Silicon Labs Reports Third Quarter 2025 Results

Wireless IoT leader delivers sequential and year-over-year growth in sales and profitability

Silicon Labs(NASDAQ: SLAB), the leading innovator in low-power wireless, reported financial results for the third quarter, which ended October4, 2025.

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“The Silicon Labs team delivered sequential and year-over-year growth in sales and profitability driven by strong execution across our business,” said Matt Johnson, President and Chief Executive Officer at Silicon Labs. “Looking ahead, we remain focused on supporting new customer ramps, maintaining operational discipline, and driving continued earnings growth.”

ThirdQuarter Financial Highlights

— Revenue was $206 million

— Industrial & Commercial revenue for the quarter was $118 million, up 22% year-over-year

— Home & Life revenue for the quarter was $88 million, up 26% year-over-year

Results on a GAAP basis:

— GAAP gross margin was 57.8%

— GAAP operating expenses were $131 million

— GAAP operating loss was $12 million

— GAAP diluted loss per share was $(0.30)

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 58.0%

— Non-GAAP operating expenses were $109 million

— Non-GAAP operating income was $11 million

— Non-GAAP diluted earnings per share was $0.32

Business Highlights

— Announced the expansion of its strategic partnership with GlobalFoundries (GF) to advance next-generation, energy-efficient wireless technologies and scale U.S.-based semiconductor manufacturing. This first-of-its-kind collaboration introduces new process technology to a U.S. foundry aimed at accelerating the production of high-performance wireless solutions manufactured at GF's advanced facility in Malta, New York, reinforcing U.S. semiconductor resilience.

— Announced the launch of the Simplicity Platform, a next-generation suite of software tools with AI augmentation to transform the speed of development for embeddedIoT systems. Anchored by the release of Simplicity Studio 6 and the announced Simplicity AI SDK – Agentic AI for developers – the platform unifies installation, configuration, debugging, and analysis into an intelligent, developer-first environment bringing automation and insight to every stage of product creation.

— Hosted the 6th annual Works With developer conference series in Austin, Texas, Shenzhen, China, and Bangalore, India, bringing together business leaders, engineers, and ecosystem partners driving today's emerging trends in wireless connectivity, security, Matter, and the role of AI in IoT. Works With continues this fall with a global virtual conference.

Business Outlook

The company expects fourth-quarter revenue to be between $200 to $215 million. The company also estimates the following results:

On a GAAP basis:

— GAAP gross margin to be between 62% to 64%

— GAAP operating expenses of approximately $134 million to $136 million

— GAAP diluted earnings (loss) per share between $(0.22) to $0.08

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 62% to 64%

— Non-GAAP operating expenses of approximately $110 million to $112 million

— Non-GAAP diluted earnings per share between $0.40 to $0.70

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 December 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; 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.

Silicon Laboratories Inc.Condensed Consolidated Statements of Operations(In thousands, except per share data)(Unaudited) Three Months Ended Nine Months Ended October 4, September 28, October 4, September 28, 2025 2024 2025 2024Revenues $ 205,999 $ 166,395 $ 576,558 $ 418,137Cost of revenues 86,980 76,082 251,653 196,172Gross profit 119,019 90,313 324,905 221,965Operating expenses:Research and development 87,685 83,228 263,725 249,787Selling, general and administrative 43,676 36,793 128,469 109,041Operating expenses 131,361 120,021 392,194 358,828Operating loss (12,342) (29,708) (67,289) (136,863)Other income (expense):Interest income and other, net 3,046 3,487 10,672 9,009Interest expense (226) (278) (761) (1,050)Loss before income taxes (9,522) (26,499) (57,378) (128,904)Provision for income taxes 414 2,005 4,845 38,283Net loss $ (9,936) $ (28,504) $ (62,223) $ (167,187)Loss per share:Basic $ (0.30) $ (0.88) $ (1.91) $ (5.21)Diluted $ (0.30) $ (0.88) $ (1.91) $ (5.21)Weighted-average common shares outstanding:Basic 32,835 32,309 32,656 32,114Diluted 32,835 32,309 32,656 32,114

