Cirrus Logic Reports Fiscal Third Quarter Revenue of $580.6 Million

Cirrus Logic Reports Fiscal Third Quarter Revenue of $580.6 Million Feb 03, 2026 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 third quarter of fiscal year 2026, which ended December 27, 2025, as well as the company’s current business outlook. “Cirrus Logic delivered revenue above the high end of our guidance range for the December quarter driven by stronger-than-anticipated demand for components shipping into smartphones and a favorable mix of end devices,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we also made solid progress executing on our strategy to expand our addressable market and drive product diversification. This included sampling a new component designed to enable and enhance the use of voice as an interface for future AI-enabled PCs and ramping our latest-generation amplifier and codec in mainstream PC platforms. We also added new product families targeting prosumer and automotive that will broaden our general market offerings across a wider range of applications. As we look ahead, we expect to continue to capitalize on our extensive intellectual property portfolio and deep engineering expertise to position the company for long-term success.” Reported Financial Results – Third Quarter FY26 Revenue of $580.6 million;GAAP and non-GAAP gross margin of 53.1 percent;GAAP operating expenses of $155.2 million and non-GAAP operating expenses of $133.0 million; andGAAP earnings per share of $2.66 and non-GAAP earnings per share of $2.97. A reconciliation of GAAP to non-GAAP financial information is included in the tables accompanying this press release. Business Outlook – Fourth Quarter FY26 Revenue is expected to range between $410 million and $470 million;GAAP gross margin is forecasted to be between 51 percent and 53 percent; andCombined GAAP R&D and SG&A expenses are anticipated to range between $147 million and $153 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquired intangibles, resulting in a non-GAAP operating expense range between $124 million and $130 million. 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. 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 strategy to expand our addressable market and drive product diversification; our ability to broaden our general market offerings across a wider range of applications; our ability to capitalize on our extensive intellectual property portfolio and deep engineering expertise to position the company for long-term success; and our estimates for the fourth 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 fourth 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 Nine Months Ended Dec. 27, Sep. 27, Dec. 28, Dec. 27, Dec. 28, 2025 2025 2024 2025 2024 Q3'26 Q2'26 Q3'25 Q3'26 Q3'25 Audio $ 344,455 $ 318,214 $ 346,272 $ 902,713 $ 881,830 High-Performance Mixed-Signal 236,169 242,746 209,466 646,143 589,791 Net sales 580,624 560,960 555,738 1,548,856 1,471,621 Cost of sales 272,498 266,586 257,951 732,326 702,319 Gross profit 308,126 294,374 297,787 816,530 769,302 Gross margin 53.1 % 52.5 % 53.6 % 52.7 % 52.3 % Research and development 113,553 110,021 112,976 326,466 331,264 Selling, general and administrative 41,646 39,589 39,042 119,979 113,625 Total operating expenses 155,199 149,610 152,018 446,445 444,889 Income from operations 152,927 144,764 145,769 370,085 324,413 Interest income 9,276 8,695 8,146 26,593 24,482 Other income (expense) 246 (63 ) (214 ) (205 ) 1,414 Income before income taxes 162,449 153,396 153,701 396,473 350,309 Provision for income taxes 22,139 21,800 37,696 63,870 90,069 Net income $ 140,310 $ 131,596 $ 116,005 $ 332,603 $ 260,240 Basic earnings per share $ 2.75 $ 2.57 $ 2.19 $ 6.48 $ 4.89 Diluted earnings per share: $ 2.66 $ 2.48 $ 2.11 $ 6.27 $ 4.69 Weighted average number of shares: Basic 51,037 51,175 53,081 51,313 53,263 Diluted 52,698 53,054 55,076 53,041 55,529 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 Nine Months Ended Dec. 27, Sep. 27, Dec. 28, Dec. 27, Dec. 28, 2025 2025 2024 2025 2024 Net Income Reconciliation Q3'26 Q2'26 Q3'25 Q3'26 Q3'25 GAAP Net Income $ 140,310 $ 131,596 $ 116,005 $ 332,603 $ 260,240 Amortization of acquisition intangibles 1,648 1,648 1,647 4,943 5,483 Stock-based compensation expense 20,558 20,597 20,823 61,964 64,655 Lease impairment — — 661 — 1,680 Adjustment to income taxes (5,818 ) (3,861 ) (827 ) (12,518 ) (6,094 ) Non-GAAP Net Income $ 156,698 $ 149,980 $ 138,309 $ 386,992 $ 325,964 Earnings Per Share Reconciliation GAAP Diluted earnings per share $ 2.66 $ 2.48 $ 2.11 $ 6.27 $ 4.69 Effect of Amortization of acquisition intangibles 0.03 0.03 0.03 0.09 0.10 Effect of Stock-based compensation expense 0.39 0.39 0.38 1.17 1.16 Effect of Lease impairment — — 0.01 — 0.03 Effect of Adjustment to income taxes (0.11 ) (0.07 ) (0.02 ) (0.23 ) (0.11 ) Non-GAAP Diluted earnings per share $ 2.97 $ 2.83 $ 2.51 $ 7.30 $ 5.87 Operating Income Reconciliation GAAP Operating Income $ 152,927 $ 144,764 $ 145,769 $ 370,085 $ 324,413 GAAP Operating Profit 26.3 % 25.8 % 26.2 % 23.9 % 22.0 % Amortization of acquisition intangibles 1,648 1,648 1,647 4,943 5,483 Stock-based compensation expense - COGS 24 363 351 687 972 Stock-based compensation expense - R&D 13,280 13,019 14,498 39,371 46,105 Stock-based compensation expense - SG&A 7,254 7,215 5,974 21,906 17,578 Lease impairment — — 661 — 1,680 Non-GAAP Operating Income $ 175,133 $ 167,009 $ 168,900 $ 436,992 $ 396,231 Non-GAAP Operating Profit 30.2 % 29.8 % 30.4 % 28.2 % 26.9 % Operating Expense Reconciliation GAAP Operating Expenses $ 155,199 $ 149,610 $ 152,018 $ 446,445 $ 444,889 Amortization of acquisition intangibles (1,648 ) (1,648 ) (1,647 ) (4,943 ) (5,483 ) Stock-based compensation expense - R&D (13,280 ) (13,019 ) (14,498 ) (39,371 ) (46,105 ) Stock-based compensation expense - SG&A (7,254 ) (7,215 ) (5,974 ) (21,906 ) (17,578 ) Lease impairment — — 661 — 1,680 Non-GAAP Operating Expenses $ 133,017 $ 127,728 $ 129,238 $ 380,225 $ 374,043 Gross Margin/Profit Reconciliation GAAP Gross Profit $ 308,126 $ 294,374 $ 297,787 $ 816,530 $ 769,302 GAAP Gross Margin 53.1 % 52.5 % 53.6 % 52.7 % 52.3 % Stock-based compensation expense - COGS 24 363 351 687 972 Non-GAAP Gross Profit $ 308,150 $ 294,737 $ 298,138 $ 817,217 $ 770,274 Non-GAAP Gross Margin 53.1 % 52.5 % 53.6 % 52.8 % 52.3 % Effective Tax Rate Reconciliation GAAP Tax Expense $ 22,139 $ 21,800 $ 37,696 $ 63,870 $ 90,069 GAAP Effective Tax Rate 13.6 % 14.2 % 24.5 % 16.1 % 25.7 % Adjustments to income taxes 5,818 3,861 827 12,518 6,094 Non-GAAP Tax Expense $ 27,957 $ 25,661 $ 38,523 $ 76,388 $ 96,163 Non-GAAP Effective Tax Rate 15.1 % 14.6 % 21.8 % 16.5 % 22.8 % Tax Impact to EPS Reconciliation GAAP Tax Expense $ 0.42 $ 0.41 $ 0.68 $ 1.20 $ 1.62 Adjustments to income taxes 0.11 0.07 0.02 0.23 0.11 Non-GAAP Tax Expense $ 0.53 $ 0.48 $ 0.70 $ 1.43 $ 1.73 CONSOLIDATED CONDENSED BALANCE SHEET (in thousands; unaudited) Dec. 27, Mar. 29, Dec. 28, 2025 2025 2024 ASSETS Current assets Cash and cash equivalents $ 778,083 $ 539,620 $ 526,444 Marketable securities 44,280 56,160 37,535 Accounts receivable, net 278,989 216,009 261,943 Inventories 189,483 299,092 275,558 Prepaid assets 54,373 48,236 51,323 Prepaid wafers 32,873 52,560 66,113 Other current assets 31,268 28,057 31,534 Total current assets 1,409,349 1,239,734 1,250,450 Long-term marketable securities 259,564 239,036 252,594 Right-of-use lease assets 123,432 126,688 129,597 Property and equipment, net 148,352 159,900 163,837 Intangibles, net 22,619 27,461 23,957 