Company: CRUS
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000772406-25-000034
Chunk: 11

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 11
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 and 2025.  Our sales are denominated primarily in U.S. dollars. 

Since the components we produce are largely proprietary, we consider our end customer to be the entity specifying the use of our component in their design.  These end customers may purchase our products directly from us, through distributors, or third-party manufacturers contracted to produce their designs.  For the first quarter of fiscal years 2026 and 2025, our ten largest end customers represented approximately 95 percent and 96 percent, of our net sales, respectively.       

We had one end customer, Apple Inc., that purchased through multiple contract manufacturers and represented approximately 86 percent and 88 percent of the Company’s total net sales for the first quarter of fiscal years 2026 and 2025, respectively.  

No other end customer or distributor represented more than 10 percent of net sales for the three months ended June 28, 2025 or June 29, 2024.  

For more information, please see "Part II, Item 1A - Risk Factors" — “We depend on a limited number of customers and distributors for a substantial portion of our sales, and the loss of, or a significant reduction in orders from, or pricing on products sold to, any key customer or distributor could significantly reduce our sales and our profitability.”

Gross Margin

Gross margin was 52.6 percent in the first quarter of fiscal year 2026, up from 50.5 percent in the first quarter of fiscal year 2025, largely due to a more favorable product mix.   

Research and Development Expense

Research and development expense for the first quarter of fiscal year 2026 was $102.9 million, a decrease of $2.5 million, from $105.4 million in the first quarter of fiscal year 2025.  Significant drivers included reduced stock-based compensation and product development costs, partially offset by increased employee-related costs in the current quarter.

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Selling, General and Administrative Expense

Selling, general and administrative expense for the first quarter of fiscal year 2026 was $38.7 million, an increase of $2.0 million, from $36.8 million in the first quarter of fiscal year 2025, due primarily to increased stock-based compensation and employee-related expenses.  The increase was partially offset by the absence in the first quarter of fiscal year 2026 of lease impairment costs incurred during the first quarter of fiscal year 2025, related to refined