Silicon Laboratories Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 4 February 2026: press release. The quarter’s numbers.

Key takeaways

Fourth-quarter revenue rose 25%: Q4 revenue was $208.2 million, up from $166.2 million a year earlier and from $206.0 million in the third quarter per the prior release. Source
Full-year revenue rose 34%: Full-year 2025 revenue was $784.8 million, against $584.4 million in 2024. Management cited continued execution behind the growth. Source
Fourth-quarter non-GAAP EPS $0.56: Q4 non-GAAP operating income was $20.6 million and non-GAAP diluted EPS was $0.56. The prior release reported $0.32 for the third quarter. Source
Industrial & Commercial grew 37% in Q4: Q4 Industrial & Commercial revenue was $122 million, up from $118 million in the third quarter per the prior release, when growth was 22%. Source
Q4 GAAP gross margin 63.4%: Q4 GAAP gross margin was 63.4% and GAAP operating expenses were $135 million. The third-quarter GAAP gross margin in the prior release was 57.8%. Source
Operating cash flow turned positive: Full-year 2025 net cash provided by operating activities was $95.7 million, against $13.9 million used in 2024. Source
Cash and short-term investments at year-end: Cash and cash equivalents were $364.2 million at January 3, 2026, against $281.6 million at December 28, 2024. Short-term investments were $79.4 million, against $100.6 million. Source
Texas Instruments acquisition pending: The company cited a separately announced pending acquisition of Silicon Labs by Texas Instruments. The release gives no closing terms or timing. Source

“The Silicon Labs team completed fiscal 2025 with continued strong execution, delivering an impressive year-over-year revenue growth of 34%,”
Matt Johnson, President and Chief Executive Officer of Silicon Labs

What changed from last quarter

Guidance withdrawn: The company suspended forward-looking guidance. The Q4 guidance given in the Q3 release is no longer provided. Source
New: A pending acquisition of Silicon Labs by Texas Instruments was separately announced. Source
Ended: The earnings call scheduled for February 10, 2026 was cancelled. Source

Fourth-quarter and full-year results

Fourth-quarter revenue rose 25%: Q4 revenue was $208.2 million, up from $166.2 million a year earlier and from $206.0 million in the third quarter per the prior release. Source
Full-year revenue rose 34%: Full-year 2025 revenue was $784.8 million, against $584.4 million in 2024. Management cited continued execution behind the growth. Source
Full-year GAAP loss per share $(1.98): Full-year GAAP operating loss was $70.5 million, against $165.5 million in 2024. GAAP diluted loss per share was $(1.98), against $(5.93). Source
Full-year non-GAAP diluted EPS $0.92: Full-year non-GAAP operating income was $25.3 million and non-GAAP diluted EPS was $0.92, excluding stock compensation, intangible amortization and other items. Source
Fourth-quarter GAAP loss per share $(0.08): Q4 GAAP operating loss was $3.3 million and GAAP diluted loss per share was $(0.08), against $(0.73) in the fourth quarter of 2024. Source
Fourth-quarter non-GAAP EPS $0.56: Q4 non-GAAP operating income was $20.6 million and non-GAAP diluted EPS was $0.56. The prior release reported $0.32 for the third quarter. Source

Segment and end-market revenue

Industrial & Commercial grew 37% in Q4: Q4 Industrial & Commercial revenue was $122 million, up from $118 million in the third quarter per the prior release, when growth was 22%. Source
Home & Life grew 12% in Q4: Q4 Home & Life revenue was $87 million, up 12%. The third-quarter figure was $88 million, up 26%. Source
Full-year Home & Life revenue up 38%: Full-year Home & Life revenue was $340 million, up 38% year-over-year. Source
Full-year Industrial & Commercial up 31%: Full-year Industrial & Commercial revenue was $445 million, up 31% year-over-year. Source

“That momentum continues as we enter 2026 with record opportunity funnel and design win traction.”
Matt Johnson, President and Chief Executive Officer of Silicon Labs

