Credo Technology Group (NASDAQ: CRDO) swings to $146M YTD profit on 273% revenue jump

Rhea-AI Filing Summary

Credo Technology Group (CRDO) reported a sharp turnaround to profitability on surging demand for its connectivity products. Quarterly revenue for the period ended November 1, 2025 rose to $268.0 million from $72.0 million a year earlier, driven mainly by Active Electrical Cable (AEC) shipments to hyperscale data center customers. Gross margin improved to 67.5%, supporting quarterly net income of $82.6 million versus a net loss of $4.2 million.

For the first six months of fiscal 2026, revenue reached $491.1 million and net income was $146.0 million, compared with $131.7 million and a $13.8 million net loss in the prior-year period. Credo strengthened its balance sheet with $567.6 million in cash and cash equivalents and $1.29 billion in shareholders’ equity, helped by $384.6 million of net proceeds from an at-the-market share offering.

The company also acquired Hyperlume, Inc. for total consideration of about $92.0 million, adding microLED-based optical interconnect technology, and ended the quarter with substantial purchase commitments and increased R&D and share-based compensation as it invests in growth.

Positive

• Revenue growth and profitability inflection: Quarterly revenue rose to $268.0 million from $72.0 million, and six‑month revenue increased to $491.1 million from $131.7 million, with net income improving from a $13.8 million loss to a $146.0 million profit.

• Margin expansion: Gross margin improved to 67.5% from 63.2% year over year, contributing to operating income of $139.5 million versus a prior‑year operating loss.

• Stronger balance sheet: Cash and cash equivalents grew to $567.6 million, supported by $384.6 million in net proceeds from an at‑the‑market equity offering, lifting shareholders’ equity to $1.29 billion.

• Strategic acquisition: The $92.0 million purchase of Hyperlume adds microLED-based optical interconnect technology, increasing goodwill and intangible assets tied to future connectivity solutions.

Negative

• None.

Insights

Equity analyst – semiconductors & connectivity

Credo posts explosive growth, swings to strong profitability, and adds cash and technology via ATM financing and the Hyperlume deal.

Credo delivered very strong top-line expansion, with quarterly revenue climbing from $72.0M to $268.0M and six‑month revenue rising from $131.7M to $491.1M. The business moved from a net loss of $13.8M in the prior six‑month period to net income of $146.0M, as gross margin improved to 67.5%, reflecting scale benefits in AEC products.

Operating expenses also rose sharply, particularly share-based compensation, which reached $80.8M for the six months. Even so, operating margin expanded, with operating income of $139.5M versus a prior‑year operating loss of $22.9M. The company remains highly exposed to a few customers, with Customer A and Customer B together accounting for a large majority of revenue, which ties performance to ongoing demand from these hyperscalers.

Liquidity strengthened meaningfully. Cash and cash equivalents increased to $567.6M, aided by $384.6M in net proceeds from an at‑the‑market equity program. Credo also acquired Hyperlume for total consideration of $92.0M, adding goodwill of $69.1M and an intangible asset of $17.2M tied to microLED technology. Subsequent filings may provide additional detail on how this technology is integrated into the product roadmap.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 1, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ___________

Commission File Number: 001-41249

Credo Technology Group Holding Ltd

(Exact name of registrant as specified in its charter)

Cayman Islands									N/A
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)
c/o Maples Corporate Services, Limited, PO Box 309, Ugland House Grand Cayman, KY1-1104, Cayman Islands									N/A
(Address of principal executive offices)									(Zip Code)

(408) 664-9329

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Ordinary shares, par value $0.00005 per share			CRDO			The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes  ☐    No ☒

The registrant had 180,631,719 ordinary shares outstanding as of November 23, 2025.

Table of Contents

						Page
Special Note Regarding Forward-looking Statements						3
PART 1—FINANCIAL INFORMATION						5
Item 1.			Financial Statements			5
			Condensed Consolidated Balance Sheets			5
			Condensed Consolidated Statements of Operations			6
			Condensed Consolidated Statements of Comprehensive Income (Loss)			7
			Condensed Consolidated Statements of Shareholders’ Equity			8
			Condensed Consolidated Statements of Cash Flows			9
			Notes to Unaudited Condensed Consolidated Financial Statements			10
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			21
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			27
Item 4.			Controls and Procedures			27
PART II—OTHER INFORMATION						28
Item 1.			Legal Proceedings			28
Item 1A.			Risk Factors			28
Item 5.			Other Information			28
Item 6.			Exhibits			30
			Signatures			31

2

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains statements relating to our expectations, projections, beliefs, and prospects, which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “anticipate,” “expect,” “intend,” “plan,” “goal,” “projects,” “believes,” “seeks,” “estimates,” "forecast," "target," “predict,” “future,” “may,” “can,” “will,” “would” or the negative of these terms or similar expressions. You should read these statements carefully because they may relate to future expectations around growth, strategy and anticipated trends in our business, contain projections of future results of operations or financial condition or state other “forward-looking” information. These statements are only predictions based on our current expectations, estimates, assumptions, and projections about future events and are applicable only as of the dates of such statements. These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended May 3, 2025 and our Quarterly Reports on Form 10-Q and other reports we file with the U.S. Securities and Exchange Commission (SEC). Factors that could cause actual results to differ materially from those predicted include, but are not limited to:

•our expectations regarding our ability to address market and customer demands and to timely develop new or enhanced solutions to meet those demands;

•anticipated trends, challenges and growth in our business and the markets in which we operate, including pricing expectations;

•our expectations regarding our revenue, revenue mix, average selling prices, gross margin, and expenses;

•our expectations regarding dependence on a limited number of customers and end customers;

•our customer relationships and our ability to retain and expand our customer relationships and to achieve design wins;

•our expectations regarding the success, cost, and timing of new products;

•the size and growth potential of the markets for our solutions, and our ability to serve and expand our presence in those markets;

•our expectations regarding competition in our existing and future markets;

•the impact a pandemic, epidemic, or other outbreak of disease may in the future have on our business, results of operations and financial condition, as well as the businesses of our suppliers and customers;

•our expectations regarding regulatory developments in the United States and foreign countries;

•our expectations regarding the performance of, and our relationships with, our third-party suppliers and manufacturers;

•our expectations regarding our ability to attract and retain key personnel; and

•the accuracy of our estimates regarding capital requirements and needs for additional financing.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as may be required by law, we assume no obligation to update these forward-looking statements or the reasons that results could differ from these forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results,

3

levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or will occur.

4

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Credo Technology Group Holding Ltd

Condensed Consolidated Balance Sheets

(unaudited, in thousands, except per share amounts)

			November 1, 2025						May 3, 2025
Assets
Current assets:
Cash and cash equivalents			$	567,575					$	236,328
Short-term investments			246,000						195,010
Accounts receivable			245,197						162,144
Inventories			150,194						90,029
Other current assets			34,457						30,023
Total current assets			1,243,423						713,534
Property and equipment, net			85,994						63,631
Right-of-use assets			15,666						15,234
Goodwill			68,875						—
Intangible asset			17,131						—
Other non-current assets			18,183						16,858
Total assets			$	1,449,272					$	809,257
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable			$	64,097					$	56,158
Accrued compensation and benefits			19,347						16,097
Other current liabilities			56,927						35,456
Total current liabilities			140,371						107,711
Non-current operating lease liabilities			12,811						12,693
Other non-current liabilities			10,017						7,271
Total liabilities			163,199						127,675
Commitments and contingencies (Note 8)
Shareholders' equity:
Ordinary shares, $0.00005 par value; 1,000,000 shares authorized; 178,517 and 171,169 shares issued and outstanding at November 1, 2025 and May 3, 2025, respectively			9						8
Additional paid in capital			1,223,823						765,173
Accumulated other comprehensive loss			(632)						(437)
Retained earnings (accumulated deficit)			62,873						(83,162)
Total shareholders' equity			1,286,073						681,582
Total liabilities and shareholders' equity			$	1,449,272					$	809,257

