Credo Technology Group Holding Ltd (Nasdaq: CRDO) is an innovator in high-speed connectivity solutions, specializing in energy-efficient designs that cater to the increasing bandwidth demands in the data infrastructure market. The company continued to show a significant rise, reporting a fourth-quarter revenue of $170 million for fiscal year 2025, a sequential increase of 26% and a dramatic year-over-year rise of 180%. For the full fiscal year, Credo achieved total revenue of $437 million, representing an increase of 126% compared to the previous year.

In the fourth quarter of fiscal year 2025, Credo’s non-GAAP gross margin was recorded at 67.4%, which marked an increase of 355 basis points sequentially. The gross margin for the full fiscal year stood at 65%, an improvement of 257 basis points year-over-year. The company generated a non-GAAP operating income of $62.5 million in Q4, reflecting a substantial sequential increase from $42.4 million in Q3. Non-GAAP operating margin in Q4 improved to 36.8% from 31.4% in the prior quarter, an increase of 538 basis points.

Moreover, non-GAAP net income for Q4 totaled $65.3 million, more than doubling from $45.4 million in Q3. Future guidance indicates expected revenue for the first quarter of fiscal year 2026 will fall between $185 million and $195 million, suggesting a sequential growth of 12% at the midpoint. The projected non-GAAP gross margin for Q1 is estimated to range from 64% to 66%, while non-GAAP operating expenses are projected to be between $54 million and $56 million.

Cash flow from operations in Q4 was $57.8 million, a significant increase of $53.6 million sequentially, driven by robust cash collection. The company ended the fiscal year with cash and equivalents of $431.3 million, after a quarterly increase of $52.1 million, positioning itself well for ongoing growth investments and maintaining a substantial cash buffer.

The diversification of Credo’s customer base continues, with three customers individually contributing over 10% of revenue in Q4, a trend expected to persist as new customers ramp up in the second half of fiscal year 2026. The company remains optimistic about maintaining this revenue growth trajectory amid increasing demand across its product lines, including Active Electrical Cables (AEC) and optical connectivity solutions.