Cirrus Logic — Second Quarter FY27 Earnings Summary

Financial Performance:

• Reported revenue of $559.5 million for the quarter ended September 26, 2026, compared to $560.96 million in the same period last year.
• GAAP gross margin was 53.7% and non-GAAP gross margin was 53.8%, compared to 52.5% in the prior year quarter.
• GAAP operating expenses were $168.2 million, while non-GAAP operating expenses were $141.6 million.
• GAAP earnings per share (diluted) were $2.23, and non-GAAP earnings per share were $2.70, compared to $2.48 and $2.83 respectively in the prior year quarter.
• Net income was $114.7 million for the quarter, down from $131.6 million in the prior year quarter.
• Net cash provided by operating activities was $50.9 million for the quarter, compared to $92.2 million in the prior year quarter.
• Free cash flow for the quarter was $42.3 million, with a free cash flow margin of 8%.
• Cash and cash equivalents totaled $720.1 million as of September 26, 2026.
• Total assets were $2.59 billion as of September 26, 2026.

Guidance and Future Outlook:

• Revenue for the third quarter of fiscal year 2027 is expected to range between $510 million and $570 million.
• GAAP gross margin for the third quarter is forecasted to be between 51% and 53%.
• Combined GAAP R&D and SG&A expenses are anticipated to range between $184 million and $190 million.
• Non-GAAP operating expenses for the third quarter are expected to range between $152 million and $158 million.
• The third quarter expense guidance includes approximately $21 million in stock-based compensation, $9 million in acquisition-related costs, and $2 million in amortization of acquisition intangibles.

Business Segments and Product Lines:

• Audio segment revenue was $314.5 million for the quarter.
• High-Performance Mixed-Signal segment revenue was $245.0 million for the quarter.
• Custom components were featured in newly launched smartphones during the quarter.
• Third-generation camera controller saw broader adoption in smartphones.
• Sampling began on analog front-end components for smart metering.
• Taped out fourth-generation camera controller for smartphones.
• Taped out second-generation smart codec for AI-enabled PCs.

Market and Competitive Landscape:

• Management cited strong demand and increased content shipping into smartphones as primary drivers for results.
• The company maintains an extensive roadmap and a strong pipeline of opportunities.

Risks and Challenges:

• Forward-looking statements are subject to risks including the level and timing of orders and shipments, customer cancellations, and failure to place orders consistent with forecasts.
• Global economic conditions and uncertainty are cited as potential risks.
• Risks include the ability to develop and commercialize products and technologies for new markets.

Management Commentary and Tone:

• John Forsyth, President and CEO, described results as "solid" and expressed confidence in the ability to grow long-term shareholder value.
• Management noted progress on new product development and the broadening adoption of existing camera controller technology.
• The tone regarding the future outlook is confident, citing an extensive roadmap and strong pipeline.

Other Key Points:

• In October 2026, the Board of Directors authorized the repurchase of up to an additional $500 million of the company's common stock.
• Stock repurchases are expected to be funded from working capital and anticipated cash flow from operations.
• During the quarter, the company repurchased and retired common stock for $128.5 million.
• The company will host a live Q&A session at 5 p.m. ET on November 4, 2026, to discuss results and outlook.
• Acquisition-related costs for the quarter included $6.9 million in professional fees and acquisition-specific employee bonus and retention payments.