Wed, Jul 2, 10:01 AM (11 days ago)
**Summary of Credo Technology Group Holding Ltd (CRDO) Financial Performance (2025):** **Revenue:** - Total revenue for fiscal 2025 was $436.8 million, a significant increase of 126.3% compared to fiscal 2024. - Product sales revenue increased by 184.2% to $412.177 million, driven by a significant increase in volume unit shipments for AEC products. - Product engineering services revenue decreased by 39.1% to $12.122 million due to the completion of certain product engineering services arrangements. - IP license revenue decreased by 55.5% to $12.476 million due to fewer contracts entered into during fiscal 2025 compared to fiscal 2024. **Net Income:** - Net income for fiscal 2025 was $52.2 million, a significant improvement from a net loss of $28.4 million in fiscal 2024. **Gross Margin:** - Gross margin increased by 2.9 percentage points to 64.8% in fiscal 2025, primarily driven by the product sales business gaining scale from improvements in operating leverage. **Operating Expenses:** - Research and development expenses increased by 52.8% to $145.994 million, driven by increased share-based compensation expense, personnel costs, and higher engineering activities. - Selling, general, and administrative expenses increased by 64.3% to $98.918 million, primarily due to increased share-based compensation expense and higher headcount. **Liquidity and Capital Resources:** - Cash and cash equivalents increased to $236.3 million as of May 3, 2025, up from $66.9 million as of April 27, 2024. - Working capital increased to $605.8 million as of May 3, 2025, up from $485.6 million as of April 27, 2024. **Financial Condition:** - The company's financial condition improved significantly in fiscal 2025, with increased revenue, improved gross margin, and a return to profitability. **Market Position Changes:** - The company's market position appears to have improved, with significant growth in product sales revenue and a return to profitability. **Risk Factors:** - The company faces risks related to customer concentration, macroeconomic risks, competition, and supply chain disruptions. **Future Outlook:** - The company's future outlook is positive, with significant growth in product sales revenue and a return to profitability. However, the company faces risks related to customer concentration, macroeconomic risks, competition, and supply chain disruptions. **Financial Performance:** - The company's financial performance improved significantly in fiscal 2025, with increased revenue, improved gross margin, and a return to profitability. **Revenue Breakdown:** - Product sales revenue: $412.177 million (94.4% of total revenue) - Product engineering services revenue: $12.122 million (2.8% of total revenue) - IP license revenue: $12.476 million (2.9% of total revenue) **Geographic Revenue Breakdown:** - North America: 15% of total revenue - Rest of the world, primarily Asia: 85% of total revenue **Customer Concentration:** - Sales to the top 10 customers accounted for approximately 90% of total revenue in fiscal 2025. - One customer accounted for 10% or more of total revenue (67% of total fiscal 2025 revenue). **Operating Expenses Breakdown:** - Research and development: $145.994 million (33.4% of total revenue) - Selling, general, and administrative: $98.918 million (22.6% of total revenue) - Impairment charges: $873 thousand (0.3% of total revenue) **Liquidity and Capital Resources:** - Cash and cash equivalents: $236.3 million - Working capital: $605.8 million **Financial Condition:** - The company's financial condition improved significantly in fiscal 2025, with increased revenue, improved gross margin, and a return to profitability. **Market Position Changes:** - The company's market position appears to have improved, with significant growth in product sales revenue and a return to profitability. **Risk Factors:** - The company faces risks related to customer concentration, macroeconomic risks, competition, and supply chain disruptions. **Future Outlook:** - The company's future outlook is positive, with significant growth in product sales revenue and a return to profitability. However, the company faces risks related to customer concentration, macroeconomic risks, competition, and supply chain disruptions. **Financial Performance:** - The company's financial performance improved significantly in fiscal 2025, with increased revenue, improved gross margin, and a return to profitability. **Revenue Breakdown:** - Product sales revenue: $412.177 million (94.4% of total revenue) - Product engineering services revenue: $12.122 million (2.8% of total revenue) - IP license revenue: $12.476 million (2.9% of total revenue) **Geographic Revenue Breakdown:** - North America: 15% of total revenue - Rest of the world, primarily Asia: 85% of total revenue **Customer Concentration:** - Sales to the top 10 customers accounted for approximately 90% of total revenue in fiscal 2025. - One customer accounted for 10% or more of total revenue (67% of total fiscal 2025 revenue). **Operating Expenses Breakdown:** - Research and development: $145.994 million (33.4% of total revenue) - Selling, general, and administrative: $98.918 million (22.6% of total revenue) - Impairment charges: $873 thousand (0.3% of total revenue) **Liquidity and Capital Resources:** - Cash and cash equivalents: $236.3 million - Working capital: $605.8 million