Cirrus Logic Reports Fiscal Second Quarter Revenue of $559.5 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 2027, which ended September 26, 2026, as well as the company’s current business outlook. “Cirrus Logic delivered solid results in the September quarter primarily driven by strong demand and increased content shipping into smartphones,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter we were pleased to see our custom components featured in newly launched smartphones, in addition to broader adoption of our third-generation camera controller in these devices. We also made progress on new product development as we began sampling our analog front-end components for smart metering and taped out both our fourth-generation camera controller for smartphones and second-generation smart codec for AI-enabled PCs. With an extensive roadmap and strong pipeline of opportunities, we remain confident in our ability to grow long-term shareholder value.” Reported Financial Results – Second Quarter FY27 Revenue of $559.5 million; GAAP gross margin of 53.7 percent and non-GAAP gross margin of 53.8 percent; GAAP operating expenses of $168.2 million and non-GAAP operating expenses of $141.6 million; and GAAP earnings per share of $2.23 and non-GAAP earnings per share of $2.70. A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release. Business Outlook – Third Quarter FY27 Revenue is expected to range between $510 million and $570 million; GAAP gross margin is forecasted to be between 51 percent and 53 percent; and Combined GAAP R&D and SG&A expenses are anticipated to range between $184 million and $190 million, including approximately $21 million in stock-based compensation expense, $9 million acquisition-related costs, and $2 million in amortization of acquisition intangibles, resulting in a non-GAAP operating expense range between $152 million and $158 million. Share Repurchase Authorization The company also announced that in October 2026 its Board of Directors authorized the repurchase of up to an additional $500 million of the company's common stock. The repurchases are expected to be funded from working capital and anticipated cash flow from operations and may occur from time to time depending on a variety of factors, including general market and economic conditions and other corporate considerations. Repurchases may be affected through a variety of means, including open market purchases, privately negotiated transactions, 10b5-1 plans, or other means, in accordance with applicable securities laws. The Company is not obligated to repurchase any specific amount of shares, and repurchases may be suspended or discontinued at any time without notice. Financial Results Conference Call 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 call can be accessed at the same website. 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. Acquisition-related costs include professional fees and other discrete costs incurred in connection with acquisition-related activity, as well as acquisition-specific employee bonus and retention payments. The employee payments were established in connection with completed acquisitions, are subject to transaction-specific employment or retention conditions, and are not expected to recur after the applicable transaction-related obligations are satisfied. These amounts are excluded from the Company’s non-GAAP measures because management believes they are not indicative of the Company’s ongoing operating performance. 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 grow long-term shareholder value; and our estimates for the third quarter fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, acquisition-related costs, amortization of acquisition intangibles, and our resulting non-GAAP operating expense range. 