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

Credo Technology Group Holding Ltd

Condensed Consolidated Statements of Operations

(unaudited, in thousands, except per share amounts)

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Revenue:
Product sales revenue			$	261,293					$	69,075					$	478,352					$	126,400
IP license revenue			6,734						2,959						12,749						5,348
Total revenue			268,027						72,034						491,101						131,748
Cost of revenue			86,981						26,522						159,687						48,953
Gross profit			181,046						45,512						331,414						82,795
Operating expenses:
Research and development			57,916						31,742						110,364						62,151
Selling, general and administrative			44,334						22,177						81,512						43,502
Total operating expenses			102,250						53,919						191,876						105,653
Operating income (loss)			78,796						(8,407)						139,538						(22,858)
Other income, net			4,889						4,474						8,835						10,007
Income (loss) before income taxes			83,685						(3,933)						148,373						(12,851)
Provision for income taxes			1,049						292						2,338						914
Net income (loss)			$	82,636					$	(4,225)					$	146,035					$	(13,765)
Net income (loss) per share:
Basic			$	0.47					$	(0.03)					$	0.84					$	(0.08)
Diluted			$	0.44					$	(0.03)					$	0.79					$	(0.08)
Weighted-average shares:
Basic			175,307						166,487						173,623						165,789
Diluted			187,659						166,487						185,465						165,789

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

Credo Technology Group Holding Ltd

Condensed Consolidated Statements of Comprehensive Income (Loss)

(unaudited, in thousands)

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Net income (loss)			$	82,636					$	(4,225)					$	146,035					$	(13,765)
Other comprehensive gain (loss):
Foreign currency translation gain (loss)			(204)						65						(195)						209
Total comprehensive income (loss)			$	82,432					$	(4,160)					$	145,840					$	(13,556)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

Credo Technology Group Holding Ltd

Condensed Consolidated Statements of Shareholders’ Equity

(unaudited, in thousands)

			Ordinary Shares												Additional Paid-in Capital						Accumulated Other Comprehensive Loss						Retained Earnings (Accumulated Deficit)						Total Shareholders’ Equity
			Number of Shares						Amount
Balances at May 3, 2025			171,169						$	8					$	765,173					$	(437)					$	(83,162)					$	681,582
Ordinary shares issued under equity incentive plans			1,774						1						4,647						—						—						4,648
Tax withheld related to RSU settlement			(48)						—						(3,712)						—						—						(3,712)
Share-based compensation			—						—						35,455						—						—						35,455
Total comprehensive income			—						—						—						9						63,399						63,408
Balances at August 2, 2025			172,895						$	9					$	801,563					$	(428)					$	(19,763)					$	781,381
Ordinary shares issued under At-The-Market Offering, net of issuance costs			2,673						—						382,756						—						—						382,756
Ordinary shares issued upon exercise of Customer Warrant			1,851						—						—						—						—						—
Ordinary shares issued under equity incentive plans			1,146						—						529						—						—						529
Tax withheld related to RSU settlement			(48)						—						(6,349)						—						—						(6,349)
Share-based compensation			—						—						45,324						—						—						45,324
Total comprehensive income			—						—						—						(204)						82,636						82,432
Balances at November 1, 2025			178,517						$	9					$	1,223,823					$	(632)					$	62,873					$	1,286,073

Balances at April 27, 2024			164,305						$	8					$	676,054					$	(519)					$	(135,345)					$	540,198
Ordinary shares issued under equity incentive plans			1,697						—						3,513						—						—						3,513
Tax withheld related to RSU settlement			(37)						—						(1,071)						—						—						(1,071)
Share-based compensation			—						—						16,640						—						—						16,640
Warrant contra revenue			—						—						3,218						—						—						3,218
Total comprehensive loss			—						—						—						144						(9,540)						(9,396)
Balances at August 3, 2024			165,965						$	8					$	698,354					$	(375)					$	(144,885)					$	553,102
Ordinary shares issued under equity incentive plans			1,228						—						871						—						—						871
Tax withheld related to RSU settlement			(36)						—						(1,179)						—						—						(1,179)
Share-based compensation			—						—						16,663						—						—						16,663
Warrant contra revenue			—						—						2,610						—						—						2,610
Total comprehensive loss			—						—						—						65						(4,225)						(4,160)
Balances at November 2, 2024			167,157						$	8					$	717,319					$	(310)					$	(149,110)					$	567,907

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

8

Credo Technology Group Holding Ltd

Condensed Consolidated Statements of Cash Flows

(unaudited, in thousands)

			Six Months Ended
			November 1, 2025						November 2, 2024
Cash flows from operating activities:
Net income (loss)			$	146,035					$	(13,765)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			12,027						9,218
Share-based compensation			80,779						33,303
Warrant contra revenue			—						5,828
Write-downs for excess and obsolete inventory			8,120						2,205
Changes in operating assets and liabilities:
Accounts receivable			(83,053)						(22,114)
Inventories			(66,403)						(12,611)
Other current assets			(1,917)						(2,517)
Other non-current assets			1,713						1,216
Accounts payable			5,630						(1,429)
Accrued compensation and benefits, other current liabilities and other non-current liabilities			12,902						3,715
Net cash provided by operating activities			115,833						3,049
Cash flows from investing activities:
Purchases of property and equipment			(26,009)						(27,811)
Maturities of short-term investments			64,010						313,061
Purchases of short-term investments			(115,000)						(113,716)
Business acquisition, net of cash acquired			(82,564)						—
Net cash provided by (used in) investing activities			(159,563)						171,534
Cash flows from financing activities:
Payments on technology license obligations			(4,812)						(4,556)
Proceeds from ordinary shares issued under At-The-Market Offering, net of issuance costs			384,620						—
Proceeds from employee share incentive plans			5,177						4,384
Tax withheld related to RSU settlement			(10,061)						(2,250)
Net cash provided by (used in) financing activities			374,924						(2,422)
Effect of exchange rate changes on cash			53						134
Net increase in cash and cash equivalents			331,247						172,295
Cash and cash equivalents at beginning of the period			236,328						66,942
Cash and cash equivalents at end of the period			$	567,575					$	239,237
Supplemental cash flow information:
Purchases of property and equipment included in accounts payable, other current liabilities and other non-current liabilities			$	9,467					$	7,966

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

9

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

1. Description of Business and Basis of Presentation

Credo Technology Group Holding Ltd was formed as an exempted company under the laws of the Cayman Islands in September 2014. Credo Technology Group Holding Ltd directly owns Credo Technology Group Ltd., which owns, directly and indirectly, all of the shares of its subsidiaries in mainland China, Hong Kong, Singapore, Canada and the United States (U.S.). References to the “Company” in these notes refer to Credo Technology Group Holding Ltd and its subsidiaries on a consolidated basis, unless otherwise specified.

The Company’s mission is to redefine high-speed connectivity by delivering breakthrough solutions that enable the next generation of AI-driven applications. The Company is committed to enabling faster, more reliable, more energy-efficient, and scalable solutions that support the ever-expanding demands of AI, cloud computing, and hyperscale networks. The Company’s innovations ease system bandwidth bottlenecks while simultaneously improving on power, security, and reliability. The Company’s connectivity solutions are optimized for optical and electrical Ethernet applications, including the 100G (or Gigabits per second), 200G, 400G, 800G and the emerging 1.6T (or Terabits per second) port markets. The Company’s products are based on its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. The Company’s product families include Integrated Circuits (ICs) for the optical and line card markets, Active Electrical Cables (AECs) and SerDes Chiplets. The Company’s intellectual property (IP) solutions consist primarily of SerDes IP licensing.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States (US GAAP) applicable to interim periods, under the rules and regulations of the U.S. Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted as permitted by the SEC. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s fiscal year 2025 audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended May 3, 2025. The unaudited condensed consolidated financial statements include all adjustments, including normal recurring adjustments and other adjustments, that are considered necessary for fair presentation of the Company’s financial position and results of operations. All inter-company accounts and transactions have been eliminated. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year.

