Credo Earnings Q4 FY 25

Investment Analysis Clubs Saul’s Investing Discussions
1

I don’t think many of us still hold Credo, but I’m happy I still do after last night’s release. It was a big beat and raise quarter with record revenue and guidance.

From the release for their fourth quarter 25:

  • Revenue of $170.0 million grew by 25.9% quarter over quarter and 179.7% year over year
  • GAAP gross margin of 67.2% and non-GAAP gross margin of 67.4%
  • GAAP operating expenses of $80.4 million and non-GAAP operating expenses of $52.0 million
  • GAAP net income of $36.6 million and non-GAAP net income of $65.3 million
  • GAAP diluted net income per share of $0.20 and non-GAAP diluted net income per share of $0.35
  • Ending cash and short-term investment balance of $431.3 million

This is 26% sequential growth and 180% YoY!

The last 3 quarters have been increasing from 64% to 154% to 180%.

They are guiding for 218% next quarter and 85% growth for end of FY 26.

The market liked it with it up 12% in the AH. It is a nearly 10% holding for me currently.

Jonathan

26 Likes
2

Their largest customer now makes up 61% of their revenue, down significantly from 87% last quarter. Still a concern but trending in the right direction.
-Makylejoth

10 Likes
3

Yep and they promised more down trending on this metric as a number of additional hyperscalers are activated in the coming quarters.

I also hold and am happy to. I top sliced some Palantir last month to pick up a starter position at 58 and I’m happy with that.

I thought the results were excellent and happy to hold alongside Astera Labs and Nebius.

14 Likes