Cirrus Logic, Inc. (NASDAQ:CRUS) today posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the first quarter of fiscal year 2026, which ended June 28, 2025, as well as the company's current business outlook.

"Cirrus Logic delivered strong financial results for the June quarter driven by robust demand for our custom boosted amplifier and first 22-nanometer smart codec shipping in smartphones," said John Forsyth, Cirrus Logic president and chief executive officer. "During the quarter, we also executed against our growth strategy to drive product and end-market diversification. Our progress included gaining traction in the laptop market and ramping production of our latest-generation general market components that target the professional audio, automotive, industrial, and imaging end markets. With a growing roadmap of products and a proven track record of execution, we believe Cirrus Logic is well-positioned to grow long-term shareholder value."

Reported Financial Results – First Quarter FY26

Revenue of $407.3 million;
GAAP and non-GAAP gross margin of 52.6 percent;
GAAP operating expenses of $141.6 million and non-GAAP operating expenses of $119.5 million; and
GAAP earnings per share of $1.14 and non-GAAP earnings per share of $1.51.

A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release.

Business Outlook – Second Quarter FY26

Revenue is expected to range between $510 million and $570 million;
GAAP gross margin is forecasted to be between 51 percent and 53 percent; and
Combined GAAP R&D and SG&A expenses are anticipated to range between $153 million and $159 million, including approximately $20 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $131 million and $137 million.

Cirrus Logic will host a live Q&A session at 5 p.m. EDT today to discuss its financial results and business outlook. Participants may listen to the conference call on the investor relations website at investor.cirrus.com. A replay of the webcast can be accessed on the Cirrus Logic website approximately two hours following its completion or by calling (609) 800-9909 or toll-free at (800) 770-2030 (Access Code: 95424).

About Cirrus Logic, Inc.

Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world's top mobile and consumer applications. With headquarters in Austin, Texas, Cirrus Logic is recognized globally for its award-winning corporate culture.

Cirrus Logic, Cirrus and the Cirrus Logic logo are registered trademarks of Cirrus Logic, Inc. All other company or product names noted herein may be trademarks of their respective holders.

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below. Non-GAAP financial information is not meant as a substitute for GAAP results but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. The non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this news release contain forward-looking statements including our statement about our ability to grow long-term shareholder value; and our estimates for the second quarter fiscal year 2026 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, and amortization of acquired intangibles. In some cases, forward-looking statements are identified by words such as "expect," "anticipate," "target," "project," "believe," "goals," "opportunity," "estimates," "intend," and variations of these types of words and similar expressions. In addition, any statements that refer to our plans, expectations, strategies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and assumptions and are subject to certain risks and uncertainties that could cause actual results to differ materially, and readers should not place undue reliance on such statements. These risks and uncertainties include, but are not limited to, the following: the level and timing of orders and shipments during the second quarter of fiscal year 2026; customer cancellations of orders; the failure to place orders consistent with forecasts; changes in government trade policies, including the imposition of tariffs or export restrictions; and global economic conditions and uncertainty, along with the risk factors listed in our Form 10-K for the year ended March 29, 2025 and in our other filings with the Securities and Exchange Commission, which are available at www.sec.gov. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise, unless required by law.

Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(in thousands, except per share data; unaudited)

	Three Months Ended
	Jun. 28,			Mar. 29,			Jun. 29,
	2025			2025			2024
	Q1'26			Q4'25			Q1'25
Audio	$	240,043		$	255,326		$	218,970
High-Performance Mixed-Signal		167,229			169,130			155,056
Net sales		407,272			424,456			374,026
Cost of sales		193,242			197,720			185,101
Gross profit		214,030			226,736			188,925
Gross margin		52.6	%		53.4	%		50.5	%

Research and development		102,892			103,420			105,363
Selling, general and administrative		38,744			37,370			36,770
Total operating expenses		141,636			140,790			142,133

Income from operations		72,394			85,946			46,792

Interest income		8,622			8,604			8,202
Other income (expense)		(388	)		55			1,609
Income before income taxes		80,628			94,605			56,603
Provision for income taxes		19,931			23,338			14,508
Net income	$	60,697		$	71,267		$	42,095

Basic earnings per share	$	1.17		$	1.35		$	0.79
Diluted earnings per share:	$	1.14		$	1.31		$	0.76

Weighted average number of shares:
Basic		51,727			52,756			53,433
Diluted		53,319			54,324			55,665

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands, except per share data; unaudited)
(not prepared in accordance with GAAP)

Non-GAAP financial information is not meant as a substitute for GAAP results, but is included because management believes such information is useful to our investors for informational and comparative purposes. In addition, certain non-GAAP financial information is used internally by management to evaluate and manage the company. As a note, the non-GAAP financial information used by Cirrus Logic may differ from that used by other companies. These non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.