The Company’s fiscal year is a 52- or 53-week period ending on the Saturday closest to April 30. Its fiscal year ending May 2, 2026 (fiscal year 2026) is a 52-week fiscal year. The Company’s fiscal year ended May 3, 2025 (fiscal year 2025) was a 53-week fiscal year, with the first fiscal quarter containing 14 weeks.

At-The-Market (ATM) Offering

In October 2025, the Company entered into an equity distribution agreement with Goldman Sachs & Co. LLC related to the sale from time to time of the Company’s ordinary shares for an aggregate offering price of up to $750 million.

During the three months ended November 1, 2025, the Company received $384.6 million in net proceeds through the issuance of 2.7 million ordinary shares. The total issuance costs were $7.4 million, of which $1.9 million remained unpaid and is included in other current liabilities on the unaudited condensed consolidated balance sheet as of November 1, 2025.

2. Significant Accounting Policies

The Company believes that other than the accounting policies as described below, there have been no significant changes to the items disclosed in Note 2, “Significant Accounting Policies,” included in the Company’s Annual Report on Form 10-K for the fiscal year ended May 3, 2025.

Business Combinations

The Company allocates the fair value of the purchase consideration of its business acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (IPR&D), based on their estimated fair values under the acquisition method of accounting. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an

10

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

IPR&D project is completed, the IPR&D is reclassified as an amortizable intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.

Use of Estimates

The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes.

The Company bases its estimates and judgments on historical experience, knowledge of current conditions and beliefs of what could occur in the future, given the available information. Estimates are used for, but not limited to, write-down for excess and obsolete inventories, the standalone selling price for each distinct performance obligation included in customer contracts with multiple performance obligations, variable consideration from revenue contracts, the realization of tax assets and estimates of tax reserves, and impairment of long-lived assets. Actual results may differ from those estimates and such differences may be material to the financial statements. In the current macroeconomic environment, these estimates require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, these estimates may change materially in future periods.

Reclassifications

Certain prior period balances were reclassified to conform to the current period’s presentation. None of these reclassifications had an impact on reported net income or cash flows for any of the periods presented.

Recent Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income— Expense Disaggregation Disclosures, which requires disclosure of, in interim and annual reporting periods, additional information about certain expenses in the financial statements. This standard is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027 and may be applied on a retrospective or prospective basis. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets, providing all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This ASU is effective for annual reporting periods beginning after December 15, 2025. The Company is currently evaluating the impact of electing the practical expedient and the impact it may have on its consolidated financial statements and disclosures.

3. Concentrations

Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. Cash is placed in major financial institutions around the world. The Company’s cash deposits exceed insured limits. Short-term investments are subject to counterparty risk up to the amount presented on the balance sheet.

Historically, a relatively small number of customers have accounted for a significant portion of the Company’s revenue. The particular customers which account for revenue concentration have varied from period-to-period as a result of the addition of new contracts, completion of existing contracts, and the volumes and prices at which the customers have recently bought the Company’s products. These variations are expected to continue in the foreseeable future.

11

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

The following tables summarize the accounts receivable and revenue as a percentage of total accounts receivable and total revenue, respectively, for the Company’s most significant customers. In the tables below, customers are defined as the contracting entities who place purchase orders or enter into revenue contracts with the Company:

Accounts Receivable			November 1, 2025						May 3, 2025
Customer A			62		%				86		%
Customer B			22		%				*

			Three Months Ended												Six Months Ended
Revenue			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Customer A			64		%				40		%				58		%				47		%
Customer B			16		%				14		%				25		%				10		%

* Less than 10% of total accounts receivable or total revenue.

4. Revenue Recognition

The following table summarizes revenue disaggregated by primary geographical market based on destination of shipment for product sales revenue and location of contracting entity for IP license revenue, which may differ from the customer’s principal offices (in thousands):

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Hong Kong			$	117,890					$	30,086					$	188,273					$	59,358
United States			103,701						21,856						186,529						32,655
Mainland China			23,633						13,524						75,413						23,273
Rest of World			22,803						6,568						40,886						16,462
			$	268,027					$	72,034					$	491,101					$	131,748

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The contracted but unsatisfied performance obligation was approximately $33.9 million as of November 1, 2025 and relating to IP license revenue, which the Company expects to recognize over the next 12 months.

Customer Warrant

During fiscal year 2022, the Company issued a warrant to Amazon.com NV Investment Holdings LLC (Holder) to purchase an aggregate of up to 4.1 million of the Company’s ordinary shares at an exercise price of $10.74 per share (the Customer Warrant). The exercise period of the Customer Warrant is through the seventh anniversary of the issue date. A total of 4.1 million Customer Warrant shares were fully vested and remained unexercised as of May 3, 2025. The Holder exercised 2.04 million Customer Warrant shares as of November 1, 2025. Under net issuance, a portion of shares were withheld, resulting in a net issuance of 1.85 million shares. Subsequent to November 1, 2025, the Holder exercised the remaining 2.04 million Customer Warrant shares in November 2025.

5. Business Combination

On September 29, 2025, the Company acquired 100% of the equity interest of Hyperlume, Inc. (Hyperlume), a developer of miniature light-emitting diode (microLED)-based optical interconnect technology for chip-to-chip communication, for a total purchase consideration of $92.0 million. Total purchase consideration is attributable to cash consideration of $88.7 million and cash settlement of vested share-based payment awards of $3.3 million by Hyperlume. This acquisition was primarily intended to expand the Company’s comprehensive portfolio of end-to-end

12

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

system-level connectivity solutions with Hyperlume’s cutting-edge microLED technology to address the future of artificial intelligence-driven data infrastructure deployments.

The factors contributing to the recognition of goodwill were based upon the Company’s conclusion that there are strategic and synergistic benefits that are expected to be realized from the acquisition. Goodwill recorded for the Hyperlume acquisition is not expected to be deductible for tax purposes. The Company has one reportable segment and accordingly, there is no goodwill assignment based on reporting units.

The following table summarizes the total purchase consideration (in thousands):

Cash consideration			$	88,698
Cash settlement of Hyperlume share-based payment awards			3,319
Total purchase consideration			92,017
Less: Cash and cash equivalents acquired			(9,453)
Net cash payment for acquisition			$	82,564

In accordance with U.S. GAAP requirements for business combinations, the Company allocated the fair value of the purchase consideration to the tangible assets, liabilities and IPR&D, generally based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable intangible asset and amortized over the asset’s estimated useful life. The Company’s valuation assumptions of acquired assets and assumed liabilities require significant estimates, especially with respect to IPR&D intangible assets. The functional currency of the acquired business is Canadian dollars, and the assets and liabilities are translated into U.S. dollars at each fiscal quarter-end period. The differences for goodwill and intangible asset between purchase price allocation and balance sheet result from currency translation rate changes.

Acquisition-related costs are expensed in the periods such costs are incurred and were not material for the periods presented.

The purchase price allocation is as follows (in thousands):

Cash			$	9,453
Other current assets, property and equipment and right-of-use assets			1,631
Goodwill			69,134
Intangible asset			17,200
Deferred tax liabilities			(4,558)
Other current liabilities and non-current operating lease liabilities			(843)
			$	92,017

The purchase price allocation is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information that existed as of the acquisition date but is currently unknown to the Company may become known during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date.

Pro forma results of operations have not been presented because the effect of the acquisition was not material to the Company’s financial results.

6. Fair Value Measurements

Fair value is an exit price representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

Level 2 - Other inputs that are directly or indirectly observable in the marketplace.

13

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

Level 3 - Unobservable inputs that are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company measures the fair value of money market funds using Level 1 inputs. The Company’s certificates of deposit are classified as held-to-maturity securities as the Company intends to hold until their maturity dates. The certificates of deposit are valued using Level 2 inputs. Pricing sources may include industry standard data providers, security master files from large financial institutions, and other third-party sources used to determine a daily market value.

The following tables present the fair value of the financial instruments measured on a recurring basis, or measured at amortized cost which approximates fair value, as of November 1, 2025 and May 3, 2025 (in thousands).

