Credo Technology Group Holding Ltd (CRDO) FY2025 10-K Annual Report

Filed: Jul 2, 2025
Information Technology
Semiconductors & Related DevicesSEC EDGAR

Credo Technology Group Holding Ltd (CRDO) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Jul 2, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Credo Technology Group Holding Ltd FY2025 10-K Analysis

Business Overview

  • Core business: High-speed connectivity solutions for AI, cloud, hyperscale data centers via SerDes and DSP tech in Ethernet & PCIe markets
  • New products FY2025: Lark family 800G DSPs including power-efficient 800G LRO DSP, PILOT software platform launched for predictive link integrity
  • Strategic shift: Increased product sales to 97% of revenue vs 85% prior year; enhanced focus on full retimed 800G transceivers for AI data centers
  • Key metric: Revenue $436.8M in FY2025 vs $193.0M in FY2024, R&D spend $146M up from $95.5M, 507 engineers employed
  • Noteworthy fact: One customer accounted for 67% of fiscal 2025 revenue, indicating high customer concentration risk

Management Discussion & Analysis

  • Revenue $436.8M, up 126.3% YoY from $193.0M, driven by product sales increase of $267.1M (+184.2%), offset by declines in product engineering (-39.1%) and IP license revenue (-55.5%)
  • Gross margin 64.8% vs 61.9%; operating income 8.5% of revenue vs operating loss of 19.2% prior year; net income $52.2M vs net loss $28.4M
  • Best segment: Product sales $412.2M (+184.2%) driven by 95% increase in AEC unit shipments; worst segment: IP license revenue $12.5M (-55.5%)
  • Cash from operating activities $65.1M vs $32.7M; investing activities net inflow $112.0M vs outflow $249.5M; financing outflows $7.7M vs inflows $175.3M; capex $36.1M for R&D-related equipment and mask sets
  • Management expects sufficient liquidity for next 12 months; notes risks in customer concentration and reliance on limited number of customers; no specific forward revenue guidance disclosed

Risk Factors

  • Regulatory risk: U.S. April 2025 tariff imposing across-the-board 10% tariffs plus higher tariffs on China, with pending Section 232 investigations on semiconductor products
  • Macroeconomic risk: Single customer contributed 67% of fiscal 2025 revenue, with order reductions in Feb 2023 impacting fiscal 2023 Q4 and fiscal 2024 revenue expectations
  • Supply chain risk: Sole-source foundry TSMC and assembly subcontractors (Amkor, ASE, KYEC, TeraPower) with capacity shortages and quality control risks
  • Competitive risk: Competition from Broadcom, Marvell, Astera Labs amid industry consolidation increasing pricing pressure and market share loss
  • Financial risk: Customer concentration—top 10 customers accounted for 90% of fiscal 2025 revenue, exposing to order cancellations and pricing concessions

Credo Technology Group Holding Ltd FY2025 Key Financial Metrics
XBRL

Revenue

$437M

+126.3% YoY

Net Income

$52M

+283.9% YoY

Gross Margin

64.8%

+288bp YoY

Operating Margin

8.5%

+2770bp YoY

Net Margin

11.9%

+2665bp YoY

ROE

7.7%

+1291bp YoY

Total Assets

$809M

+34.4% YoY

EPS (Diluted)

$0.29

+261.1% YoY

Operating Cash Flow

$65M

+98.8% YoY

Source: XBRL data from Credo Technology Group Holding Ltd FY2025 10-K filing on SEC EDGAR. All figures in USD.

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