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 2027; customer cancellations of orders; the failure to place orders consistent with forecasts; global economic conditions and uncertainty; and our ability to develop and commercialize products and technologies for new markets, along with the risk factors listed in our Form 10-K for the year ended March 28, 2026 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. CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (in thousands, except per share data; unaudited) Three Months Ended Six Months Ended Sep. 26, Jun. 27, Sep. 27, Sep. 26, Sep. 27, 2026 2026 2025 2026 2025 Q2'27 Q1'27 Q2'26 Q2'27 Q2'26 Audio $ 314,509 $ 249,034 $ 318,214 $ 563,544 $ 558,257 High-Performance Mixed-Signal 244,953 210,689 242,746 455,641 409,975 Net sales 559,462 459,723 560,960 1,019,185 968,232 Cost of sales 258,909 217,868 266,586 476,778 459,828 Gross profit 300,553 241,855 294,374 542,407 508,404 Gross margin 53.7 % 52.6 % 52.5 % 53.2 % 52.5 % Research and development 123,341 115,013 110,021 238,354 212,913 Selling, general and administrative 44,840 42,406 39,589 87,246 78,333 Total operating expenses 168,181 157,419 149,610 325,600 291,246 Income from operations 132,372 84,436 144,764 216,807 217,158 Interest income, net 9,672 10,082 8,695 19,754 17,317 Other expense (62 ) (363 ) (63 ) (425 ) (451 ) Income before income taxes 141,982 94,155 153,396 236,136 234,024 Provision for income taxes 27,243 17,304 21,800 44,546 41,731 Net income $ 114,739 $ 76,851 $ 131,596 $ 191,590 $ 192,293 Basic earnings per share $ 2.30 $ 1.52 $ 2.57 $ 3.81 $ 3.74 Diluted earnings per share $ 2.23 $ 1.47 $ 2.48 $ 3.69 $ 3.61 Weighted average number of shares: Basic 49,902 50,550 51,175 50,226 51,451 Diluted 51,481 52,353 53,054 51,907 53,195 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. 26, Jun. 27, Sep. 27, Sep. 26, Sep. 27, 2026 2026 2025 2026 2025 Net Income Reconciliation Q2'27 Q1'27 Q2'26 Q2'27 Q2'26 GAAP Net Income $ 114,739 $ 76,851 $ 131,596 $ 191,590 $ 192,293 Amortization of acquisition intangibles 1,647 1,647 1,648 3,295 3,295 Stock-based compensation expense 18,273 20,589 20,597 38,862 41,406 Acquisition-related costs (1) 6,897 — — 6,897 — Adjustment to income taxes (2,380 ) (2,988 ) (3,861 ) (5,368 ) (6,700 ) Non-GAAP Net Income $ 139,176 $ 96,099 $ 149,980 $ 235,276 $ 230,294 Earnings Per Share Reconciliation GAAP Diluted earnings per share $ 2.23 $ 1.47 $ 2.48 $ 3.69 $ 3.61 Effect of Amortization of acquisition intangibles 0.03 0.03 0.03 0.06 0.06 Effect of Stock-based compensation expense 0.36 0.40 0.39 0.75 0.78 Effect of Acquisition-related costs 0.13 — — 0.13 — Effect of Adjustment to income taxes (0.05 ) (0.06 ) (0.07 ) (0.10 ) (0.12 ) Non-GAAP Diluted earnings per share $ 2.70 $ 1.84 $ 2.83 $ 4.53 $ 4.33 Operating Income Reconciliation GAAP Operating Income $ 132,372 $ 84,436 $ 144,764 $ 216,807 $ 217,158 GAAP Operating Profit 23.7 % 18.4 % 25.8 % 21.3 % 22.4 % Amortization of acquisition intangibles 1,647 1,647 1,648 3,295 3,295 Stock-based compensation expense - COGS 276 238 363 514 663 Stock-based compensation expense - R&D 12,651 13,245 13,019 25,895 26,091 Stock-based compensation expense - SG&A 5,346 7,106 7,215 12,453 14,652 Acquisition-related costs 6,897 — — 6,897 — Non-GAAP Operating Income $ 159,189 $ 106,672 $ 167,009 $ 265,861 $ 261,859 Non-GAAP Operating Profit 28.5 % 23.2 % 29.8 % 26.1 % 27.0 % Operating Expense Reconciliation GAAP Operating Expenses $ 168,181 $ 157,419 $ 149,610 $ 325,600 $ 291,246 Amortization of acquisition intangibles (1,647 ) (1,647 ) (1,648 ) (3,295 ) (3,295 ) Stock-based compensation expense - R&D (12,651 ) (13,245 ) (13,019 ) (25,895 ) (26,091 ) Stock-based compensation expense - SG&A (5,346 ) (7,106 ) (7,215 ) (12,453 ) (14,652 ) Acquisition-related costs (6,897 ) — — (6,897 ) — Non-GAAP Operating Expenses $ 141,640 $ 135,421 $ 127,728 $ 277,060 $ 247,208 Gross Margin/Profit Reconciliation GAAP Gross Profit $ 300,553 $ 241,855 $ 294,374 $ 542,407 $ 508,404 GAAP Gross Margin 53.7 % 52.6 % 52.5 % 53.2 % 52.5 % Stock-based compensation expense - COGS 276 238 363 514 663 Non-GAAP Gross Profit $ 300,829 $ 242,093 $ 294,737 $ 542,921 $ 509,067 Non-GAAP Gross Margin 53.8 % 52.7 % 52.5 % 53.3 % 52.6 % Effective Tax Rate Reconciliation GAAP Tax Expense $ 27,243 $ 17,304 $ 21,800 $ 44,546 $ 41,731 GAAP Effective Tax Rate 19.2 % 18.4 % 14.2 % 18.9 % 17.8 % Adjustment to income taxes 2,380 2,988 3,861 5,368 6,700 Non-GAAP Tax Expense $ 29,623 $ 20,292 $ 25,661 $ 49,914 $ 48,431 Non-GAAP Effective Tax Rate 17.5 % 17.4 % 14.6 % 17.5 % 17.4 % Tax Impact to EPS Reconciliation GAAP Tax Expense $ 0.53 $ 0.33 $ 0.41 $ 0.86 $ 0.78 Adjustment to income taxes 0.05 0.06 0.07 0.10 0.12 Non-GAAP Tax Expense $ 0.58 $ 0.39 $ 0.48 $ 0.96 $ 0.90 (1) Acquisition-related costs include professional fees and other discrete costs incurred in connection with acquisition-related activity, as well as acquisition-specific employee bonus and retention payments. CONSOLIDATED