## Qorvo (QRVO) — filing-driven deep dive (10-K + latest 10-Q + key 8-K/proxy context) **Source set used (core):** FY2025 Form 10‑K filed May 19, 2025. ["Annual Report on Form 10-K"](0001604778-25-000041|0) **Most recent quarter used:** Q2 FY2026 Form 10‑Q (quarter ended Sept 27, 2025) filed Nov 3, 2025. ["September 27, 2025"](0001628280-25-048253|0) --- # 1) “What is QRVO?” — the simplest mental model (from filings) Qorvo describes itself as “a global leader in the development and commercialization of technologies and products for wireless, wired and power markets.” ["global leader"](0001604778-25-000041|0) **It reports 3 segments (and this segmentation is central to understanding the story):** High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). ["three operating and reportable segments"](0001604778-25-000041|0) At a high level (Qorvo’s own wording, condensed): - **HPA:** RF / analog mixed signal / power management serving markets including consumer, defense & aerospace, infrastructure, industrial & enterprise, and mobile. ["HPA is a leading global supplier"](0001628280-25-048253|0) - **CSG:** Connectivity solutions spanning UWB, Matter®, BLE, Zigbee®, Thread®, Wi‑Fi®, and cellular IoT (plus sensors in earlier wording). ["CSG is a leading global supplier"](0001604778-25-000041|0) - **ACG:** Cellular solutions for smartphones/wearables/laptops/tablets; historically the biggest revenue driver. ["ACG is a leading global supplier"](0001628280-25-048253|0) --- # 2) The core debate in one sentence: “ACG concentration vs. diversification + margin discipline” Two *filing-supported* forces dominate the QRVO narrative: 1) **Customer/end-market concentration (especially Apple + mobile RF)**, which can drive volatility. Apple (through multiple contract manufacturers) was ~47% of revenue in FY2025 and ~46% in FY2024; Samsung was ~10% and ~12%, respectively. ["accounted for approximately 47%"](0001604778-25-000041|0) ["Samsung accounted for approximately 10%"](0001604778-25-000041|0) 2) **A strategic pivot toward “better” mix and profitability**, especially by reducing exposure to *lower margin* mass‑market Android while leaning into higher-value tiers, plus manufacturing footprint actions. In Q2 FY2026, Qorvo explicitly ties gross margin improvement to (i) favorable mix due to reducing exposure to mass-market Android and (ii) increased defense & aerospace revenue, plus factory consolidations. ["strategy to reduce exposure"](0001628280-25-048253|0) --- # 3) Financial “scoreboard” (GAAP) — 3-year view from the 10‑K ### 3.1 Consolidated income statement (FY2023–FY2025, USD millions) | Metric (USD mm) | FY2025 | FY2024 | FY2023 | |---|---:|---:|---:| | Revenue | 3,718.971 ["3,718,971"](0001604778-25-000041|0) | 3,769.506 ["3,769,506"](0001604778-25-000041|0) | 3,569.399 ["3,569,399"](0001604778-25-000041|0) | | Gross profit | 1,535.589 ["Gross profit"](0001604778-25-000041|0) | 1,488.495 ["1,488,495"](0001604778-25-000041|0) | 1,296.942 ["1,296,942"](0001604778-25-000041|0) | | Gross margin | 41.3% ["41.3"](0001604778-25-000041|0) | 39.5% ["39.5"](0001604778-25-000041|0) | (not shown in same table) | | Operating income | 95.527 ["Operating income"](0001604778-25-000041|0) | 91.701 ["91,701"](0001604778-25-000041|0) | 183.168 ["183,168"](0001604778-25-000041|0) | | Interest expense | (78.328) ["(78,328)"](0001604778-25-000041|0) | (69.245) ["(69,245)"](0001604778-25-000041|0) | (68.463) ["(68,463)"](0001604778-25-000041|0) | | Net income (loss) | 55.615 ["55,615"](0001604778-25-000041|0) | (70.322) ["(70,322)"](0001604778-25-000041|0) | 103.152 ["103,152"](0001604778-25-000041|0) | | Diluted EPS | $0.58 ["0.58"](0001604778-25-000041|0) | $(0.72) ["(0.72)"](0001604778-25-000041|0) | $1.00 ["1.00"](0001604778-25-000041|0) | **Interpretation (grounded):** FY2025 revenue was slightly down Y/Y (‑1.3%), but gross margin improved (41.3% vs 39.5%). ["Revenue decreased 1.3%"](0001604778-25-000041|0) ["Gross margin for fiscal 2025 was 41.3%"](0001604778-25-000041|0) ### 3.2 Segment revenue + segment operating profit (FY2023–FY2025, USD millions) | Segment | FY2025 revenue | FY2024 revenue | FY2023 revenue | |---|---:|---:|---:| | HPA | 637.261 ["HPA"](0001604778-25-000041|0) | 572.953 ["572,953"](0001604778-25-000041|0) | 