CIRRUS LOGIC, INC.
For the period ended Sep 26, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 26, 2026 · Filed Nov 4, 2026
CRUS$113.58+3.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-27; filed 2026-08-05.
0000772406-26-000037
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-26; filed 2026-11-04.
0000772406-26-000054
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 58 current paragraphs.
29 unchanged; 17 reworded; 12 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
During the second quarter of fiscal year 2027, we saw our latest-generation custom boosted amplifier and 22-nanometer smart codec featured in newly launched smartphones, along with a higher attach rate of our third-generation camera controller. We also made progress on the development of new custom components, with our smart power IC for 3D sensing applications remaining on schedule and the tape out of our fourth-generation camera controller. Beyond smartphones, a new premium six-speaker PC based on NVIDIA’s RTX Spark™ platform featuring Cirrus Logic amplifiers and a codec was recently introduced and we taped out our second-generation smart codec for AI-enabled PCs. In our general market business, we began sampling our new analog front-end components for smart metering and secured the first production orders for our new industrial imaging components. Finally, subsequent to the end of the quarter, we completed the acquisition of INVENTVM, a fabless semiconductor company specializing in mixed-signal power management and audio integrated circuits. This acquisition not only expands our engineering capacity but also strengthens our competitive position and product portfolio in the emerging consumer wearable and AI gadget markets.
Current report
Net sales for the second quarter of fiscal year 2027 decreased $1.5 million, to $559.5 million from $561.0 million in the second quarter of fiscal year 2026. Net sales from our audio products decreased $3.7 million, primarily driven by lower general market sales. Net sales from HPMS products increased $2.2 million for the quarter versus the second quarter of fiscal year 2026, primarily due to higher sales of components shipping into smartphones, partially offset by lower general market sales and previously anticipated pricing reductions.
Current report
Gross margin was 53.2 percent for the first six months of fiscal year 2027, up from 52.5 percent for the first six months of fiscal year 2026. The increase was primarily due to a more favorable product mix and lower inventory reserves, partially offset by higher freight and supply chain costs.
Current report
Research and development expense for the first six months of fiscal year 2027 was $238.4 million, an increase of $25.4 million, from $212.9 million for the first six months of fiscal year 2026, primarily due to increased employee-related costs, including acquisition-specific employee bonus and retention payments, IT and facilities-related, and product development costs, offset by increased R&D incentives for the period.
Current report
Selling, general and administrative expense for the second quarter of fiscal year 2027 was $44.8 million, an increase of $5.3 million, from $39.6 million in the second quarter of fiscal year 2026, due to higher professional fees associated with acquisition-related costs, and higher employee-related costs, partially offset by reductions in stock-based compensation expenses related to performance-based awards.
Current report
Selling, general and administrative expense for the first six months of fiscal year 2027 was $87.2 million, an increase of $8.9 million, from $78.3 million for the first six months of fiscal year 2026, predominantly due to higher professional fees associated with acquisition-related costs. Additional increases are attributed to employee-related costs and other professional fees, partially offset by reductions in stock-based compensation expenses related to performance-based awards.
Current report
The effective tax rates for all periods presented were lower than the statutory rate, primarily due to the effect of income in foreign jurisdictions taxed below the federal statutory rate, offset by certain nondeductible items. All periods presented were favorably impacted by the legislation commonly referred to as the One Big Beautiful Bill Act ("OBBBA"), enacted in the second quarter of fiscal year 2026, which permanently eliminated the requirement to capitalize U.S. R&D expenditures effective from the beginning of fiscal year 2026.
Current report
The Company’s contractual cash requirements have changed since the fiscal year 2026 Form 10-K, including manufacturing purchase obligations and multi-year tool commitments. See additional details of total future unconditional purchase commitments within Note 12 - Commitments and Contingencies of the Notes to the Consolidated Condensed Financial Statements.
