Silicon Labs Reports First Quarter 2025 Results

Rhea-AI Summary

Silicon Labs (SLAB) reported its Q1 2025 financial results with significant revenue growth. The company achieved total revenue of $178 million, with Industrial & Commercial revenue at $96 million (up 47% YoY) and Home & Life revenue at $82 million (up 99% YoY). Despite posting a GAAP operating loss of $32 million and diluted loss per share of $(0.94), the company made notable product advancements, including the production ramp of its next-gen Series 3 platform and launch of new Bluetooth LE SoCs. Looking ahead, Silicon Labs projects Q2 2025 revenue between $185-200 million with non-GAAP diluted EPS ranging from $(0.01) to $0.19.

Positive

• Strong revenue growth with Industrial & Commercial up 47% YoY and Home & Life up 99% YoY
• Successful launch and production ramp of next-generation Series 3 platform on 22nm process
• Expected revenue growth in Q2 2025 with guidance of $185-200 million
• Introduction of multiple new product families (BG29, BG22L, BG24L, MG26) strengthening market position

Negative

• GAAP operating loss of $32 million in Q1 2025
• GAAP diluted loss per share of $(0.94)
• High operating expenses at $130 million (GAAP)
• Continued expected losses in Q2 with GAAP EPS guidance of $(0.55) to $(0.95)

Insights

Semiconductor Industry Analyst

Silicon Labs delivered strong Q1 growth despite posting losses, with promising product launches and positive Q2 outlook signaling potential turnaround.

Silicon Labs reported $178 million in Q1 2025 revenue, showing impressive growth across both major segments. The Industrial & Commercial division generated $96 million (+47% YoY) while Home & Life revenue reached $82 million (+99% YoY). These growth rates demonstrate significant market traction despite broader semiconductor industry challenges.

Looking beneath the headline numbers reveals a more complex picture. Despite the revenue growth, SLAB posted a GAAP operating loss of $32 million and non-GAAP operating loss of $7 million, resulting in losses per share of $0.94 (GAAP) and $0.08 (non-GAAP). The 55.0% GAAP gross margin (55.4% non-GAAP) suggests competitive pricing pressure in the wireless IoT space, though these margins remain relatively healthy for the sector.

The company's product roadmap shows strategic focus on high-growth IoT applications. Their first Series 3 platform device on 22nm process technology is now ramping into production, offering advancements in performance and AI capabilities while maintaining compatibility with Series 2. The expansion of their Bluetooth Low Energy portfolio with the BG29, BG22L, and BG24L families targets critical growth markets like wearable medical devices and asset tracking. Meanwhile, the MG26 SoC supports Matter protocol implementation, positioning SLAB well for the expanding smart home ecosystem.

For Q2 2025, management projects revenue between $185-$200 million, representing sequential growth of 4-12%. More importantly, they forecast potential return to profitability on a non-GAAP basis with EPS ranging from $(0.01) to $0.19. This suggests improving operational leverage as revenue scales, though GAAP profitability remains elusive with projected losses of $0.55-$0.95 per share.

Wireless IoT leader delivers strong sequential and year-over-year revenue growth

AUSTIN, Texas, May 13, 2025 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), the leading innovator in low-power wireless, reported financial results for the first quarter, which ended April 5, 2025.

"Silicon Labs drove strong sequential and year-over-year revenue growth as design wins across multiple end markets continued ramping in the first quarter of 2025," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "Despite macroeconomic uncertainty and shifting trade dynamics, we remain confident in Silicon Labs' ability to outperform the market given our leadership position in secular high-growth applications and consistent share gains."

First Quarter Financial Highlights 

• Revenue was $178 million
• Industrial & Commercial revenue for the quarter was $96 million, up 47% year-over-year
• Home & Life revenue for the quarter was $82 million, up 99% year-over-year

Results on a GAAP basis:

• GAAP gross margin was 55.0%
• GAAP operating expenses were $130 million
• GAAP operating loss was $32 million
• GAAP diluted loss per share was $(0.94)

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 55.4%
• Non-GAAP operating expenses were $105 million
• Non-GAAP operating loss was $7 million
• Non-GAAP diluted loss per share was $(0.08)

Business Highlights

• Silicon Labs' first device in its next-generation Series 3 platform on 22nm process technology is now ramping into production. The Series 3 platform will be complementary to Series 2, with advancements in performance, capabilities, and features, including higher levels of compute and AI inference, as well as scalable memory architectures and backwards code compatibility with Series 2.
  