			November 1, 2025
			Level 1						Level 2						Level 3						Total
Cash equivalents:
Money market funds			$	483,957					$	—					$	—					$	483,957
Certificates of deposit			—						64,249						—						64,249
Short-term investments:
Certificates of deposit			—						246,000						—						246,000
Total cash equivalents and short-term investments			$	483,957					$	310,249					$	—					$	794,206

			May 3, 2025
			Level 1						Level 2						Level 3						Total
Cash equivalents:
Money market funds			$	148,036					$	—					$	—					$	148,036
Certificates of deposit			—						65,137						—						65,137
Short-term investments:
Certificates of deposit			—						195,010						—						195,010
Total cash equivalents and short-term investments			$	148,036					$	260,147					$	—					$	408,183

The carrying amount of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable and accounts payable, approximate their respective fair values because of their short maturities. As of November 1, 2025 and May 3, 2025, there were no unrealized losses or gains associated with the Company’s financial instruments.

7. Supplemental Financial Information

Inventories

Inventories consisted of the following (in thousands):

			November 1, 2025						May 3, 2025
Raw materials			$	13,217					$	12,734
Work in process			26,423						24,583
Finished goods			110,554						52,712
			$	150,194					$	90,029

14

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

Property and Equipment, Net

Property and equipment consisted of the following (in thousands):

			November 1, 2025						May 3, 2025
Production equipment			$	45,813					$	44,789
Computer equipment and software			40,141						27,901
Laboratory equipment			26,952						21,944
Leasehold improvements			3,850						3,513
Construction in progress			25,234						9,687
			141,990						107,834
Less: Accumulated depreciation and amortization			(55,996)						(44,203)
			$	85,994					$	63,631

Depreciation and amortization expense was $6.5 million and $12.0 million for the three and six months ended November 1, 2025, respectively and $5.0 million and $9.2 million for the three and six months ended November 2, 2024, respectively. Computer equipment and software primarily includes technology licenses for computer-aided design tools relating to the Company’s R&D design of future products and intellectual properties. Production equipment and construction in progress primarily include mask set costs capitalized relating to the Company’s products already introduced or to be introduced.

Other Current Liabilities

Other current liabilities consisted of the following (in thousands):

			November 1, 2025						May 3, 2025
Accruals relating to inventory purchases			$	13,354					$	10,164
Current payables relating to purchases of property and equipment			12,167						8,420
Current portion of operating lease liabilities			3,619						3,342
Others			27,787						13,530
			$	56,927					$	35,456

Other Non-current Liabilities

Other non-current liabilities consisted of the following (in thousands):

			November 1, 2025						May 3, 2025
Non-current payables relating to purchases of property and equipment			$	4,063					$	5,762
Others			5,954						1,509
			$	10,017					$	7,271

8. Commitments and Contingencies

Non-cancelable Purchase Obligations

Total future non-cancelable purchase obligations as of November 1, 2025 are as follows (in thousands):

15

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

Fiscal Year			Purchase Commitments to Manufacturing Vendors						Technology License Fees						Total
Remainder of 2026			$	65,709					$	2,706					$	68,415
2027			6,675						10,561						17,236
2028			5,059						4,210						9,269
2029			—						350						350
Total unconditional purchase commitments			$	77,443					$	17,827					$	95,270

Technology license fees include the liabilities under agreements for technology licenses between the Company and various vendors.

Under the Company’s manufacturing relationships with its foundry partners, cancellation of outstanding purchase orders is allowed but requires payment of all costs and expenses incurred through the date of cancellation.

As of November 1, 2025, the total value of non-cancelable purchase orders payable within the next one year that were committed with the Company’s third-party subcontractors was approximately $61.3 million. Such purchase commitments are included in the preceding table.

The Company has a manufacturing supply capacity reservation agreement with an assembly subcontractor as of November 1, 2025. Under this arrangement, the Company has paid refundable deposits to the supplier in exchange for reserved manufacturing production capacity over the term of the agreement, which approximates five years. In addition, the Company committed to certain purchase levels that were in line with the capacity reserved. If the Company does not meet the purchase level commitment, the agreement requires the Company to pay a fee equal to the difference between the actual purchase and the purchase commitment, up to the value of refundable deposits made. In the fiscal quarter ended November 2, 2024, the agreement was amended to change the purchase commitment measurement from a dollar amount to a quantity amount throughout the remaining periods. The Company estimated a dollar cost per unit using actual billings from the assembly subcontractor for the most recent calendar quarter and calculating a weighted-average cost per unit. Based on this calculation, the Company currently estimates that it has made purchase level commitments of at least $16.2 million for the remainder of fiscal year 2026 through fiscal year 2028 under the capacity reservation agreement. Such purchase commitments are included in the preceding table. In addition, the Company had refundable deposits of $7.3 million of which $2.7 million was recorded in other current assets and $4.6 million was recorded in other non-current assets on the unaudited condensed consolidated balance sheet.

Warranty Obligations

The Company’s products generally carry a standard one-year warranty. The Company’s warranty expense was not material in the periods presented.

Indemnifications

In the ordinary course of business, the Company has entered into agreements that contain certain indemnification obligations of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters, including, but not limited to, certain losses arising out of the Company’s breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. These indemnification obligations may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss limitations. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification obligations. Accordingly, the Company had no liabilities recorded for these agreements as of November 1, 2025 and May 3, 2025.

Legal Proceedings

From time to time, the Company may be a party to various litigation claims in the ordinary course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with legal counsel, the need to record a liability for litigation and contingencies. Accrual estimates are recorded when and if it is determined that such a liability for litigation and contingencies are both probable and reasonably estimable. As of the date of issuance of these unaudited condensed consolidated financial statements, the

16

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

Company was not subject to any material litigation. No accruals for loss contingencies or recognition of actual losses have been recorded in any of the periods presented.

9. Leases

The Company leases office space, in the United States and internationally, under operating leases. The Company’s leases have remaining lease terms generally between one year and five years. Operating leases are included in right of use assets, other current liabilities, and non-current operating lease liabilities on the Company’s unaudited condensed consolidated balance sheets. The Company does not have any finance leases.

Lease expense and supplemental cash flow information are as follows (in thousands):

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Operating lease expenses			$	1,151					$	1,021					$	2,296					$	2,037
Cash paid for amounts included in the measurement of operating lease liabilities			$	1,118					$	961					$	2,208					$	1,916
Right-of-use assets obtained in exchange for lease obligation			$	1,653					$	—					$	1,999					$	3,531

The aggregate future lease payments for operating leases as of November 1, 2025 are as follows (in thousands):

Fiscal Year			Operating Leases
2026			$	2,224
2027			4,124
2028			4,116
2029			3,904
2030			3,140
Thereafter			1,252
Total lease payments			18,760
Less: Interest			(2,330)
Present value of lease liabilities			$	16,430

As of November 1, 2025, the weighted-average remaining lease term for the Company's operating leases was 4.5 years and the weighted-average discount rate used to determine the present value of the Company's operating leases was 6.4%.

