Cirrus Logic Inc. CRUS reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.67, which surpassed the Zacks Consensus Estimate by 45.2%. The company reported adjusted EPS of $1.24 in the prior-year quarter.
Quarterly revenues of $424.5 million increased 14% year over year, exceeding the upper end of management’s guidance ($350-$410 million). Increased smartphone unit shipments and higher contributions from its latest generation products primarily drove the expansion. However, sequentially, revenues declined 24%, mainly due to a decrease in smartphone shipment volumes. The Zacks Consensus Estimate for revenues was pegged at $380 million.
Cirrus Logic reported revenues of $1.90 billion for fiscal 2025, reflecting a 6% year-over-year growth. During the year, the company benefited from the launch of the next-generation boosted amplifier, enabling higher audio performance for mobile devices. The debut of Cirrus Logic’s first 22-nanometer smart codec advanced its technological leadership. CRUS continues to gain momentum in the laptop market with design wins on major platforms. The introduction of general market components was designed to tap into broader opportunities beyond the traditional mobile and consumer markets.
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. Price, Consensus and EPS Surprise
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
The company’s largest customer accounted for 88% of total revenues in the fiscal fourth quarter.
Following the better-than-expected sales and EPS growth, the company’s shares rose 4.3% in the pre-market trading on May 7, 2025. The stock has gained 8.4% in the past year compared with the Zacks Electronics-Semiconductors industry’s growth of 12%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
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Segment Details
This Texas-based company rearranged its reportable segments and created separate categories — High-Performance Mixed-Signal and Audio — in the fourth quarter of fiscal 2021. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.
Cirrus Logic’s High-Performance Mixed-Signal segment includes a few of its non-audio products. It contributed 40% to total revenues in the fiscal fourth quarter. Revenues from the same division grew 16.5% year over year to $169.1 million. We estimated the metric to be $149.2 million.
The Audio segment’s sales increased 12.6% to $255.3 million and contributed 60% to total revenues. Our estimate was $230.7 million for the segment.
Margins
Non-GAAP gross margin came in at 53.5% compared with 51.9% in the prior-year quarter, largely driven by a more favorable product mix.
Cirrus Logic’s non-GAAP operating expenses rose 3% year over year to $120 million, mainly due to higher employee-related costs and variable compensation, partly offset by lower product development spending. Sequentially, OpEx decreased by $9.2 million, mainly due to lower employee costs, variable compensation and product development expenses tied to tape-out timing.
Non-GAAP operating income of $107.1 million soared 40% year over year.
Non-GAAP operating profit margin rose to 25.2% from 20.6%.
Balance Sheet and Cash Flow
The company exited the fiscal fourth quarter with cash and marketable securities of $595.8 million compared with $564 million as of Dec. 28, 2024.
As of March 29, 2025, accounts receivable were $216 million compared with $261.9 million as of Dec. 28, 2024.
In the fiscal fourth quarter, CRUS reported $130.4 million of cash flow from operations. In the prior-year quarter, it generated $170.5 million of net cash from operations. Free cash flow was $121.2 million in the quarter under review.
The company repurchased almost 927,000 shares worth $100 million in the reported quarter. As of March 29, 2025, it had $54.1 million worth of shares under its existing share repurchase authorization. The board of directors approved an additional $500 million share repurchase authorization for Cirrus Logic common stock.
Fiscal 2026 Q1 Guidance
Cirrus Logic remains wary of the ongoing macroeconomic and trade volatility, including possible tariff impacts. Its outlook for the fiscal first quarter acknowledges the current conditions.
Management projects revenues between $330 million and $390 million.
Combined GAAP R&D and SG&A are anticipated to be between $141 million and $147 million, respectively. Non-GAAP operating expenses are estimated to be in the band of $119-$125 million.
The GAAP gross margin is expected to be in the range of 51-53%.
CRUS’ Zacks Rank
Cirrus Logic currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Badger Meter, Inc. BMI reported EPS of $1.30 for first-quarter 2025, which beat the Zacks Consensus Estimate by 20.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 99 cents.
In the past year, shares of BMI have gained 17%.
Cadence Design Systems CDNS reported first-quarter 2025 non-GAAP EPS of $1.57, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 34.2% year over year, exceeding management’s guided range of $1.46-$1.52.
Shares of Cadence have gained 7.7% in the past year.
Woodward, Inc. WWD reported second-quarter fiscal 2025 adjusted net earnings per share (EPS) of $1.69, which increased 4.3% year over year. The figure beat the Zacks Consensus Estimate by 17.4%.
In the past six months, shares of WWD have gained 9.9%.
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