Silicon Laboratories(SLAB) - 2025 Q2 - Quarterly Results

Second Quarter Financial & Business Highlights Silicon Labs reported strong Q2 2025 revenue growth and improved non-GAAP operating income, with key product and conference announcements Q2 2025 Key Financial Metrics (GAAP vs. Non-GAAP, in millions except EPS) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Revenue | $193 | - | | Gross Margin | 56.1% | 56.3% | | Operating Expenses | $131 | $107 | | Operating Income (Loss) | $(23) | $1 | | Diluted EPS (Loss) | $(0.67) | $0.11 | Q2 2025 Revenue by End Market (in millions) | End Market | Revenue | Year-over-Year Growth | | :--- | :--- | :--- | | Industrial & Commercial | $110 | 25% | | Home & Life | $83 | 45% | - Overall revenue grew 33% year-over-year and 9% sequentially[1][2] - Announced the upcoming general availability of the SiXG301, the company's first Series 3 device and the world's first to achieve PSA Level 4 iSE/SE security certification[4] - Introduced the upcoming SiXG302 Series 3 device, targeting Bluetooth and Matter applications with new energy efficiency and wireless performance[4] - Announced the sixth annual Works With developer conference series, returning with in-person and virtual events to explore trends in wireless connectivity, security, Matter, and AI/ML in IoT[4] Third Quarter 2025 Business Outlook The company projects Q3 2025 revenues between $200 million and $210 million, with stable gross margins and specific EPS guidance - Third-quarter revenue is expected to be between $200 million and $210 million[5] Q3 2025 GAAP Guidance (in millions except EPS) | Metric | Guidance Range | | :--- | :--- | | Gross Margin | 57% to 58% | | Operating Expenses | $130 to $133 | | Diluted Loss Per Share | $(0.60) to $(0.20) | Q3 2025 Non-GAAP Guidance (in millions except EPS) | Metric | Guidance Range | | :--- | :--- | | Gross Margin | 57% to 58% | | Operating Expenses | $107 to $110 | | Diluted Earnings Per Share | $0.20 to $0.40 | Consolidated Financial Statements The consolidated financial statements show strong revenue growth, a reduced GAAP net loss, stable balance sheet, and improved cash flow from operations Condensed Consolidated Statements of Operations Q2 2025 revenues increased to $192.8 million, resulting in a net loss of $21.8 million, a significant improvement from the prior year Q2 Statement of Operations Highlights (YoY Comparison, in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $192,845 | $145,367 | | Gross Profit | $108,109 | $76,583 | | Operating Loss | $(22,867) | $(48,021) | | Net Loss | $(21,817) | $(82,157) | | Diluted Loss Per Share | $(0.67) | $(2.56) | Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures Q2 2025 GAAP operating loss of $22.9 million converted to a non-GAAP operating income of $1.1 million after adjustments, yielding $0.11 non-GAAP diluted EPS Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands) | Item | GAAP Measure | Adjustments | Non-GAAP Measure | | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $(22,867) | $23,988 | $1,121 | | Net Income (Loss) | $(21,817) | $25,580 | $3,763 | | Diluted EPS | $(0.67) | - | $0.11 | Condensed Consolidated Balance Sheets As of July 5, 2025, total assets remained stable at $1.221 billion, with increased cash and decreased inventories, while total liabilities rose Balance Sheet Highlights (in thousands) | Account | July 5, 2025 | Dec 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $314,459 | $281,607 | | Inventories | $80,871 | $105,639 | | Total Assets | $1,221,065 | $1,222,674 | | Total Liabilities | $159,985 | $142,653 | | Total Stockholders' Equity | $1,061,080 | $1,080,021 | Condensed Consolidated Statements of Cash Flows For the six months ended July 5, 2025, Silicon Labs generated $53.0 million in cash from operations, a significant improvement, leading to a $32.9 million net increase in cash Six-Month Cash Flow Summary (in thousands) | Activity | Six Months Ended July 5, 2025 | Six Months Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash from Operating | $53,036 | $(55,666) | | Net cash from (used in) Investing | $(14,051) | $121,101 | | Net cash used in Financing | $(6,133) | $(52,105) | | Increase in Cash | $32,852 | $13,330 |