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May 03
Credo Q4 2025 Earnings Report
Credo reported strong fourth quarter results with substantial year-over-year revenue growth and solid profitability.
Key Takeaways
Credo delivered a robust Q4 FY2025, with revenue climbing to $170 million and net income turning positive at $36.6 million, reflecting surging demand for AI-powered connectivity solutions.
Credo
Credo
Credo Revenue by Segment
Credo Revenue by Geographic Location
Forward Guidance
Credo expects continued momentum in Q1 FY2026 with revenue projected between $185M and $195M, although margins may slightly compress.
Positive Outlook
- Q1 FY2026 revenue expected to grow to $185M–$195M
- Non-GAAP gross margin forecasted at 64.0%–66.0%
- Non-GAAP operating expenses to remain stable at $54M–$56M
- Ongoing demand from hyperscaler customers for AI services
- Strong cash balance of $431.3M to support operations
Challenges Ahead
- GAAP gross margin expected to decline to 63.4%–65.4%
- GAAP operating expenses to increase to $88.3M–$90.3M
- Possible margin pressure from increased R&D investment
- Reduced IP license revenue compared to prior year
- Ongoing high share-based compensation affecting GAAP metrics
Revenue & Expenses
Visualization of income flow from segment revenue to net income