Qorvo(QRVO) - 2025 Q4 - Annual Results

Financial Performance and Outlook This section summarizes Qorvo's latest financial results, management's strategic commentary, and the company's forward-looking guidance Q4 FY2025 Financial Highlights Qorvo reported fiscal 2025 fourth-quarter revenue of $869.5 million, with GAAP diluted EPS of $0.33 and non-GAAP diluted EPS of $1.42, alongside a non-GAAP gross margin of 45.9% Q4 FY2025 Financial Highlights | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Revenue | $869.5 million | $869.5 million | | Gross Margin | 42.2% | 45.9% | | Operating Income | $28.2 million | $151.8 million | | Diluted EPS | $0.33 | $1.42 | Management Commentary Management emphasized strong Q4 revenue and gross margin expansion, outlining strategic priorities in customer content, segment diversification, and operational efficiency to enhance shareholder value - The CEO noted that the company surpassed the midpoint of EPS guidance by 42 cents and expanded gross margin year-over-year[3] - Strategic focus is on winning content with the largest customer and diversifying through the CSG (Connectivity and Sensors Group) and HPA (High Performance Analog) segments[3] - The company generated $171 million of free cash flow in Q4 and $485 million for the full fiscal year 2025[4] - Operational objectives include portfolio optimization, factory consolidation, and continued cost discipline to expand margins and enhance efficiency[4] Business Outlook for Q1 FY2026 For the upcoming first quarter of fiscal 2026 (ending June 2025), Qorvo anticipates revenue of approximately $775 million, with a non-GAAP gross margin between 42% and 44% and non-GAAP diluted EPS in the range of $0.50 to $0.75 Q1 FY2026 Business Outlook | Metric | Outlook (for June 2025 Quarter) | | :--- | :--- | | Revenue | ~$775 million (± $25 million) | | Non-GAAP Gross Margin | 42% to 44% | | Non-GAAP Diluted EPS | $0.50 to $0.75 | Selected Financial Results This section provides a detailed breakdown of Qorvo's consolidated GAAP and non-GAAP financial results, along with segment-specific performance Consolidated Financial Results (GAAP vs. Non-GAAP) In Q4 FY2025, revenue decreased sequentially and year-over-year to $869.5 million, while GAAP gross margin improved by 1.6 percentage points YoY to 42.2%, and non-GAAP gross margin expanded by 3.4 percentage points YoY to 45.9%, with non-GAAP diluted EPS at $1.42 GAAP Results (in millions, except EPS) | GAAP Results (in millions, except EPS) | Q4 FY2025 | Q3 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | :--- | | Revenue | $869.5 | $916.3 | $941.0 | | Gross Margin | 42.2% | 42.7% | 40.6% | | Operating Income | $28.2 | $53.0 | $30.0 | | Diluted EPS | $0.33 | $0.43 | $0.03 | Non-GAAP Results (in millions, except EPS) | Non-GAAP Results (in millions, except EPS) | Q4 FY2025 | Q3 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | :--- | | Revenue | $869.5 | $916.3 | $941.0 | | Gross Margin | 45.9% | 46.5% | 42.5% | | Operating Income | $151.8 | $177.9 | $147.2 | | Diluted EPS | $1.42 | $1.61 | $1.39 | Segment Financial Results (GAAP) In Q4 FY2025, the High Performance Analog (HPA) segment demonstrated strong growth with revenue increasing 14.2% year-over-year to $187.9 million and operating margin expanding to 31.1%, while CSG and ACG segments experienced revenue declines Segment Revenue (in millions) | Segment Revenue (in millions) | Q4 FY2025 | YoY Change | | :--- | :--- | :--- | | HPA | $187.9 | 14.2% | | CSG | $101.3 | (17.5)% | | ACG | $580.3 | (11.2)% | Segment Operating Income Margin | Segment Operating Income Margin | Q4 FY2025 | Q4 FY2024 | | :--- | :--- | :--- | | HPA | 31.1% | 19.1% | | CSG | (15.4)% | (12.4)% | | ACG | 18.9% | 20.5% | - The HPA segment was the standout performer, with both revenue and operating income growing substantially year-over-year by 14.2% and 85.4%, respectively[12] Detailed Financial Statements and Reconciliations This section presents Qorvo's full consolidated financial statements, including statements of operations and balance