CONDENSED BALANCE SHEET (in thousands; unaudited) Sep. 26, Mar. 28, Sep. 27, 2026 2026 2025 ASSETS Current assets Cash and cash equivalents $ 720,124 $ 800,930 $ 593,476 Marketable securities 31,923 86,697 52,424 Accounts receivable, net 365,753 220,149 355,397 Inventories 271,198 240,871 236,409 Prepaid assets 47,080 47,587 51,657 Prepaid wafers — 14,733 45,056 Other current assets 27,815 22,741 32,581 Total current assets 1,463,893 1,433,708 1,367,000 Long-term marketable securities 324,387 266,160 250,146 Right-of-use lease assets 113,552 120,676 125,315 Property and equipment, net 151,549 143,975 151,154 Intangibles, net 17,470 20,727 24,451 Goodwill 435,936 435,936 435,936 Deferred tax assets 44,851 49,824 46,511 Other assets 37,769 18,368 29,170 Total assets $ 2,589,407 $ 2,489,374 $ 2,429,683 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 104,407 $ 80,645 $ 79,974 Accrued salaries and benefits 55,442 52,723 52,689 Software license agreements 16,586 22,229 26,803 Current lease liabilities 21,863 19,872 19,481 Other accrued liabilities 30,193 19,187 31,376 Total current liabilities 228,491 194,656 210,323 Non-current lease liabilities 105,871 114,105 120,985 Non-current income taxes 48,031 46,721 45,357 Software license agreements and other 14,846 5,896 10,576 Total long-term liabilities 168,748 166,722 176,918 Stockholders' equity: Capital stock 1,986,816 1,945,958 1,903,638 Accumulated earnings 211,034 184,881 139,025 Accumulated other comprehensive loss (5,682 ) (2,843 ) (221 ) Total stockholders' equity 2,192,168 2,127,996 2,042,442 Total liabilities and stockholders' equity $ 2,589,407 $ 2,489,374 $ 2,429,683 Prepared in accordance with Generally Accepted Accounting Principles CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (in thousands; unaudited) Three Months Ended Sep. 26, Sep. 27, 2026 2025 Q2'27 Q2'26 Cash flows from operating activities: Net income $ 114,739 $ 131,596 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 13,591 12,704 Stock-based compensation expense 18,273 20,597 Deferred income taxes 10,457 7,470 Other non-cash adjustments 204 68 Net change in operating assets and liabilities: Accounts receivable (111,782 ) (141,312 ) Inventories (8,452 ) 42,575 Prepaid wafers — 16,878 Other assets (18,036 ) (8,485 ) Accounts payable and other accrued liabilities 39,376 29,451 Income taxes payable (7,464 ) (19,328 ) Net cash provided by operating activities 50,906 92,214 Cash flows from investing activities: Maturities and sales of available-for-sale marketable securities 81,651 39,752 Purchases of available-for-sale marketable securities (85,423 ) (43,171 ) Purchases of property, equipment and software (8,418 ) (3,868 ) Investments in technology (225 ) (642 ) Net cash used in investing activities (12,415 ) (7,929 ) Cash flows from financing activities: Net proceeds from the issuance of common stock 667 1,568 Repurchase of stock to satisfy employee tax withholding obligations (1,202 ) (1,261 ) Repurchase and retirement of common stock (128,498 ) (39,986 ) Net cash used in financing activities (129,033 ) (39,679 ) Net (decrease) increase in cash and cash equivalents (90,542 ) 44,606 Cash and cash equivalents at beginning of period 810,666 548,870 Cash and cash equivalents at end of period $ 720,124 $ 593,476 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. 26, Sep. 26, Jun. 27, Mar. 28, Dec. 27, 2026 2026 2026 2026 2025 Q2'27 Q2'27 Q1'27 Q4'26 Q3'26 Net cash provided by operating activities (GAAP) $ 557,288 $ 50,906 $ 64,128 $ 151,420 $ 290,834 Capital expenditures (31,703 ) (8,643 ) (15,504 ) (2,396 ) (5,160 ) Free Cash Flow (Non-GAAP) $ 525,585 $ 42,263 $ 48,624 $ 149,024 $ 285,674 Cash Flow from Operations as a Percentage of Revenue (GAAP) 27 % 9 % 14 % 34 % 50 % Capital Expenditures as a Percentage of Revenue (GAAP) 2 % 2 % 3 % 1 % 1 % Free Cash Flow Margin (Non-GAAP) 26 % 8 % 11 % 33 % 49 % RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in millions; unaudited) (not prepared in accordance with GAAP) Q3 FY27 Guidance Operating Expense Reconciliation GAAP Operating Expenses $ 184 - 190 Stock-based compensation expense (21 ) Acquisition-related costs (9 ) Amortization of acquisition intangibles (2 ) Non-GAAP Operating Expenses $ 152 - 158 Investor Contact Chelsea Heffernan Vice President, Investor Relations Cirrus Logic, Inc. (512) 851-4125 Investor@cirrus.com Source: Cirrus Logic, Inc.