Silicon Labs Reports Second Quarter 2025 Results
Rhea-AI Summary
Silicon Labs (NASDAQ: SLAB), a leader in low-power wireless technology, reported strong Q2 2025 financial results with revenue reaching $193 million, marking a 33% year-over-year and 9% sequential growth. The company's Industrial & Commercial segment generated $110 million in revenue (up 25% YoY), while Home & Life revenue reached $83 million (up 45% YoY).
Key achievements include the announcement of the SiXG301, the world's first device achieving PSA Level 4 iSE/SE certification, and the upcoming SiXG302 Series 3 device. For Q3 2025, Silicon Labs projects revenue between $200-210 million with non-GAAP diluted EPS expected between $0.20-$0.40.
Positive
- Revenue grew significantly by 33% year-over-year to $193 million
- Home & Life segment showed strong growth of 45% year-over-year
- Industrial & Commercial revenue increased 25% year-over-year
- Q3 2025 guidance projects further growth with revenue of $200-210 million
- Achievement of industry-first PSA Level 4 iSE/SE certification with SiXG301 device
Negative
- GAAP operating loss of $23 million in Q2
- GAAP diluted loss per share of $(0.67)
- Projected GAAP diluted loss per share between $(0.60) to $(0.20) for Q3
- High operating expenses at $131 million GAAP
News Market Reaction
On the day this news was published, SLAB declined 5.08%, reflecting a notable negative market reaction. Argus tracked a trough of -5.7% from its starting point during tracking. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $221M from the company's valuation, bringing the market cap to $4.13B at that time.
Data tracked by StockTitan Argus on the day of publication.
Wireless IoT leader posts
"The Silicon Labs team delivered strong sequential and year-over-year revenue growth of
Second Quarter Financial Highlights
- Revenue was
$193 million - Industrial & Commercial revenue for the quarter was
$110 million 25% year-over-year - Home & Life revenue for the quarter was
$83 million 45% year-over-year
Results on a GAAP basis:
- GAAP gross margin was
56.1% - GAAP operating expenses were
$131 million - GAAP operating loss was
$23 million - GAAP diluted loss per share was
$(0.67)
Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:
- Non-GAAP gross margin was
56.3% - Non-GAAP operating expenses were
$107 million - Non-GAAP operating income was
$1 million - Non-GAAP diluted earnings per share was
$0.11
Business Highlights
- Announced the upcoming general availability of the SiXG301 - Silicon Labs' first Series 3 device and the world's first device to achieve PSA Level 4 iSE/SE certification. This milestone reinforces Silicon Labs' long track record of industry-first achievements and sets a new benchmark for trusted embedded computing.
- Introduced the upcoming SiXG302 Series 3 device, expected to sample next year with new-to-industry energy efficiency and wireless performance targeting both Bluetooth and Matter applications, setting another industry performance benchmark.
- Announced the sixth annual Works With developer conference series - returning this fall with in-person events in Austin, Shenzhen, and
Bangalore , followed by a global virtual event. Works With 2025 will bring together business leaders, engineers, and ecosystem partners to explore emerging trends in wireless connectivity, security, Matter, and the growing role of artificial intelligence and machine learning in IoT development.
Business Outlook
The company expects third-quarter revenue to be between
On a GAAP basis:
- GAAP gross margin to be between
57% to58% - GAAP operating expenses of approximately
$130 million $133 million - GAAP diluted loss per share between
$(0.60) $(0.20)
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables:
- Non-GAAP gross margin to be between
57% to58% - Non-GAAP operating expenses of approximately
$107 million $110 million - Non-GAAP diluted earnings per share between
$0.20 $0.40
Earnings Webcast and Conference Call
Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs' website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through September 4, 2025.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is the leading innovator in low-power wireless connectivity, building embedded technology that connects devices and improves lives. Merging cutting-edge technology into the world's most highly integrated SoCs, Silicon Labs provides device makers the solutions, support, and ecosystems needed to create advanced edge connectivity applications. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: fluctuating changes in global trade policies, including the imposition of tariffs, duties, trade sanctions, or other barriers to international commerce; the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in
Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.
Silicon Laboratories Inc. | |||||||
Three Months Ended | Six Months Ended | ||||||
July 5, | June 29, | July 5, | June 29, | ||||
Revenues | $ 192,845 | $ 145,367 | $ 370,559 | $ 251,742 | |||
Cost of revenues | 84,736 | 68,784 | 164,673 | 120,090 | |||
Gross profit | 108,109 | 76,583 | 205,886 | 131,652 | |||
Operating expenses: | |||||||
Research and development | 87,821 | 85,909 | 176,040 | 166,559 | |||
Selling, general and administrative | 43,155 | 38,695 | 84,793 | 72,248 | |||
Operating expenses | 130,976 | 124,604 | 260,833 | 238,807 | |||
Operating loss | (22,867) | (48,021) | (54,947) | (107,155) | |||
Other income (expense): | |||||||
Interest income and other, net | 3,833 | 2,790 | 7,626 | 5,522 | |||
Interest expense | (251) | (263) | (535) | (772) | |||
Loss before income taxes | (19,285) | (45,494) | (47,856) | (102,405) | |||
Provision for income taxes | 2,532 | 36,663 | 4,431 | 36,278 | |||
Net loss | $ (21,817) | $ (82,157) | $ (52,287) | $ (138,683) | |||
Loss per share: | |||||||
Basic | $ (0.67) | $ (2.56) | $ (1.61) | $ (4.33) | |||
Diluted | $ (0.67) | $ (2.56) | $ (1.61) | $ (4.33) | |||
Weighted-average common shares outstanding: | |||||||
Basic | 32,682 | 32,124 | 32,570 | 32,018 | |||
Diluted | 32,682 | 32,124 | 32,570 | 32,018 | |||
Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.
