Marvell Technology, Inc. announced its financial performance for the fourth quarter and the full fiscal year ended February 1, 2025. The fourth quarter net revenue reached $1.817 billion, exceeding the company’s previous guidance by $17 million. The GAAP net income for this quarter was reported at $200.2 million, translating to $0.23 per diluted share. In contrast, the non-GAAP net income stood at $531.4 million, or $0.60 per diluted share, with cash flow from operations amounting to $514 million.
Fiscal Year 2025 Results
For the entire fiscal year 2025, net revenue totaled $5.767 billion. However, the company registered a GAAP net loss of $(885 million), equating to $(1.02) per diluted share. On a non-GAAP basis, net income was $1.377 billion, or $1.57 per diluted share.
Comments from Leadership
Matt Murphy, CEO and Chairman of Marvell, remarked on the company’s strong finish for the fiscal year, highlighting a robust performance with a 20% sequential revenue increase and a 27% year-over-year growth. He noted that the data center market was a significant driver of success, with revenue increasing 78% year-over-year in the fourth quarter. Marvell announced the commencement of volume production for its custom AI silicon and noted new design wins that would support future expansion. Murphy anticipates a promising start to fiscal 2026 and projects first-quarter revenue growth of over 60% year-over-year based on guidance.
First Quarter of Fiscal 2026 Financial Outlook
- Projected net revenue: $1.875 billion ± 5%
- Expected GAAP gross margin: ~50.5%
- Expected non-GAAP gross margin: ~60%
- Estimated GAAP operating expenses: ~$712 million
- Estimated non-GAAP operating expenses: ~$490 million
- Basic weighted-average shares outstanding: ~867 million
- Diluted weighted-average shares outstanding: ~880 million
- GAAP diluted net income per share: $0.19 ± $0.05
- Non-GAAP diluted net income per share: $0.61 ± $0.05
Non-GAAP Financial Measures Discussion
Marvell’s non-GAAP financial measures exclude various costs, such as stock-based compensation, amortization of acquired intangibles, and restructuring charges. Management believes that understanding these measures is vital for investors, as they provide insight into the company’s operational performance. These measures are utilized in internal evaluations, budgeting, performance comparisons, and determining executive compensation.
However, it is important to recognize that non-GAAP measures may not encompass all operational costs as per GAAP standards, and should not replace GAAP analysis. The company has set a non-GAAP tax rate of 7.0% for the fourth quarter of fiscal 2025, which considers several adjustments to provide a clearer picture of its financial health.
Conference Call Details
Marvell conducted a conference call on March 5, 2025, and more information is available on the company’s Investor Relations website. A replay of the call is accessible via specific dialing options until March 12, 2025, using the passcode provided.