📊 CRDO Key Takeaways
Investment Thesis
Credo Technology demonstrates exceptional fundamental strength with 126% YoY revenue growth and 284% YoY net income growth, indicating significant operating leverage and market traction. The company maintains fortress-like financial health with industry-leading liquidity (10.82x current ratio), zero debt, and $1.2B cash position while generating substantial free cash flow ($229.5M, 25.6% margin). Profitability metrics are outstanding with 68% gross margins, 32.2% operating margins, and 33.8% net margins, suggesting strong competitive positioning in high-value semiconductor markets.
CRDO Strengths
- Exceptional revenue growth of 126% YoY with corresponding 284% net income growth demonstrating strong operating leverage
- Industry-leading profitability with 68% gross margin and 33.8% net margin indicating premium product positioning
- Fortress balance sheet with $1.2B cash, zero long-term debt, and 10.82x current ratio providing strategic flexibility
- Strong free cash flow generation of $229.5M (25.6% FCF margin) supporting reinvestment and shareholder returns
- Healthy ROE of 16.4% and ROA of 14.9% showing efficient capital deployment
- Significant insider trading activity (22 Form 4 filings in 90 days) potentially indicating management confidence
CRDO Risks
- Extreme revenue growth rate (126% YoY) may be unsustainable and creates elevated expectations for future periods
- High dependency on semiconductor market cycles and customer concentration in cyclical industries
- Rapid growth trajectory requires continued R&D investment and operational scaling to maintain competitive advantage
- Recent IPO/early public company stage with limited operating history at current scale
- Concentration risk if serving limited customer base or specific product segments within semiconductor market
Key Metrics to Watch
- Revenue growth trajectory and sustainability - monitor if growth decelerates below 50% YoY
- Operating margin stability - ensure profitability doesn't compress as company scales
- Free cash flow consistency - track if FCF margin remains above 20%
- Customer concentration and product diversification - assess revenue reliance on top customers
- Capital expenditure trends - monitor if CapEx increases materially relative to revenue growth
- Gross margin maintenance - watch for compression from competitive pressures or product mix shifts
CRDO Financial Metrics
💡 AI Analyst Insight
The 25.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 10.82x current ratio provides a solid financial cushion.
CRDO Profitability Ratios
CRDO vs Technology Sector
How Credo Technology Group Holding Ltd compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CRDO Balance Sheet & Liquidity
CRDO 5-Year Financial Trend
5-Year Trend Summary: Credo Technology Group Holding Ltd's revenue has grown significantly by 310% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.11 indicates the company is currently unprofitable.
CRDO Growth Metrics (YoY)
CRDO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $135.0M | $15.6M | $0.09 |
| Q2 2026 | $72.0M | -$4.2M | $-0.03 |
| Q1 2026 | $59.7M | -$9.5M | $-0.06 |
| Q3 2025 | $53.1M | $428.0K | $0.00 |
| Q2 2025 | $44.0M | -$4.2M | $-0.03 |
| Q1 2025 | $35.1M | -$9.5M | $-0.06 |
| Q3 2024 | $53.1M | $428.0K | $0.00 |
| Q2 2024 | $44.0M | -$3.4M | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CRDO Capital Allocation
CRDO SEC Filings
Access official SEC EDGAR filings for Credo Technology Group Holding Ltd (CIK: 0001807794)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRDO
What is the AI rating for CRDO?
Credo Technology Group Holding Ltd (CRDO) has an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRDO's key strengths?
Exceptional revenue growth of 126% YoY with corresponding 284% net income growth demonstrating strong operating leverage. Industry-leading profitability with 68% gross margin and 33.8% net margin indicating premium product positioning.
What are the risks of investing in CRDO?
Extreme revenue growth rate (126% YoY) may be unsustainable and creates elevated expectations for future periods. High dependency on semiconductor market cycles and customer concentration in cyclical industries.
What is CRDO's revenue and growth?
Credo Technology Group Holding Ltd reported revenue of $898.1M.
Does CRDO pay dividends?
Credo Technology Group Holding Ltd does not currently pay dividends.
Where can I find CRDO SEC filings?
Official SEC filings for Credo Technology Group Holding Ltd (CIK: 0001807794) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRDO's EPS?
Credo Technology Group Holding Ltd has a diluted EPS of $1.62.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.