10. Share Incentive Plan

Restricted Stock Unit (RSU) Awards

A summary of information related to RSU activity during the six months ended November 1, 2025 is as follows:

			RSUs Outstanding
			Number of Shares (in millions)						Weighted-Average Grant Date Fair Value						Weighted-Average Remaining Contractual Term						Aggregate Intrinsic Value (in millions)
Balance as of May 3, 2025			9.5						$33.88						1.39						$	458.1
Granted			1.8						$107.77
Vested			(1.8)						$17.40
Canceled/ forfeited			(0.1)						$24.74
Balance and expected to vest as of November 1, 2025			9.4						$49.62						1.28						$	1,701.4

Performance-based Restricted Stock Unit (PSU) Awards

17

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

A summary of information related to PSU activity during the six months ended November 1, 2025 is as follows:

			PSUs Outstanding
			Number of Shares (in millions)						Weighted-Average Grant Date Fair Value						Weighted-Average Remaining Contractual Term						Aggregate Intrinsic Value (in millions)
Balance as of May 3, 2025			0.2						$43.70						2.53						$	10.1
Granted			0.9						$66.50
Balance and expected to vest as of November 1, 2025			1.1						$62.10						2.02						$	204.5

Share Option Awards

A summary of information related to share option activity during the six months ended November 1, 2025 is as follows:

			Options Outstanding
			Outstanding Share Options (in millions)						Weighted-Average Exercise Price						Weighted-Average Remaining Contractual Term						Aggregate Intrinsic Value (in millions)
Balance as of May 3, 2025			3.5						$2.23						4.79						$	162.8
Options vested and exercised			(1.0)						$2.35
Balance expected to vest and exercisable as of November 1, 2025			2.5						$2.19						4.37						$	476.3

Summary of Share-based Compensation Expense

The following table summarizes share-based compensation expense included in the unaudited condensed consolidated statements of operations (in thousands):

			Three months ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Cost of revenue			$	354					$	331					$	710					$	612
Research and development			24,949						8,392						44,107						17,562
Selling, general and administrative			20,021						7,940						35,962						15,129
			$	45,324					$	16,663					$	80,779					$	33,303

In connection with the Hyperlume acquisition, the Company issued 87 thousand RSUs under its 2021 long-term incentive plan in replacement for the unvested options under Hyperlume’s equity incentive plan. The RSUs retain the same vesting conditions as the unvested options that they replaced. The Company also issued 132 thousand restricted shares of the Company to one of the founders of Hyperlume and 132 thousand restricted shares of a newly formed subsidiary of the Company that are exchangeable into restricted shares of the Company to the other founder of Hyperlume. The restricted shares were issued in exchange for the founders’ outstanding equity interests in Hyperlume and vest on a quarterly basis, subject to continued employment with the Company over the next 4 years.

Both RSUs and restricted shares were measured at the acquisition date’s fair value of $146.01 per share and the fair value of those shares represent post-acquisition share-based compensation expense that will be recognized as these employees provide service over the remaining vesting periods of up to 4 years.

11. Income Taxes

The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, excluding zero rate jurisdictions, and adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in accurately predicting its

18

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, changes in tax laws, the applicability of special tax regimes, changes in how we do business, and discrete items.

Provision for income taxes for the three and six months ended November 1, 2025 and November 2, 2024 was as follows (in thousands except percentages):

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
Provision for income taxes			$	1,049					$	292					259.2		%				$	2,338					$	914					255.8		%
Effective tax rate			1		%				(7)		%										2		%				(7)		%

The Company’s effective tax rate for the three and six months ended November 1, 2025 differs from the same period in the prior year primarily due to the Company generating consolidated net income in the current year as compared to a consolidated net loss in the prior year.

During the three and six months ended November 1, 2025, there were no material changes to the total amount of unrecognized tax benefits and the Company does not expect any significant changes in the next 12 months.

On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (OBBBA), which changes or makes permanent certain tax laws for corporations. During the three and six months ended November 1, 2025, the Company did not record any material adjustments to its income tax provision as a result of OBBBA. The Company does not expect the provisions of the OBBBA to have a material impact on its effective tax rate or total provision for income taxes.

In connection with Hyperlume acquisition, the Company recognized a deferred tax liability of $4.6 million related to the acquired IPR&D intangible asset, which is not deductible for income tax purposes.

12. Net Income (Loss) Per Share

The Company reports both basic net income (loss) per share, which is based on the weighted-average number of ordinary shares outstanding during the period, and diluted net income (loss) per share, which is based on the weighted-average number of ordinary shares outstanding and potentially dilutive shares outstanding during the period. Net income (loss) per share for the three and six months ended November 1, 2025 and November 2, 2024, respectively, was determined as follows (in thousands, except per share amounts):

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Numerator:
Net income (loss)			$	82,636					$	(4,225)					$	146,035					$	(13,765)
Denominator:
Weighted-average shares outstanding used in basic calculation			175,307						166,487						173,623						165,789
Effect of dilutive shares
Share-based compensation awards			10,431						—						10,137						—
Customer Warrant			1,921						—						1,705						—
Weighted-average shares outstanding used in dilution calculation			187,659						166,487						185,465						165,789
Net income (loss) per share:
Basic			$	0.47					$	(0.03)					$	0.84					$	(0.08)
Diluted			$	0.44					$	(0.03)					$	0.79					$	(0.08)

Potential dilutive securities include dilutive ordinary shares from the Customer Warrant, share-based awards attributable to the assumed exercise of share options, restricted stock units and employee stock purchase plan shares using the treasury stock method. Under the treasury stock method, potential ordinary shares outstanding are not

19

Credo Technology Group Holding Ltd

Notes to Unaudited Condensed Consolidated Financial Statements

included in the computation of diluted net income (loss) per share if their effect is anti-dilutive. The following potentially dilutive securities outstanding (in thousands) have been excluded from the computations of diluted weighted-average shares outstanding for the three and six months ended November 1, 2025 and November 2, 2024:

			Three and Six Months Ended
			November 1, 2025						November 2, 2024
Share-based compensation awards			824						14,038
Customer Warrant			—						4,080
			824						18,118

13. Segment Information

The Company’s Chief Operating Decision Maker (CODM) manages the Company’s business activities as a single reportable segment at the consolidated level. Accordingly, the CODM uses net income or loss for the purposes of making operating decisions, allocating resources and evaluating financial performance. The measure of segment assets is reported on the condensed consolidated balance sheet as total assets, although the CODM does not evaluate asset information of purposes of allocating resources or evaluating performance. The table below provides information about the Company’s revenue, significant segment expenses and other segment expenses (in thousands):

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Revenue			$	268,027					$	72,034					$	491,101					$	131,748
Less:
Cost of revenue			86,981						26,522						159,687						48,953
Personnel related expenses			30,207						20,777						57,460						41,762
Share-based compensation			44,970						16,332						80,069						32,691
Other segment items*			23,234						12,628						47,850						22,107
Net income (loss)			$	82,636					$	(4,225)					$	146,035					$	(13,765)

*Other segment items primarily include lease expense, external professional service expenses, depreciation and amortization, interest income and tax provision.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and management’s discussion and analysis of financial condition and results of operations for the fiscal year ended May 3, 2025 included in the Company’s Annual Report on Form 10-K for the fiscal year ended May 3, 2025. Some of the information contained in this discussion and analysis includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” of this Quarterly Report on Form 10-Q.

Overview

At Credo, our mission is to redefine high-speed connectivity by delivering breakthrough solutions that enable the next generation of AI-driven applications. We are committed to enabling faster, more reliable, more energy-efficient, and scalable solutions that support the ever-expanding demands of AI, cloud computing and hyperscale networks. Our connectivity solutions are optimized for optical and electrical Ethernet and PCIE applications, including the 100G (or Gigabits per second), 200G, 400G, 800G and emerging 1.6T (or Terabits per second) Ethernet markets and the 32G PCIe5 and upcoming 64G PCIe6 markets. Our products are based on our Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Our product families include integrated circuits (ICs), Active Electrical Cables (AECs) and SerDes Chiplets. Our intellectual property (IP) solutions consist primarily of SerDes IP licensing.

Data generation has increased dramatically over the past ten years, creating new and complicated challenges in both circuit and system design. Our proprietary SerDes and DSP technologies enable us to achieve similar performance to leading competitors’ products but at a lower cost and more highly available legacy node (n-1 advantage). Beyond power and performance, Credo continues to innovate to address customers’ system level requirements. We partner with Microsoft on our HiWire Switch AEC and open-source implementation that helps realize Microsoft’s vision for a highly reliable network-managed dual-Top-of-Rack (ToR) architecture (a network architecture design in which computing equipment located within the same or an adjacent rack are, for redundancy, connected to two in-rack network switches, which are, in turn, connected to aggregation switches via fiber optic cables), overcome complex and slow legacy enterprise approaches, simplify deployment and improve connection reliability in the data center.

