01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Skyworks Solutions, Inc. reported fiscal second-quarter 2025 results (three months ended March 28, 2025) with net revenue of $953.2 milliona, down from $1,046.0 million a year earlier, driven primarily by lower demand for mobile products partially offset by higher demand for non-mobile products.
Net income fell to $68.7 millionb from $183.3 million, and diluted EPS was $0.43 versus $1.14. Operating income declined to $97.3 million from $189.2 million, as research and development expense rose to $186.5 million from $154.4 million, and restructuring, impairment, and other charges reached $19.6 million, primarily tied to the Chief Executive Officer Transition. The effective tax rate was 32.9% for the quarter, compared with 5.0% a year earlier.
Cash, cash equivalents, and marketable securities totaled $1,527.7 millionc at March 28, 2025, a decrease of $46.4 million from September 27, 2024. During the quarter the company repurchased 7.4 million shares for $504.3 million and paid dividends of $110.6 million, and the Board approved a new $2.0 billion stock repurchase program running through February 3, 2027, with about $1.5 billion remaining at quarter end. The filing states that the company expects revenue to be negatively impacted beginning in the fourth quarter of fiscal 2025 by a decrease in market share at a significant customer.
Management also disclosed a new CEO, Philip Brace, effective February 17, 2025, two additional senior appointments effective June 2, 2025, and a securities class action filed March 4, 2025, followed by two derivative suits in April 2025. The filing also notes that the company's revolving credit facility of $750.0 milliond had no borrowings outstanding, and that management believes current liquidity will be sufficient for short- and long-term requirements. Tariff actions announced in February and April 2025, and related Chinese countermeasures, are cited as risk factors affecting costs and demand.
02—Key points
Key Highlights
- Net revenue of $953.2 million for the quarter, down from $1,046.0 million, with the decline attributed primarily to lower mobile product demand partially offset by non-mobile growth.
- Net income of $68.7 million ($0.43 diluted EPS) versus $183.3 million ($1.14 diluted EPS) in the prior-year quarter.
- Gross profit of $391.6 million, or 41.1% of net revenue, compared with $420.3 million, or 40.2%, a year earlier.
- Research and development expense rose to $186.5 million from $154.4 million, reflecting higher headcount-related costs and engineering prototype spending.
- Repurchased 7.4 million shares for $504.3 million in the quarter; a new $2.0 billion repurchase program was approved, with approximately $1.5 billion remaining as of March 28, 2025.
- Cash, cash equivalents, and marketable securities of $1,527.7 million; the company's $750.0 million revolver was undrawn.
- Expected revenue headwind beginning in the fourth quarter of fiscal 2025 from a decrease in market share at a significant customer; a securities class action and two derivative suits were disclosed.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Skyworks Solutions kept $0.07.
- Revenue$953.2M100.0%
- Cost of revenue−$561.6M58.9%
- Gross profit$391.6M41.1%
- Operating costs−$294.3M30.9%
- Operating income$97.3M10.2%
- Interest, other & tax−$28.6M3.0%
- Net income$68.7M7.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed May 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $953.20M$1.05B | −8.9% |
| Cost of Revenue | $561.60M$625.70M | −10.2% |
| Gross Profit | $391.60M$420.30M | −6.8% |
| R&D Expenses | $186.50M$154.40M | +20.8% |
| SG&A Expenses | $88.00M$76.80M | +14.6% |
| Operating Expenses | $294.30M$231.10M | +27.3% |
| Operating Income | $97.30M$189.20M | −48.6% |
| Interest Expense | $6.80M$7.10M | −4.2% |
| Net Income | $68.70M$183.30M | −62.5% |
| EPS (Basic) | $0.43$1.14 | −62.3% |
| EPS (Diluted) | $0.43$1.14 | −62.3% |
| Shares Outstanding (Basic) | 158.50M160.40M | −1.2% |
| Shares Outstanding (Diluted) | 158.80M161.40M | −1.6% |
05—Questions
Frequently Asked Questions
Why did Skyworks' revenue and profit decline in the second quarter of fiscal 2025?
Net revenue fell to $953.2 million from $1,046.0 million, driven primarily by lower demand for mobile products, partly offset by higher demand for non-mobile products. Operating income dropped to $97.3 million from $189.2 million as operating expenses rose, particularly research and development.
How much capital did Skyworks return to shareholders this quarter?
During the three months ended March 28, 2025, the company repurchased 7.4 million shares for $504.3 million and declared dividends of $110.6 million. The Board also declared a $0.70 per share dividend payable June 17, 2025.
What is the company's liquidity position?
Cash, cash equivalents, and marketable securities totaled $1,527.7 million as of March 28, 2025, and the $750.0 million Revolving Credit Agreement had no borrowings outstanding. Management expects these sources to fund its short- and long-term requirements.
What were the notable risks and leadership changes disclosed?
The company appointed Philip Brace as President and CEO effective February 17, 2025, and announced a new CFO and a new SVP of Sales and Marketing, both effective June 2, 2025. A putative securities class action was filed March 4, 2025, followed by two derivative suits in April 2025. The filing also cites tariffs and China-related export restrictions as risks to costs and demand.
Why did the effective tax rate increase?
The effective tax rate was 32.9% for the quarter versus 5.0% a year earlier. The filing attributes the increase primarily to higher foreign taxes, including the impact of remeasuring existing net deferred tax liabilities in Singapore, a lower FDII benefit, and higher reserves for uncertain tax positions.
06—Continue