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 October 4, 2025Non-GAAP Income Statement Items GAAP GAAP Stock Intangible Other Costs Non- Non-GAAP Measure Percent of Compensation Asset GAAP Percent of Revenue Expense Amortization Measure RevenueRevenues $ 205,999Gross profit 119,019 57.8% $ 474 $ – $ – $ 119,493 58.0%Research and development 87,685 42.6% 12,149 2,295 530 72,711 35.3%Selling, general and administrative 43,676 21.2% 7,417 – – 36,259 17.6%Operating expenses 131,361 63.8% 19,566 2,295 530 108,970 52.9%Operating income (loss) (12,342) (6.0%) 20,040 2,295 530 10,523 5.1% Three Months Ended October 4, 2025Non-GAAP Earnings (Loss) Per Share GAAP Stock Intangible Other Income Non- Measure Compensation Asset Costs* Tax GAAP Expense* Amortization* Adjustments MeasureNet income (loss) $ (9,936) $ 20,040 $ 2,295 $ 530 $ (2,255) $ 10,674 Shares Excluded Due to Net LossDiluted shares outstanding 32,835 217 33,052Diluted earnings (loss) per share $ (0.30) $ 0.32* Represents pre-tax amountsUnaudited Forward-Looking Statements Regarding Business Outlook(In millions, except per share data) Three Months Ended January 3, 2026Business Outlook GAAP Non-GAAP Non-GAAP Measure Adjustments** MeasureGross margin 62% to 64% -% 62% to 64%Operating expenses $134 to $136 $(24) $110 to $112Diluted earnings (loss) per share $(0.22) to $0.08 $0.62 $0.40 to $0.70** Non-GAAP adjustments include the following estimates: stock compensation expense of $20.9 million, intangible asset amortization of $2.3 million, other costs of $1.0 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) October 4, December 28, 2025 2024AssetsCurrent assets:Cash and cash equivalents $ 341,403 $ 281,607Short-term investments 97,622 100,554Accounts receivable, net 67,308 54,479Inventories 82,190 105,639Prepaid expenses and other current assets 64,036 59,754Total current assets 652,559 602,033Property and equipment, net 128,323 132,136Goodwill 376,389 376,389Other intangible assets, net 25,425 36,499Other assets, net 70,371 75,617Total assets $ 1,253,067 $ 1,222,674Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 55,647 $ 42,448Deferred revenue and returns liability 8,447 3,073Other current liabilities 81,216 52,362Total current liabilities 145,310 97,883Other non-current liabilities 37,044 44,770Total liabilities 182,354 142,653Commitments and contingenciesStockholders' equity:Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued – -Common stock – $0.0001 par value; 250,000 shares authorized; 32,853 and 32,458 3 3shares issued and outstanding at October4, 2025 and December28, 2024,respectivelyAdditional paid-in capital 130,979 78,227Retained earnings 939,498 1,001,721Accumulated other comprehensive income 233 70Total stockholders' equity 1,070,713 1,080,021Total liabilities and stockholders' equity $ 1,253,067 $ 1,222,674Silicon Laboratories Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Nine Months Ended October 4, September 28, 2025 2024Operating ActivitiesNet loss $ (62,223) $ (167,187)Adjustments to reconcile net loss to net cash provided by (used in) operatingactivities:Depreciation of property and equipment 18,769 19,302Amortization of other intangible assets 11,074 17,596Stock-based compensation expense 59,645 45,358Deferred income taxes 2,026 29,100Changes in operating assets and liabilities:Accounts receivable (12,829) (19,585)Inventories 23,316 54,724Prepaid expenses and other assets 9,080 23,091Accounts payable 11,141 (13,849)Other current liabilities and income taxes 29,901 (5,004)Deferred revenue and returns liability 5,374 6,361Other non-current liabilities (7,916) (13,946)Net cash provided by (used in) operating activities 87,358 (24,039)Investing ActivitiesPurchases of marketable securities (34,790) (28,363)Sales of marketable securities 15,332 44,057Maturities of marketable securities 22,598 131,008Purchases of property and equipment (19,942) (7,785)Purchase of other investment (4,000) -Proceeds from sale of equity investment – 12,382Net cash provided by (used in) investing activities (20,802) 151,299Financing ActivitiesPayments on debt – (45,000)Payment of taxes withheld for vested stock awards (14,907) (16,078)Proceeds from the issuance of common stock 8,147 9,396Net cash used in financing activities (6,760) (51,682)Increase in cash and cash equivalents 59,796 75,578Cash and cash equivalents at beginning of period 281,607 227,504Cash and cash equivalents at end of period $ 341,403 $ 303,082

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