727.187 ["727,187"](0001604778-25-000041|0) | | CSG | 472.521 ["472,521"](0001604778-25-000041|0) | 434.537 ["434,537"](0001604778-25-000041|0) | 474.364 ["474,364"](0001604778-25-000041|0) | | ACG | 2,609.189 ["2,609,189"](0001604778-25-000041|0) | 2,762.016 ["2,762,016"](0001604778-25-000041|0) | 2,367.848 ["2,367,848"](0001604778-25-000041|0) | | Segment | FY2025 operating income (loss) | FY2024 operating income (loss) | FY2023 operating income (loss) | |---|---:|---:|---:| | HPA | 108.895 ["Segment operating income"](0001604778-25-000041|0) | 82.501 ["82,501"](0001604778-25-000041|0) | 198.820 ["198,820"](0001604778-25-000041|0) | | CSG | (55.842) ["(55,842)"](0001604778-25-000041|0) | (88.649) ["(88,649)"](0001604778-25-000041|0) | (72.080) ["(72,080)"](0001604778-25-000041|0) | | ACG | 602.447 ["602,447"](0001604778-25-000041|0) | 727.906 ["727,906"](0001604778-25-000041|0) | 627.708 ["627,708"](0001604778-25-000041|0) | **What jumps out:** - **ACG remains the earnings engine** (still >$2.6B revenue in FY2025 and >$600M segment op income), but revenue declined Y/Y. ["ACG ... 2,609,189"](0001604778-25-000041|0) ["Segment operating income 602,447"](0001604778-25-000041|0) - **HPA improved materially in FY2025 vs FY2024**, both in revenue and segment operating income. ["HPA ... 637,261"](0001604778-25-000041|0) ["Operating income ... 108,895"](0001604778-25-000041|0) - **CSG remains structurally challenged** (operating losses persist), though FY2025 loss improved vs FY2024. ["Operating loss (55,842)"](0001604778-25-000041|0) --- # 4) The “why” behind FY2025 results (management’s explanations) ### 4.1 Revenue drivers and mix shifts (FY2025) - FY2025 revenue declined mainly due to **ACG revenue down** from a smartphone mix shift toward **lower RF content 5G smartphones**. ["decrease in our ACG segment revenue"](0001604778-25-000041|0) ["lower RF content 5G smartphones"](0001604778-25-000041|0) - Offsetting that, **HPA revenue increased** from higher demand in defense & aerospace (“radar, communications and electronic warfare”). ["Revenue increased in our HPA segment"](0001604778-25-000041|0) ["radar, communications and electronic warfare"](0001604778-25-000041|0) - **CSG revenue increased** driven by Wi‑Fi components + UWB solutions tied to new product releases and improved channel inventory. ["Revenue increased in our CSG segment"](0001604778-25-000041|0) ["Wi‑Fi components and UWB solutions"](0001604778-25-000041|0) ### 4.2 Margin and profitability drivers (FY2025) - FY2025 gross margin improvement was attributed to **improved factory utilization and favorable business mix**, partly offset by average selling price erosion. ["improved factory utilization"](0001604778-25-000041|0) ["average selling-price erosion"](0001604778-25-000041|0) --- # 5) “What’s changing right now?” — latest quarter (Q2 FY2026 10‑Q) ### 5.1 Consolidated results (Q2 FY2026 quarter ended Sept 27, 2025) | Metric (USD mm) | Q2 FY2026 (3 mo) | Q2 FY2025 (3 mo) | |---|---:|---:| | Revenue | 1,058.503 ["1,058,503"](0001628280-25-048253|0) | 1,046.509 ["1,046,509"](0001628280-25-048253|0) | | Gross profit | 497.088 ["497,088"](0001628280-25-048253|0) | 445.306 ["445,306"](0001628280-25-048253|0) | | Operating income | 157.683 ["157,683"](0001628280-25-048253|0) | 9.675 ["9,675"](0001628280-25-048253|0) | | Net income (loss) | 119.603 ["119,603"](0001628280-25-048253|0) | (17.435) ["(17,435)"](0001628280-25-048253|0) | | Diluted EPS | $1.28 ["1.28"](0001628280-25-048253|0) | $(0.18) ["(0.18)"](0001628280-25-048253|0) | **Key observation:** the quarter shows a large swing in operating income and net income Y/Y. ["Operating income 157,683"](0001628280-25-048253|0) ["Net income (loss)"](0001628280-25-048253|0) ### 5.2 Segment scoreboard (Q2 FY2026 quarter and 6‑month YTD) **Revenue by segment:** | Segment revenue (USD mm) | Q2 FY2026 | Q2 FY2025 | 1H FY2026 | 1H FY2025 | |---|---:|---:|---:|---:| | HPA | 174.615 ["174,615"](0001628280-25-048253|0) | 148.251 ["148,251"](0001628280-25-048253|0) | 312.010 ["312,010"](0001628280-25-048253|0) | 277.719 ["277,719"](0001628280-25-048253|0) | | CSG | 106.924 ["106,924"](0001628280-25-048253|0) | 146.822 ["146,822"](0001628280-25-048253|0) | 217.077 ["217,077"](0001628280-25-048253|0) | 261.675 ["261,675"](0001628280-25-048253|0) | | ACG | 776.964 ["776,964"](0001628280-25-048253|0) | 751.436 ["751,436"](0001628280-25-048253|0) | 1,348.194 ["1,348,194"](0001628280-25-048253|0) | 1,393.786 ["1,393,786"](0001628280-25-048253|0) | **Segment operating profit (loss):** | Segment op income (loss) (USD mm) | Q2 FY2026 | Q2 FY2025 | 1H FY2026 | 1H FY2025 | |---|---:|---:|---:|---:| | HPA | 41.798 ["41,798"](0001628280-25-048253|0) | 13.066 ["13,066"](0001628280-25-048253|0) | 63.380 ["63,380"](0001628280-25-048253|0) | 17.947 ["17,947"](0001628280-25-048253|0) | | CSG | (21.614) ["(21,614)"](0001628280-25-048253|0) | (8.974) ["(8,974)"](0001628280-25-048253|0) | (29.147) ["(29,147)"](0001628280-25-048253|0) | (28.475) ["(28,475)"](0001628280-25-048253|0) | | ACG | 236.727 ["236,727"](0001628280-25-048253|0) | 215.057 ["215,057"](0001628280-25-048253|0) | 334.661 ["334,661"](0001628280-25-048253|0) | 331.506 ["331,506"](0001628280-25-048253|0) | **How management explains the segment moves (selected, high-signal):** - **HPA growth:** driven by increased content in defense & aerospace programs and the DOCSIS 4.0 transition (partially offset by weaker power management demand tied to tariffs). ["increased content in defense and aerospace"](0001628280-25-048253|0) ["broadband DOCSIS 4.0"](0001628280-25-048253|0) ["impacted by tariffs"](0001628280-25-048253|0) - **CSG weakness:** largely a Wi‑Fi timing issue (timing of new product releases), hitting revenue and operating loss. ["decrease ... Wi‑Fi components"](0001628280-25-048253|0) - **ACG mix management:** Qorvo frames results consistent with reducing exposure to Android ecosystem (especially China-based) while increasing content in flagship/premium tiers. ["reduce our exposure"](0001628280-25-048253|0) ["flagship and premium tiers"](0001628280-25-048253|0) --- # 6) Restructuring & manufacturing footprint — a “margin lever” with near-term charges In Q2 FY2026, Qorvo launched **“2026 Restructuring Initiatives”** to reduce opex, streamline manufacturing footprint, and accelerate long-term profitability. ["2026 Restructuring Initiatives"](0001628280-25-048253|0) **Two concrete actions disclosed:** 1) **Close the North Carolina fabrication facility** and **transfer SAW filter production to Texas**. ["close its North Carolina fabrication facility"](0001628280-25-048253|0) ["transfer surface acoustic wave filter production"](0001628280-25-048253|0) 2) **Consolidate CSG organizational structure** to focus on a higher-margin portfolio. ["consolidated the CSG organizational structure"](0001628280-25-048253|0) ["higher margin portfolio"](0001628280-25-048253|0) **Charges + expectations:** - Restructuring charges in Q2 FY2026: **$19.776M** (employee termination benefits + other). ["Total 19,776"](0001628280-25-048253|0) - Expected additional charges: **~$30M–$40M**, primarily employee termination and legal/consulting. ["approximately $30.0 million to $40.0 million"](0001628280-25-048253|0) --- # 7) Customer concentration & geographic exposure (what to watch) ### 7.1 Customer concentration (very high) Apple (via contract manufacturers) accounted for **~47% of total revenue in FY2025** and **~46% in FY2024**. ["approximately 47% and 46%"](0001604778-25-000041|0) Samsung accounted for **~10% (FY2025)** and **~12% (FY2024)**. ["Samsung accounted for approximately 10% and 12%"](0001604778-25-000041|0) This means: even if HPA and CSG grow, **QRVO still “lives and dies” by mobile RF content decisions** in the near term. (That’s not a forecast—just the mechanical implication of the disclosed concentration.) ["accounted for approximately 47%"](0001604778-25-000041|0) ### 7.2 Geographic revenue (based on customer HQ; Q2 FY2026) | Geography (USD mm) | Q2 FY2026 | Q2 FY2025 | |---|---:|---:| | United States | 702.432 ["702,432"](0001628280-25-048253|0) | 656.610 ["656,610"](0001628280-25-048253|0) | | China | 111.427 ["111,427"](0001628280-25-048253|0) | 151.763 ["151,763"](0001628280-25-048253|0) | | Other Asia | 120.494 ["120,494"](0001628280-25-048253|0) | 113.185 ["113,185"](0001628280-25-048253|0) | | Taiwan | 98.071 ["98,071"](0001628280-25-048253|0) | 102.298 ["102,298"](0001628280-25-048253|0) | | Europe | 26.079 ["26,079"](0001628280-25-048253|0) | 22.653 ["22,653"](0001628280-25-048253|0) | | Total | 1,058.503 ["Total revenue"](0001628280-25-048253|0) | 1,046.509 ["Total revenue"](0001628280-25-048253|0) | --- # 8) Capital allocation: buybacks (material) + authorization runway ### 8.1 FY2025 buybacks (10‑K) Qorvo states it repurchased **~4.0 million shares for ~$358.8M** in FY2025. ["repurchased approximately 4.0 million shares"](0001604778-25-000041|0) ["$358.8 million"](0001604778-25-000041|0) It also discloses a board authorization (Nov 2, 2022) for **up to $2.0B** of repurchases, no fixed term, modifiable anytime. ["authorized a share repurchase program"](0001604778-25-000041|0) ["up to $2.0 billion"](0001604778-25-000041|0) ### 8.2 Latest quarter buybacks + remaining authorization (Q2 FY2026 10‑Q) In the **three and six months ended Sept 27, 2025**, QRVO repurchased **~0.7M** and **~1.4M** shares for **~$65.3M** and **~$115.4M** (including transaction costs and excise tax). ["repurchased approximately 0.7 million and 1.4 million shares"](0001628280-25-048253|0) ["$65.3 million and $115.4 million"](0001628280-25-048253|0) As of Sept 27, 2025, **~$833.7M remained authorized**. ["$833.7 million remains authorized"](0001628280-25-048253|0) --- # 9) “One slide” risk map (strictly from disclosures we pulled) **A. Concentration / demand risk** - Apple via contract manufacturers ~47% of FY2025 revenue. ["approximately 47%"](0001604778-25-000041|0) **B. Execution risk on portfolio/mix strategy** - Management explicitly describes reducing exposure to mass-market Android and focusing on flagship/premium tiers; this is a deliberate strategy that can reshape revenue and margins. ["reduce our exposure"](0001628280-25-048253|0) **C. Restructuring / footprint risk** - Closing a fab and transferring production creates operational risk and transitional costs; company expects additional restructuring charges of ~$30–$40M. ["expects to incur additional charges"](0001628280-25-048253|0) **D. Cybersecurity / operational risk** - Qorvo discloses it has “from time to time” experienced cybersecurity threats/breaches (malware/ransomware/viruses) but says as of the 10‑K date it had not identified incidents materially affecting strategy/operations/financial condition. ["experienced threats to, and breaches"](0001604778-25-000041|0) ["have not identified any risks or incidents"](0001604778-25-000041|0) --- # 10) “Interactive” build-your-own deep dive (self-contained modules) Below are **standalone modules** you can treat like “tabs” (no extra input needed): ### Module A — Segment economics (“Who earns what?”) - Start with the FY2025 segment table (Section 3.2) and then compare to **Q2 FY2026 segment operating income**, where ACG op income was **$236.7M** vs HPA **$41.8M** and CSG **‑$21.6M**. ["Segment operating income"](0001628280-25-048253|0) ### Module B — Manufacturing & restructuring (“How do they plan to improve margin?”) - The operational “why”: streamlining footprint and transferring SAW filter production. ["transfer surface acoustic wave filter production"](0001628280-25-048253|0) - The near-term cost: $19.8M this quarter + $30–$40M expected. ["Total 19,776"](0001628280-25-048253|0) ["$30.0 million to $40.0 million"](0001628280-25-048253|0) ### Module C — Customer + geography (“Where is the revenue really coming from?”) - Customer concentration: Apple ~47% of FY2025 revenue. ["approximately 47%"](0001604778-25-000041|0) - China HQ revenue down Y/Y in Q2 FY2026. ["China 111,427"](0001628280-25-048253|0) ["151,763"](0001628280-25-048253|0) ### Module D — Capital return (“How aggressive are buybacks?”) - FY2025: ~$358.8M repurchased. ["$358.8 million"](0001604778-25-000041|0) - As of Sept 27, 2025: ~$833.7M authorization remaining. ["$833.7 million remains authorized"](0001628280-25-048253|0) --- ## Appendix: quick “filing anchors” (so you can trace everything fast) - FY2025 Consolidated statements (3-year P&L): ["Revenue $ 3,718,971"](0001604778-25-000041|0) - FY2025 segment rollup (3-year): ["HPA $ 637,261"](0001604778-25-000041|0) ["ACG $ 2,609,189"](0001604778-25-000041|0) - Customer concentration (Apple/Samsung): ["Apple ... 47%"](0001604778-25-000041|0) ["Samsung ... 