CRDO 10-Q Quarterly Reports

Credo Technology Group Holding Ltd (CRDO) reported a highly successful third quarter for fiscal year 2026, demonstrating exceptional top-line growth and a significant improvement in profitability. Revenue surged by over 200% year-over-year, driven by a substantial ramp-up in Active Electrical Cable (AEC) product shipments, particularly to hyperscale data center customers. This robust revenue growth, coupled with improved economies of scale, led to a significant expansion in gross margin, which increased by approximately 4.9 percentage points. The company also achieved substantial profitability growth, with net income increasing dramatically compared to the prior year's period. While operating expenses, particularly in Research & Development and Selling, General & Administrative, have increased in absolute terms to support growth and acquisitions, they have decreased as a percentage of revenue, indicating strong operational leverage. The company ended the quarter with a strong cash position and positive operating cash flow, reflecting its robust financial health and ability to fund future growth initiatives, including a recent acquisition to bolster its optical interconnect solutions.

Credo Technology Group Holding Ltd reported a strong financial performance for the six months ended November 1, 2025, showcasing significant year-over-year growth. Total revenue more than tripled to $491.1 million, primarily driven by a substantial increase in product sales, particularly Active Electrical Cables (AECs) to hyperscale data center customers. The company also achieved profitability, with net income reaching $146.0 million for the period, a stark contrast to the net loss reported in the prior year. Financially, Credo strengthened its balance sheet with a significant increase in cash and cash equivalents to $567.6 million, bolstered by a successful At-The-Market (ATM) offering that raised $384.6 million in net proceeds. The company also completed a strategic acquisition of Hyperlume, Inc., aimed at expanding its microLED technology portfolio for chip-to-chip communication, adding goodwill and intangible assets to its balance sheet. Despite increased operating expenses related to growth and share-based compensation, the company maintained a healthy gross margin of 67.5% and demonstrated improved operating leverage.

Credo Technology Group Holding Ltd. reported a significantly strong first quarter for fiscal year 2026, with total revenue soaring to $223.1 million, a remarkable 273.6% increase year-over-year. This surge was predominantly driven by a 278.6% rise in product sales revenue, largely attributed to the ramp-up of their Active Electrical Cable (AEC) solutions for hyperscale data centers. The company successfully transitioned from a net loss of $9.5 million in the prior year's comparable quarter to a net income of $63.4 million, marking a significant improvement in profitability. Gross margin also expanded by 5.0 percentage points to 67.4%, benefiting from improved economies of scale. Despite substantial increases in operating expenses, particularly in R&D and SG&A due to higher share-based compensation and personnel costs, the company's revenue growth outpaced these increases, leading to a healthy operating income of $60.7 million. The balance sheet shows a strong liquidity position with total assets reaching $905.2 million and a substantial working capital of $695.2 million. Management expressed confidence in the company's ability to meet its financial needs for at least the next 12 months, supported by existing cash reserves and operating cash flow generation.

Credo Technology Group Holding Ltd (CRDO) reported a strong third quarter for fiscal year 2025, showcasing significant revenue growth and a return to profitability. Total revenue surged by 154.4% year-over-year to $135.0 million, driven predominantly by a substantial increase in product sales, particularly Active Electrical Cables (AECs) to a hyper-scaler customer. This robust top-line performance translated into a healthy gross profit of $85.9 million, with gross margin improving to 63.6% from 61.4% in the prior year period. The company also achieved a significant turnaround in profitability, reporting a net income of $29.4 million, a stark contrast to the nominal net income in the prior year's quarter and a net loss in the comparable nine-month period. Despite increased investments in Research and Development (R&D) and Selling, General, and Administrative (SG&A) expenses, driven by hiring and share-based compensation, the company managed to improve its operating income. The balance sheet remains strong, with cash and cash equivalents nearly quadrupling to $299.2 million from $66.9 million at the prior fiscal year-end, indicating sound liquidity. Investors should note the continued customer concentration, with a few customers accounting for a significant portion of revenue, and the company's ongoing investment in growth initiatives.

