Marvell: Fiscal 4Q25 and FY 2025 Financial Results

Marvell Technology, Inc. reported financial results for the fourth fiscal quarter and fiscal year ended February 1, 2025.

Net revenue for the fourth quarter of fiscal 2025 was $1.817 billion, $17.0 million above the mid-point of the Company’s guidance provided on December 3, 2024. GAAP net income for the fourth quarter of fiscal 2025 was $200.2 million, or $0.23 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2025 was $531.4 million, or $0.60 per diluted share. Cash flow from operations for the fourth quarter was $514.0 million.

Net revenue for fiscal 2025 was $5.767 billion. GAAP net loss for fiscal 2025 was $(885.0) million, or $(1.02) per diluted share. Non-GAAP net income for fiscal 2025 was $1.377 billion, or $1.57 per diluted share.

“We closed fiscal year 2025 on a high note, delivering record fourth-quarter revenue of $1.817 billion – an increase of 20% sequentially and 27% Y/Y. This performance was driven by strong growth in our data center end market, where revenue increased 78% Y/Y in the fourth quarter, along with a continued recovery in our multi-market businesses. For the full fiscal year, we delivered a record $1.68 billion in operating cash flow and returned $933 million to stockholders through stock repurchases and dividends,” said Matt Murphy, chairman and CEO, Marvell. “Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products. Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth. We are well positioned for a strong start to fiscal 2026. We expect first-quarter revenue growth of over 60 percent Y/Y at the mid-point of guidance, and we anticipate strong revenue growth for the full fiscal year.“

First Quarter of Fiscal 2026 Financial Outlook

• Net revenue is expected to be $1.875 billion +/- 5%.
• GAAP gross margin is expected to be approximately 50.5%.
• Non-GAAP gross margin is expected to be approximately 60%.
• GAAP operating expenses are expected to be approximately $712 million.
• Non-GAAP operating expenses are expected to be approximately $490 million.
• Basic weighted-average shares outstanding are expected to be 867 million.
• Diluted weighted-average shares outstanding are expected to be 880 million.
• GAAP diluted net income per share is expected to be $0.19 +/- $0.05 per share.
• Non-GAAP diluted net income per share is expected to be $0.61 +/- $0.05 per share.

GAAP diluted EPS is calculated using basic weighted-average shares outstanding when there is a GAAP net loss, and calculated using diluted weighted-average shares outstanding when there is a GAAP net income. Non-GAAP diluted EPS is calculated using diluted weighted-average shares outstanding.

Marvell conducted a conference call on March 5, 2025. The webcast can be accessed at the company’s Investor Relations website. A replay of the call can be accessed by dialing 1-888-660-6345 or 1-646-517-4150, passcode 19355# until Wednesday, March 12, 2025.

Discussion of Non-GAAP Financial Measures
Non-GAAP financial measures exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, acquisition and divestiture-related costs, restructuring and other related charges (including, but not limited to, asset impairment charges, recognition of future contractual obligations, employee severance costs, and facility exit related charges), resolution of legal matters, and certain expenses and benefits that are driven primarily by discrete events that management does not consider to be directly related to Marvell’s core business. Although Marvell excludes the amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and that such amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of intangible assets contributed to Marvell’s revenues earned during the periods presented and are expected to contribute to Marvell’s future period revenues as well.

Marvell uses a non-GAAP tax rate to compute the non-GAAP tax provision. This non-GAAP tax rate is based on Marvell’s estimated annual GAAP income tax forecast, adjusted to account for items excluded from Marvell’s non-GAAP income, as well as the effects of significant non-recurring and period specific tax items which vary in size and frequency, and excludes tax deductions and benefits from acquired tax loss and credit carryforwards and changes in valuation allowance on acquired deferred tax assets. Marvell’s non-GAAP tax rate is determined on an annual basis and may be adjusted during the year to take into account events that may materially affect the non-GAAP tax rate such as tax law changes; acquisitions; significant changes in Marvell’s geographic mix of revenue and expenses; or changes to Marvell’s corporate structure. For the fourth quarter of fiscal 2025, a non-GAAP tax rate of 7.0% has been applied to the non-GAAP financial results.

Marvell believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Marvell’s financial condition and results of operations. While Marvell uses non-GAAP financial measures as a tool to enhance its understanding of certain aspects of its financial performance, Marvell does not consider these measures to be a substitute for, or superior to, financial measures calculated in accordance with GAAP. Consistent with this approach, Marvell believes that disclosing non-GAAP financial measures to the readers of its financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial measures, allows for greater transparency in the review of its financial and operational performance.

Externally, management believes that investors may find Marvell’s non-GAAP financial measures useful in their assessment of Marvell’s operating performance and the valuation of Marvell. Internally.

Marvell’s non-GAAP financial measures are used in the following areas:

• Management’s evaluation of Marvell’s operating performance;
• Management’s establishment of internal operating budgets;
• Management’s performance comparisons with internal forecasts and targeted business models; and
• Management’s determination of the achievement and measurement of certain types of compensation including Marvell’s annual incentive plan and certain performance-based equity awards (adjustments may vary from award to award).

Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of Marvell’s business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of Marvell’s results as reported under GAAP. The exclusion of the above items from our GAAP financial metrics does not necessarily mean that these costs are unusual or infrequent.