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Silicon Labs Reports Strong Q3 2025 Performance

Silicon Labs (NASDAQ: SLAB), recognized as a leader in low-power wireless technology, has showcased impressive financial performance for the third quarter ending October 4, 2025. The results reflect both sequential and year-over-year growth in sales and profitability, a testament to the company’s strong execution across its business operations.

Financial Highlights

In the third quarter, Silicon Labs reported total revenue of $206 million, marking a robust growth trajectory. Breaking this down further, Industrial and Commercial revenue reached $118 million, an increase of 22% compared to the same quarter last year. In parallel, Home and Life revenue achieved $88 million, up by 26% year-over-year.

On a GAAP basis, Silicon Labs reported a gross margin of 57.8%, alongside operating expenses of $131 million, resulting in an operating loss of $12 million. The diluted loss per share on a GAAP basis came in at $(0.30). Meanwhile, the non-GAAP results, which exclude stock compensation and other factors, presented a more favorable picture with a gross margin of 58.0% and diluted earnings per share of $0.32. Here, the company recorded an operating income of $11 million.

Key Business Updates

In an effort to innovate, Silicon Labs has announced a strategic expansion with GlobalFoundries (GF) to enhance next-generation, energy-efficient wireless technologies and to bolster semiconductor manufacturing capabilities within the U.S. This collaboration introduces groundbreaking process technology aimed at accelerating wireless solutions' production at GF's advanced facility in New York, further ensuring the resilience of U.S. semiconductor infrastructure.

Additionally, Silicon Labs launched the Simplicity Platform, a next-generation suite of software tools designed for enhanced efficiency in the development of embedded IoT systems. This platform integrates various functionalities, such as installation, configuration, debugging, and analytics into an intelligent environment, emphasizing automation and insights throughout the product creation process.

Moreover, the company successfully hosted its sixth annual Works With developer conference in multiple locations, including Austin, Shenzhen, and Bangalore. This event gathered business leaders and engineers to discuss emerging trends in wireless connectivity, security matters, and the evolving role of AI in IoT. Attendees can look forward to a global virtual conference scheduled later this fall.

Future Outlook

Looking ahead, Silicon Labs forecasts fourth-quarter revenue to fall between $200 million and $215 million. On a GAAP basis, the anticipated gross margin is projected to be between 62% and 64%, while estimated operating expenses will be approximately $134 million to $136 million.

For the fourth quarter, the company expects diluted earnings (or loss) per share between $(0.22) and $0.08 on a GAAP basis, with a more promising non-GAAP projection suggesting diluted earnings per share could range from $0.40 to $0.70.

Closing Remarks

Silicon Labs continues to pave the way for innovation and growth within the wireless connectivity sector. By maintaining operational discipline and focusing on new customer ramps, the company reinforces its commitment to driving sustained earnings growth while navigating the complexities of the semiconductor market and global economic fluctuations.

For those interested in further details, Silicon Labs will host a conference call today at 7:30 AM CDT to discuss these quarterly results. An audio webcast will be available on their website, and a recorded version will be posted for later listening.

About Silicon Labs

Headquartered in Austin, Texas, Silicon Labs specializes in low-power wireless connectivity, enhancing consumer lives through cutting-edge integrated technology within their highly integrated SoCs. With operations across more than 16 countries, Silicon Labs is committed to delivering innovative solutions for smart homes, industrial IoT, and smart cities.

For additional information, visit silabs.com.