01—Abstract
Summary
Summary of the 10-Q filed August 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Skyworks Solutions, Inc. reported third-quarter fiscal 2025 results (three months ended June 27, 2025) with net revenue of $965.0 milliona, up from $905.5 million a year earlier, driven primarily by higher demand for mobile and Wi-Fi products.
Gross profit rose to $401.0 million, but net income declined to $105.0 millionb from $120.9 million, as research and development expenses increased to $199.4 million from $160.7 million. For the nine months, net revenue fell to $2,986.7 million from $3,153.0 million, and net income dropped to $335.7 million from $535.5 million, with management attributing the revenue decline primarily to lower demand for mobile products partially offset by Wi-Fi growth. Cash, cash equivalents, and marketable securities totaled $1,336.7 million at quarter end, down from the prior fiscal year end, as the company repurchased $837.7 million of stock for the nine months under its February 4, 2025 program, which had approximately $1.2 billion remaining.
Operating cash flow was $1,100.8 millionc for the nine months, versus $1,348.6 million a year earlier. The company also declared a $0.71 per share quarterly dividend on August 5, 2025. The filing flags several risks: management expects revenue to be negatively impacted beginning in the fourth quarter of fiscal 2025 by a decrease in market share at a significant customer, Denso Corporation filed patent infringement suits in the U.S. and Japan on June 20, 2025, and the company disclosed securities class action and derivative lawsuits, along with three senior management transitions including a new CEO and an interim CFO.
02—Key points
Key Highlights
- Third-quarter net revenue of $965.0 million, up from $905.5 million, driven primarily by mobile and Wi-Fi product demand
- Third-quarter net income of $105.0 million ($0.70 diluted EPS), down from $120.9 million ($0.75 diluted EPS) a year earlier
- Nine-month net revenue of $2,986.7 million, down from $3,153.0 million, mainly due to lower mobile product demand
- Research and development expense rose to $199.4 million in the quarter from $160.7 million, tied to new technology and product investment
- Cash, cash equivalents, and marketable securities of $1,336.7 million at June 27, 2025, after $837.7 million of nine-month share repurchases
- Management expects revenue to be negatively impacted from the fourth quarter of fiscal 2025 by a decrease in market share at a significant customer
- Denso Corporation filed patent infringement litigation against the company in the U.S. and Japan on June 20, 2025; the company is unable to reasonably estimate a range of outcomes
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Skyworks Solutions kept $0.11.
- Revenue$965.0M100.0%
- Cost of revenue−$564.0M58.4%
- Gross profit$401.0M41.6%
- Operating costs−$290.4M30.1%
- Operating income$110.6M11.5%
- Interest, other & tax−$5.6M0.6%
- Net income$105.0M10.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $965.00M$905.50M | +6.6% |
| Cost of Revenue | $564.00M$541.40M | +4.2% |
| Gross Profit | $401.00M$364.10M | +10.1% |
| R&D Expenses | $199.40M$160.70M | +24.1% |
| SG&A Expenses | $89.30M$71.20M | +25.4% |
| Operating Expenses | $290.40M$233.70M | +24.3% |
| Operating Income | $110.60M$130.40M | −15.2% |
| Interest Expense | $6.60M$6.60M | 0.0% |
| Net Income | $105.00M$120.90M | −13.2% |
| EPS (Basic) | $0.70$0.75 | −6.7% |
| EPS (Diluted) | $0.70$0.75 | −6.7% |
| Shares Outstanding (Basic) | 150.00M160.40M | −6.5% |
| Shares Outstanding (Diluted) | 150.30M161.40M | −6.9% |
05—Questions
Frequently Asked Questions
How did Skyworks perform in the third quarter of fiscal 2025?
Net revenue increased 6.6% to $965.0 million from $905.5 million, and gross profit rose to $401.0 million from $364.1 million. Net income fell to $105.0 million from $120.9 million because operating expenses, particularly research and development, grew faster than gross profit.
Why did nine-month revenue decline?
Net revenue for the nine months ended June 27, 2025 was $2,986.7 million versus $3,153.0 million a year earlier. The filing attributes the decrease primarily to lower demand for mobile products, partially offset by higher demand for Wi-Fi products.
What does the company expect going forward?
The filing states that beginning in the fourth quarter of fiscal 2025, revenues are expected to be negatively impacted by a decrease in market share at a significant customer. The filing also notes that the company is evaluating the impact of the One Big Beautiful Bill Act on its business.
How is Skyworks returning capital to shareholders?
During the nine months, the company repurchased 12.6 million shares for $837.7 million under its February 4, 2025 program, which authorizes up to $2.0 billion through February 3, 2027, with about $1.2 billion remaining. Dividends paid totaled $327.0 million for the nine months, and a $0.71 per share dividend was declared on August 5, 2025.
What legal and leadership risks does the filing disclose?
Denso Corporation filed patent infringement suits on June 20, 2025 in the U.S. and Japan, seeking monetary damages and injunctive relief, and the company believes it has substantial defenses. A putative securities class action was filed March 4, 2025, followed by two derivative actions in April 2025. The company also named a new CEO, Philip Brace, in February 2025 and appointed Robert Schriesheim as interim CFO on May 29, 2025.
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