Silicon Labs Reports Fourth Quarter and Full Year 2025 Results

, /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the fourth quarter and full year 2025, which ended January 3, 2026. "The Silicon Labs team completed fiscal 2025 with continued strong execution, delivering an impressive year-over-year revenue growth of 34%," said Matt Johnson, President and Chief Executive Officer of Silicon Labs. "That momentum continues as we enter 2026 with record opportunity funnel and design win traction." Due to the separately announced pending acquisition of Silicon Labs by Texas Instruments, Silicon Labs will cancel its previously announced earnings call scheduled for February 10, 2026, and has suspended providing forward-looking guidance. Full Year 2025 Financial Highlights Revenue was $785 million, up 34% year-over-yearIndustrial & Commercial revenue for the year was $445 million, up 31% year-over-yearHome & Life revenue for the year was $340 million, up 38% year-over-year Results on a GAAP basis: GAAP gross margin was 58.2%GAAP operating expenses were $528 millionGAAP operating loss was $71 millionGAAP diluted loss per share was $(1.98) Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows: Non-GAAP gross margin was 58.5%Non-GAAP operating expenses were $434 millionNon-GAAP operating income was $25 millionNon-GAAP diluted earnings per share was $0.92 Fourth Quarter Financial Highlights Revenue was $208 million, up 25% year-over-yearIndustrial & Commercial revenue for the quarter was $122 million, up 37% year-over-yearHome & Life revenue for the quarter was $87 million, up 12% year-over-year Results on a GAAP basis: GAAP gross margin was 63.4%GAAP operating expenses were $135 millionGAAP operating loss was $3 millionGAAP diluted loss per share was $(0.08) Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows: Non-GAAP gross margin was 63.6%Non-GAAP operating expenses were $112 millionNon-GAAP operating income was $21 millionNon-GAAP diluted earnings per share was $0.56 About Silicon Labs Silicon Labs (NASDAQ: SLAB) is the leading innovator in low-power wireless connectivity, building embedded technology that connects devices and improves lives. Merging cutting-edge technology into the world's most highly integrated SoCs, Silicon Labs provides device makers the solutions, support, and ecosystems needed to create advanced edge connectivity applications. Headquartered in Austin, Texas, Silicon Labs has operations in over 16 countries and is the trusted partner for innovative solutions in the smart home, industrial IoT, and smart cities markets. Learn more at silabs.com. Forward-Looking Statements This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: fluctuating changes in global trade policies, including the imposition of tariffs, duties, trade sanctions, or other barriers to international commerce; the impact of the current global memory chip shortage; the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of public health crises on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; risks relating to compliance with laws and regulations; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc. Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders. Silicon Laboratories Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Year Ended January 3, 2026 December 28, 2024 January 3, 2026 December 28, 2024 Revenues $ 208,206 $ 166,249 $ 784,764 $ 584,386 Cost of revenues 76,128 76,026 327,781 272,198 Gross profit 132,078 90,223 456,983 312,188 Operating expenses: Research and development 89,521 82,438 353,246 332,225 Selling, general and administrative 45,809 36,412 174,278 145,453 Operating expenses 135,330 118,850 527,524 477,678 Operating loss (3,252) (28,627) (70,541) (165,490) Other income (expense): Interest income and other, net 2,932 2,978 13,604 11,987 Interest expense (214) (260) (975) (1,310) Loss before income taxes (534) (25,909) (57,912) (154,813) Provision (benefit) for income taxes 2,150 (2,086) 6,995 36,197 Net loss $ (2,684) $ (23,823) $ (64,907) $ (191,010) Loss per share: Basic $ (0.08) $ (0.73) $ (1.98) $ (5.93) Diluted $ (0.08) $ (0.73) $ (1.98) $ (5.93) Weighted-average common shares outstanding: Basic 32,920 32,420 32,721 32,191 Diluted 32,920 32,420 32,721 32,191 Non-GAAP Financial Measurements In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements. The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations. Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) Three Months Ended January 3, 2026 Non-GAAP Income Statement Items GAAP Measure GAAP Percent of Revenue Stock Compensation Expense Intangible Asset Amortization Other Costs Non-GAAP Measure Non-GAAP Percent of Revenue Revenues $ 208,206 Gross profit 132,078 63.4 % $ 400 $ — $ — $ 132,478 63.6 % Research and development 89,521 43.0 % 12,190 2,295 404 74,632 35.8 % Selling, general and administrative 45,809 22.0 % 8,089 — 461 37,259 17.9 % Operating expenses 135,330 65.0 % 20,279 2,295 865 111,891 53.7 % Operating income (loss) (3,252) (1.6 %) 20,679 2,295 865 20,587 9.9 % Three Months Ended January 3, 2026 Non-GAAP Earnings (Loss) Per Share GAAP Measure Stock Compensation Expense* Intangible Asset Amortization* Other Costs* Income Tax Adjustments Non- GAAP Measure Net income (loss) $ (2,684) $ 20,679 $ 2,295 $ 865 $ (2,511) $ 18,644 Shares Excluded Due to Net Loss Diluted shares outstanding 32,920 279 33,199 Diluted earnings (loss) per share $ (0.08) $ 0.56 * Represents pre-tax amounts Twelve Months Ended January 3, 2026 Non-GAAP Income Statement Items GAAP Measure GAAP Percent of Revenue Stock Compensation Expense Intangible Asset Amortization Other Costs Non-GAAP Measure Non-GAAP Percent of Revenue Revenues $ 784,764 Gross profit 456,983 58.2 % $ 1,944 $ — $ — $ 458,927 58.5 % Research and development 353,246 45.0 % 48,447 13,369 934 290,496 37.0 % Selling, general and administrative 174,278 22.2 % 29,933 — 1,216 143,129 18.2 % Operating expenses 527,524 67.2 % 78,380 13,369 2,150 433,625 55.3 % Operating income (loss) (70,541) (9.0 %) 80,324 13,369 2,150 25,302 3.2 % Twelve Months Ended January 3, 2026 Non-GAAP Earnings (Loss) Per Share GAAP Measure Stock Compensation Expense* Intangible Asset Amortization* Other Costs* Income Tax Adjustments Non- GAAP Measure Net income (loss) $ (64,907) $ 80,324 $ 13,369 $ 2,150 $ (591) $ 30,345 Shares Excluded Due to Net Loss Diluted shares outstanding 32,721 260 32,981 Diluted earnings (loss) per share $ (1.98) $ 0.92 * Represents pre-tax amounts Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) January 3, 2026 December 28, 2024 Assets Current assets: Cash and cash equivalents $ 364,222 $ 281,607 Short-term investments 79,400 100,554 Accounts receivable, net 64,513 54,479 Inventories 95,566 105,639 Prepaid expenses and other current assets 70,316 59,754 Total current assets 674,017 602,033 Property and equipment, net 128,643 132,136 Goodwill 376,389 376,389 Other intangible assets, net 23,130 36,499 Other assets, net 67,138 75,617 Total assets $ 1,269,317 $ 1,222,674 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 50,717 $ 42,448 Deferred revenue and returns liability 5,359 3,073 Other current liabilities 87,711 52,362 Total current liabilities 143,787 97,883 Other non-current liabilities 31,112 44,770 Total liabilities 174,899 142,653 Commitments and contingencies Stockholders' equity: Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued — — Common stock – $0.0001 par value; 250,000 shares authorized; 32,955 and 32,458 shares issued and outstanding at January 3, 2026 and December 28, 2024, respectively 3 3 Additional paid-in capital 157,402 78,227 Retained earnings 936,814 1,001,721 Accumulated other comprehensive income 199 70 Total stockholders' equity 1,094,418 1,080,021 Total liabilities and stockholders' equity $ 1,269,317 $ 1,222,674 Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Year Ended January 3, 2026 December 28, 2024 Operating Activities Net loss $ (64,907) $ (191,010) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation of property and equipment 24,716 25,551 Amortization of other intangible assets 13,369 23,034 Stock-based compensation expense 80,324 61,503 Deferred income taxes 881 29,470 Changes in operating assets and liabilities: Accounts receivable (10,034) (25,184) Inventories 9,992 88,494 Prepaid expenses and other assets 8,826 27,362 Accounts payable 6,333 (15,155) Other current liabilities and income taxes 36,781 (21,768) Deferred revenue and returns liability 2,286 956 Other non-current liabilities (12,859) (17,163) Net cash provided by (used in) operating activities 95,708 (13,910) Investing Activities Purchases of marketable securities (34,790) (73,602) Sales of marketable securities 15,393 54,227 Maturities of marketable securities 40,716 131,858 Purchases of property and equipment (29,922) (11,748) Proceeds from capital-related government incentives 578 — Proceeds from sale of equity investment — 12,382 Purchases of other assets (4,000) — Net cash provided by (used in) investing activities (12,025) 113,117 Financing Activities Payments on debt — (45,000) Repurchases of common stock — (16) Payment of taxes withheld for vested stock awards (15,706) (16,434) Proceeds from the issuance of common stock 14,638 16,346 Net cash used in financing activities (1,068) (45,104) Increase in cash and cash equivalents 82,615 54,103 Cash and cash equivalents at beginning of period 281,607 227,504 Cash and cash equivalents at end of period $ 364,222 $ 281,607 View original content to download multimedia:https://www.prnewswire.com/news-releases/silicon-labs-reports-fourth-quarter-and-full-year-2025-results-302678746.html SOURCE Silicon Labs For further information: [email protected]