Cirrus Logic Reports Record Fiscal First Quarter Revenue of $460 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 first quarter of fiscal year 2027, which ended June 27, 2026, as well as the company’s current business outlook.

“Cirrus Logic delivered record first quarter revenue and earnings per share in the June quarter,” said John Forsyth, Cirrus Logic president and chief executive officer. “During the quarter, we experienced strong demand for custom components shipping into smartphones. The company also made meaningful progress executing on key strategic initiatives. In our PC business, we saw considerable interest in our latest smart codec for AI-enabled PCs and are engaged with multiple customers on designs for next calendar year. We also recently taped out a new high-performance analog front-end component targeting metrology applications, further strengthening our general market portfolio. Looking forward, we remain confident in our ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come.”

Reported Financial Results – First Quarter FY27

• Revenue of $459.7 million;
• GAAP gross margin of 52.6 percent and non-GAAP gross margin of 52.7 percent;
• GAAP operating expenses of $157.4 million and non-GAAP operating expenses of $135.4 million; and
• GAAP earnings per share of $1.47 and non-GAAP earnings per share of $1.84.

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

Business Outlook – Second Quarter FY27

• Revenue is expected to range between $510 million and $570 million;
• GAAP gross margin is forecasted to be between 52 percent and 54 percent; and
• Combined GAAP R&D and SG&A expenses are anticipated to range between $163 million and $169 million, including approximately $21 million in stock-based compensation expense and $2 million in amortization of acquisition intangibles, resulting in a non-GAAP operating expense range between $140 million and $146 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 ability to leverage our mixed-signal design expertise to drive growth across new applications and markets for years to come; and our estimates for the second quarter fiscal year 2027 revenue, gross margin, combined research and development and selling, general and administrative expense levels, stock-based compensation expense, 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 second 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
	Jun. 27,			Mar. 28,			Jun. 28,
		2026			2026			2025
	Q1'27			Q4'26			Q1'26
Audio	$	249,034		$	257,220		$	240,043
High-Performance Mixed-Signal		210,689			191,303			167,229
Net sales		459,723			448,523			407,272
Cost of sales		217,868			210,881			193,242
Gross profit		241,855			237,642			214,030
Gross margin		52.6	%		53.0	%		52.6	%
Research and development		115,013			107,487			102,892
Selling, general and administrative		42,406			39,860			38,744
Total operating expenses		157,419			147,347			141,636
Income from operations		84,436			90,295			72,394
Interest income		10,082			10,248			8,622
Other expense		(363	)		(282	)		(388	)
Income before income taxes		94,155			100,261			80,628
Provision for income taxes		17,304			18,456			19,931
Net income	$	76,851		$	81,805		$	60,697
Basic earnings per share	$	1.52		$	1.61		$	1.17
Diluted earnings per share:	$	1.47		$	1.56		$	1.14
Weighted average number of shares:
Basic		50,550			50,822			51,727
Diluted		52,353			52,369			53,319
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
	Jun. 27,			Mar. 28,			Jun. 28,
		2026			2026			2025
Net Income Reconciliation	Q1'27			Q4'26			Q1'26
GAAP Net Income	$	76,851		$	81,805		$	60,697
Amortization of acquisition intangibles		1,647			1,647			1,647
Stock-based compensation expense		20,589			19,847			20,809
Adjustment to income taxes		(2,988	)		(1,020	)		(2,839	)
Non-GAAP Net Income	$	96,099		$	102,279		$	80,314
Earnings Per Share Reconciliation
GAAP Diluted earnings per share	$	1.47		$	1.56		$	1.14
Effect of Amortization of acquisition intangibles		0.03			0.03			0.03
Effect of Stock-based compensation expense		0.40			0.38			0.39
Effect of Adjustment to income taxes		(0.06	)		(0.02	)		(0.05	)
Non-GAAP Diluted earnings per share	$	1.84		$	1.95		$	1.51
Operating Income Reconciliation
GAAP Operating Income	$	84,436		$	90,295		$	72,394
GAAP Operating Profit		18.4	%		20.1	%		17.8	%
Amortization of acquisition intangibles		1,647			1,647			1,647
Stock-based compensation expense - COGS		238			289			300
Stock-based compensation expense - R&D		13,245			12,327			13,072
Stock-based compensation expense - SG&A		7,106			7,231			7,437
Non-GAAP Operating Income	$	106,672		$	111,789		$	94,850
Non-GAAP Operating Profit		23.2	%		24.9	%		23.3	%
Operating Expense Reconciliation
GAAP Operating Expenses	$	157,419		$	147,347		$	141,636
Amortization of acquisition intangibles		(1,647	)		(1,647	)		(1,647	)
Stock-based compensation expense - R&D		(13,245	)		(12,327	)		(13,072	)
Stock-based compensation expense - SG&A		(7,106	)		(7,231	)		(7,437	)
Non-GAAP Operating Expenses	$	135,421		$	126,142		$	119,480
Gross Margin/Profit Reconciliation
GAAP Gross Profit	$	241,855		$	237,642		$	214,030
GAAP Gross Margin		52.6	%		53.0	%		52.6	%
Stock-based compensation expense - COGS		238			289			300
Non-GAAP Gross Profit	$	242,093		$	237,931		$	214,330
Non-GAAP Gross Margin		52.7	%		53.0	%		52.6	%
Effective Tax Rate Reconciliation
GAAP Tax Expense	$	17,304		$	18,456		$	19,931
GAAP Effective Tax Rate		18.4	%		18.4	%		24.7	%
Adjustments to income taxes		2,988			1,020			2,839
Non-GAAP Tax Expense	$	20,292		$	19,476		$	22,770
Non-GAAP Effective Tax Rate		17.4	%		16.0	%		22.1	%
Tax Impact to EPS Reconciliation
GAAP Tax Expense	$	0.33		$	0.35		$	0.37
Adjustments to income taxes		0.06			0.02			0.05
Non-GAAP Tax Expense	$	0.39		$	0.37		$	0.42

CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands; unaudited)
	Jun. 27,			Mar. 28,			Jun. 28,
		2026			2026			2025
ASSETS
Current assets
Cash and cash equivalents	$	810,666		$	800,930		$	548,870
Marketable securities		80,596			86,697			65,925
Accounts receivable, net		253,971			220,149			214,085
Inventories		262,746			240,871			278,984
Prepaid assets		44,449			47,587			44,243
Prepaid wafers		—			14,733			61,934
Other current assets		21,040			22,741			27,081
Total current assets		1,473,468			1,433,708			1,241,122
Long-term marketable securities		276,056			266,160			232,959
Right-of-use lease assets		117,066			120,676			123,718
Property and equipment, net		149,845			143,975			154,340
Intangibles, net		19,168			20,727			25,718
Goodwill		435,936			435,936			435,936
Deferred tax assets		54,443			49,824			54,037
Other assets		34,298			18,368			26,887
Total assets	$	2,560,280		$	2,489,374		$	2,294,717
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	78,090		$	80,645		$	66,321
Accrued salaries and benefits		44,182			52,723			43,146
Software license agreements		22,091			22,229			21,511
Current lease liabilities		20,761			19,872			21,075
Other accrued liabilities		29,176			19,187			36,625
Total current liabilities		194,300			194,656			188,678
Non-current lease liabilities		109,703			114,105			120,272
Non-current income taxes		47,320			46,721			44,693
Software license agreements		19,826			5,896			10,790
Total long-term liabilities		176,849			166,722			175,755
Stockholders' equity:
Capital stock		1,967,875			1,945,958			1,881,472
Accumulated earnings		224,213			184,881			49,035
Accumulated other comprehensive loss		(2,957	)		(2,843	)		(223	)
Total stockholders' equity		2,189,131			2,127,996			1,930,284
Total liabilities and stockholders' equity	$	2,560,280		$	2,489,374		$	2,294,717
Prepared in accordance with Generally Accepted Accounting Principles

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands; unaudited)
	Three Months Ended
	Jun. 27,			Jun. 28,
		2026			2025
	Q1'27			Q1'26
Cash flows from operating activities:
Net income	$	76,851		$	60,697
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,156			13,173
Stock-based compensation expense		20,589			20,809
Deferred income taxes		(4,600	)		(5,938	)
Gain on retirement or write-off of long-lived assets		(67	)		—
Other non-cash adjustments		152			(16	)
Net change in operating assets and liabilities:
Accounts receivable		(33,822	)		1,924
Inventories		(21,875	)		20,108
Prepaid wafers		14,733			6,138
Other assets		3,723			2,014
Accounts payable and other accrued liabilities		(7,976	)		(8,806	)
Income taxes payable		3,264			6,028
Net cash provided by operating activities		64,128			116,131
Cash flows from investing activities:
Maturities and sales of available-for-sale marketable securities		47,044			22,990
Purchases of available-for-sale marketable securities		(50,930	)		(26,435	)
Purchases of property, equipment and software		(15,143	)		(2,638	)
Investments in technology		(361	)		(132	)
Net cash used in investing activities		(19,390	)		(6,215	)
Cash flows from financing activities:
Debt issuance costs		(2,057	)		—
Net proceeds from the issuance of common stock		1,329			382
Repurchase of stock to satisfy employee tax withholding obligations		(2,774	)		(1,049	)
Repurchase and retirement of common stock		(31,500	)		(99,999	)
Net cash used in financing activities		(35,002	)		(100,666	)
Net increase in cash and cash equivalents		9,736			9,250
Cash and cash equivalents at beginning of period		800,930			539,620
Cash and cash equivalents at end of period	$	810,666		$	548,870
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
	Jun. 27,			Jun. 27,			Mar. 28,			Dec. 27,			Sep. 27,
		2026			2026			2026			2025			2025
	Q1'27			Q1'27			Q4'26			Q3'26			Q2'26
Net cash provided by operating activities (GAAP)	$	598,596		$	64,128		$	151,420		$	290,834		$	92,214
Capital expenditures		(27,570	)		(15,504	)		(2,396	)		(5,160	)		(4,510	)
Free Cash Flow (Non-GAAP)	$	571,026		$	48,624		$	149,024		$	285,674		$	87,704
Cash Flow from Operations as a Percentage of Revenue (GAAP)		29	%		14	%		34	%		50	%		16	%
Capital Expenditures as a Percentage of Revenue (GAAP)		1	%		3	%		1	%		1	%		1	%
Free Cash Flow Margin (Non-GAAP)		28	%		11	%		33	%		49	%		16	%

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL INFORMATION
(in millions; unaudited)
(not prepared in accordance with GAAP)
	Q2 FY27
	Guidance
Operating Expense Reconciliation
GAAP Operating Expenses	$163 - 169
Stock-based compensation expense	(21)
Amortization of acquisition intangibles	(2)
Non-GAAP Operating Expenses	$140 - 146