Cirrus Logic Reports Record Fiscal Second Quarter Revenue of $561.0 Million

AUSTIN, Texas--(BUSINESS WIRE)-- Cirrus Logic, Inc. (NASDAQ: CRUS) posted on its website at investor.cirrus.com the quarterly Shareholder Letter that contains the complete financial results for the second quarter of fiscal year 2026, which ended September 27, 2025, as well as the company’s current business outlook.

“Cirrus Logic delivered record revenue for the September quarter driven by demand for components shipping into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we also made great progress in our strategy to expand into additional applications and markets. We were pleased with our continued momentum in the PC market as we secured our first mainstream consumer laptop design, expanded our collaboration with leading PC platform vendors, and further developed new products with enhanced audio and voice capture capabilities. Additionally, we saw increased customer interest across our latest general market products that target the professional audio, industrial, automotive, and imaging end markets. With a compelling portfolio of products today and an exciting roadmap for the future, we remain focused on leveraging our mixed-signal processing expertise to expand our addressable market and drive long-term shareholder value.”

Reported Financial Results – Second Quarter FY26

• Revenue of $561.0 million;
• GAAP and non-GAAP gross margin of 52.5 percent;
• GAAP operating expenses of $149.6 million and non-GAAP operating expenses of $127.7 million; and
• GAAP earnings per share of $2.48 and non-GAAP earnings per share of $2.83.

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

Business Outlook – Third Quarter FY26

• Revenue is expected to range between $500 million and $560 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 $151 million and $157 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $128 million and $134 million.