Credo Technology Group Holding Ltd (CRDO) reported a significant increase in revenue for the six months ended November 2, 2024, up 66.5% year-over-year to $131.7 million. This growth was primarily driven by a substantial rise in product sales, up 84.0% to $118.3 million, indicating strong market adoption of their connectivity solutions, particularly in AEC and Optical products. Despite revenue growth, the company reported a net loss of $13.8 million for the six-month period, a slight improvement from the $18.3 million net loss in the prior year. The company also saw a decrease in IP license revenue. The balance sheet shows a healthy increase in cash and cash equivalents to $239.2 million from $66.9 million at the start of the fiscal year, suggesting solid cash generation and management. Operating expenses, particularly R&D and SG&A, have increased year-over-year, reflecting investments in product development and growth initiatives. The company believes its current cash position is sufficient for at least the next 12 months, but notes potential future financing needs. Investors should note the continued revenue concentration from a few key customers, although the company expects this to decrease with broader adoption. The company's focus on high-speed connectivity solutions for the data infrastructure market, driven by AI, appears to be translating into strong top-line growth, but profitability remains a key area for future improvement.

Credo Technology Group Holding Ltd (CRDO) reported a significant increase in revenue for the three months ended August 3, 2024, reaching $59.7 million, a 70.1% jump year-over-year, primarily driven by strong performance in product sales, notably Active Electrical Cables (AECs). Despite this revenue growth, the company continued to incur net losses, amounting to $9.5 million for the quarter, compared to $11.7 million in the prior year period. This indicates ongoing investment in research and development and selling, general, and administrative expenses, which increased substantially, particularly due to higher share-based compensation and personnel costs. The balance sheet shows a healthier cash position, with cash and cash equivalents rising to $103.9 million from $66.9 million in the previous quarter, supported by positive net cash from investing activities. However, operating cash flow was negative, a key area for investors to monitor. The company reiterates its belief that current cash and working capital are sufficient for at least the next 12 months. Investors should closely watch the company's path to profitability and its ability to manage increasing operating expenses while scaling revenue.

Credo Technology Group Holding Ltd (CRDO) reported its third-quarter fiscal year 2024 results, showing a slight sequential revenue decrease but highlighting a significant shift in revenue mix towards higher-margin product engineering services. Total revenue for the quarter was $53.1 million, down 2.2% year-over-year, primarily due to a substantial decline in IP license revenue, which was partially offset by growth in product sales and a strong increase in product engineering services. The nine-month revenue also declined year-over-year, largely driven by lower product sales and IP license revenue, despite an increase in product engineering services. Despite the revenue dip, the company's gross margin improved to 61.4% for the quarter, up from 58.9% in the prior year period, driven by the favorable shift in revenue mix towards higher-margin services and improved product sales margins. Financially, the company ended the period with $96.1 million in cash and cash equivalents and positive working capital of $471.2 million. The company also successfully completed a follow-on public offering in December 2023, raising $173.4 million in net proceeds, strengthening its liquidity position. While the company experienced an operating loss for the quarter, the net income for the three-month period was positive at $0.4 million. Looking ahead, Credo anticipates its current cash and equivalents will be sufficient to meet its needs for at least the next 12 months.

Credo Technology Group Holding Ltd (CRDO) reported a decrease in total revenue for the second quarter and first half of fiscal year 2024 compared to the prior year, primarily driven by a decline in product sales, particularly Active Electrical Cables (AECs), due to reduced demand from a major customer. While product sales weakened, IP license revenue saw a significant increase in the quarter, contributing to a higher overall gross margin. Despite revenue challenges, the company is investing heavily in Research and Development (R&D) to support future product development, leading to increased operating expenses. Financially, the company has a solid cash position but experienced a net loss in both the current quarter and year-to-date period. The balance sheet shows an increase in cash and cash equivalents and a healthy working capital. Management believes current cash is sufficient for at least the next 12 months. Investors should monitor the impact of the reduced demand from a key customer and the company's ability to drive future revenue growth through new product adoption and expanding customer base.

Credo Technology Group Holding Ltd reported a significant revenue decline of 24.5% year-over-year for the second quarter of fiscal year 2024, ending July 29, 2023. Total revenue was $35.1 million, down from $46.5 million in the prior year period. This decrease was primarily driven by a substantial 73.3% drop in IP license revenue, largely due to a large one-time license delivered in the prior year, and a 14.8% decrease in product sales, attributed to a demand forecast reduction by a major customer. Despite the revenue challenges, gross margin remained stable at 59.2%. However, operating expenses increased significantly, leading to a wider net loss of $11.7 million, compared to a nominal loss of $0.1 million in the same period last year. The company is investing heavily in Research & Development, with expenses increasing by 35.7% year-over-year, reflecting a strategic focus on future product development.