The multibillion-dollar data infrastructure market that we serve is driven largely by hyperscale data centers (hyperscalers), as well as general compute, AI/ML infrastructure, multi-service operators (MSOs), and mobile network operators (MNOs). The demands for increased bandwidth, improved power and cost efficiency and heightened security have simultaneously and dramatically expanded as work, education and entertainment have rapidly digitized across myriad endpoint users.

We design, market and sell product, software and IP solutions. We help define industry conventions and standards within the markets we target by collaborating with technology leaders and standards bodies. We contract with a variety of manufacturing partners to build our products based on our proprietary SerDes and DSP technologies. We develop standard solutions we can sell broadly to our end markets and also develop tailored solutions designed to address specific customer needs. Once developed, these tailored solutions can generally be broadly leveraged across our portfolio and we are able to sell the part or license the IP to the broader market.

During the three and six months ended November 1, 2025, we generated $268.0 million and $491.1 million in total revenue, respectively, and during the three and six months ended November 2, 2024, we generated $72.0 million and $131.7 million in total revenue, respectively. Product sales comprised 97.5% and 97.4% of our total revenue in the three and six months ended November 1, 2025, respectively, and 95.9% in both the three and six months ended November 2, 2024, and IP license revenue represented 2.5% and 2.6% of our total revenue in the three and six months ended November 1, 2025, respectively, and 4.1% in both the three and six months ended November 2, 2024. During the three and six months ended November 1, 2025, we generated $82.6 million and $146.0 million in net income, respectively, and during the three and six months ended November 2, 2024, we generated $4.2 million and $13.8 million in net losses, respectively.

We derive the substantial majority of our revenue from a limited number of customers. We anticipate we will continue to derive a significant portion of our revenue from a limited number of customers for the foreseeable future. We expect that as our products are more widely adopted and as our number of customers increase, customer concentration will decrease.

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We sell our products to hyperscalers, original equipment manufacturers (OEMs), original design manufacturers (ODMs) and optical module manufacturers, as well as to companies in the enterprise and HPC markets. We work closely and have engagements with industry-leading companies across these segments. A relatively small number of customers have historically accounted for and continue to account for a significant portion of our revenue. We report revenue by customer in our financial statement disclosure based on the contracting parties who place purchase orders or sign revenue contracts with us. See Note 3 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. However, certain of our end customers have their contract manufacturing partners place orders with us. As a result, the contract manufacturers, rather than the end customers, are reported as our customers for financial reporting purposes. As a supplement to our financial statement footnote disclosure, and to provide further insight into our end customer concentration, the following table summarizes our revenue by customer as a percentage of total revenue based on end customer profile, rather than based on the contracting parties who place purchase orders or sign revenue contracts with us:

			Three Months Ended												Six Months Ended
Revenue			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Customer B			16		%				14		%				25		%				10		%
Customer C			42		%				33		%				38		%				42		%
Customer D			24		%				11		%				22		%				11		%
Customer E			11		%				*						*						*

* Less than 10% of total revenue.

Our Business Model

We are a product-focused business with a strong foundation in IP, pioneering comprehensive connectivity solutions that deliver bandwidth, scalability and end-to-end signal integrity for next-generation platforms. We also develop IP solutions to address the specific and complex needs of our customers. We earn revenue from these IP solutions primarily through licensing fees and royalties. Over time, we expect to generate an increased proportion of our revenue from sales of our products. We expect to see a long-term benefit from improvements in our operating leverage as our business continues to gain scale.

We utilize a fabless business model, working with a network of third parties to manufacture, assemble and test our connectivity products. This approach allows us to focus our engineering and design resources on our core competencies and to control our fixed costs and capital expenditures.

We employ a two-pronged sales strategy targeting both the end users of our products, as well as the suppliers of our end users. By engaging directly with the end user, we are able to better understand the needs of our customers and cater our solutions to their most pressing connectivity requirements.

This strategy has enabled us to become the preferred vendor to a number of our customers who, in turn, in some cases, require their suppliers, OEMs, ODMs and optical module manufacturers to utilize our solutions.

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Results of Operations

Three and Six Months Ended November 1, 2025 and November 2, 2024

The following table sets forth information derived from our unaudited condensed consolidated statements of operations expressed as a percentage of total revenue:

			Three Months Ended												Six Months Ended
			November 1, 2025						November 2, 2024						November 1, 2025						November 2, 2024
Revenue:
Product sales			97.5		%				95.9		%				97.4		%				95.9		%
IP license			2.5		%				4.1		%				2.6		%				4.1		%
Total revenue			100.0		%				100.0		%				100.0		%				100.0		%
Cost of revenue			32.5		%				36.8		%				32.5		%				37.2		%
Gross margin			67.5		%				63.2		%				67.5		%				62.8		%
Operating expenses:
Research and development			21.6		%				44.1		%				22.5		%				47.2		%
Selling, general and administrative			16.5		%				30.8		%				16.6		%				33.0		%
Total operating expenses			38.1		%				74.9		%				39.1		%				80.2		%
Operating income (loss)			29.4		%				(11.7)		%				28.4		%				(17.3)		%
Other income, net			1.8		%				6.2		%				1.8		%				7.6		%
Income (loss) before income taxes			31.2		%				(5.5)		%				30.2		%				(9.8)		%
Provision for income taxes			0.4		%				0.4		%				0.5		%				0.7		%
Net income (loss)			30.8		%				(5.9)		%				29.7		%				(10.4)		%

Comparison of Three and Six Months Ended November 1, 2025 and November 2, 2024

Revenue

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
			(in thousands, except percentages)																		(in thousands, except percentages)
Product sales			$	261,293					$	69,075					278.3		%				$	478,352					$	126,400					278.4		%
IP license			6,734						2,959						127.6		%				12,749						5,348						138.4		%
Total revenue			$	268,027					$	72,034					272.1		%				$	491,101					$	131,748					272.8		%

Total revenue for the three months ended November 1, 2025 increased by $196.0 million, compared to the same period in fiscal year 2025, primarily due to an increase in product sales revenue of $192.2 million and IP license revenue of $3.8 million.

The increase in product sales revenue for the three months ended November 1, 2025, compared to the same period in fiscal year 2025, was primarily due to a significant increase in the volume of unit shipments of AEC products which contributed over 95% of the increase in product sales revenue, compared to the same period in fiscal year 2025. The sales increase was primarily driven by the ramp-up of our AEC solutions at our hyperscale data center customers during the three months ended November 1, 2025.

The increase in IP license revenue for the three months ended November 1, 2025, compared to the same period in fiscal year 2025, was primarily due to sales of IP licenses to new customers.

Total revenue for the six months ended November 1, 2025 increased by $359.4 million, compared to the same period in fiscal year 2025, primarily due to an increase in product sales revenue of $352.0 million and IP license revenue of $7.4 million.

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The increase in product sales revenue for the six months ended November 1, 2025, compared to the same period in fiscal year 2025, was primarily due to a significant increase in the volume of unit shipments of AEC products which contributed over 95% of the increase in product sales revenue. The sales increase was primarily driven by the ramp-up of our AEC solutions at our hyperscale data center customers during the three months ended November 1, 2025.

The increase in IP license revenue for the six months ended November 1, 2025, compared to the same period in fiscal year 2025, was primarily due to sales of IP licenses to new customers.

Cost of Revenue

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
			(in thousands, except percentages)																		(in thousands, except percentages)
Cost of revenue			$	86,981					$	26,522					228.0		%				$	159,687					48,953						226.2		%

Cost of revenue for the three months ended November 1, 2025 increased by $60.5 million compared to the same period in fiscal year 2025, primarily due to the increased shipments of AEC products noted above. The cost of IP license revenue was not material in the periods presented.

Cost of revenue for the six months ended November 1, 2025 increased by $110.7 million compared to the same period in fiscal year 2025, primarily due to the increased shipments of AEC products noted above. The cost of IP license revenue was not material in the periods presented.

