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Feb 01, 2025
Credo Q3 2025 Earnings Report
Credo reported record revenue growth and strong profitability in Q3 2025.
Key Takeaways
Credo delivered an exceptional Q3 2025 with revenue reaching $135.0 million, reflecting an 87.4% sequential growth and 154.4% year-over-year increase. GAAP net income came in at $29.4 million, with GAAP diluted EPS of $0.16, while non-GAAP net income was $45.4 million, with non-GAAP diluted EPS of $0.25. The company's gross margin remained strong at 63.6% on a GAAP basis and 63.8% on a non-GAAP basis. The company ended the quarter with a cash and short-term investment balance of $379.2 million.
Revenue surged to $135.0 million, growing 154.4% year-over-year.
GAAP diluted EPS was $0.16, while non-GAAP diluted EPS reached $0.25.
GAAP net income totaled $29.4 million, up significantly from the prior year.
Cash and short-term investments stood at $379.2 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Credo expects continued growth in Q4 2025, with revenue guidance between $155.0 million and $165.0 million. The company projects GAAP gross margins between 62.7% and 64.7%, with non-GAAP gross margins ranging from 63.0% to 65.0%.
Positive Outlook
- Revenue is expected to grow to a range of $155.0 million to $165.0 million.
- Strong demand across product lines, particularly AEC products.
- Gross margin remains high, reflecting efficient operations.
- Continued customer base expansion and adoption of connectivity solutions.
- Company maintains a strong cash position to support future growth.
Challenges Ahead
- Operating expenses are expected to increase, reaching up to $75.0 million.
- Potential macroeconomic uncertainties may impact customer spending.
- Growth is reliant on continued high demand for connectivity solutions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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