Q1 FY26 | GAAP | Adj. | Non-GAAP* | | --- | --- | --- | --- | | Revenue | $407.3 | | $407.3 | | Gross Profit | $214.0 | $0.3 | $214.3 | | Gross Margin | 52.6% | | 52.6% | | Operating Expense | $141.6 | ($22.1) | $119.5 | | Operating Income | $72.4 | $22.5 | $94.9 | | Operating Profit | 17.8% | | 23.3% | | Interest Income | $8.6 | | $8.6 | | Other Expense | $(0.4) | | $(0.4) | | Income Tax Expense | $19.9 | $2.9 | ...

Core Viewpoint - Cirrus Aircraft Ltd. is gaining renewed investor interest following a significant stock price increase, prompting its major shareholder, Aviation Industry Corp. of China (AVIC), to sell part of its stake, raising nearly HK$700 million [2][3]. Group 1: Stake Sale and Market Reaction - AVIC sold 17.5 million shares at HK$39.98 each, representing an 8% discount to the previous day's close, reducing its stake from 84.97% to 80.18% [3]. - Following the stake sale, Cirrus shares experienced a decline of up to 7.4% before stabilizing above HK$40, ultimately closing down 3% at HK$42.15 [4]. Group 2: Company Background and IPO Performance - Cirrus became a Chinese company in 2011 when AVIC acquired 70% from its founders, with products including the SR2X series and Vision Jet [5]. - The SR2X has been the world's top-selling single-engine piston aircraft for 23 consecutive years [6]. - Cirrus had a lukewarm IPO reception, with only 5.5 million of the 54.9 million shares offered sold to local investors, leading to a total raise of HK$1.39 billion [8]. Group 3: Financial Performance and Growth Potential - Cirrus' revenue has grown from $738 million in 2021 to over $1 billion in 2023, averaging 20.3% annual growth, while profits increased from $72.4 million to $91.1 million during the same period [13]. - In the last year, revenue climbed 12% year-on-year to $1.2 billion, with profits jumping 32.5% to $120 million, supported by the delivery of 731 jets [14]. - The company's backlog increased by 114 jets to 633 on order, indicating strong future demand [14]. Group 4: Market Position and Valuation - Cirrus currently trades at a price-to-earnings (P/E) ratio of around 16 times, lower than the 19 times for Textron, suggesting potential for further valuation improvement if profit growth continues [16]. - The geopolitical concerns surrounding U.S. sanctions on AVIC appear to be easing, contributing to the stock's recent gains [15].

Core Insights - Cirrus Logic Inc. (CRUS) has launched four new Pro Audio components, including two ADCs and two DACs, aimed at delivering high audio fidelity at competitive prices [1][10] - The new products are designed to meet the increasing demands of various audio applications, including HiFi playback systems and professional recording environments [1][2] Product Features - The new ADCs (CS5308S and CS5304S) and DACs (CS4308S and CS4304S) are available for sampling and can be customized using Cirrus Logic's SoundClear Studio software, enhancing user convenience [3][10] - Key features include Hybrid Gain Control for precise audio signal adjustments and Differentiated Digital Filters that allow customization of sound signatures while managing power consumption effectively [4][5] Market Strategy - The introduction of these components reflects Cirrus Logic's commitment to the prosumer audio market, making high-quality audio technology more accessible [2][10] - The company is leveraging its established intellectual property to enhance the performance of these new products, which are expected to integrate seamlessly into various audio ecosystems [6][10] Growth Potential - Cirrus Logic's growth strategy includes partnerships, such as with Compal Electronics to develop AI-powered audio technology, which aims to improve sound performance in the consumer electronics sector [7] - The company is also expanding its presence in the laptop market and has launched new amplifiers and codecs to enhance mobile audio quality, targeting a High-Performance Mixed-Signal SAM of over $5.7 billion and an Audio SAM of more than $3.3 billion by 2028 [8][9] Financial Outlook - For the fiscal first quarter, Cirrus Logic projects revenues between $330 million and $390 million, indicating a 15% sequential decline and a 4% year-over-year decrease at the midpoint [11]