Credo Technology Group Holding — Financial Results
Revenue More Than Tripled in One Year, Driven Almost Entirely by One Product
| Metric | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Total Revenue | $1.33 billion | $436.8 million | +205.7% |
| Net Income | $472.3 million | $52.2 million | +806% |
Credo's revenue grew by $898.3 million year-over-year, with over 99% of that increase coming from Active Electrical Cable (AEC) products ramping up at hyperscale data center customers. This kind of growth is extraordinary but also means the company is heavily dependent on a single product category continuing to find buyers.
Customer Concentration Remains High, Though the Mix Has Shifted
| Customer | Fiscal 2026 | Fiscal 2025 |
|---|---|---|
| Customer B | 32% | Less than 10% |
| Customer D | 33% | 63% |
| Customer E | 19% | Less than 10% |
Three customers together account for roughly 84% of total revenue. Positively, reliance on the single largest customer (Customer D) dropped from 63% to 33%, suggesting the business is spreading across more buyers. Still, losing any one of these three relationships would have a major impact on results.
Gross Margins Improved as the Business Scaled Up
| Metric | Fiscal 2026 | Fiscal 2025 |
|---|---|---|
| Gross Margin | 68.0% | 64.8% |
| Gross Profit | $908.3 million | $282.9 million |
Gross margin (revenue minus the direct cost of making products, expressed as a percentage) expanded by 3.2 percentage points. Credo attributes this to economies of scale — as volumes rise, the fixed costs of production are spread across more units, making each sale more profitable.
Operating Leverage Is Kicking In as Fixed Costs Become a Smaller Share of Revenue
| Expense | Fiscal 2026 (% of revenue) | Fiscal 2025 (% of revenue) |
|---|---|---|
| Research & Development | 20.9% | 33.6% |
| Selling, General & Administrative | 13.8% | 22.6% |
| Operating Income | 33.3% | 8.5% |
Even though R&D spending rose by $132.5 million and SG&A rose by $85.0 million in absolute dollars, both shrank dramatically as a share of revenue. Operating leverage — where a fast-growing top line makes fixed costs look smaller — pushed operating income from 8.5% to 33.3% of revenue in just one year.
Credo Raised $736 Million in New Shares to Fund Growth
During fiscal 2026, Credo sold 4.8 million new shares through an at-the-market (ATM) offering — a mechanism allowing companies to issue shares gradually at prevailing market prices — raising $736.3 million in net proceeds. This pushed the cash balance from $236.3 million to $1.2 billion. The company is using some of this to pre-pay suppliers for reserved manufacturing capacity and to fund two acquisitions (Hyperlume and Comira, totalling $112.9 million), signalling it is investing aggressively to support continued growth.