Gross Profit and Gross Margin

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
			(in thousands, except percentages)																		(in thousands, except percentages)
Gross profit			$	181,046					$	45,512					297.8		%				$	331,414					$	82,795					300.3		%
Gross margin			67.5		%				63.2		%				4.3		%				67.5		%				62.8		%				4.7		%

Gross margin in the three months ended November 1, 2025 increased by 4.3 percentage points compared to the same period in fiscal year 2025, primarily driven by the improved economies of scale in our product sales.

Gross margin in the six months ended November 1, 2025 increased by 4.7 percentage points compared to the same period in fiscal year 2025, primarily driven by the improved economies of scale in our product sales.

Research and Development

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
			(in thousands, except percentages)																		(in thousands, except percentages)
Research and development			$	57,916					$	31,742					82.5		%				$	110,364					$	62,151					77.6		%
% of total revenue			21.6		%				44.1		%										22.5		%				47.2		%

Research and development expense for the three months ended November 1, 2025 increased by $26.2 million compared to the same period in fiscal year 2025. The increase was due primarily to a $16.6 million increase in share-based compensation expense driven by increased amortization expense from new equity awards granted to employees, a $5.2 million increase in personnel costs as a result of new hires for product development, a $1.4 million increase in design activities and higher engineering activities relating to testing and laboratory supplies for new product development, and a $1.1 million increase in depreciation expense associated with an increase in R&D equipment.

Research and development expense for the six months ended November 1, 2025 increased by $48.2 million compared to the same period in fiscal year 2025. The increase was due primarily to a $26.5 million increase in share-based compensation expense driven by increased amortization expense from new equity awards granted to employees, an $8.6 million increase in personnel costs as a result of new hires for product development, an $8.3 million increase in design activities and higher engineering activities relating to testing and laboratory supplies for

24

new product development and a $1.7 million increase in depreciation expense driven by increased computer equipment and software and laboratory equipment utilized in research and development activities.

Selling, General and Administrative

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
			(in thousands, except percentages)																		(in thousands, except percentages)
Selling, general and administrative			$	44,334					$	22,177					99.9		%				$	81,512					$	43,502					87.4		%
% of total revenue			16.5		%				30.8		%										16.6		%				33.0		%

Selling, general and administrative expense for the three months ended November 1, 2025 increased by $22.2 million compared to the same period in fiscal year 2025. The increase was primarily due to a $12.1 million increase in share-based compensation expense driven by increased amortization expense from new equity awards granted to employees, $4.2 million increase in personnel costs as a result of higher selling, general and administrative headcount, a $5.5 million increase in external consultation fees relating to general and administrative expenses, and acquisition-related costs relating to the Hyperlume acquisition.

Selling, general and administrative expense for the six months ended November 1, 2025 increased by $38.0 million compared to the same period in fiscal year 2025. The increase was primarily due to a $20.8 million increase in share-based compensation expense driven by increased amortization expense from new equity awards granted to employees, a $7.0 million increase in personnel expenses from new hires an $8.5 million increase in external consultation fees relating to general and administrative expenses and acquisition-related costs relating to the Hyperlume acquisition.

Provision for Income Taxes

			Three Months Ended																		Six Months Ended
			November 1, 2025						November 2, 2024						% Change						November 1, 2025						November 2, 2024						% Change
			(in thousands, except percentages)																		(in thousands, except percentages)
Provision for income taxes			$	1,049					$	292					259.2		%				$	2,338					$	914					155.8		%
% of total revenue			0.4		%				0.4		%										0.5		%				0.7		%

Provision for income taxes for the three and six months ended November 1, 2025 increased by $0.8 million and $1.4 million, respectively, compared to the same period in fiscal year 2025. The increase was primarily driven by higher pre-tax income generated in tax-paying jurisdictions during the current year relative to the same period in fiscal year 2025.

Liquidity and Capital Resources

Our activities consist primarily of selling our products, licensing our IP, providing product and IP engineering services, and conducting research and development of our products and technology. As of November 1, 2025 and May 3, 2025, we had $567.6 million and $236.3 million in cash and cash equivalents, respectively, and working capital of $1,103.1 million and $605.8 million, respectively. Our principal use of cash is to fund our operations, invest in research and development and acquisitions of complementary businesses or technologies to support our growth. See Note 8 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for a further discussion of our cash requirements under non-cancelable purchase obligations.

During the three months ended November 1, 2025, the Company received $384.6 million in net proceeds through the issuance of 2.7 million ordinary shares under the At-The-Market Offering. See Note 1 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for a further discussion of our arrangement under the At-The-Market Offering. We believe our existing cash and cash equivalents and other components of working capital will be sufficient to meet our needs for at least the next 12 months and in the longer term. Our future capital requirements will depend on many factors, including our growth rate, the timing and extent of our sales and marketing and research and development expenditures, customer demand and the continuing market acceptance of our solutions. In the event that we need to borrow funds or issue additional equity, we cannot be assured that any such additional financing will be available on terms acceptable to us, if at all. If we are unable to raise

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additional capital when we need it, our business, results of operations and financial condition would be adversely affected.

Cash Flows

The following table summarizes our cash flows for the periods indicated.

			Six Months Ended
			November 1, 2025						November 2, 2024
			(in thousands)
Net cash provided by operating activities			$	115,833					$	3,049
Net cash provided by (used in) investing activities			$	(159,563)					$	171,534
Net cash provided by (used in) financing activities			$	374,924					$	(2,422)

Cash Flows Provided by Operating Activities

Net cash provided by operating activities was $115.8 million for the six months ended November 1, 2025. The cash inflows from operating activities for the six months ended November 1, 2025 were primarily due to net income of $146.0 million adjusted for the following non-cash items: share-based compensation expense of 80.8 million, depreciation and amortization of $12.0 million and write-downs for excess and obsolete inventory of $8.1 million. This was offset by $131 million of cash outflows from working capital for the six months ended November 1, 2025, which was primarily driven by (a) increase in accounts receivable of $83.1 million primarily due to large billings from customers not due yet in the six months ended November 1, 2025; (b) an increase in inventory of $66.4 million to support unfulfilled backlog and related new product ramps; and (c) an increase in accounts payable and other current liabilities of $18.5 million due to timing of payments for inventory purchases and ATM fees to bankers.

Net cash provided by operating activities was $3.0 million for the six months ended November 2, 2024. The cash inflows from operating activities for the six months ended November 2, 2024 were primarily due to $50.6 million of non-cash items, partially offset by $33.7 million of cash outflows for working capital purposes and $13.8 million of net loss. The cash outflows from working capital for the six months ended November 2, 2024 were primarily driven by (a) an increase in accounts receivable of $22.1 million primarily due to large billings from customers not due yet in the six months ended November 2, 2024; (b) an increase in inventory of $12.6 million to support unfulfilled backlog and related new product ramps; and (c) a decrease in deferred revenue of $2.0 million due to satisfaction of performance obligations over the passage of time.

Cash Flows Provided by (Used in) Investing Activities

Net cash used in investing activities of $159.6 million in the six months ended November 1, 2025 was primarily attributable to purchases of property and equipment of $26.0 million, purchases of certificates of deposit for $115.0 million, and net cash payment for Hyperlume acquisition of $82.6 million, offset by maturities of certificates of deposit for $64.0 million. Purchases of property and equipment primarily related to mask set costs capitalized relating to the Company’s products already introduced or to be introduced, and third-party IP licenses and computer equipment and software used for research and development purposes.

Net cash provided by investing activities of $171.5 million in the six months ended November 2, 2024 was primarily attributable to maturities of certificates of deposit for $313.1 million, offset by purchases of the same for $113.7 million and purchases of property and equipment of $27.8 million. Purchases of property and equipment primarily related to mask sets costs capitalized relating to the Company’s products already introduced or in process of being introduced, and third-party IP licenses and computer equipment and software used for research and development purposes.

Cash Flows Provided by (Used in) Financing Activities

Net cash provided by financing activities of $374.9 million for the six months ended November 1, 2025 was primarily attributable to $5.2 million in proceeds from exercises of employee share options and net proceeds from the At-The-Market Offering of $384.6 million and offset by $4.8 million in payments for long-term technology license obligations and $10.1 million tax withheld related to RSU settlement.