10%"](0001604778-25-000041|0) - Q2 FY2026 income statement: ["Revenue $ 1,058,503"](0001628280-25-048253|0) - Q2 FY2026 segments + reconciliation: ["Total segment operating income"](0001628280-25-048253|0) - 2026 restructuring actions + expected charges: ["close its North Carolina fabrication facility"](0001628280-25-048253|0) ["$30.0 million to $40.0 million"](0001628280-25-048253|0) If you want, I can continue the dive by extracting (and tabulating) **debt structure/notes**, **cash flow + working capital**, and **stock-based comp / dilution mechanics** directly from the same 10‑K / 10‑Q corpus (but I’m keeping this first cut centered on the highest-signal drivers and tables already supported by retrieved chunks).

## Qorvo (QRVO) — filing-driven deep dive (10-K + latest 10-Q + key 8-K/proxy context) **Source set used (core):** FY2025 Form 10‑K filed May 19, 2025. ["Annual Report on Form 10-K"](0001604778-25-000041|0) **Most recent quarter used:** Q2 FY2026 Form 10‑Q (quarter ended Sept 27, 2025) filed Nov 3, 2025. ["September 27, 2025"](0001628280-25-048253|0) --- # 1) “What is QRVO?” — the simplest mental model (from filings) Qorvo describes itself as “a global leader in the development and commercialization of technologies and products for wireless, wired and power markets.” ["global leader"](0001604778-25-000041|0) **It reports 3 segments (and this segmentation is central to understanding the story):** High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). ["three operating and reportable segments"](0001604778-25-000041|0) At a high level (Qorvo’s own wording, condensed): - **HPA:** RF / analog mixed signal / power management serving markets including consumer, defense & aerospace, infrastructure, industrial & enterprise, and mobile. ["HPA is a leading global supplier"](0001628280-25-048253|0) - **CSG:** Connectivity solutions spanning UWB, Matter®, BLE, Zigbee®, Thread®, Wi‑Fi®, and cellular IoT (plus sensors in earlier wording). ["CSG is a leading global supplier"](0001604778-25-000041|0) - **ACG:** Cellular solutions for smartphones/wearables/laptops/tablets; historically the biggest revenue driver. ["ACG is a leading global supplier"](0001628280-25-048253|0) --- # 2) The core debate in one sentence: “ACG concentration vs. diversification + margin discipline” Two *filing-supported* forces dominate the QRVO narrative: 1) **Customer/end-market concentration (especially Apple + mobile RF)**, which can drive volatility. Apple (through multiple contract manufacturers) was ~47% of revenue in FY2025 and ~46% in FY2024; Samsung was ~10% and ~12%, respectively. ["accounted for approximately 47%"](0001604778-25-000041|0) ["Samsung accounted for approximately 10%"](0001604778-25-000041|0) 2) **A strategic pivot toward “better” mix and profitability**, especially by reducing exposure to *lower margin* mass‑market Android while leaning into higher-value tiers, plus manufacturing footprint actions. In Q2 FY2026, Qorvo explicitly ties gross margin improvement to (i) favorable mix due to reducing exposure to mass-market Android and (ii) increased defense & aerospace revenue, plus factory consolidations. ["strategy to reduce exposure"](0001628280-25-048253|0) --- # 3) Financial “scoreboard” (GAAP) — 3-year view from the 10‑K ### 3.1 Consolidated income statement (FY2023–FY2025, USD millions) | Metric (USD mm) | FY2025 | FY2024 | FY2023 | |---|---:|---:|---:| | Revenue | 3,718.971 ["3,718,971"](0001604778-25-000041|0) | 3,769.506 ["3,769,506"](0001604778-25-000041|0) | 3,569.399 ["3,569,399"](0001604778-25-000041|0) | | Gross profit | 1,535.589 ["Gross profit"](0001604778-25-000041|0) | 1,488.495 ["1,488,495"](0001604778-25-000041|0) | 1,296.942 ["1,296,942"](0001604778-25-000041|0) | | Gross margin | 41.3% ["41.3"](0001604778-25-000041|0) | 39.5% ["39.5"](0001604778-25-000041|0) | (not shown in same table) | | Operating income | 95.527 ["Operating income"](0001604778-25-000041|0) | 91.701 ["91,701"](0001604778-25-000041|0) | 183.168 ["183,168"](0001604778-25-000041|0) | | Interest expense | (78.328) ["(78,328)"](0001604778-25-000041|0) | (69.245) ["(69,245)"](0001604778-25-000041|0) | (68.463) ["(68,463)"](0001604778-25-000041|0) | | Net income (loss) | 55.615 ["55,615"](0001604778-25-000041|0) | (70.322) ["(70,322)"](0001604778-25-000041|0) | 103.152 ["103,152"](0001604778-25-000041|0) | | Diluted EPS | $0.58 ["0.58"](0001604778-25-000041|0) | $(0.72) ["(0.72)"](0001604778-25-000041|0) | $1.00 ["1.00"](0001604778-25-000041|0) | **Interpretation (grounded):** FY2025 revenue was slightly down Y/Y (‑1.3%), but gross margin improved (41.3% vs 39.5%). ["Revenue decreased 1.3%"](0001604778-25-000041|0) ["Gross margin for fiscal 2025 was 41.3%"](0001604778-25-000041|0) ### 3.2 Segment revenue + segment operating profit (FY2023–FY2025, USD millions) | Segment | FY2025 revenue | FY2024 revenue | FY2023 revenue | |---|---:|---:|---:| | HPA | 637.261 ["HPA"](0001604778-25-000041|0) | 572.953 ["572,953"](0001604778-25-000041|0) | 727.187 ["727,187"](0001604778-25-000041|0) | | CSG | 472.521 ["472,521"](0001604778-25-000041|0) | 434.537 ["434,537"](0001604778-25-000041|0) | 474.364 ["474,364"](0001604778-25-000041|0) | | ACG | 2,609.189 ["2,609,189"](0001604778-25-000041|0) | 2,762.016 ["2,762,016"](0001604778-25-000041|0) | 2,367.848 ["2,367,848"](0001604778-25-000041|0) | | Segment | FY2025 operating income (loss) | FY2024 operating income (loss) | FY2023 operating income (loss) | |---|---:|---:|---:| | HPA | 108.895 ["Segment operating income"](0001604778-25-000041|0) | 82.501 ["82,501"](0001604778-25-000041|0) | 198.820 ["198,820"](0001604778-25-000041|0) | | CSG | (55.842) ["(55,842)"](0001604778-25-000041|0) | (88.649) ["(88,649)"](0001604778-25-000041|0) | (72.080) ["(72,080)"](0001604778-25-000041|0) | | ACG | 602.447 ["602,447"](0001604778-25-000041|0) | 727.906 ["727,906"](0001604778-25-000041|0) | 627.708 ["627,708"](0001604778-25-000041|0) | **What jumps out:** - **ACG remains the earnings engine** (still >$2.6B revenue in FY2025 and >$600M segment op income), but revenue declined Y/Y. ["ACG ... 2,609,189"](0001604778-25-000041|0) ["Segment operating income 602,447"](0001604778-25-000041|0) - **HPA improved materially in FY2025 vs FY2024**, both in revenue and segment operating income. ["HPA ... 637,261"](0001604778-25-000041|0) ["Operating income ... 108,895"](0001604778-25-000041|0) - **CSG remains structurally challenged** (operating losses persist), though FY2025 loss improved vs FY2024. ["Operating loss (55,842)"](0001604778-25-000041|0) --- # 4) The “why” behind FY2025 results (management’s explanations) ### 4.1 Revenue drivers and mix shifts (FY2025) - FY2025 revenue declined mainly due to **ACG revenue down** from a smartphone mix shift toward **lower RF content 5G smartphones**. ["decrease in our ACG segment revenue"](0001604778-25-000041|0) ["lower RF content 5G smartphones"](0001604778-25-000041|0) - Offsetting that, **HPA revenue increased** from higher demand in defense & aerospace (“radar, communications and electronic warfare”). ["Revenue increased in our HPA segment"](0001604778-25-000041|0) ["radar, communications and electronic warfare"](0001604778-25-000041|0) - **CSG revenue increased** driven by Wi‑Fi components + UWB solutions tied to new product releases and improved channel inventory. ["Revenue increased in our CSG segment"](0001604778-25-000041|0) ["Wi‑Fi components and UWB solutions"](0001604778-25-000041|0) ### 4.2 Margin and profitability drivers (FY2025) - FY2025 gross margin improvement was attributed to **improved factory utilization and favorable business mix**, partly offset by average selling price erosion. ["improved factory utilization"](0001604778-25-000041|0) ["average selling-price erosion"](0001604778-25-000041|0) --- # 5) “What’s changing right now?” — latest quarter (Q2 FY2026 10‑Q) ### 5.1 Consolidated results (Q2 FY2026 quarter ended Sept 27, 2025) | Metric (USD mm) | Q2 FY2026 (3 mo) | Q2 FY2025 (3 mo) | |---|---:|---:| | Revenue | 1,058.503 ["1,058,503"](0001628280-25-048253|0) | 1,046.509 ["1,046,509"](0001628280-25-048253|0) | | Gross profit | 497.088 ["497,088"](0001628280-25-048253|0) | 445.306 ["445,306"](0001628280-25-048253|0) | | Operating income | 157.683 ["157,683"](0001628280-25-048253|0) | 9.675 ["9,675"](0001628280-25-048253|0) | | Net income (loss) | 119.603 ["119,603"](0001628280-25-048253|0) | (17.435) ["(17,435)"](0001628280-25-048253|0) | | Diluted EPS | $1.28 ["1.28"](0001628280-25-048253|0) | $(0.18) ["(0.18)"](0001628280-25-048253|0) | **Key observation:** the quarter shows a large swing in operating income and net income Y/Y. ["Operating income 157,683"](0001628280-25-048253|0) ["Net