Nasdaq:CRUS
CIRRUS LOGIC, INC.
CIRRUS LOGIC delivers specialized programmable processors enabling next-generation connectivity and imaging technologies for global electronics manufacturers.
Key Metrics
Investment Thesis
Bull Case
CRUS offers compelling exposure to the growing demand for AI-driven imaging and wireless infrastructure through its specialized processor portfolio. Strong cash flow generation and aggressive capital return via buybacks provide a buffer against industry volatility while rewarding shareholders. The company's niche focus on high-performance DSP creates pricing power in segments where generic solutions lack sufficient capability.
Bear Case
Recent revenue decline from $1.90B to $1.79B in 2024 highlights vulnerability to discretionary spending cuts in consumer electronics. High capital expenditures of $22.8M and other investing outflows of $283.9M indicate ongoing heavy investment requirements that could strain cash reserves if sales normalize slowly. Dependence on a limited number of large OEM customers creates execution risk if key contracts are lost or renegotiated.
About CIRRUS LOGIC, INC.
CIRRUS LOGIC, INC. (CRUS) designs high-performance programmable processors for digital video processing, wireless communications, and consumer electronics markets. The company serves global OEMs in automotive, industrial, and consumer sectors with its DSP and FPGA solutions. Key products include the EZ chip family and VersaLogic platform used in Wi-Fi 6E, 5G base stations, and advanced imaging systems.
Analysis
Management Discussion
The company reported a revenue of $1.90B in the latest period with net income reaching $331.5M, reflecting strong profitability despite recent market headwinds. Cash flow from operations of $444.4M demonstrates healthy liquidity generation, while significant share repurchases of $261.0M signal management's confidence in long-term value creation. However, the slight revenue contraction to $1.79B in 2024 suggests sensitivity to macroeconomic conditions affecting end-market demand.
Industry Overview
The semiconductor industry for programmable logic devices is experiencing rapid growth driven by 5G rollout, autonomous vehicle development, and smart home expansion. Competition remains fierce with major players investing heavily in R&D to capture emerging markets in edge computing and IoT applications. Market consolidation trends favor companies with diversified product portfolios capable of serving multiple verticals simultaneously.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.90B | $1.79B | $1.90B |
| Cost of Revenue | $940.6M | $872.8M | $900.0M |
| Gross Profit | $957.0M | $916.1M | $996.0M |
| Operating Expenses | $707.9M | $572.6M | $585.7M |
| Operating Income | $249.0M | $343.5M | $410.4M |
| R&D | $458.4M | $426.5M | $434.7M |
| G&A | $153.1M | $144.2M | $151.0M |
| Stock-Based Comp | $81.6M | $89.3M | $84.1M |
| D&A | $71.2M | $48.3M | $51.0M |
| Amortization | $33.7M | $9.0M | $7.6M |
| Other OpEx | $96.4M | $2.0M | $0 |
| Non-Operating Income | $5.7M | $20.5M | $34.6M |
| Interest Expense | $898.0K | — | — |
| Pre-Tax Income | $254.7M | $363.9M | $444.9M |
| Income Tax | $78.0M | $89.4M | $113.4M |
| Continuing Ops | $176.7M | $274.6M | $331.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $176.7M | $274.6M | $331.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $176.7M | $274.6M | $331.5M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.02B | $1.11B | $1.24B |
| Cash & Equivalents | $445.8M | $502.8M | $539.6M |
| Accounts Receivable | $150.5M | $162.5M | $216.0M |
| Inventory | $233.4M | $227.2M | $299.1M |
| Other Current Assets | $188.1M | $213.7M | $185.0M |
| Long-Term Assets | $1.05B | $1.13B | $1.09B |
| PP&E (Net) | $163.0M | $170.2M | $159.9M |
| Goodwill | $435.9M | $435.9M | $435.9M |
| Operating Leases | $128.1M | $138.3M | $126.7M |
| Other LT Assets | $319.1M | $381.0M | $364.8M |
| Total Assets | $2.06B | $2.23B | $2.33B |
| Current Liabilities | $216.3M | $186.4M | $195.2M |
| Accounts Payable | $81.5M | $55.5M | $63.2M |
| Current Leases | $18.4M | $20.6M | $21.8M |
| Other Current Liab | $116.4M | $110.2M | $110.2M |
| Long-Term Liabilities | $189.3M | $228.2M | $182.4M |
| LT Operating Leases | $122.6M | $134.6M | $121.9M |
| Other LT Liab | $7.7M | $41.6M | $16.5M |
| Total Liabilities | $405.7M | $414.6M | $377.6M |
| Shareholders' Equity | $1.66B | $1.82B | $1.95B |
| Retained Earnings | $-9.3M | $58.9M | $90.4M |
| AOCI | $-2.5M | $-2.6M | $-1.2M |
| Total L&E | $2.06B | $2.23B | $2.33B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $176.7M | $274.6M | $331.5M |
| Non-Cash Adjustments | $224.4M | $178.3M | $-20.6M |
| Working Capital Changes | $-61.5M | $-31.2M | $133.5M |
| Cash from Operations | $339.6M | $421.7M | $444.4M |
| Capital Expenditures | $35.1M | $37.6M | $22.8M |
| Cash from Investing | $-33.3M | $-163.0M | $-124.3M |
| Share Buybacks | $191.4M | $186.0M | $261.0M |
| Cash from Financing | $-230.3M | $-201.7M | $-283.2M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $76.0M | $57.0M | $36.9M |
| Beginning Cash | $369.8M | $445.8M | $502.8M |
| Ending Cash | $445.8M | $502.8M | $539.6M |
Frequently Asked Questions
How does CIRRUS LOGIC, INC. make money?
The company generates revenue primarily through sales of digital signal processing (DSP) chips, field-programmable gate arrays (FPGA), and system-on-chip solutions. Key product lines include the EZ chip family for video compression and wireless infrastructure, VersaLogic platform for embedded AI applications, and specialized processors for automotive radar and LiDAR systems.
What are the main risks for CRUS?
Revenue concentration in the consumer electronics sector exposes CRUS to cyclical demand shocks from smartphone and TV manufacturers. Intense competition from larger semiconductor firms like Qualcomm and Intel could erode margins and market share for niche processor designs. Global supply chain disruptions or component shortages could impact the company's ability to fulfill large OEM orders on time.
What is CRUS's competitive advantage?
CRUS maintains a strong portfolio of proprietary IP cores that enable high-speed data processing essential for 5G and Wi-Fi standards. The company benefits from deep customer relationships with major global OEMs who rely on its customized processor solutions for complex imaging and communication tasks. Its flexible FPGA architecture allows rapid product iteration, providing a time-to-market advantage in fast-moving consumer electronics cycles.
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