Silicon Laboratories Inc.

Revenue in the September quarter was $206 million, up 7% sequentially and 24% year over year. Industrial and commercial revenue was $118 million, up 7% sequentially and 22% year over year; Home & Life revenue was $88 million, up 6% sequentially and 26% year over year. GAAP gross margin was 57.8% and non-GAAP gross margin was 58%, up 170 basis points from the prior quarter and 350 basis points from a year ago. GAAP loss per share was $0.30 and non-GAAP EPS was $0.32, with non-GAAP EPS beating the midpoint of guidance by $0.02. For Q4, revenue is expected to be $200 million to $215 million, implying about 25% year-over-year growth at the midpoint; GAAP and non-GAAP gross margin are both expected to be 62% to 64%. Non-GAAP operating expense is expected to be $110 million to $112 million, and non-GAAP EPS is guided to $0.40 to $0.70. Management said full-year 2025 revenue growth should be 34% versus 2024.

Matt Johnson emphasized that the quarter showed disciplined execution, strong sales and profitability growth, and momentum across both industrial/commercial and Home & Life. He highlighted several growth vectors: smart metering, connected health, active wireless asset tracking, and Wi-Fi, while also pointing to the Works With tools launch as a way to make IoT development faster and easier. His tone was confident and optimistic, especially on 2026, saying the company has a positive bias and sees many customers still in qualification and new production ramps into 2026 and beyond.

Dean Butler focused on improving profitability and a stronger margin profile. He cited Q3 revenue of $206 million, non-GAAP gross margin of 58%, non-GAAP operating income of about $11 million, and non-GAAP EPS of $0.32, while noting cash, cash equivalents and short-term investments of $439 million. For Q4, he guided to $200 million to $215 million of revenue, gross margin of 62% to 64% including an approximately 200 basis point one-time benefit, and non-GAAP operating expense of $110 million to $112 million. He also said the company plans to limit opex growth and increasingly drive EPS accretion faster than top-line growth, with buybacks more likely than M&A if excess cash builds.

Analysts focused on the unusually strong gross margin outlook, and management said the step-up is driven by a one-time credit, favorable product mix, more sales through distribution, and industrial strength; they expect margins to remain around 60% to 61% for the next few quarters before gradually returning toward the long-term range. Questions also centered on channel and customer inventory, and management said end-customer excess inventory is effectively gone while distributor days are moving toward a 70 to 75 day target, though unevenly. Other notable topics were active asset tracking, where management said BLE with channel sounding is a key enabler but the opportunity is still early, and CGM, where they still see a path to 10% of revenue in the first half of next year.