Cirrus Logic will host a live Q&A session at 5 p.m. ET 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 statements about our ability to expand into additional applications and markets and to leverage our mixed-signal processing expertise to expand our addressable market and drive long-term shareholder value; and our estimates for the third 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 third 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												Six Months Ended
	Sep. 27,				Jun. 28,				Sep. 28,				Sep. 27,				Sep. 28,
		2025				2025				2024				2025				2024
	Q2'26				Q1'26				Q2'25				Q2'26				Q2'25
Audio	$	318,214			$	240,043			$	316,588			$	558,257			$	535,558
High-Performance Mixed-Signal		242,746				167,229				225,269				409,975				380,325
Net sales		560,960				407,272				541,857				968,232				915,883
Cost of sales		266,586				193,242				259,267				459,828				444,368
Gross profit		294,374				214,030				282,590				508,404				471,515
Gross margin		52.5	%			52.6	%			52.2	%			52.5	%			51.5	%
Research and development		110,021				102,892				112,925				212,913				218,288
Selling, general and administrative		39,589				38,744				37,813				78,333				74,583
Total operating expenses		149,610				141,636				150,738				291,246				292,871
Income from operations		144,764				72,394				131,852				217,158				178,644
Interest income		8,695				8,622				8,134				17,317				16,336
Other income (expense)		(63	)			(388	)			19				(451	)			1,628
Income before income taxes		153,396				80,628				140,005				234,024				196,608
Provision for income taxes		21,800				19,931				37,865				41,731				52,373
Net income	$	131,596			$	60,697			$	102,140			$	192,293			$	144,235
Basic earnings per share	$	2.57			$	1.17			$	1.92			$	3.74			$	2.70
Diluted earnings per share:	$	2.48			$	1.14			$	1.83			$	3.61			$	2.59
Weighted average number of shares:
Basic		51,175				51,727				53,275				51,451				53,354
Diluted		53,054				53,319				55,800				53,195				55,753
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												Six Months Ended
	Sep. 27,				Jun. 28,				Sep. 28,				Sep. 27,				Sep. 28,
		2025				2025				2024				2025				2024
Net Income Reconciliation	Q2'26				Q1'26				Q2'25				Q2'26				Q2'25
GAAP Net Income	$	131,596			$	60,697			$	102,140			$	192,293			$	144,235
Amortization of acquisition intangibles		1,648				1,647				1,864				3,295				3,836
Stock-based compensation expense		20,597				20,809				22,447				41,406				43,832
Lease impairment		—				—				—				—				1,019
Adjustment to income taxes		(3,861	)			(2,839	)			(1,162	)			(6,700	)			(5,267	)
Non-GAAP Net Income	$	149,980			$	80,314			$	125,289			$	230,294			$	187,655
Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	2.48			$	1.14			$	1.83			$	3.61			$	2.59
Effect of Amortization of acquisition intangibles		0.03				0.03				0.04				0.06				0.07
Effect of Stock-based compensation expense		0.39				0.39				0.40				0.78				0.79
Effect of Lease impairment		—				—				—				—				0.02
Effect of Adjustment to income taxes		(0.07	)			(0.05	)			(0.02	)			(0.12	)			(0.10	)
Non-GAAP Diluted earnings per share	$	2.83			$	1.51			$	2.25			$	4.33			$	3.37
Operating Income Reconciliation
GAAP Operating Income	$	144,764			$	72,394			$	131,852			$	217,158			$	178,644
GAAP Operating Profit		25.8	%			17.8	%			24.3	%			22.4	%			19.5	%
Amortization of acquisition intangibles		1,648				1,647				1,864				3,295				3,836
Stock-based compensation expense - COGS		363				300				355				663				621
Stock-based compensation expense - R&D		13,019				13,072				15,844				26,091				31,607
Stock-based compensation expense - SG&A		7,215				7,437				6,248				14,652				11,604
Lease impairment		—				—				—				—				1,019
Non-GAAP Operating Income	$	167,009			$	94,850			$	156,163			$	261,859			$	227,331
Non-GAAP Operating Profit		29.8	%			23.3	%			28.8	%			27.0	%			24.8	%
Operating Expense Reconciliation
GAAP Operating Expenses	$	149,610			$	141,636			$	150,738			$	291,246			$	292,871
Amortization of acquisition intangibles		(1,648	)			(1,647	)			(1,864	)			(3,295	)			(3,836	)
Stock-based compensation expense - R&D		(13,019	)			(13,072	)			(15,844	)			(26,091	)			(31,607	)
Stock-based compensation expense - SG&A		(7,215	)			(7,437	)			(6,248	)			(14,652	)			(11,604	)
Lease impairment		—				—				—				—				1,019
Non-GAAP Operating Expenses	$	127,728			$	119,480			$	126,782			$	247,208			$	244,805
Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	294,374			$	214,030			$	282,590			$	508,404			$	471,515
GAAP Gross Margin		52.5	%			52.6	%			52.2	%			52.5	%			51.5	%
Stock-based compensation expense - COGS		363				300				355				663				621
Non-GAAP Gross Profit	$	294,737			$	214,330			$	282,945			$	509,067			$	472,136
Non-GAAP Gross Margin		52.5	%			52.6	%			52.2	%			52.6	%			51.5	%
Effective Tax Rate Reconciliation
GAAP Tax Expense	$	21,800			$	19,931			$	37,865			$	41,731			$	52,373
GAAP Effective Tax Rate		14.2	%			24.7	%			27.0	%			17.8	%			26.6	%
Adjustments to income taxes		3,861				2,839				1,162				6,700				5,267
Non-GAAP Tax Expense	$	25,661			$	22,770			$	39,027			$	48,431			$	57,640
Non-GAAP Effective Tax Rate		14.6	%			22.1	%			23.8	%			17.4	%			23.5	%
Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.41			$	0.37			$	0.68			$	0.78			$	0.94
Adjustments to income taxes		0.07				0.05				0.02				0.12				0.10
Non-GAAP Tax Expense	$	0.48			$	0.42			$	0.70			$	0.90			$	1.04

CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
		Sep. 27,				Mar. 29,				Sep. 28,
			2025				2025				2024
ASSETS
Current assets
Cash and cash equivalents		$	593,476			$	539,620			$	445,759
Marketable securities			52,424				56,160				32,499
Accounts receivable, net			355,397				216,009				324,098
Inventories			236,409				299,092				271,765
Prepaid wafers			45,056				52,560				71,740
Other current assets			84,238				76,293				79,044
Total current Assets			1,367,000				1,239,734				1,224,905
Long-term marketable securities			250,146				239,036				228,302
Right-of-use lease assets			125,315				126,688				133,316
Property and equipment, net			151,154				159,900				168,265
Intangibles, net			24,451				27,461				25,700
Goodwill			435,936				435,936				435,936
Deferred tax asset			46,511				48,150				48,619
Long-term prepaid wafers			—				15,512				37,804
Other assets			29,170				34,656				53,292
Total assets		$	2,429,683			$	2,327,073			$	2,356,139
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	79,974			$	63,162			$	91,899
Accrued salaries and benefits			52,689				52,075				51,861
Lease liability			19,481				21,811				22,800
Other accrued liabilities			58,179				58,140				62,716
Total current liabilities			210,323				195,188				229,276
Non-current lease liability			120,985				121,908				129,806
Non-current income taxes			45,357				44,040				42,683
Other long-term liabilities			10,576				16,488				26,247
Total long-term liabilities			176,918				182,436				198,736
Stockholders' equity:
Capital stock			1,903,638				1,860,281				1,819,589
Accumulated earnings			139,025				90,351				107,233
Accumulated other comprehensive (loss) income			(221	)			(1,183	)			1,305
Total stockholders' equity			2,042,442				1,949,449				1,928,127
Total liabilities and stockholders' equity		$	2,429,683			$	2,327,073			$	2,356,139
Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
		Three Months Ended
		Sep. 27,				Sep. 28,
			2025				2024
		Q2'26				Q2'25
Cash flows from operating activities:
Net income		$	131,596			$	102,140
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			12,704				12,618
Stock-based compensation expense			20,597				22,447
Deferred income taxes			7,470				4,984
Loss on retirement or write-off of long-lived assets			—				12
Other non-cash charges			68				87
Net change in operating assets and liabilities:
Accounts receivable, net			(141,312	)			(134,019	)
Inventories			42,575				(39,199	)
Prepaid wafers			16,878				25,531
Other assets			(8,485	)			(341	)
Accounts payable and other accrued liabilities			29,451				27,268
Income taxes payable			(19,328	)			(13,297	)
Net cash provided by operating activities			92,214				8,231
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities			39,752				835
Purchases of available-for-sale marketable securities			(43,171	)			(3,577	)
Purchases of property, equipment and software			(3,868	)			(2,670	)
Investments in technology			(642	)			(70	)
Net cash used in investing activities			(7,929	)			(5,482	)
Cash flows from financing activities:
Net proceeds from the issuance of common stock			1,568				4,859
Repurchase of stock to satisfy employee tax withholding obligations			(1,261	)			(3,207	)
Repurchase and retirement of common stock			(39,986	)			(49,993	)
Net cash used in financing activities			(39,679	)			(48,341	)
Net increase (decrease) in cash and cash equivalents			44,606				(45,592	)
Cash and cash equivalents at beginning of period			548,870				491,351
Cash and cash equivalents at end of period		$	593,476			$	445,759
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
		Sep. 27,				Sep. 27,				Jun. 28,				Mar. 29,				Dec. 28,
			2025				2025				2025				2025				2024
		Q2'26				Q2'26				Q1'26				Q4'25				Q3'25
Net cash provided by operating activities (GAAP)		$	557,319			$	92,214			$	116,131			$	130,386			$	218,588
Capital expenditures			(23,148	)			(4,510	)			(2,770	)			(9,181	)			(6,687	)
Free Cash Flow (Non-GAAP)		$	534,171			$	87,704			$	113,361			$	121,205			$	211,901
Cash Flow from Operations as a Percentage of Revenue (GAAP)			29	%			16	%			29	%			31	%			39	%
Capital Expenditures as a Percentage of Revenue (GAAP)			1	%			1	%			1	%			2	%			1	%
Free Cash Flow Margin (Non-GAAP)			27	%			16	%			28	%			29	%			38	%

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
		Q3 FY26
		Guidance
Operating Expense Reconciliation
GAAP Operating Expenses		$	151 - 157
Stock-based compensation expense			(21	)
Amortization of acquisition intangibles			(2	)
Non-GAAP Operating Expenses		$	128 - 134

 

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Investor Contact:

Chelsea Heffernan

Vice President, Investor Relations

Cirrus Logic, Inc.

(512) 851-4125

Investor@cirrus.com

Source: Cirrus Logic, Inc.