The following is a summary of the Cirrus Logic, Inc. (CRUS) Q2 2025 Earnings Call Transcript:
Financial Performance:
Cirrus Logic reported a record Q2 FY 2025 revenue of $541.9 million, an increase of 13% year-over-year, primarily driven by higher smartphone unit volumes and next generation products.
Non-GAAP gross profit for Q2 was $282.9 million, with a gross margin of 52.2%, a year-over-year increase of 90 basis points, attributed to favorable product mix offset partially by higher supply chain costs.
Non-GAAP operating income reached $156.2 million, 28.8% of revenue, with record earnings per share of $2.25 for the quarter.
Business Progress:
Shipping next generation custom boosted amplifier and first 22 nm smart codec, reflecting improvements in power efficiency and audio quality in smartphones.
Growth in high-performance mixed signal solutions, notably in camera controllers, with increased value and upcoming smartphone features.
Expansion into laptops with significant wins, including a high-volume mainstream design and multiple components in Tier 1 devices, showcasing the potential for growth beyond smartphones.
Opportunities:
Opportunities to grow smartphone content with new high-performance mixed signal components and advanced camera controllers, as well as expansion into the PC/laptop market with new components designed for audio playback and power efficiency.
Anticipation of future growth from investments in R&D focusing on advanced power sensing and battery-related technologies.
Risks:
Inventory build-up expected to increase in FY '26 under wafer purchase commitments with GlobalFoundries, which requires careful management given current market conditions.
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