Margins and operating costs

Q4 GAAP gross margin 63.4%: Q4 GAAP gross margin was 63.4% and GAAP operating expenses were $135 million. The third-quarter GAAP gross margin in the prior release was 57.8%. Source
Q4 non-GAAP operating expenses $112 million: Q4 non-GAAP gross margin was 63.6% and non-GAAP operating expenses were $111.9 million, or 53.7% of revenue. The prior release reported $109 million for the third quarter. Source
Full-year gross margin 58.2% GAAP: Full-year GAAP gross margin was 58.2% and non-GAAP gross margin was 58.5%. GAAP operating expenses were $527.5 million and non-GAAP operating expenses were $433.6 million. Source
Stock compensation rose to $80.3 million: Stock-based compensation was $80.3 million in 2025, against $61.5 million in 2024. Intangible asset amortization was $13.4 million, against $23.0 million. Source

Cash flow and balance sheet

Operating cash flow turned positive: Full-year 2025 net cash provided by operating activities was $95.7 million, against $13.9 million used in 2024. Source
Capital spending rose to $29.9 million: Purchases of property and equipment were $29.9 million in 2025, against $11.7 million in 2024. Government capital incentives received were $0.6 million. Source
Cash and short-term investments at year-end: Cash and cash equivalents were $364.2 million at January 3, 2026, against $281.6 million at December 28, 2024. Short-term investments were $79.4 million, against $100.6 million. Source
Inventories and receivables both higher: Inventories were $95.6 million, against $105.6 million. Accounts receivable, net were $64.5 million, against $54.5 million. Source
Intangible assets declined on amortization: Goodwill was unchanged at $376.4 million. Other intangible assets, net fell to $23.1 million from $36.5 million. Source

Capital, debt and share count

No debt payments or buybacks in 2025: The 2025 cash flow statement shows no payments on debt and no repurchases of common stock. The 2024 figures were $45.0 million of debt payments and $16 thousand of repurchases. Source
Tax withholding on stock awards $15.7M: Payment of taxes withheld for vested stock awards was $15.7 million in 2025. Proceeds from the issuance of common stock were $14.6 million. Source
Shares outstanding rose to 32.96 million: Common shares outstanding were 32,955 thousand at January 3, 2026, against 32,458 thousand at December 28, 2024. Source

Pending acquisition and guidance

Texas Instruments acquisition pending: The company cited a separately announced pending acquisition of Silicon Labs by Texas Instruments. The release gives no closing terms or timing. Source
Earnings call cancelled: The earnings call scheduled for February 10, 2026 was cancelled, and no call is scheduled in this release. Source
Prior Q4 guidance was revenue $200-215M: The Q3 release had given fourth-quarter revenue guidance of $200 to $215 million, with GAAP diluted EPS of $(0.22) to $0.08 and non-GAAP diluted EPS of $0.40 to $0.70.

Demand and product pipeline

Prior-quarter software launch noted: The Q3 release announced the launch of the Simplicity Platform, a software suite with AI augmentation. The Q4 release does not restate it.

Coming up, as management said on 4 February 2026

Acquisition timing not stated: The release names the pending acquisition by Texas Instruments but gives no closing date or expected timing. Source

Figures management reported

Figure	Reported
GAAP gross margin, fourth quarter 2025 Source	63.4%
Non-GAAP gross margin, fourth quarter 2025 Source	63.6%
Industrial & Commercial revenue, fourth quarter Source	$122 million, up 37%
Home & Life revenue, fourth quarter Source	$87 million, up 12%

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Silicon Labs Reports Fourth Quarter and Full Year 2025 Results

AUSTIN, Texas - February 4, 2026 - Silicon Labs (NASDAQ: SLAB), a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the fourth quarter and full year 2025, which ended January 3, 2026.