Credo Technology Group Holding Ltd (CRDO) reported a strong third quarter for fiscal year 2023, with total revenue increasing by 70.7% year-over-year to $54.3 million. This growth was primarily driven by significant increases in product sales and IP license revenue, fueled by the ramp-up of Active Electrical Cables (AECs) and substantial IP license deals. The company achieved profitability in the quarter, reporting a net income of $2.8 million, a notable improvement from the net loss in the prior year period. Despite the strong revenue growth and improved profitability, operating expenses, particularly in Research and Development, increased significantly due to new hires and increased design activities, impacting the operating loss in the current quarter. For the nine-month period, total revenue more than doubled year-over-year, reaching $152.1 million, also predominantly driven by product sales and IP licenses. While the company generated a net loss for the nine-month period, it shows a substantial improvement compared to the prior year's loss. Management highlighted strong design wins and continued innovation as key drivers for future growth, while also acknowledging the potential impact of macroeconomic conditions and a recent reduction in demand forecast from their largest customer. The company ended the quarter with a healthy cash position of $123.8 million, although lower than the previous year, and sufficient working capital to meet its needs for at least the next 12 months.

Credo Technology Group Holding Ltd (CRDO) reported its fiscal second-quarter 2023 results, showing significant year-over-year revenue growth driven by strong performance in product sales. Total revenue surged by 94.4% to $51.4 million for the quarter, and an impressive 163.3% to $97.8 million for the first six months. This growth was primarily fueled by increased unit shipments of Active Electrical Cables (AECs) and a substantial IP license deal contributing significantly to the six-month period. Despite the revenue surge, the company reported a net loss of $3.4 million for the quarter, an improvement from a $4.1 million loss in the prior year, and a net loss of $3.4 million for the six-month period, a considerable reduction from $16.7 million in the prior year. The company's gross margin saw a slight decrease to 54.4% in the quarter, attributed to a shift in revenue mix towards product sales which carry lower margins than IP licensing. Operating expenses, particularly in Research and Development and Selling, General & Administrative, increased due to higher personnel costs, share-based compensation, and investments in product development and public company compliance. The company ended the period with a solid cash position of $190.5 million, though net cash used in operating activities was $10.5 million for the six-month period, largely due to working capital movements.

Credo Technology Group Holding Ltd (CRDO) reported a significant surge in revenue for the three months ended July 30, 2022, reaching $46.5 million, a 333.3% increase year-over-year, driven primarily by a substantial rise in product sales and a notable increase in IP license revenue. Despite this top-line growth, the company reported a net loss of $73,000 for the quarter, a substantial improvement from the $12.6 million net loss in the prior year period. The company's gross margin also saw significant improvement, expanding to 59.5% from 48.3% in the prior year, benefiting from increased scale in product sales and higher-margin IP license revenue. Operating expenses, particularly in Research and Development and Selling, General & Administrative, increased year-over-year, contributing to the near break-even net loss. The company maintained a strong cash position with $243.8 million in cash and cash equivalents, although net cash used in operating activities was significant at $12.2 million, largely due to working capital changes. Investors should monitor the company's ability to translate its strong revenue growth and improved gross margins into sustainable profitability, while also keeping an eye on the increasing operating expenses and cash burn from operations.

Credo Technology Group Holding Ltd (CRDO) filed its Form 10-Q for the period ending January 31, 2022, reporting a significant increase in revenue driven primarily by product sales. The company reported total revenue of $31.8 million for the three months ended January 31, 2022, a substantial increase of 136.3% compared to the prior year period. This growth was largely attributed to a surge in product sales, which grew by 267.5%, indicating strong market adoption of their connectivity solutions, particularly Active Electrical Cables (AECs). Despite the revenue growth, the company continues to operate at a loss, though the net loss for the quarter significantly narrowed to $0.144 million compared to $5.117 million in the prior year. This improvement in profitability reflects increased gross profit and more controlled operating expenses relative to revenue. The company's balance sheet shows a strong cash position of $240.5 million, bolstered by proceeds from its Initial Public Offering (IPO) completed in January 2022, which provided significant financing.