In This Article:
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Q4 Revenue: $170 million, a 26% sequential increase and up 180% year over year.
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Fiscal Year '25 Revenue: $437 million, growth of 126% year over year.
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Q4 Non-GAAP Gross Margin: 67.4%.
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Fiscal Year '25 Non-GAAP Gross Margin: 65%.
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Q4 Non-GAAP Operating Income: $62.5 million.
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Q4 Non-GAAP Operating Margin: 36.8%.
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Q4 Non-GAAP Net Income: $65.3 million.
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Q4 Non-GAAP Net Margin: 38.4%.
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Q4 Cash Flow from Operations: $57.8 million.
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Q4 CapEx: $3.7 million.
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Q4 Free Cash Flow: $54.2 million.
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Cash and Equivalents at Quarter End: $431.3 million.
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Q4 Ending Inventory: $90 million.
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Q1 Fiscal '26 Revenue Guidance: $185 million to $195 million.
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Q1 Fiscal '26 Non-GAAP Gross Margin Guidance: 64% to 66%.
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Q1 Fiscal '26 Non-GAAP Operating Expenses Guidance: $54 million to $56 million.
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Fiscal Year '26 Revenue Expectation: Exceed $800 million, growth over 85% year over year.
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Fiscal Year '26 Non-GAAP Net Margin Expectation: Approach 40%.
Release Date: June 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Credo Technology Group Holding Ltd (NASDAQ:CRDO) reported a significant revenue increase of 180% year over year for Q4, reaching $170 million.
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The company achieved a non-GAAP gross margin of 67.4% in Q4, indicating strong profitability.
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Credo's fiscal year 2025 revenue grew by 126% year over year, reaching $437 million, showcasing robust growth.
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The company has successfully diversified its customer base, with three hyperscalers each contributing over 10% of revenue.
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Credo's innovative connectivity solutions have positioned it well to capitalize on the expanding AI infrastructure market.
Negative Points
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The company faces risks and uncertainties related to forward-looking statements, which could impact future performance.
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Despite strong growth, there is a potential for variability in customer mix and revenue contributions from quarter to quarter.
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Gross margin expansion may not always be linear due to differences in product mix and other factors.
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The company anticipates increased capital expenditures, potentially doubling due to upcoming 3-nanometer tape-outs.
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Tariff risks and macroeconomic factors could impact the company's operations and financial performance.
Q & A Highlights
Q: Can you provide details on the revenue contribution from your largest customers and the outlook for fiscal '26? A: Daniel Fleming, CFO, stated that the largest customer accounted for 61% of revenue, with two others at 12% and 11%. Credo expects continued diversification with two additional hyperscalers joining in the second half of fiscal '26, although exact projections are challenging. The company is optimistic about revenue diversification as their solutions gain broader adoption.