“The Silicon Labs team completed fiscal 2025 with continued strong execution, delivering an impressive year-over-year revenue growth of 34%,” said Matt Johnson, President and Chief Executive Officer of Silicon Labs. “That momentum continues as we enter 2026 with record opportunity funnel and design win traction.”

Due to the separately announced pending acquisition of Silicon Labs by Texas Instruments, Silicon Labs will cancel its previously announced earnings call scheduled for February 10, 2026, and has suspended providing forward-looking guidance.

Full Year 2025 Financial Highlights

Revenue was $785 million, up 34% year-over-year
Industrial & Commercial revenue for the year was $445 million, up 31% year-over-year
Home & Life revenue for the year was $340 million, up 38% year-over-year

Results on a GAAP basis:

GAAP gross margin was 58.2%
GAAP operating expenses were $528 million
GAAP operating loss was $71 million
GAAP diluted loss per share was $(1.98)

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 58.5%
Non-GAAP operating expenses were $434 million
Non-GAAP operating income was $25 million
Non-GAAP diluted earnings per share was $0.92

Fourth Quarter Financial Highlights

Revenue was $208 million, up 25% year-over-year
Industrial & Commercial revenue for the quarter was $122 million, up 37% year-over-year
Home & Life revenue for the quarter was $87 million, up 12% year-over-year

Results on a GAAP basis:

GAAP gross margin was 63.4%
GAAP operating expenses were $135 million
GAAP operating loss was $3 million
GAAP diluted loss per share was $(0.08)

Non-GAAP gross margin was 63.6%
Non-GAAP operating expenses were $112 million
Non-GAAP operating income was $21 million
Non-GAAP diluted earnings per share was $0.56

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

Forward-looking statements notice

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 impact of the current global memory chip shortage; 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; risks relating to compliance with laws and regulations; 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, except as required by law. 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.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

	Three Months Ended				Year Ended
	January 3, 2026		December 28, 2024		January 3, 2026		December 28, 2024
Revenues	$208,206		$166,249		$784,764		$584,386
Cost of revenues	76,128		76,026		327,781		272,198
Gross profit	132,078		90,223		456,983		312,188
Operating expenses:
Research and development	89,521		82,438		353,246		332,225
Selling, general and administrative	45,809		36,412		174,278		145,453
Operating expenses	135,330		118,850		527,524		477,678
Operating loss	(3,252)		(28,627)		(70,541)		(165,490)
Other income (expense):
Interest income and other, net	2,932		2,978		13,604		11,987
Interest expense	(214)		(260)		(975)		(1,310)
Loss before income taxes	(534)		(25,909)		(57,912)		(154,813)
Provision (benefit) for income taxes	2,150		(2,086)		6,995		36,197
Net loss	$(2,684)		$(23,823)		$(64,907)		$(191,010)
Loss per share:
Basic	$(0.08)		$(0.73)		$(1.98)		$(5.93)
Diluted	$(0.08)		$(0.73)		$(1.98)		$(5.93)
Weighted-average common shares outstanding:
Basic		32,920		32,420		32,721		32,191
Diluted		32,920		32,420		32,721		32,191

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 January 3, 2026
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	$208,206
Gross profit	132,078	63.4%	$400	$ -	$ -	$132,478	63.6%
Research and development	89,521	43.0%	12,190	2,295	404	74,632	35.8%
Selling, general and administrative	45,809	22.0%	8,089	-	461	37,259	17.9%
Operating expenses	135,330	65.0%	20,279	2,295	865	111,891	53.7%
Operating income (loss)	(3,252)	(1.6%)	20,679	2,295	865	20,587	9.9%

	Three Months Ended January 3, 2026
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)	$(2,684)		$20,679	$2,295	$865	$(2,511)		$18,644
			Shares Excluded Due to Net Loss
Diluted shares outstanding		32,920					279		33,199
Diluted earnings (loss) per share	$(0.08)							$0.56

