Summary
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.
Financial Highlights
45 data points| Revenue | $223.07M |
| Cost of Revenue | $72.71M |
| Gross Profit | $150.37M |
| R&D Expenses | $52.45M |
| SG&A Expenses | $37.18M |
| Operating Expenses | $89.63M |
| Operating Income | $60.74M |
| Net Income | $63.40M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 171.93M |
| Shares Outstanding (Diluted) | 184.58M |
Key Highlights
- 1Total revenue surged by 272.8% year-over-year to $491.1 million for the six months ended November 1, 2025.
- 2The company achieved significant profitability, reporting a net income of $146.0 million for the six months ended November 1, 2025, compared to a net loss of $13.8 million in the prior year.
- 3Cash and cash equivalents significantly increased to $567.6 million as of November 1, 2025, supported by $384.6 million in net proceeds from an At-The-Market (ATM) offering.
- 4Gross margin improved to 67.5% for the six-month period, reflecting improved economies of scale in product sales.
- 5Credo completed the acquisition of Hyperlume, Inc. for $92.0 million to enhance its microLED optical interconnect technology capabilities.
- 6Research and Development (R&D) and Selling, General & Administrative (SG&A) expenses increased significantly year-over-year, reflecting investments in growth and share-based compensation.
- 7The company's customer concentration remains high, with specific customers accounting for substantial portions of revenue and accounts receivable.