	Three Months Ended
	Jun. 28,			Mar. 29,			Jun. 29,
	2025			2025			2024
Net Income Reconciliation	Q1'26			Q4'25			Q1'25
GAAP Net Income	$	60,697		$	71,267		$	42,095
Amortization of acquisition intangibles		1,647			1,647			1,972
Stock-based compensation expense		20,809			19,491			21,385
Lease impairment		—			—			1,019
Adjustment to income taxes		(2,839	)		(1,772	)		(4,105	)
Non-GAAP Net Income	$	80,314		$	90,633		$	62,366

Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	1.14		$	1.31		$	0.76
Effect of Amortization of acquisition intangibles		0.03			0.03			0.03
Effect of Stock-based compensation expense		0.39			0.36			0.38
Effect of Lease impairment		—			—			0.02
Effect of Adjustment to income taxes		(0.05	)		(0.03	)		(0.07	)
Non-GAAP Diluted earnings per share	$	1.51		$	1.67		$	1.12

Operating Income Reconciliation
GAAP Operating Income	$	72,394		$	85,946		$	46,792
GAAP Operating Profit		17.8	%		20.2	%		12.5	%
Amortization of acquisition intangibles		1,647			1,647			1,972
Stock-based compensation expense - COGS		300			360			266
Stock-based compensation expense - R&D		13,072			13,079			15,763
Stock-based compensation expense - SG&A		7,437			6,052			5,356
Lease impairment		—			—			1,019
Non-GAAP Operating Income	$	94,850		$	107,084		$	71,168
Non-GAAP Operating Profit		23.3	%		25.2	%		19.0	%

Operating Expense Reconciliation
GAAP Operating Expenses	$	141,636		$	140,790		$	142,133
Amortization of acquisition intangibles		(1,647	)		(1,647	)		(1,972	)
Stock-based compensation expense - R&D		(13,072	)		(13,079	)		(15,763	)
Stock-based compensation expense - SG&A		(7,437	)		(6,052	)		(5,356	)
Lease impairment		—			—			1,019
Non-GAAP Operating Expenses	$	119,480		$	120,012		$	118,023

Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	214,030		$	226,736		$	188,925
GAAP Gross Margin		52.6	%		53.4	%		50.5	%
Stock-based compensation expense - COGS		300			360			266
Non-GAAP Gross Profit	$	214,330		$	227,096		$	189,191
Non-GAAP Gross Margin		52.6	%		53.5	%		50.6	%

Effective Tax Rate Reconciliation
GAAP Tax Expense	$	19,931		$	23,338		$	14,508
GAAP Effective Tax Rate		24.7	%		24.7	%		25.6	%
Adjustments to income taxes		2,839			1,772			4,105
Non-GAAP Tax Expense	$	22,770		$	25,110		$	18,613
Non-GAAP Effective Tax Rate		22.1	%		21.7	%		23.0	%

Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.37		$	0.43		$	0.26
Adjustments to income taxes		0.05			0.03			0.07
Non-GAAP Tax Expense	$	0.42		$	0.46		$	0.33

CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)

	Jun. 28,			Mar. 29,			Jun. 29,
	2025			2025			2024
ASSETS
Current assets
Cash and cash equivalents	$	548,870		$	539,620		$	491,351
Marketable securities		65,925			56,160			25,680
Accounts receivable, net		214,085			216,009			190,079
Inventories		278,984			299,092			232,566
Prepaid wafers		61,934			52,560			84,700
Other current assets		71,324			76,293			77,365
Total current Assets		1,241,122			1,239,734			1,101,741

Long-term marketable securities		232,959			239,036			227,527
Right-of-use lease assets		123,718			126,688			136,295
Property and equipment, net		154,340			159,900			170,953
Intangibles, net		25,718			27,461			27,624
Goodwill		435,936			435,936			435,936
Deferred tax asset		54,037			48,150			54,622
Long-term prepaid wafers		—			15,512			50,375
Other assets		26,887			34,656			60,552
Total assets	$	2,294,717		$	2,327,073		$	2,265,625

