Credo Technology Group Holding — Income Statement, Cash Flows & Balance Sheet
Is Credo profitable?
Credo swung from loss-making to highly profitable in a single year, with revenue nearly tripling.
| Metric | FY2024 | FY2025 | FY2026 | Change (FY25→FY26) |
|---|---|---|---|---|
| Revenue | $193.0M | $436.8M | $1,335.1M | +206% |
| Gross Profit | $119.4M | $282.9M | $908.3M | +221% |
| Gross Margin | 61.9% | 64.8% | 68.0% | +3.2 pts |
| Operating Income (Loss) | $(37.1M) | $37.1M | $445.0M | +$407.9M |
| Net Income (Loss) | $(28.4M) | $52.2M | $472.3M | +$420.1M |
Credo has gone from a money-losing startup-like business to a highly profitable company in just two years, riding AI-driven demand for high-speed connectivity chips. Gross margins are expanding even as the business scales rapidly, which is a healthy sign — the company is not buying growth by sacrificing profitability.
Share-based compensation (SBC) is large and worth keeping in mind when assessing true cash profitability.
| FY2024 | FY2025 | FY2026 | |
|---|---|---|---|
| Share-Based Compensation (GAAP) | $39.0M | $77.4M | $182.6M |
| As % of Revenue | 20.2% | 17.7% | 13.7% |
SBC is declining as a share of revenue, which is encouraging, but at $182.6M it remains a significant cost. GAAP net income includes this expense; investors comparing Credo to peers on non-GAAP metrics should be aware the gap between the two measures is meaningful.
Where does Credo's revenue come from?
The United States became Credo's dominant market almost overnight, reflecting concentrated AI infrastructure spending.
| Geography | FY2024 | FY2025 | FY2026 | Change |
|---|---|---|---|---|
| United States | $49.6M | $65.1M | $768.1M | +$703.0M |
| Hong Kong | $70.2M | $243.7M | $378.2M | +$134.5M |
| Total Revenue | $193.0M | $436.8M | $1,335.1M | +$898.3M |
The US went from roughly a quarter of revenue to over half in one year, almost entirely driven by a handful of large customers. Two customers — unnamed but labeled A and B — together accounted for 81% of revenue in FY2026, with Customer A alone at 49% and Customer B at 32%. This concentration is a risk factor worth watching.
Does Credo generate cash?
Operating cash flow surged dramatically and now comfortably exceeds net income on a cash basis.
| FY2024 | FY2025 | FY2026 | |
|---|---|---|---|
| Net Income (Loss) | $(28.4M) | $52.2M | $472.3M |
| Operating Cash Flow | $32.7M | $65.1M | $464.3M |
| Capital Expenditures | $(15.7M) | $(36.1M) | $(57.3M) |
| Free Cash Flow (est.) | $17.1M | $29.0M | $407.0M |
The business converted nearly all of its net income into operating cash flow, a sign of real earnings quality. Capital spending is rising to support growth but remains modest relative to the cash being generated, leaving substantial free cash flow (revenue minus operating costs minus capex).
How strong is Credo's balance sheet?
Credo raised $736M in a share offering and holds over $1.4B in cash and investments — the company carries no debt.
| FY2025 | FY2026 | Change | |
|---|---|---|---|
| Cash & Equivalents | $236.3M | $1,164.9M | +$928.6M |
| Short-Term Investments | $195.0M | $278.3M | +$83.3M |
| Total Liquidity | $431.3M | $1,443.3M | +$1,012.0M |
| Total Liabilities | $127.7M | $232.0M | +$104.3M |
| Long-Term Debt | $0 | $0 | — |
Credo's balance sheet is exceptionally clean — no financial debt whatsoever, and a cash pile that dwarfs its total liabilities. This gives the company significant flexibility to invest, acquire, or weather a downturn. The company made two acquisitions in FY2026 (Hyperlume and Comira) and a third post-year-end (DustPhotonics for ~$770M cash), so that cash cushion will be partially deployed going forward.