Current report
Manufacturing Purchase Obligations
Current report
The Company's manufacturing purchase obligations consist primarily of commitments related to our wafer supply arrangements and third-party assembly vendors that package the wafer die into finished products. As of September 26, 2026, the Company had unconditional manufacturing purchase obligations of $273.6 million, payable within the remaining 2027 fiscal year.
Current report
Other Purchase Obligations
Current report
The Company's other purchase obligations consist primarily of multi-year tool commitments. As of September 26, 2026, the Company's unconditional other purchase obligations were $22.4 million, payable within the remaining 2027 fiscal year.
Removed paragraphs (5)
Previous report
During the first quarter of fiscal year 2027, we saw strong demand for our custom products shipping into smartphones. We also made good progress in the development of our next-generation camera controller and new smart power IC for 3D sensing applications. The latter is part of a broader set of power and battery opportunities that we believe will diversify our product portfolio and support long-term growth. Beyond smartphones, the PC market remains our largest near-term growth opportunity. In the current quarter, we were encouraged by our design win activity and customer engagement, which included interest in our latest smart codec for AI-enabled PCs. Additionally, in June multiple customers announced new PCs based on NVIDIA’s RTX Spark™ platform, which are expected to ship later this year with Cirrus Logic amplifiers and codecs.
Previous report
In our general market business, we also continued to expand across a broad base of customers in the professional audio, automotive, industrial, and imaging markets. Our progress in the first quarter of fiscal year 2027 included taping out a new high-performance analog front-end (AFE) component for metrology applications, which we expect to begin sampling in the September quarter. While this component will initially be used for smart meters, we believe over time the underlying technology can extend into adjacent applications such as data center DC metrology, energy storage, EV charging, and grid monitoring. We remain optimistic about our opportunities to continue leveraging our mixed-signal design and signal processing expertise to drive growth across new applications and markets in future years.
Previous report
Finally, we recently signed a new Capacity Reservation and Wafer Supply Agreement with GlobalFoundries. This agreement builds on our existing partnership and secures dedicated wafer capacity and pricing for calendar 2027 and 2028, further supporting the broad range of opportunities we see ahead. We are also continuing to collaborate with GlobalFoundries on next-generation process technologies and progressing towards manufacturing products in the United States at their facility in Malta, New York.
Previous report
Selling, general and administrative expense for the first quarter of fiscal year 2027 was $42.4 million, an increase of $3.7 million, from $38.7 million in the first quarter of fiscal year 2026, due primarily to increased employee-related costs and professional fees for the quarter.
Previous report
The effective tax rate for the first quarter of fiscal year 2027 was lower than the prior period presented, primarily due to the July 4, 2025 enactment of the One Big Beautiful Bill Act that reinstated immediate expensing of U.S. R&D expenditures. The effective tax rate for the first quarter of fiscal year 2026 was unfavorably impacted by the Tax Cuts and Jobs Act of 2017 provision that required worldwide R&D expenditures to be capitalized and amortized, which resulted in increased GILTI inclusions in the period, and by U.S. tax rules related to refundable tax credits, including R&D expenditure credits available to us in the United Kingdom, that reduced the amount of foreign tax credits available to offset GILTI.
Reworded paragraphs (17)
Previous wording
There have been no significant changes during the three months ended June 27, 2026, to the information provided under the headings “Critical Accounting Estimates” and “Summary of Significant Accounting Policies” included in our fiscal year 2026 Annual Report on Form 10-K for the fiscal year ended March 28, 2026.
Current wording
There have been no significant changes during the three and six months ended September 26, 2026, to the information provided under the headings “Critical Accounting Estimates” and “Summary of Significant Accounting Policies” included in our fiscal year 2026 Annual Report on Form 10-K for the fiscal year ended March 28, 2026.
Previous wording
The following table summarizes the results of our operations for thethree months of fiscal years 2027 and 2026, respectively, as a percentage of net sales. All percentage amounts were calculated using the underlying data in thousands, unaudited. Percentages are rounded to the nearest whole percent and, as a result, may not sum to subtotals presented.