income (loss)"](0001628280-25-048253|0) ### 5.2 Segment scoreboard (Q2 FY2026 quarter and 6‑month YTD) **Revenue by segment:** | Segment revenue (USD mm) | Q2 FY2026 | Q2 FY2025 | 1H FY2026 | 1H FY2025 | |---|---:|---:|---:|---:| | HPA | 174.615 ["174,615"](0001628280-25-048253|0) | 148.251 ["148,251"](0001628280-25-048253|0) | 312.010 ["312,010"](0001628280-25-048253|0) | 277.719 ["277,719"](0001628280-25-048253|0) | | CSG | 106.924 ["106,924"](0001628280-25-048253|0) | 146.822 ["146,822"](0001628280-25-048253|0) | 217.077 ["217,077"](0001628280-25-048253|0) | 261.675 ["261,675"](0001628280-25-048253|0) | | ACG | 776.964 ["776,964"](0001628280-25-048253|0) | 751.436 ["751,436"](0001628280-25-048253|0) | 1,348.194 ["1,348,194"](0001628280-25-048253|0) | 1,393.786 ["1,393,786"](0001628280-25-048253|0) | **Segment operating profit (loss):** | Segment op income (loss) (USD mm) | Q2 FY2026 | Q2 FY2025 | 1H FY2026 | 1H FY2025 | |---|---:|---:|---:|---:| | HPA | 41.798 ["41,798"](0001628280-25-048253|0) | 13.066 ["13,066"](0001628280-25-048253|0) | 63.380 ["63,380"](0001628280-25-048253|0) | 17.947 ["17,947"](0001628280-25-048253|0) | | CSG | (21.614) ["(21,614)"](0001628280-25-048253|0) | (8.974) ["(8,974)"](0001628280-25-048253|0) | (29.147) ["(29,147)"](0001628280-25-048253|0) | (28.475) ["(28,475)"](0001628280-25-048253|0) | | ACG | 236.727 ["236,727"](0001628280-25-048253|0) | 215.057 ["215,057"](0001628280-25-048253|0) | 334.661 ["334,661"](0001628280-25-048253|0) | 331.506 ["331,506"](0001628280-25-048253|0) | **How management explains the segment moves (selected, high-signal):** - **HPA growth:** driven by increased content in defense & aerospace programs and the DOCSIS 4.0 transition (partially offset by weaker power management demand tied to tariffs). ["increased content in defense and aerospace"](0001628280-25-048253|0) ["broadband DOCSIS 4.0"](0001628280-25-048253|0) ["impacted by tariffs"](0001628280-25-048253|0) - **CSG weakness:** largely a Wi‑Fi timing issue (timing of new product releases), hitting revenue and operating loss. ["decrease ... Wi‑Fi components"](0001628280-25-048253|0) - **ACG mix management:** Qorvo frames results consistent with reducing exposure to Android ecosystem (especially China-based) while increasing content in flagship/premium tiers. ["reduce our exposure"](0001628280-25-048253|0) ["flagship and premium tiers"](0001628280-25-048253|0) --- # 6) Restructuring & manufacturing footprint — a “margin lever” with near-term charges In Q2 FY2026, Qorvo launched **“2026 Restructuring Initiatives”** to reduce opex, streamline manufacturing footprint, and accelerate long-term profitability. ["2026 Restructuring Initiatives"](0001628280-25-048253|0) **Two concrete actions disclosed:** 1) **Close the North Carolina fabrication facility** and **transfer SAW filter production to Texas**. ["close its North Carolina fabrication facility"](0001628280-25-048253|0) ["transfer surface acoustic wave filter production"](0001628280-25-048253|0) 2) **Consolidate CSG organizational structure** to focus on a higher-margin portfolio. ["consolidated the CSG organizational structure"](0001628280-25-048253|0) ["higher margin portfolio"](0001628280-25-048253|0) **Charges + expectations:** - Restructuring charges in Q2 FY2026: **$19.776M** (employee termination benefits + other). ["Total 19,776"](0001628280-25-048253|0) - Expected additional charges: **~$30M–$40M**, primarily employee termination and legal/consulting. ["approximately $30.0 million to $40.0 million"](0001628280-25-048253|0) --- # 7) Customer concentration & geographic exposure (what to watch) ### 7.1 Customer concentration (very high) Apple (via contract manufacturers) accounted for **~47% of total revenue in FY2025** and **~46% in FY2024**. ["approximately 47% and 46%"](0001604778-25-000041|0) Samsung accounted for **~10% (FY2025)** and **~12% (FY2024)**. ["Samsung accounted for approximately 10% and 12%"](0001604778-25-000041|0) This means: even if HPA and CSG grow, **QRVO still “lives and dies” by mobile RF content decisions** in the near term. (That’s not a forecast—just the mechanical implication of the disclosed concentration.) ["accounted for approximately 47%"](0001604778-25-000041|0) ### 7.2 Geographic revenue (based on