NASDAQ$CRDO
Credo Technology Group Holding Ltd · Q3 2025 earnings
Q3 2025 earnings · · After market close · Investor relations
Briefing
Credo reported record revenue growth and strong profitability in Q3 2025.
Credo delivered an exceptional Q3 2025 with revenue reaching $135.0 million, reflecting an 87.4% sequential growth and 154.4% year-over-year increase. GAAP net income came in at $29.4 million, with GAAP diluted EPS of $0.16, while non-GAAP net income was $45.4 million, with non-GAAP diluted EPS of $0.25. The company's gross margin remained strong at 63.6% on a GAAP basis and 63.8% on a non-GAAP basis. The company ended the quarter with a cash and short-term investment balance of $379.2 million.
- Revenue surged to $135.0 million, growing 154.4% year-over-year.
- GAAP diluted EPS was $0.16, while non-GAAP diluted EPS reached $0.25.
- GAAP net income totaled $29.4 million, up significantly from the prior year.
- Cash and short-term investments stood at $379.2 million.
Headline financials
Revenue & EPS history
Credo · Revenue · Quarterly
$135M
Forward guidance
Credo expects continued growth in Q4 2025, with revenue guidance between $155.0 million and $165.0 million. The company projects GAAP gross margins between 62.7% and 64.7%, with non-GAAP gross margins ranging from 63.0% to 65.0%.
Tailwinds
- Revenue is expected to grow to a range of $155.0 million to $165.0 million.
- Strong demand across product lines, particularly AEC products.
- Gross margin remains high, reflecting efficient operations.
- Continued customer base expansion and adoption of connectivity solutions.
- Company maintains a strong cash position to support future growth.
Headwinds
- Operating expenses are expected to increase, reaching up to $75.0 million.
- Potential macroeconomic uncertainties may impact customer spending.
- Growth is reliant on continued high demand for connectivity solutions.
- Increasing R&D and SG&A expenses could pressure future margins.
- Market competition remains a challenge in the high-speed connectivity sector.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 17 quarterly earnings reports · overlaid with Q3 2025
+3.8%
Avg return
Earnings day
+1.5%
Avg return
5 days after
+0.1%
Avg return
30 days after
43%
9 / 21 earnings
Positive
+44.4%
Q2 2025
Best reaction
-15.7%
Q1 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | -2.4% | -3.8% | -11.2% | |
| Q2 2026 | +8.7% | +2.9% | -15.9% | |
| Q1 2026 | +7.3% | +19.4% | +15.3% | |
| Q4 2025 | +14.7% | +16.5% | +49.4% | |
| Q3 2025 | -14.0% | -27.4% | -38.7% | |
| Q2 2025 | +44.4% | +51.6% | +37.3% | |
| Q1 2025 | -15.7% | -23.3% | +3.0% | |
| Q4 2024 | +23.9% | +21.5% | +54.1% | |
| Q3 2024 | -0.6% | +0.7% | -5.0% | |
| Q2 2024 | -3.3% | +3.6% | +5.1% | |
| Q1 2024 | -2.6% | -1.5% | -7.5% | |
| Q4 2023 | +20.9% | +16.8% | +26.8% | |
| Q3 2023 | -3.3% | -4.3% | -11.2% | |
| Q2 2023 | +4.4% | +6.9% | -4.2% | |
| Q1 2023 | -8.5% | -9.0% | -22.4% | |
| Q2 2022 | -7.2% | -12.4% | -12.8% | |
| Q4 2022 | +26.5% | +24.5% | +10.4% | |
| Q3 2021 | -5.7% | -13.0% | -18.2% | |
| Q1 2022 | -5.7% | -13.0% | -18.2% | |
| Q4 2021 | -5.7% | -13.0% | -18.2% | |
| Q3 2022 | +2.7% | -13.1% | -14.6% | |
| Q2 2021 | — | — | — | |
| Q1 2021 | — | — | — |
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