Current wording
The following table summarizes the results of our operations for thethree and six months of fiscal years 2027 and 2026, respectively, as a percentage of net sales. All percentage amounts were calculated using the underlying data in thousands, unaudited. Percentages are rounded to the nearest whole percent and, as a result, may not sum to subtotals presented.
Previous wording
Net sales for the first quarter of fiscal year 2027 increased $52.5 million, or 13 percent, to $459.7 million from $407.3 million in the first quarter of fiscal year 2026. Net sales from our audio products increased $9.0 million, primarily driven by higher sales of components shipping in smartphones, partially offset by declines in average sales prices ("ASPs") due to previously anticipated pricing reductions. Net sales from HPMS products increased $43.5 million for the quarter versus the first quarter of fiscal year 2026, primarily due to higher sales of components shipping in smartphones, partially offset by declines in ASPs due to previously anticipated pricing reductions.
Current wording
Net sales for the first six months of fiscal year 2027 increased $51.0 million, or 5 percent, to $1.0 billion from $968.2 million for the first six months of fiscal year 2026. Net sales from our audio products increased $5.3 million, primarily driven by higher smartphone unit volumes and increased content shipping into smartphones, partially offset by lower general market sales and declines due to previously anticipated pricing reductions. Net sales from HPMS products increased $45.7 million for the first six months of fiscal year 2027 versus the first six months of fiscal year 2026, primarily due to higher sales of components shipping into smartphones. Declines due to lower general market sales and previously anticipated pricing reductions partially offset the increase.
Previous wording
International sales, including sales to U.S.-based end customers that manufacture products through contract manufacturers or plants located overseas, were approximately 99 percent of net sales for each of the first quarters of fiscal years 2027 and 2026. Our sales are denominated primarily in U.S. dollars.
Current wording
International sales, including sales to U.S.-based end customers that manufacture products through contract manufacturers or plants located overseas, were approximately 99 percent of net sales for each of the second quarters and six month periods of fiscal years 2027 and 2026. Our sales are denominated primarily in U.S. dollars.
Previous wording
Since the components we produce are largely proprietary, we consider our end customer to be the entity specifying the use of our component in their design. These end customers may purchase our products directly from us, through distributors, or third-party manufacturers contracted to produce their designs. For the first quarters of fiscal years 2027 and 2026, our ten largest end customers represented approximately 96 percent and 95 percent of our net sales, respectively.
Current wording
Since the components we produce are largely proprietary, we consider our end customer to be the entity specifying the use of our component in their design. These end customers may purchase our products directly from us, through distributors, or third-party manufacturers contracted to produce their designs. For each of the second quarters of fiscal years 2027 and 2026, our ten largest end customers represented approximately 97 percent of our net sales, and 96 percent and 97 percent for the first six months of fiscal years 2027 and 2026, respectively.
Previous wording
We had one end customer, Apple Inc., that purchased through multiple contract manufacturers and represented approximately 90 percent and 86 percent of the Company’s total net sales for the first quarters of fiscal years 2027 and 2026, respectively.
Current wording
We had one end customer, Apple Inc., that purchased through multiple contract manufacturers and represented approximately 93 percent and 90 percent of the Company’s total net sales for the second quarters of fiscal years 2027 and 2026, respectively, and 92 percent and 88 percent for the first six months of fiscal years 2027 and 2026, respectively.
Previous wording
No other end customer or distributor represented more than 10 percent of net sales for the three months ended June 27, 2026 or June 28, 2025.
Current wording
No other end customer or distributor represented more than 10 percent of net sales for the three and six months ended September 26, 2026 or September 27, 2025.
Previous wording
Gross margin was 52.6 percent in the first quarter of fiscal years 2027 and 2026, remaining flat for the period, as a favorable product mix was partially offset by higher freight and supply chain costs.
Current wording
Gross margin was 53.7 percent and 52.5 percent in the second quarter of fiscal years 2027 and 2026, respectively. The increase was primarily due to a more favorable product mix, lower inventory reserves, and a temporary benefit from wafers purchased under prior agreements with GlobalFoundries, partially offset by higher freight and supply chain costs.
