Credo Technology Group Holding Ltd. Q4 FY2025 earnings call

• Bill Brennan began by reviewing Q4 and fiscal '25 results, noting revenue of $170M in Q4 (26% sequential growth, 180% YOY) and $437M for fiscal '25 (126% YOY growth). • Highlighted surging demand for innovative connectivity solutions, long-term commitment to customer-driven innovation, and the PILOT software platform. • Discussed AEC growth, customer diversification with hyperscalers, and advantages of AECs over traditional solutions. • Outlined optical business achievements, including new DSPs at OFC and future growth potential. • Mentioned Retimer business strength, driven by 50/100 gig per lane solutions and growth prospects in fiscal '26.

In Q4, AEC revenue maintained steep growth with three hyperscalers each contributing over 10% of revenue. Fiscal '25 was a strong year for the optical business, achieving revenue growth targets with 50 gig and 100 gig per lane optical DSPs, and recent innovations at OFC. The Retimer business delivered robust results in Q4 and fiscal '25, fueled by 50 gig and 100 gig per lane ethernet solutions. Revenue contribution percentages weren't explicitly stated for each segment, but AEC, optical, and Retimer were key segments driving growth.

• Q1 fiscal '26 revenue expected between $185M and $195M (up 12% at midpoint). • Q1 non-GAAP gross margin range 64%-66%. • Q1 non-GAAP operating expenses between $54M and $56M. • Fiscal '26 revenue expected to exceed $800M (YOY growth >85%), non-GAAP net margin approaching 40%.

• Tariff risks, with manufacturing locations in China. • Macroeconomic uncertainties affecting the business. • Potential supply chain constraints and lead time issues during rapid growth.

Q: Could you quantify the three 10% customers and discuss upside drivers/downside risks for fiscal '26?

A: Largest customer was 61% of revenue, with 12% and 11% customers. Diversification expected, with two new hyperscalers ramping in H2 '26. Upside from new customers, downside from tariff and macroeconomic uncertainties.

Q: Talk about AEC use cases and 800 gig upgrades?

A: Use cases include front-end, back-end scale-out networks, and disaggregated chassis. Transition from 50 gig to 100 gig expected to accelerate in H2 '26, but each customer has different strategies.

Q: Thoughts on tariff risks and gross margin trajectory?

A: Tariffs not significantly impacting gross margin currently. Gross margin expansion not linear, but Q1 expected to be 64%-66%, with net margin approaching 40% in fiscal '26.