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Nov 02, 2024

Credo Q2 2025 Earnings Report

Credo's revenue grew significantly, driven by AI deployments and strong customer relationships.

Key Takeaways

Credo reported record revenue of $72.0 million for Q2 2025, representing a 20.6% increase quarter-over-quarter and a 63.6% increase year-over-year. The company's GAAP net loss was $(4.2) million, while non-GAAP net income was $12.3 million.

Revenue reached $72.0 million, showing substantial growth.

GAAP gross margin was 63.2%, and non-GAAP gross margin was 63.6%.

GAAP net loss was $(4.2) million, while non-GAAP net income was $12.3 million.

Cash and short-term investment balance ended at $383.0 million.

Total Revenue
$72M
Previous year: $44M
+63.6%
EPS
$0.07
Previous year: $0.01
+600.0%
GAAP gross margin
63.2%
Previous year: 59.3%
+6.6%
Non-GAAP gross margin
63.6%
Previous year: 59.9%
+6.2%
Gross Profit
$45.5M
Previous year: $26.1M
+74.3%
Cash and Equivalents
$239M
Previous year: $129M
+85.5%
Free Cash Flow
-$11.7M
Previous year: $2.96M
-493.6%
Total Assets
$639M
Previous year: $406M
+57.4%

Credo

Credo

Credo Revenue by Segment

Credo Revenue by Geographic Location

Forward Guidance

Credo anticipates revenue between $115.0 million and $125.0 million for Q3 2025. GAAP gross margin is expected to be between 60.6% and 62.6%, and non-GAAP gross margin is expected to be between 61.0% and 63.0%. GAAP operating expenses are expected to be between $58.6 million and $60.6 million, and non-GAAP operating expenses are expected to be between $42.0 million and $44.0 million.

Positive Outlook

  • Revenue is expected to be between $115.0 million and $125.0 million
  • GAAP gross margin is expected to be between 60.6% and 62.6%
  • Non-GAAP gross margin is expected to be between 61.0% and 63.0%
  • GAAP operating expenses are expected to be between $58.6 million and $60.6 million
  • Non-GAAP operating expenses are expected to be between $42.0 million and $44.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income