Previous wording
Research and development expense for the first quarter of fiscal year 2027 was $115.0 million, an increase of $12.1 million, from $102.9 million in the first quarter of fiscal year 2026. Significant drivers included increased employee-related, product development, variable compensation, and IT and facilities-related costs during the quarter.
Current wording
Research and development expense for the second quarter of fiscal year 2027 was $123.3 million, an increase of $13.3 million, from $110.0 million in the second quarter of fiscal year 2026. Significant drivers were increased employee-related costs, including acquisition-specific employee bonus and retention payments, increased IT and facilities-related, and product development costs, partially offset by reductions in variable compensation costs.
Previous wording
The Company reported interest income of $10.4 million and $8.8 million for the three months ended June 27, 2026, and June 28, 2025, respectively. Interest income increased in the current period due to higher average cash, cash equivalents and marketable securities balances, partially offset by marginally lower interest rates compared to the prior period.
Current wording
The Company reported interest income of $9.9 million and $20.3 million for the three and six months ended September 26, 2026, and $8.9 million and $17.8 million for the three and six months ended September 27, 2025, respectively. Interest income increased in the current period due to higher average cash, cash equivalents and marketable securities balances, partially offset by marginally lower interest rates compared to the prior period.
Previous wording
The Company reported interest expense of $0.3 million and $0.2 million for the three months ended June 27, 2026, and June 28, 2025, respectively. Interest expense consists primarily of commitment fees and debt issuance cost amortization associated with the Company's Revolving Credit Facility (see Note 8 - Revolving Credit Facility of the Notes to the Consolidated Condensed Financial Statements).
Current wording
The Company reported interest expense of $0.3 million and $0.6 million for the three and six months ended September 26, 2026, and $0.2 million and $0.5 million for the three and six months ended September 27, 2025, respectively. Interest expense consists primarily of commitment fees and debt issuance cost amortization associated with the Company's Revolving Credit Facility (see Note 8 - Revolving Credit Facility of the Notes to the Consolidated Condensed Financial Statements).
Previous wording
For the three months ended June 27, 2026 and June 28, 2025, the Company reported other expense of $0.4 million and $0.4 million, respectively. This activity primarily related to non-investment related expense and remeasurement on foreign currency denominated monetary assets and liabilities.
Current wording
For the three and six months ended September 26, 2026, the Company reported other expense of $0.1 million and $0.4 million, respectively. For the three and six months ended September 27, 2025, the Company reported other expense of $0.1 million and $0.5 million, respectively. This activity primarily related to non-investment related expense and remeasurement on foreign currency denominated monetary assets and liabilities.
Previous wording
Our income tax expense for the first quarter of fiscal year 2027 was $17.3 million compared to $19.9 million for the first quarter of fiscal year 2026, resulting in effective tax rates of 18.4 percent and 24.7 percent, respectively.
Current wording
Our income tax expense for the second quarter of fiscal year 2027 was $27.2 million compared to $21.8 million for the second quarter of fiscal year 2026, resulting in effective tax rates of 19.2 percent and 14.2 percent, respectively. Income tax expense for the first six months of fiscal years 2027 and 2026 was $44.5 million and $41.7 million, respectively, resulting in effective tax rates of 18.9 percent and 17.8 percent, respectively.
Previous wording
Cash generated from our operating activities is net income adjusted for certain non-cash items and changes in working capital. Cash generated from operations was $64.1 million for the first three months of fiscal year 2027 versus $116.1 million generated for the corresponding period of fiscal year 2026. The cash flow from operations during the first three months of fiscal year 2027 was related to the cash components of our net income and a $42.0 million unfavorable change in working capital, primarily as a result of increases in accounts receivables and inventory, and decreases in accounts payable and other accrued liabilities, partially offset by increases in prepaid wafer usage (related to the Capacity Reservation Agreement). The cash flow from operations during the corresponding period of fiscal year 2026 was related to the cash components of our net income and a $27.4 million favorable change in working capital, primarily as a result of decreases in inventory, increases in prepaid wafer usage (related to the Capacity Reservation Agreement) and income taxes payable, partially offset by decreases in accounts payable and other accrued liabilities.
