Silicon Labs Reports Second Quarter 2025 Results

Wireless IoT leader posts 33% year-over-year growth and earns industry-first security distinction , /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), the leading innovator in low-power wireless, reported financial results for the second quarter, which ended July 5, 2025. "The Silicon Labs team delivered strong sequential and year-over-year revenue growth of 9% and 33%, respectively, while also driving improved profitability," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "Moving forward, we believe we are uniquely positioned to outperform the market underpinned by our industry-leading solutions, share gains, and consistent execution." Second Quarter Financial Highlights Revenue was $193 million Industrial & Commercial revenue for the quarter was $110 million, up 25% year-over-year Home & Life revenue for the quarter was $83 million, up 45% year-over-year Results on a GAAP basis: GAAP gross margin was 56.1% GAAP operating expenses were $131 million GAAP operating loss was $23 million GAAP diluted loss per share was $(0.67) Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows: Non-GAAP gross margin was 56.3% Non-GAAP operating expenses were $107 million Non-GAAP operating income was $1 million Non-GAAP diluted earnings per share was $0.11 Business Highlights Announced the upcoming general availability of the SiXG301 - Silicon Labs' first Series 3 device and the world's first device to achieve PSA Level 4 iSE/SE certification. This milestone reinforces Silicon Labs' long track record of industry-first achievements and sets a new benchmark for trusted embedded computing. Introduced the upcoming SiXG302 Series 3 device, expected to sample next year with new-to-industry energy efficiency and wireless performance targeting both Bluetooth and Matter applications, setting another industry performance benchmark. Announced the sixth annual Works With developer conference series - returning this fall with in-person events in Austin, Shenzhen, and Bangalore, followed by a global virtual event. Works With 2025 will bring together business leaders, engineers, and ecosystem partners to explore emerging trends in wireless connectivity, security, Matter, and the growing role of artificial intelligence and machine learning in IoT development. Business Outlook The company expects third-quarter revenue to be between $200 to $210 million. The company also estimates the following results: On a GAAP basis: GAAP gross margin to be between 57% to 58% GAAP operating expenses of approximately $130 million to $133 million GAAP diluted loss per share between $(0.60) to $(0.20) On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables: Non-GAAP gross margin to be between 57% to 58% Non-GAAP operating expenses of approximately $107 million to $110 million Non-GAAP diluted earnings per share between $0.20 to $0.40 Earnings Webcast and Conference Call Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs' website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through September 4, 2025. About Silicon Labs Silicon Labs (NASDAQ: SLAB) is the leading innovator in low-power wireless connectivity, building embedded technology that connects devices and improves lives. Merging cutting-edge technology into the world's most highly integrated SoCs, Silicon Labs provides device makers the solutions, support, and ecosystems needed to create advanced edge connectivity applications. Headquartered in Austin, Texas, Silicon Labs has operations in over 16 countries and is the trusted partner for innovative solutions in the smart home, industrial IoT, and smart cities markets. Learn more at silabs.com Forward-Looking Statements This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: fluctuating changes in global trade policies, including the imposition of tariffs, duties, trade sanctions, or other barriers to international commerce; the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of public health crises on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc. Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders. Silicon Laboratories Inc.Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended July 5,2025 June 29,2024 July 5,2025 June 29,2024 Revenues $ 192,845 $ 145,367 $ 370,559 $ 251,742 Cost of revenues 84,736 68,784 164,673 120,090 Gross profit 108,109 76,583 205,886 131,652 Operating expenses: Research and development 87,821 85,909 176,040 166,559 Selling, general and administrative 43,155 38,695 84,793 72,248 Operating expenses 130,976 124,604 260,833 238,807 Operating loss (22,867) (48,021) (54,947) (107,155) Other income (expense): Interest income and other, net 3,833 2,790 7,626 5,522 Interest expense (251) (263) (535) (772) Loss before income taxes (19,285) (45,494) (47,856) (102,405) Provision for income taxes 2,532 36,663 4,431 36,278 Net loss $ (21,817) $ (82,157) $ (52,287) $ (138,683) Loss per share: Basic $ (0.67) $ (2.56) $ (1.61) $ (4.33) Diluted $ (0.67) $ (2.56) $ (1.61) $ (4.33) Weighted-average common shares outstanding: Basic 32,682 32,124 32,570 32,018 Diluted 32,682 32,124 32,570 32,018 Non-GAAP Financial Measurements In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements. The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations. Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures(In thousands, except per share data) Three Months Ended July 5, 2025 Non-GAAP Income Statement Items GAAP Measure GAAP Percent of Revenue Stock Compensation Expense Intangible Asset Amortization Other Costs Non- GAAP Measure Non-GAAP Percent of Revenue Revenues $ 192,845 Gross profit 108,109 56.1 % $ 457 $ — $ — $ 108,566 56.3 % Research and development 87,821 45.5 % 12,101 3,342 — 72,378 37.5 % Selling, general and administrative 43,155 22.4 % 7,333 — 755 35,067 18.2 % Operating expenses 130,976 67.9 % 19,434 3,342 755 107,445 55.7 % Operating income (loss) (22,867) (11.9 %) 19,891 3,342 755 1,121 0.6 % Three Months Ended July 5, 2025 Non-GAAP Earnings (Loss) Per Share GAAP Measure Stock Compensation Expense* Intangible Asset Amortization* Other Costs* Income Tax Adjustments Non- GAAP Measure Net income (loss) $ (21,817) $ 19,891 $ 3,342 $ 755 $ 1,592 $ 3,763 Shares Excluded Due to Net Loss Diluted shares outstanding 32,682 206 32,888 Diluted earnings (loss) per share $ (0.67) $ 0.11 * Represents pre-tax amounts Unaudited Forward-Looking Statements Regarding Business Outlook(In millions, except per share data) Three Months EndedOctober 4, 2025 Business Outlook GAAP Measure Non-GAAP Adjustments** Non-GAAP Measure Gross margin 57% to 58% — % 57% to 58% Operating expenses $130 to $133 $(23) $107 to $110 Diluted earnings (loss) per share $(0.60) to $(0.20) $0.60 to $0.80 $0.20 to $0.40 ** Non-GAAP adjustments include the following estimates: stock compensation expense of $21.6 million, intangible assetamortization of $2.3 million, and the application of a long-term non-GAAP tax rate of 20%. Silicon Laboratories Inc.Condensed Consolidated Balance Sheets(In thousands, except per share data)(Unaudited) July 5,2025 December 28,2024 Assets Current assets: Cash and cash equivalents $ 314,459 $ 281,607 Short-term investments 101,081 100,554 Accounts receivable, net 56,496 54,479 Inventories 80,871 105,639 Prepaid expenses and other current assets 64,841 59,754 Total current assets 617,748 602,033 Property and equipment, net 131,283 132,136 Goodwill 376,389 376,389 Other intangible assets, net 27,719 36,499 Other assets, net 67,926 75,617 Total assets $ 1,221,065 $ 1,222,674 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 58,161 $ 42,448 Deferred revenue and returns liability 3,856 3,073 Other current liabilities 58,657 52,362 Total current liabilities 120,674 97,883 Other non-current liabilities 39,311 44,770 Total liabilities 159,985 142,653 Commitments and contingencies Stockholders' equity: Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued — — Common stock – $0.0001 par value; 250,000 shares authorized; 32,815 and 32,458 shares issued and outstanding at July 5, 2025 and December 28, 2024, respectively 3 3 Additional paid-in capital 111,562 78,227 Retained earnings 949,434 1,001,721 Accumulated other comprehensive income 81 70 Total stockholders' equity 1,061,080 1,080,021 Total liabilities and stockholders' equity $ 1,221,065 $ 1,222,674 Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended July 5,2025 June 29,2024 Operating Activities Net loss $ (52,287) $ (138,683) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation of property and equipment 12,701 13,152 Amortization of other intangible assets 8,780 12,160 Stock-based compensation expense 39,605 29,455 Deferred income taxes 1,504 29,784 Changes in operating assets and liabilities: Accounts receivable (2,017) (11,918) Inventories 24,631 28,123 Prepaid expenses and other assets 5,112 20,723 Accounts payable 12,812 (19,341) Other current liabilities and income taxes 8,377 (13,624) Deferred revenue and returns liability 783 1,206 Other non-current liabilities (6,965) (6,703) Net cash provided by (used in) operating activities 53,036 (55,666) Investing Activities Purchases of marketable securities (32,507) (17,700) Sales of marketable securities 14,986 34,538 Maturities of marketable securities 17,019 97,458 Purchases of property and equipment (13,549) (5,577) Proceeds from sale of equity investment — 12,382 Net cash provided by (used in) investing activities (14,051) 121,101 Financing Activities Payments on debt — (45,000) Payment of taxes withheld for vested stock awards (13,752) (15,213) Proceeds from the issuance of common stock 7,619 8,108 Net cash used in financing activities (6,133) (52,105) Increase in cash and cash equivalents 32,852 13,330 Cash and cash equivalents at beginning of period 281,607 227,504 Cash and cash equivalents at end of period $ 314,459 $ 240,834 SOURCE Silicon Labs WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Silicon Labs Reports Second Quarter 2025 Results

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