Net cash used in financing activities of $2.4 million for the six months ended November 2, 2024 was primarily attributable to $4.6 million in payments for long-term technology license obligations and $2.3 million tax withheld related to RSU settlement, offset by $4.4 million in proceeds from exercises of employee share options.

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Critical Accounting Estimates

Except for the accounting policy for business combinations that was updated as a result of our acquisition of the Hyperlume business, there have been no material changes to our critical accounting estimates during the three and six months ended November 1, 2025, as compared to those disclosed under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended May 3, 2025. In the current macroeconomic environment, our estimates could require increased judgment and carry a higher degree of variability and volatility. We continue to monitor and assess our estimates in light of developments, and as events continue to evolve and additional information becomes available, our estimates may change materially in future periods.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

For a discussion of market risks, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the fiscal year ended May 3, 2025. During the three and six months ended November 1, 2025, there were no material changes or developments that would materially alter the market risk assessment performed as of May 3, 2025.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

We maintain “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), that are designed to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There was no change in our “internal control over financial reporting,” as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the quarter ended November 1, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Credo have been detected.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we are involved in various legal proceedings arising in the ordinary course of our business. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on us. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Item 1A. Risk Factors.

Our operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended May 3, 2025, which could adversely affect our business, financial condition, results of operations, cash flows and the trading price of our ordinary shares. As of the date of this Quarterly Report on Form 10-Q there have been no material changes from the risk factors previously disclosed in our in the Annual Report on Form 10-K for the fiscal year ended May 3, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered Sales of Equity Securities

In connection with the closing of our acquisition of Hyperlume, on September 29, 2025, we issued (i) 132,015 restricted shares of Credo to one of the founders of Hyperlume as consideration for our acquisition of his outstanding equity interests in Hyperlume, which restricted shares are subject to certain vesting conditions based on such founder’s continued service with Credo and its subsidiaries over a four-year period pursuant to a Restricted Share Agreement and (ii) 132,015 shares of a newly formed subsidiary of Credo to the other founder of Hyperlume as consideration for our acquisition of his outstanding equity interests in Hyperlume, which shares are exchangeable into ordinary shares of Credo based on certain vesting conditions based on such founder’s continued service with Credo and its subsidiaries over a four-year period pursuant to an Exchange Agreement. The foregoing shares vest ratably on a quarterly basis over the applicable service period, subject to acceleration if the applicable founder is terminated without “cause” or as a result of death or “disability” or if the applicable founder resigns for “good reason” (as such terms are defined in the Restricted Share Agreement or the Exchange Agreement, as the case may be), or if such founder is terminated in connection with a sale by Credo of its assets or any business unit for which such founder works to a third party. The issuance of these shares was made in reliance on an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof because the issuance of the securities did not involve a public offering.

Item 5. Other Information.

Rule 10b5-1 Trading Plans

On September 5, 2025, Chi Fung (Lawrence) Cheng, our Chief Technology Officer and a member of our board of directors, adopted a Rule 10b5-1 Trading Plan (the “Plan"), intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act, pursuant to which a maximum amount of 1,000,000 of our ordinary shares held by the Cheng Huang Family Trust U/T/A DTD 12/22/2003 may be sold between January 2, 2026 and December 31, 2026. The Plan terminates on the earlier of: (i) December 31, 2026, (ii) the first date on which all trades set forth in the Plan have been executed or (iii) such date as the Plan is otherwise terminated according to its terms. Mr. Cheng and his spouse are co-trustees and hold shared voting and dispositive power over the shares held by the Cheng Huang Family Trust U/T/A DTD 12/22/2003.

On September 4, 2025, we reported on our Quarterly Report on Form 10-Q for the quarterly period ended August 2, 2025, that Daniel Fleming, our Chief Financial Officer, adopted a Rule 10b5-1 Trading Plan, pursuant to which a maximum amount of 105,000 of our ordinary shares held directly by Mr. Fleming may be sold between October 8, 2025 and September 30, 2026. The correct number of shares covered under such Rule 10b5-1 Trading Plan is 155,000 of our ordinary shares. Other than this correction, all other terms of the previously disclosed Rule 10b5-1 Trading Plan remain as previously described.

On July 2, 2025, we reported on our Annual Report on Form 10-K for the fiscal year ended May 3, 2025, that William J. Brennan, our Chief Executive Officer and a member of our board of directors, adopted a Rule 10b5-1 Trading Plan, pursuant to which a maximum amount of: (i) 144,128 of our ordinary shares held directly by Mr. Brennan

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and (ii) 500,000 of our ordinary shares held by The Brennan Family Trust, DTD 09/06/2002 may be sold between August 1, 2025 and June 30, 2026. The correct number of shares covered under such Rule 10b5-1 Trading Plan is: (i) 300,378 of our ordinary shares held directly by Mr. Brennan and (ii) 500,000 of our ordinary shares held by The Brennan Family Trust, DTD 09/06/2002. Other than this correction, all other terms of the previously disclosed Rule 10b5-1 Trading Plan remain as previously described.

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Item 6. Exhibits.

Incorporated by Reference

Exhibit Number

Exhibit Description

Form

File No.

Exhibit No.

Filing Date

Provided Herewith

10.1

*

Executive Change in Control Severance Plan

X

31.1

*

Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

X

31.2

*

Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

X

32.1

**

Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

X

32.2

**

Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

X

101.INS

*

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document)

101.SCH

*

Inline XBRL Taxonomy Extension Schema Document

X

101.CAL

*

Inline XBRL Taxonomy Extension Calculation Linkbase Document

X

101.DEF

*

Inline XBRL Taxonomy Extension Definition Linkbase Document

X

101.LAB

*

Inline XBRL Taxonomy Extension Label Linkbase Document

X

101.PRE

*

Inline XBRL Taxonomy Extension Presentation Linkbase Document

X

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

X

*Filed herewith
**Furnished herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			CREDO TECHNOLOGY GROUP HOLDING LTD
Date: December 1, 2025			By:			/s/ William Brennan
						Name:			William Brennan
						Title:			President and Chief Executive Officer

Date: December 1, 2025			By:			/s/ Daniel Fleming
						Name:			Daniel Fleming
						Title:			Chief Financial Officer

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FAQ

How did Credo Technology Group (CRDO) perform financially this quarter?

For the quarter ended November 1, 2025, Credo reported $268.0 million in revenue and $82.6 million in net income, compared with $72.0 million in revenue and a $4.2 million net loss a year earlier.

What drove Credo Technology Group’s revenue growth in the latest quarter?

The company attributes the $196.0 million year‑over‑year revenue increase mainly to higher unit shipments of Active Electrical Cable (AEC) products to hyperscale data center customers, plus higher IP license revenue.

How profitable is Credo Technology Group (CRDO) now on a year-to-date basis?

Over the first six months of fiscal 2026, Credo generated $491.1 million in revenue and $146.0 million in net income, compared with $131.7 million in revenue and a $13.8 million net loss in the prior‑year period.

What is Credo Technology Group’s cash position and liquidity?

As of November 1, 2025, Credo held $567.6 million in cash and cash equivalents and reported working capital of about $1.10 billion, after receiving $384.6 million in net proceeds from an at‑the‑market share offering.

What are Credo Technology Group’s major customer concentration levels?

For the three months ended November 1, 2025, Customer A represented 64% of revenue and Customer B represented 16%, indicating a significant reliance on a small number of large customers.

What is the significance of Credo Technology Group’s Hyperlume acquisition?

On September 29, 2025, Credo acquired Hyperlume for total consideration of about $92.0 million, adding microLED-based optical interconnect technology, $69.1 million of goodwill, and a $17.2 million intangible asset.

How much did Credo Technology Group spend on share-based compensation?

Share-based compensation expense was $45.3 million for the quarter and $80.8 million for the first six months of fiscal 2026, significantly higher than the prior‑year periods.