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	66,321		$	63,162		$	77,562
Accrued salaries and benefits		43,146			52,075			41,101
Lease liability		21,075			21,811			22,058
Other accrued liabilities		58,136			58,140			61,021
Total current liabilities		188,678			195,188			201,742

Non-current lease liability		120,272			121,908			132,016
Non-current income taxes		44,693			44,040			52,704
Other long-term liabilities		10,790			16,488			31,533
Total long-term liabilities		175,755			182,436			216,253

Stockholders' equity:
Capital stock		1,881,472			1,860,281			1,792,283
Accumulated earnings		49,035			90,351			58,591
Accumulated other comprehensive loss		(223	)		(1,183	)		(3,244	)
Total stockholders' equity		1,930,284			1,949,449			1,847,630
Total liabilities and stockholders' equity	$	2,294,717		$	2,327,073		$	2,265,625

Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)

	Three Months Ended

	Jun. 28,			Jun. 29,
	2025			2024
	Q1'26			Q1'25
Cash flows from operating activities:
Net income	$	60,697		$	42,095
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,173			12,359
Stock-based compensation expense		20,809			21,385
Deferred income taxes		(5,938	)		(5,897	)
Other non-cash charges		(16	)		1,104
Net change in operating assets and liabilities:
Accounts receivable, net		1,924			(27,601	)
Inventories		20,108			(5,318	)
Prepaid wafers		6,138			12,354
Other assets		2,014			(5,459	)
Accounts payable and other accrued liabilities		(8,806	)		12,037
Income taxes payable		6,028			30,102
Net cash provided by operating activities		116,131			87,161
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities		22,990			12,646
Purchases of available-for-sale marketable securities		(26,435	)		(69,060	)
Purchases of property, equipment and software		(2,638	)		(9,990	)
Investments in technology		(132	)		(155	)
Net cash used in investing activities		(6,215	)		(66,559	)
Cash flows from financing activities:
Net proceeds from the issuance of common stock		382			10,196
Repurchase of stock to satisfy employee tax withholding obligations		(1,049	)		(1,219	)
Repurchase and retirement of common stock		(99,999	)		(40,992	)
Net cash used in financing activities		(100,666	)		(32,015	)
Net increase (decrease) in cash and cash equivalents		9,250			(11,413	)
Cash and cash equivalents at beginning of period		539,620			502,764
Cash and cash equivalents at end of period	$	548,870		$	491,351

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in thousands; unaudited)

Free cash flow, a non-GAAP financial measure, is GAAP cash flow from operations (or cash provided by operating activities) less capital expenditures. Capital expenditures include purchases of property, equipment and software as well as investments in technology, as presented within our GAAP Consolidated Condensed Statement of Cash Flows. Free cash flow margin represents free cash flow divided by revenue.

	Twelve Months Ended			Three Months Ended

	Jun. 28,			Jun. 28,			Mar. 29,			Dec. 28,			Sep. 28,
	2025			2025			2025			2024			2024
	Q1'26			Q1'26			Q4'25			Q3'25			Q2'25

Net cash provided by operating activities (GAAP)	$	473,336		$	116,131		$	130,386		$	218,588		$	8,231
Capital expenditures		(21,378	)		(2,770	)		(9,181	)		(6,687	)		(2,740	)
Free Cash Flow (Non-GAAP)	$	451,958		$	113,361		$	121,205		$	211,901		$	5,491

Cash Flow from Operations as a Percentage of Revenue (GAAP)		25	%		29	%		31	%		39	%		2	%
Capital Expenditures as a Percentage of Revenue (GAAP)		1	%		1	%		2	%		1	%		1	%
Free Cash Flow Margin (Non-GAAP)		23	%		28	%		29	%		38	%		1	%

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)

		Q2 FY26
		Guidance
Operating Expense Reconciliation
GAAP Operating Expenses		$153 - 159
Stock-based compensation expense		(20)
Amortization of acquisition intangibles		(2)
Non-GAAP Operating Expenses		$131 - 137

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805289506/en/

Investor Contact:

Chelsea Heffernan

Vice President, Investor Relations

Cirrus Logic, Inc.

(512) 851-4125

Investor@cirrus.com

Cirrus Logic Reports Fiscal First Quarter Revenue of $407.3 Million