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Feb 01
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.
Credo
Credo
Credo Revenue by Segment
Credo Revenue by Geographic Location
Revenue by Segment
Product Sales Revenue
CapyFin.comProduct Engineering Revenue
CapyFin.comIP License Revenue
CapyFin.comRevenue by Geographic Location
Total Revenue
CapyFin.com 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.
- Increasing R&D and SG&A expenses could pressure future margins.
- Market competition remains a challenge in the high-speed connectivity sector.
Revenue & Expenses
Visualization of income flow from segment revenue to net income