Cirrus Logic's Q4 Earnings Beat on Y/Y Top-Line Growth, Shares Gain

Core Insights - Cirrus Logic Inc. reported fourth-quarter fiscal 2025 adjusted EPS of $1.67, exceeding the Zacks Consensus Estimate by 45.2% and up from $1.24 in the prior-year quarter [1] - Quarterly revenues reached $424.5 million, a 14% year-over-year increase, surpassing management's guidance of $350-$410 million, but a 24% sequential decline due to decreased smartphone shipment volumes [2] - For fiscal 2025, total revenues were $1.90 billion, reflecting a 6% year-over-year growth, driven by the launch of next-generation products [3] Revenue Breakdown - The largest customer accounted for 88% of total revenues in the fiscal fourth quarter [4] - The High-Performance Mixed-Signal segment contributed 40% to total revenues, with revenues growing 16.5% year over year to $169.1 million [5] - The Audio segment's sales increased 12.6% to $255.3 million, contributing 60% to total revenues [5] Margins and Expenses - Non-GAAP gross margin improved to 53.5% from 51.9% in the prior-year quarter, driven by a favorable product mix [6] - Non-GAAP operating expenses rose 3% year over year to $120 million, primarily due to higher employee-related costs [6] - Non-GAAP operating income soared 40% year over year to $107.1 million, with operating profit margin increasing to 25.2% from 20.6% [8] Balance Sheet and Cash Flow - The company ended the fiscal fourth quarter with cash and marketable securities of $595.8 million, up from $564 million as of December 28, 2024 [9] - Cash flow from operations was reported at $130.4 million, down from $170.5 million in the prior-year quarter [10] - Free cash flow for the quarter was $121.2 million [10] Share Repurchase and Future Guidance - Cirrus Logic repurchased nearly 927,000 shares worth $100 million in the reported quarter, with an additional $500 million share repurchase authorization approved [11] - For fiscal Q1 2026, management projects revenues between $330 million and $390 million, with anticipated non-GAAP operating expenses in the range of $119-$125 million [12][13]