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

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

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

Reported Financial Results – Second Quarter FY26

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

Business Outlook – Third Quarter FY26

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

About Cirrus Logic, Inc.

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

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

Use of non-GAAP Financial Information

To supplement Cirrus Logic's financial statements presented on a GAAP basis, the company has provided non-GAAP financial information, including non-GAAP net income, diluted earnings per share, operating income and profit, operating expenses, gross margin and profit, tax expense, tax expense impact on earnings per share, effective tax rate, free cash flow, and free cash flow margin. A reconciliation of the adjustments to GAAP results is included in the tables below.

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

Safe Harbor Statement

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

Summary Financial Data Follows:

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(in thousands, except per share data; unaudited)

Three Months Ended

Six Months Ended

Sep. 27,

Jun. 28,

Sep. 28,

Sep. 27,

Sep. 28,

2025

2024

2025

2024

Q2'26

Q1'26

Q2'25

Q2'26

Q2'25

Audio

318,214

240,043

316,588

558,257

535,558

High-Performance Mixed-Signal

242,746

167,229

225,269

409,975

380,325

Net sales

560,960

407,272

541,857

968,232

915,883

Cost of sales

266,586

193,242

259,267

459,828

444,368

Gross profit

294,374

214,030

282,590

508,404

471,515

Gross margin

52.5

52.6

52.2

52.5

51.5

Research and development

110,021

102,892

112,925

212,913

218,288

Selling, general and administrative

39,589

38,744

37,813

78,333

74,583

Total operating expenses

149,610

141,636

150,738

291,246

292,871

Income from operations

144,764

72,394

131,852

217,158

178,644

Interest income

8,695

8,622

8,134

17,317

16,336

Other income (expense)

(63

)

(388

)

(451

)

1,628

Income before income taxes

153,396

80,628

140,005

234,024

196,608

Provision for income taxes

21,800

19,931

37,865

41,731

52,373

Net income

131,596

60,697

102,140

192,293

144,235

Basic earnings per share

2.57

1.17

1.92

3.74

2.70

Diluted earnings per share:

2.48

1.14

1.83

3.61

2.59

Weighted average number of shares:

Basic

51,175

51,727

53,275

51,451

53,354

Diluted

53,054

53,319

55,800

53,195

55,753

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(in thousands, except per share data; unaudited)

(not prepared in accordance with GAAP)

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

Three Months Ended

Six Months Ended

Sep. 27,

Jun. 28,

Sep. 28,

Sep. 27,

Sep. 28,

2025

2024

2025

2024

Net Income Reconciliation

Q2'26

Q1'26

Q2'25

Q2'26

Q2'25

GAAP Net Income

131,596

60,697

102,140

192,293

144,235

Amortization of acquisition intangibles

1,648

1,647

1,864

3,295

3,836

Stock-based compensation expense

20,597

20,809

22,447

41,406

43,832

Lease impairment

—

1,019

Adjustment to income taxes

(3,861

)

(2,839

)

(1,162

)

(6,700

)

(5,267

)

Non-GAAP Net Income

149,980

80,314

125,289

230,294

187,655

Earnings Per Share Reconciliation

GAAP Diluted earnings per share

2.48

1.14

1.83

3.61

2.59

Effect of Amortization of acquisition intangibles

0.03

0.04

0.06

0.07

Effect of Stock-based compensation expense

0.39

0.40

0.78

0.79

Effect of Lease impairment

—

0.02

Effect of Adjustment to income taxes

(0.07

)

(0.05

)

(0.02

)

(0.12

)

(0.10

)

Non-GAAP Diluted earnings per share

2.83

1.51

2.25

4.33

3.37

Operating Income Reconciliation

GAAP Operating Income

144,764

72,394

131,852

217,158

178,644

GAAP Operating Profit

25.8

17.8

24.3

22.4

19.5

Amortization of acquisition intangibles

1,648

1,647

1,864

3,295

3,836

Stock-based compensation expense - COGS

363

300

355

663

621

Stock-based compensation expense - R&D

13,019

13,072

15,844

26,091

31,607

Stock-based compensation expense - SG&A

7,215

7,437

6,248

14,652

11,604

Lease impairment

—

1,019

Non-GAAP Operating Income

167,009

94,850

156,163

261,859

227,331

Non-GAAP Operating Profit

29.8

23.3

28.8

27.0

24.8

Operating Expense Reconciliation

GAAP Operating Expenses

149,610

141,636

150,738

291,246

292,871

Amortization of acquisition intangibles

(1,648

)

(1,647

)

(1,864

)

(3,295

)

(3,836

)

Stock-based compensation expense - R&D

(13,019

)

(13,072

)

(15,844

)

(26,091

)

(31,607

)

Stock-based compensation expense - SG&A

(7,215

)

(7,437

)

(6,248

)

(14,652

)

(11,604

)

