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; and
GAAP 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; and
Combined 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

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Investor Contact:

Chelsea Heffernan

Vice President, Investor Relations

Cirrus Logic, Inc.

(512) 851-4125

Investor@cirrus.com

Cirrus Logic Reports Fiscal Third Quarter Revenue of $580.6 Million