  
• Announced its new Series 2 BG29 family of Bluetooth Low Energy (LE) SoCs, designed to bring higher levels of compute and connectivity in ultra-compact form factor without compromising wireless performance. The BG29 family is ideal for today's most intensive Bluetooth LE applications like wearable medical devices, asset trackers, and smart sensors.
  
  
• Introduced the BG22L and BG24L SoCs for Bluetooth^® LE optimized for common Bluetooth applications like asset tracking tags and small appliances. The BG22L brings the most competitive combination of security, processing power, and connectivity for high-volume, low-power applications. The BG24L SoC also includes the Silicon Labs accelerator for AI/ML applications and support for the latest in Bluetooth Channel Sounding in radio congested areas like warehouses, smart cities, and large residential apartment complexes.
  
  
• Announced that its MG26 family of wireless SoCs is now generally available through Silicon Labs and its distribution partners. As the industry's most advanced, high-performance Matter and concurrent multi-protocol solution to date, the MG26 SoC features double the Flash and RAM of other Silicon Labs multi-protocol devices, advanced AI/ML processing, and best-in-class security to empower developers to design future-proof Matter applications.

Business Outlook

The company expects second-quarter revenue to be between $185 to $200 million. The company also estimates the following results:

On a GAAP basis:

• GAAP gross margin to be between 55% to 57%
• GAAP operating expenses of approximately $129 million to $131 million
• GAAP diluted loss per share between $(0.55) to $(0.95)

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 55% to 57%
• Non-GAAP operating expenses of approximately $106 million to $108 million
• Non-GAAP diluted earnings (loss) per share between $(0.01) to $0.19

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 June 12, 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 COVID-19 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; 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. 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
	April 5, 2025		March 30, 2024
Revenues	$           177,714		$           106,375
Cost of revenues	79,937		51,306
Gross profit	97,777		55,069
Operating expenses:
Research and development	88,219		80,650
Selling, general and administrative	41,638		33,553
Operating expenses	129,857		114,203
Operating loss	(32,080)		(59,134)
Other income (expense):
Interest income and other, net	3,793		2,732
Interest expense	(284)		(509)
Loss before income taxes	(28,571)		(56,911)
Provision (benefit) for income taxes	1,899		(385)
Net loss	$            (30,470)		$            (56,526)
Loss per share:
Basic	$                (0.94)		$                (1.77)
Diluted	$                (0.94)		$                (1.77)
Weighted-average common shares outstanding:
Basic	32,465		31,910
Diluted	32,465		31,910

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 April 5, 2025
Non-GAAP Income Statement Items		GAAP Measure		GAAP Percent of Revenue		Stock Compensation Expense		Intangible Asset Amortization		Non-GAAP Measure		Non-GAAP Percent of Revenue
Revenues		$    177,714
Gross profit		97,777		55.0 %		$                613		$                —		$         98,390		55.4 %
Research and development		88,219		49.6 %		12,007		5,437		70,775		39.8 %
Selling, general and administrative		41,638		23.4 %		7,094		—		34,544		19.4 %
Operating expenses		129,857		73.1 %		19,101		5,437		105,319		59.3 %
Operating income (loss)		(32,080)		(18.1 %)		19,714		5,437		(6,929)		(3.9 %)

 

		Three Months Ended April 5, 2025
Non-GAAP Loss Per Share		GAAP Measure		Stock Compensation Expense*		Intangible Asset Amortization*		Income Tax Adjustments		Non- GAAP Measure
Net income (loss)		$    (30,470)		$          19,714		$             5,437		$             2,583		$        (2,736)
Diluted shares outstanding		32,465								32,465
Diluted loss per share		$        (0.94)								$          (0.08)

*   Represents pre-tax amounts

 