*Represents pre-tax amounts

	Twelve Months Ended January 3, 2026
Non-GAAP Income Statement Items	GAAPMeasure	GAAP Percent of Revenue	Stock Compensation Expense	Intangible Asset Amortization	Other Costs	Non-GAAP Measure	Non-GAAP Percent of Revenue
Revenues	$784,764
Gross profit	456,983	58.2%	$1,944	$ -	$ -	$458,927	58.5%
Research and development	353,246	45.0%	48,447	13,369	934	290,496	37.0%
Selling, general and administrative	174,278	22.2%	29,933	-	1,216	143,129	18.2%
Operating expenses	527,524	67.2%	78,380	13,369	2,150	433,625	55.3%
Operating income (loss)	(70,541)	(9.0%)	80,324	13,369	2,150	25,302	3.2%

	Twelve Months Ended January 3, 2026
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)	$(64,907)		$80,324	$13,369	$2,150	$(591)		$30,345
			Shares Excluded Due to Net Loss
Diluted shares outstanding		32,721					260		32,981
Diluted earnings (loss) per share	$(1.98)							$0.92

*Represents pre-tax amounts

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

	January 3, 2026	December 28, 2024
Assets
Current assets:
Cash and cash equivalents	$364,222	$281,607
Short-term investments	79,400	100,554
Accounts receivable, net	64,513	54,479
Inventories	95,566	105,639
Prepaid expenses and other current assets	70,316	59,754
Total current assets	674,017	602,033
Property and equipment, net	128,643	132,136
Goodwill	376,389	376,389
Other intangible assets, net	23,130	36,499
Other assets, net	67,138	75,617
Total assets	$1,269,317	$1,222,674
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$50,717	$42,448
Deferred revenue and returns liability	5,359	3,073
Other current liabilities	87,711	52,362
Total current liabilities	143,787	97,883
Other non-current liabilities	31,112	44,770
Total liabilities	174,899	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; 32,955 and 32,458 shares issued and outstanding at January 3, 2026 and December 28, 2024, respectively	3	3
Additional paid-in capital	157,402	78,227
Retained earnings	936,814	1,001,721
Accumulated other comprehensive income	199	70
Total stockholders’ equity	1,094,418	1,080,021
Total liabilities and stockholders’ equity	$1,269,317	$1,222,674

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Year Ended
	January 3, 2026	December 28, 2024
Operating Activities
Net loss	$(64,907)	$(191,010)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment	24,716	25,551
Amortization of other intangible assets	13,369	23,034
Stock-based compensation expense	80,324	61,503
Deferred income taxes	881	29,470
Changes in operating assets and liabilities:
Accounts receivable	(10,034)	(25,184)
Inventories	9,992	88,494
Prepaid expenses and other assets	8,826	27,362
Accounts payable	6,333	(15,155)
Other current liabilities and income taxes	36,781	(21,768)
Deferred revenue and returns liability	2,286	956
Other non-current liabilities	(12,859)	(17,163)
Net cash provided by (used in) operating activities	95,708	(13,910)
Investing Activities
Purchases of marketable securities	(34,790)	(73,602)
Sales of marketable securities	15,393	54,227
Maturities of marketable securities	40,716	131,858
Purchases of property and equipment	(29,922)	(11,748)
Proceeds from capital-related government incentives	578	-
Proceeds from sale of equity investment	-	12,382
Purchases of other assets	(4,000)	-
Net cash provided by (used in) investing activities	(12,025)	113,117
Financing Activities
Payments on debt	-	(45,000)
Repurchases of common stock	-	(16)
Payment of taxes withheld for vested stock awards	(15,706)	(16,434)
Proceeds from the issuance of common stock	14,638	16,346
Net cash used in financing activities	(1,068)	(45,104)
Increase in cash and cash equivalents	82,615	54,103
Cash and cash equivalents at beginning of period	281,607	227,504
Cash and cash equivalents at end of period	$364,222	$281,607