Current wording
Cash generated from our operating activities is net income adjusted for certain non-cash items and changes in working capital. Cash generated from operations was $115.0 million for the first six months of fiscal year 2027 versus $208.3 million generated for the corresponding period of fiscal year 2026. The cash flow from operations during the first six months of fiscal year 2027 was related to the cash components of our net income and a $148.3 million unfavorable change in working capital, primarily as a result of increases in accounts receivables, inventories, and other assets, partially offset by increases in accounts payable and other accrued liabilities and prepaid wafer usage (related to the Capacity Reservation Agreement). The cash flow from operations during the corresponding period of fiscal year 2026 was related to the cash components of our net income and a $52.8 million unfavorable change in working capital, primarily as a result of an increase in accounts receivables and decrease in income taxes payable, partially offset by decreases in inventory, and increases in prepaid wafer usage (related to the Capacity Reservation Agreement) and accounts payable and other accrued liabilities.
Previous wording
Net cash used in investing activities was $19.4 million during the first three months of fiscal year 2027 versus $6.2 million during the first three months of fiscal year 2026. The cash used in investing activities in the first three months of fiscal year 2027 was related to net purchases of marketable securities of $3.9 million and capital expenditures and technology investments of $15.5 million. The cash used in investing activities in the corresponding period in fiscal year 2026 was related to net purchases of marketable securities of $3.4 million and capital expenditures and technology investments of $2.8 million.
Current wording
Net cash used in investing activities was $31.8 million during the first six months of fiscal year 2027 versus $14.1 million during the first six months of fiscal year 2026. The cash used in investing activities in the first six months of fiscal year 2027 was related to net purchases of marketable securities of $7.7 million and capital expenditures and technology investments of $24.1 million. The cash used in investing activities in the corresponding period in fiscal year 2026 was related to net purchases of marketable securities of $6.9 million and capital expenditures and technology investments of $7.3 million.
Previous wording
Net cash used in financing activities was $35.0 million during the first three months of fiscal year 2027 and was primarily associated with stock repurchases for the period of $31.5 million. The cash used in financing activities during the first three months of fiscal year 2026 of $100.7 million was primarily associated with stock repurchases during the period of $100.0 million.
Current wording
Net cash used in financing activities was $164.0 million during the first six months of fiscal year 2027 and was primarily associated with stock repurchases for the period of $160.0 million. The cash used in financing activities during the first six months of fiscal year 2026 of $140.3 million was primarily associated with stock repurchases during the period of $140.0 million.
Previous wording
Our future capital requirements will depend on many factors, including the rate of sales growth, market acceptance of our products, the timing and extent of research and development projects, potential future acquisitions of companies or technologies, inventory build, and commitments under the Capacity Reservation and Commitment Agreements with GlobalFoundries (discussed further in Note 12 - Commitments and Contingencies of the Notes to the Consolidated Condensed Financial Statements). We believe our expected future cash earnings, existing cash, cash equivalents, investment balances, and available borrowings under our Revolving Credit Facility will be sufficient to meet our capital requirements both domestically and internationally, in the short-term (i.e. the next 12 months) and in the long-term, although we could be required, or could elect, to seek additional funding prior to that time.
Current wording
Our future capital requirements will depend on many factors, including the rate of sales growth, market acceptance of our products, the timing and extent of research and development projects, potential future acquisitions of companies or technologies, inventory build, and commitments under the Commitment Agreement with GlobalFoundries (discussed further in Note 12 - Commitments and Contingencies of the Notes to the Consolidated Condensed Financial Statements). We believe our expected future cash earnings, existing cash, cash equivalents, investment balances, and available borrowings under our Revolving Credit Facility will be sufficient to meet our capital requirements both domestically and internationally, in the short-term (i.e. the next 12 months) and in the long-term, although we could be required, or could elect, to seek additional funding prior to that time.