The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||
Three Months Ended July 5, 2025 | ||||||||||||||
Non-GAAP Income Statement Items | GAAP Measure | GAAP Percent of Revenue | Stock Compensation Expense | Intangible Asset Amortization | Other Costs | Non- GAAP Measure | Non-GAAP Percent of Revenue | |||||||
Revenues | $ 192,845 | |||||||||||||
Gross profit | 108,109 | 56.1 % | $ 457 | $ — | $ — | $ 108,566 | 56.3 % | |||||||
Research and development | 87,821 | 45.5 % | 12,101 | 3,342 | — | 72,378 | 37.5 % | |||||||
Selling, general and administrative | 43,155 | 22.4 % | 7,333 | — | 755 | 35,067 | 18.2 % | |||||||
Operating expenses | 130,976 | 67.9 % | 19,434 | 3,342 | 755 | 107,445 | 55.7 % | |||||||
Operating income (loss) | (22,867) | (11.9 %) | 19,891 | 3,342 | 755 | 1,121 | 0.6 % | |||||||
Three Months Ended July 5, 2025 | ||||||||||||
Non-GAAP Earnings (Loss) Per Share | GAAP Measure | Stock Compensation Expense* | Intangible Asset Amortization* | Other Costs* | Income Tax Adjustments | Non- GAAP Measure | ||||||
Net income (loss) | $ (21,817) | $ 19,891 | $ 3,342 | $ 755 | $ 1,592 | $ 3,763 | ||||||
Shares Excluded Due to Net Loss | ||||||||||||
Diluted shares outstanding | 32,682 | 206 | 32,888 | |||||||||
Diluted earnings (loss) per share | $ (0.67) | $ 0.11 | ||||||||||
* | Represents pre-tax amounts |
Unaudited Forward-Looking Statements Regarding Business Outlook | ||||||
Three Months Ended | ||||||
Business Outlook | GAAP Measure | Non-GAAP Adjustments** | Non-GAAP Measure | |||
Gross margin | — % | |||||
Operating expenses | ||||||
Diluted earnings (loss) per share | | |||||
** | Non-GAAP adjustments include the following estimates: stock compensation expense of |
Silicon Laboratories Inc. | |||
July 5, | December 28, | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 314,459 | $ 281,607 | |
Short-term investments | 101,081 | 100,554 | |
Accounts receivable, net | 56,496 | 54,479 | |
Inventories | 80,871 | 105,639 | |
Prepaid expenses and other current assets | 64,841 | 59,754 | |
Total current assets | 617,748 | 602,033 | |
Property and equipment, net | 131,283 | 132,136 | |
Goodwill | 376,389 | 376,389 | |
Other intangible assets, net | 27,719 | 36,499 | |
Other assets, net | 67,926 | 75,617 | |
Total assets | $ 1,221,065 | $ 1,222,674 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 58,161 | $ 42,448 | |
Deferred revenue and returns liability | 3,856 | 3,073 | |
Other current liabilities | 58,657 | 52,362 | |
Total current liabilities | 120,674 | 97,883 | |
Other non-current liabilities | 39,311 | 44,770 | |
Total liabilities | 159,985 | 142,653 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock – | — | — | |
Common stock – | 3 | 3 | |
Additional paid-in capital | 111,562 | 78,227 | |
Retained earnings | 949,434 | 1,001,721 | |
Accumulated other comprehensive income | 81 | 70 | |
Total stockholders' equity | 1,061,080 | 1,080,021 | |
Total liabilities and stockholders' equity | $ 1,221,065 | $ 1,222,674 | |
Silicon Laboratories Inc. | |||
Six Months Ended | |||
July 5, | June 29, | ||
Operating Activities | |||
Net loss | $ (52,287) | $ (138,683) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation of property and equipment | 12,701 | 13,152 | |
Amortization of other intangible assets | 8,780 | 12,160 | |
Stock-based compensation expense | 39,605 | 29,455 | |
Deferred income taxes | 1,504 | 29,784 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,017) | (11,918) | |
Inventories | 24,631 | 28,123 | |
Prepaid expenses and other assets | 5,112 | 20,723 | |
Accounts payable | 12,812 | (19,341) | |
Other current liabilities and income taxes | 8,377 | (13,624) | |
Deferred revenue and returns liability | 783 | 1,206 | |
Other non-current liabilities | (6,965) | (6,703) | |
Net cash provided by (used in) operating activities | 53,036 | (55,666) | |
Investing Activities | |||
Purchases of marketable securities | (32,507) | (17,700) | |
Sales of marketable securities | 14,986 | 34,538 | |
Maturities of marketable securities | 17,019 | 97,458 | |
Purchases of property and equipment | (13,549) | (5,577) | |
Proceeds from sale of equity investment | — | 12,382 | |
Net cash provided by (used in) investing activities | (14,051) | 121,101 | |
Financing Activities | |||
Payments on debt | — | (45,000) | |
Payment of taxes withheld for vested stock awards | (13,752) | (15,213) | |
Proceeds from the issuance of common stock | 7,619 | 8,108 | |
Net cash used in financing activities | (6,133) | (52,105) | |
Increase in cash and cash equivalents | 32,852 | 13,330 | |
Cash and cash equivalents at beginning of period | 281,607 | 227,504 | |
Cash and cash equivalents at end of period | $ 314,459 | $ 240,834 | |
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SOURCE Silicon Labs
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