Goodwill 435,936 435,936 435,936 Deferred tax asset 38,247 48,150 40,895 Long-term prepaid wafers — 15,512 23,020 Other assets 19,021 34,656 42,954 Total assets $ 2,456,520 $ 2,327,073 $ 2,363,240 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 68,863 $ 63,162 $ 77,907 Accrued salaries and benefits 49,769 52,075 48,029 Software license agreements 26,803 26,745 26,985 Lease liability 19,713 21,811 21,858 Other accrued liabilities 19,043 31,395 36,134 Total current liabilities 184,191 195,188 210,913 Non-current lease liability 117,599 121,908 124,622 Non-current income taxes 46,033 44,040 43,401 Other long-term liabilities 5,468 16,488 21,506 Total long-term liabilities 169,100 182,436 189,529 Stockholders' equity: Capital stock 1,925,238 1,860,281 1,840,791 Accumulated earnings 178,693 90,351 124,101 Accumulated other comprehensive loss (702 ) (1,183 ) (2,094 ) Total stockholders' equity 2,103,229 1,949,449 1,962,798 Total liabilities and stockholders' equity $ 2,456,520 $ 2,327,073 $ 2,363,240 Prepared in accordance with Generally Accepted Accounting Principles CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (in thousands; unaudited) Three Months Ended Dec. 27, Dec. 28, 2025 2024 Q3'26 Q3'25 Cash flows from operating activities: Net income $ 140,310 $ 116,005 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 13,077 12,824 Stock-based compensation expense 20,558 20,823 Deferred income taxes 8,292 8,379 Loss on retirement or write-off of long-lived assets — 369 Other non-cash charges (26 ) (379 ) Net change in operating assets and liabilities: Accounts receivable, net 76,408 62,155 Inventories 46,926 (3,793 ) Prepaid wafers 12,183 20,411 Other assets 8,791 1,720 Accounts payable and other accrued liabilities (30,468 ) (21,556 ) Income taxes payable (5,217 ) 1,630 Net cash provided by operating activities 290,834 218,588 Cash flows from investing activities: Maturities and sales of available-for-sale marketable securities 50,697 12,423 Purchases of available-for-sale marketable securities (52,104 ) (44,868 ) Purchases of property, equipment and software (5,086 ) (6,687 ) Investments in technology (74 ) — Net cash used in investing activities (6,567 ) (39,132 ) Cash flows from financing activities: Net proceeds from the issuance of common stock 1,042 378 Repurchase of stock to satisfy employee tax withholding obligations (30,722 ) (29,112 ) Repurchase and retirement of common stock (69,980 ) (70,037 ) Net cash used in financing activities (99,660 ) (98,771 ) Net increase in cash and cash equivalents 184,607 80,685 Cash and cash equivalents at beginning of period 593,476 445,759 Cash and cash equivalents at end of period $ 778,083 $ 526,444 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 Dec. 27, Dec. 27, Sep. 27, Jun. 28, Mar. 29, 2025 2025 2025 2025 2025 Q3'26 Q3'26 Q2'26 Q1'26 Q4'25 Net cash provided by operating activities (GAAP) $ 629,565 $ 290,834 $ 92,214 $ 116,131 $ 130,386 Capital expenditures (21,621 ) (5,160 ) (4,510 ) (2,770 ) (9,181 ) Free Cash Flow (Non-GAAP) $ 607,944 $ 285,674 $ 87,704 $ 113,361 $ 121,205 Cash Flow from Operations as a Percentage of Revenue (GAAP) 32 % 50 % 16 % 29 % 31 % Capital Expenditures as a Percentage of Revenue (GAAP) 1 % 1 % 1 % 1 % 2 % Free Cash Flow Margin (Non-GAAP) 31 % 49 % 16 % 28 % 29 % RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION (in millions; unaudited) (not prepared in accordance with GAAP) Q4 FY26 Guidance Operating Expense Reconciliation GAAP Operating Expenses $147 - 153 Stock-based compensation expense (21 ) Amortization of acquisition intangibles (2 ) Non-GAAP Operating Expenses $124 - 130 Investor Contact: Chelsea Heffernan Vice President, Investor Relations Cirrus Logic, Inc. (512) 851-4125 Investor@cirrus.com Source: Cirrus Logic, Inc.