sheets, along with detailed reconciliations of GAAP to non-GAAP measures Condensed Consolidated Statements of Operations For the full twelve months ended March 29, 2025, Qorvo's revenue was $3.72 billion, a slight decrease from $3.77 billion in the prior fiscal year, achieving a significant turnaround with a net income of $55.6 million compared to a net loss of $70.3 million in fiscal 2024 Full Year Results (in thousands) | Full Year Results (in thousands) | Twelve Months Ended Mar 29, 2025 | Twelve Months Ended Mar 30, 2024 | | :--- | :--- | :--- | | Revenue | $3,718,971 | $3,769,506 | | Operating Income | $95,527 | $91,701 | | Net Income (Loss) | $55,615 | $(70,322) | | Diluted EPS | $0.58 | $(0.72) | Condensed Consolidated Balance Sheets As of March 29, 2025, Qorvo reported total assets of $5.93 billion, a decrease from $6.55 billion year-over-year, with cash and cash equivalents stable at $1.02 billion, reduced inventories, and decreased total liabilities Balance Sheet Items (in thousands) | Balance Sheet Items (in thousands) | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,021,176 | $1,029,258 | | Inventories | $640,992 | $710,555 | | Total assets | $5,933,131 | $6,554,635 | | Total liabilities | $2,540,819 | $2,998,263 | | Stockholders' equity | $3,392,312 | $3,556,372 | Reconciliation of GAAP to Non-GAAP Measures This section details the adjustments made to derive non-GAAP figures from GAAP results, showing how GAAP operating income of $28.2 million was adjusted to a non-GAAP operating income of $151.8 million, and free cash flow for the quarter was $170.7 million - Key adjustments to reconcile GAAP to Non-GAAP operating income in Q4 FY2025 included a $79.5 million goodwill and intangible asset impairment, $27.4 million in stock-based compensation, and $24.0 million in amortization of intangible assets[40] - Free cash flow for the fourth quarter was $170.7 million, derived from $199.2 million in net cash provided by operating activities less $28.5 million in purchases of property and equipment[41] Supplemental Information This section provides additional context on Qorvo's non-GAAP financial measures, forward-looking statements, and general company information Explanation of Non-GAAP Financial Measures Qorvo utilizes non-GAAP financial measures to provide investors with supplemental information for operational analysis, excluding items like stock-based compensation and restructuring costs that can obscure underlying performance trends - Management uses non-GAAP financial measures for its annual operating plan and to monitor performance against it[15] - The company defines Free Cash Flow as net cash provided by operating activities minus property and equipment expenditures[24] - Qorvo is unable to provide a reconciliation for forward-looking non-GAAP measures without unreasonable effort due to the difficulty in projecting items like stock-based compensation and restructuring charges[29] Forward-Looking Statements and Risk Factors This section includes a standard "safe harbor" warning that forward-looking statements are subject to significant risks and uncertainties, directing readers to the company's SEC filings for a comprehensive list of risk factors - The press release contains forward-looking statements that represent management's current judgment and are subject to change[35] - Key business risks include dependence on a few large customers, manufacturing facility operations, competitive industry pressures, and changes in government trade policies like tariffs and export restrictions[35] Company and Conference Call Information Qorvo is a global semiconductor company serving high-growth markets, and it hosted a conference call to discuss quarterly results, with access details provided for the live webcast and subsequent telephone playback - Qorvo supplies semiconductor solutions to diverse markets including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure, and mobile[33] - A conference call was scheduled for 4:30 p.m. ET on April 29, 2025, to discuss the financial results[32]