Unaudited Forward-Looking Statements Regarding Business Outlook
(In millions, except per share data)
		Three Months Ended July 5, 2025
Business Outlook		GAAP Measure		Non-GAAP Adjustments**		Non-GAAP Measure
Gross margin		55% to 57%		— %		55% to 57%
Operating expenses		$129 to $131		$(23)		$106 to $108
Diluted earnings (loss) per share		$(0.55) to $(0.95)		$0.74 to $0.94		$(0.01) to $0.19

**	Non-GAAP adjustments include the following estimates: stock compensation expense of $20.5 million, intangible asset amortization of $3.3 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)
	April 5, 2025		December 28, 2024
Assets
Current assets:
Cash and cash equivalents	$           324,877		$           281,607
Short-term investments	99,928		100,554
Accounts receivable, net	52,066		54,479
Inventories	83,397		105,639
Prepaid expenses and other current assets	58,402		59,754
Total current assets	618,670		602,033
Property and equipment, net	129,707		132,136
Goodwill	376,389		376,389
Other intangible assets, net	31,062		36,499
Other assets, net	73,668		75,617
Total assets	$        1,229,496		$        1,222,674
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$             53,819		$             42,448
Deferred revenue and returns liability	6,478		3,073
Other current liabilities	59,422		52,362
Total current liabilities	119,719		97,883
Other non-current liabilities	41,358		44,770
Total liabilities	161,077		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; 32,473 and 32,458      shares issued and outstanding at April 5, 2025 and December 28, 2024, respectively	3		3
Additional paid-in capital	96,838		78,227
Retained earnings	971,251		1,001,721
Accumulated other comprehensive income	327		70
Total stockholders' equity	1,068,419		1,080,021
Total liabilities and stockholders' equity	$        1,229,496		$        1,222,674

 

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Three Months Ended
	April 5, 2025		March 30, 2024
Operating Activities
Net loss	$            (30,470)		$            (56,526)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment	6,248		6,634
Amortization of other intangible assets	5,437		6,079
Stock-based compensation expense	19,714		13,612
Deferred income taxes	(1,514)		(5,270)
Changes in operating assets and liabilities:
Accounts receivable	2,412		(3,321)
Inventories	22,098		(3,958)
Prepaid expenses and other assets	2,973		(15,466)
Accounts payable	9,234		(13,829)
Other current liabilities and income taxes	11,870		1,554
Deferred revenue and returns liability	3,405		1,804
Other non-current liabilities	(3,279)		(3,113)
Net cash provided by (used in) operating activities	48,128		(71,800)
Investing Activities
Purchases of marketable securities	(19,728)		(9,794)
Sales of marketable securities	10,005		25,763
Maturities of marketable securities	10,675		55,188
Purchases of property and equipment	(4,852)		(2,047)
Proceeds from sale of equity investment	—		12,382
Net cash provided by (used in) investing activities	(3,900)		81,492
Financing Activities
Payments on debt	—		(45,000)
Payment of taxes withheld for vested stock awards	(958)		(1,048)
Proceeds from the issuance of common stock	—		341
Net cash used in financing activities	(958)		(45,707)
Increase (decrease) in cash and cash equivalents	43,270		(36,015)
Cash and cash equivalents at beginning of period	281,607		227,504
Cash and cash equivalents at end of period	$           324,877		$           191,489

 

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SOURCE Silicon Labs

FAQ

What was Silicon Labs (SLAB) revenue in Q1 2025?

Silicon Labs reported total revenue of $178 million in Q1 2025, with Industrial & Commercial revenue at $96 million and Home & Life revenue at $82 million.

What is Silicon Labs' revenue guidance for Q2 2025?

Silicon Labs expects Q2 2025 revenue to be between $185 to $200 million.

What was SLAB's earnings per share in Q1 2025?

Silicon Labs reported a GAAP diluted loss per share of $(0.94) and a non-GAAP diluted loss per share of $(0.08) in Q1 2025.

What new products did Silicon Labs announce in Q1 2025?

Silicon Labs announced several new products including the Series 3 platform, BG29 family of Bluetooth LE SoCs, BG22L and BG24L SoCs for Bluetooth LE, and the MG26 family of wireless SoCs for Matter applications.

What was Silicon Labs' gross margin in Q1 2025?

Silicon Labs reported a GAAP gross margin of 55.0% and a non-GAAP gross margin of 55.4% in Q1 2025.