Lease impairment

—

1,019

Non-GAAP Operating Expenses

127,728

119,480

126,782

247,208

244,805

Gross Margin/Profit Reconciliation

GAAP Gross Profit

294,374

214,030

282,590

508,404

471,515

GAAP Gross Margin

52.5

52.6

52.2

52.5

51.5

Stock-based compensation expense - COGS

363

300

355

663

621

Non-GAAP Gross Profit

294,737

214,330

282,945

509,067

472,136

Non-GAAP Gross Margin

52.5

52.6

52.2

52.6

51.5

Effective Tax Rate Reconciliation

GAAP Tax Expense

21,800

19,931

37,865

41,731

52,373

GAAP Effective Tax Rate

14.2

24.7

27.0

17.8

26.6

Adjustments to income taxes

3,861

2,839

1,162

6,700

5,267

Non-GAAP Tax Expense

25,661

22,770

39,027

48,431

57,640

Non-GAAP Effective Tax Rate

14.6

22.1

23.8

17.4

23.5

Tax Impact to EPS Reconciliation

GAAP Tax Expense

0.41

0.37

0.68

0.78

0.94

Adjustments to income taxes

0.07

0.05

0.02

0.12

0.10

Non-GAAP Tax Expense

0.48

0.42

0.70

0.90

1.04

CONSOLIDATED CONDENSED BALANCE SHEET

(in thousands; unaudited)

Sep. 27,

Mar. 29,

Sep. 28,

2025

2024

ASSETS

Current assets

Cash and cash equivalents

593,476

539,620

445,759

Marketable securities

52,424

56,160

32,499

Accounts receivable, net

355,397

216,009

324,098

Inventories

236,409

299,092

271,765

Prepaid wafers

45,056

52,560

71,740

Other current assets

84,238

76,293

79,044

Total current Assets

1,367,000

1,239,734

1,224,905

Long-term marketable securities

250,146

239,036

228,302

Right-of-use lease assets

125,315

126,688

133,316

Property and equipment, net

151,154

159,900

168,265

Intangibles, net

24,451

27,461

25,700

Goodwill

435,936

Deferred tax asset

46,511

48,150

48,619

Long-term prepaid wafers

—

15,512

37,804

Other assets

29,170

34,656

53,292

Total assets

2,429,683

2,327,073

2,356,139

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

79,974

63,162

91,899

Accrued salaries and benefits

52,689

52,075

51,861

Lease liability

19,481

21,811

22,800

Other accrued liabilities

58,179

58,140

62,716

Total current liabilities

210,323

195,188

229,276

Non-current lease liability

120,985

121,908

129,806

Non-current income taxes

45,357

44,040

42,683

Other long-term liabilities

10,576

16,488

26,247

Total long-term liabilities

176,918

182,436

198,736

Stockholders' equity:

Capital stock

1,903,638

1,860,281

1,819,589

Accumulated earnings

139,025

90,351

107,233

Accumulated other comprehensive (loss) income

(221

)

(1,183

)

1,305

Total stockholders' equity

2,042,442

1,949,449

1,928,127

Total liabilities and stockholders' equity

2,429,683

2,327,073

2,356,139

Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

(in thousands; unaudited)

Three Months Ended

Sep. 27,

Sep. 28,

2025

2024

Q2'26

Q2'25

Cash flows from operating activities:

Net income

131,596

102,140

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

12,704

12,618

Stock-based compensation expense

20,597

22,447

Deferred income taxes

7,470

4,984

Loss on retirement or write-off of long-lived assets

—

Other non-cash charges

Net change in operating assets and liabilities:

Accounts receivable, net

(141,312

)

(134,019

)

Inventories

42,575

(39,199

)

Prepaid wafers

16,878

25,531

Other assets

(8,485

)

(341

)

Accounts payable and other accrued liabilities

29,451

27,268

Income taxes payable

(19,328

)

(13,297

)

Net cash provided by operating activities

92,214

8,231

Cash flows from investing activities:

Maturities and sales of available-for-sale marketable securities

39,752

835

Purchases of available-for-sale marketable securities

(43,171

)

(3,577

)

Purchases of property, equipment and software

(3,868

)

(2,670

)

Investments in technology

(642

)

(70

)

Net cash used in investing activities

(7,929

)

(5,482

)

Cash flows from financing activities:

Net proceeds from the issuance of common stock

1,568

4,859

Repurchase of stock to satisfy employee tax withholding obligations

(1,261

)

(3,207

)

Repurchase and retirement of common stock

(39,986

)

(49,993

)

Net cash used in financing activities

(39,679

)

(48,341

)

Net increase (decrease) in cash and cash equivalents

44,606

(45,592

)

Cash and cash equivalents at beginning of period

548,870

491,351

Cash and cash equivalents at end of period

593,476

445,759

Prepared in accordance with Generally Accepted Accounting Principles

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(in thousands; unaudited)

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

Twelve Months Ended

Three Months Ended

Sep. 27,

Jun. 28,

Mar. 29,

Dec. 28,

2025

2024

Q2'26

Q1'26

Q4'25

Q3'25

Net cash provided by operating activities (GAAP)

557,319

92,214

116,131

130,386

218,588

Capital expenditures

(23,148

)

(4,510

)

(2,770

)

(9,181

)

(6,687

)

Free Cash Flow (Non-GAAP)

534,171

87,704

113,361

121,205

211,901

Cash Flow from Operations as a Percentage of Revenue (GAAP)

Capital Expenditures as a Percentage of Revenue (GAAP)

Free Cash Flow Margin (Non-GAAP)

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION

(in millions; unaudited)

(not prepared in accordance with GAAP)

Q3 FY26

Guidance

Operating Expense Reconciliation

GAAP Operating Expenses

151 - 157

Stock-based compensation expense

(21

)

Amortization of acquisition intangibles

)

Non-GAAP Operating Expenses

128 - 134