customer HQ; Q2 FY2026) | Geography (USD mm) | Q2 FY2026 | Q2 FY2025 | |---|---:|---:| | United States | 702.432 ["702,432"](0001628280-25-048253|0) | 656.610 ["656,610"](0001628280-25-048253|0) | | China | 111.427 ["111,427"](0001628280-25-048253|0) | 151.763 ["151,763"](0001628280-25-048253|0) | | Other Asia | 120.494 ["120,494"](0001628280-25-048253|0) | 113.185 ["113,185"](0001628280-25-048253|0) | | Taiwan | 98.071 ["98,071"](0001628280-25-048253|0) | 102.298 ["102,298"](0001628280-25-048253|0) | | Europe | 26.079 ["26,079"](0001628280-25-048253|0) | 22.653 ["22,653"](0001628280-25-048253|0) | | Total | 1,058.503 ["Total revenue"](0001628280-25-048253|0) | 1,046.509 ["Total revenue"](0001628280-25-048253|0) | --- # 8) Capital allocation: buybacks (material) + authorization runway ### 8.1 FY2025 buybacks (10‑K) Qorvo states it repurchased **~4.0 million shares for ~$358.8M** in FY2025. ["repurchased approximately 4.0 million shares"](0001604778-25-000041|0) ["$358.8 million"](0001604778-25-000041|0) It also discloses a board authorization (Nov 2, 2022) for **up to $2.0B** of repurchases, no fixed term, modifiable anytime. ["authorized a share repurchase program"](0001604778-25-000041|0) ["up to $2.0 billion"](0001604778-25-000041|0) ### 8.2 Latest quarter buybacks + remaining authorization (Q2 FY2026 10‑Q) In the **three and six months ended Sept 27, 2025**, QRVO repurchased **~0.7M** and **~1.4M** shares for **~$65.3M** and **~$115.4M** (including transaction costs and excise tax). ["repurchased approximately 0.7 million and 1.4 million shares"](0001628280-25-048253|0) ["$65.3 million and $115.4 million"](0001628280-25-048253|0) As of Sept 27, 2025, **~$833.7M remained authorized**. ["$833.7 million remains authorized"](0001628280-25-048253|0) --- # 9) “One slide” risk map (strictly from disclosures we pulled) **A. Concentration / demand risk** - Apple via contract manufacturers ~47% of FY2025 revenue. ["approximately 47%"](0001604778-25-000041|0) **B. Execution risk on portfolio/mix strategy** - Management explicitly describes reducing exposure to mass-market Android and focusing on flagship/premium tiers; this is a deliberate strategy that can reshape revenue and margins. ["reduce our exposure"](0001628280-25-048253|0) **C. Restructuring / footprint risk** - Closing a fab and transferring production creates operational risk and transitional costs; company expects additional restructuring charges of ~$30–$40M. ["expects to incur additional charges"](0001628280-25-048253|0) **D. Cybersecurity / operational risk** - Qorvo discloses it has “from time to time” experienced cybersecurity threats/breaches (malware/ransomware/viruses) but says as of the 10‑K date it had not identified incidents materially affecting strategy/operations/financial condition. ["experienced threats to, and breaches"](0001604778-25-000041|0) ["have not identified any risks or incidents"](0001604778-25-000041|0) --- # 10) “Interactive” build-your-own deep dive (self-contained modules) Below are **standalone modules** you can treat like “tabs” (no extra input needed): ### Module A — Segment economics (“Who earns what?”) - Start with the FY2025 segment table (Section 3.2) and then compare to **Q2 FY2026 segment operating income**, where ACG op income was **$236.7M** vs HPA **$41.8M** and CSG **‑$21.6M**. ["Segment operating income"](0001628280-25-048253|0) ### Module B — Manufacturing & restructuring (“How do they plan to improve margin?”) - The operational “why”: streamlining footprint and transferring SAW filter production. ["transfer surface acoustic wave filter production"](0001628280-25-048253|0) - The near-term cost: $19.8M this quarter + $30–$40M expected. ["Total 19,776"](0001628280-25-048253|0) ["$30.0 million to $40.0 million"](0001628280-25-048253|0) ### Module C — Customer + geography (“Where is the revenue really coming from?”) - Customer concentration: Apple ~47% of FY2025 revenue. ["approximately 47%"](0001604778-25-000041|0) - China HQ revenue down Y/Y in Q2 FY2026. ["China 111,427"](0001628280-25-048253|0) ["151,763"](0001628280-25-048253|0) ### Module D — Capital return (“How aggressive are buybacks?”) - FY2025: ~$358.8M repurchased. ["$358.8 million"](0001604778-25-000041|0) - As of Sept 27, 2025: ~$833.7M authorization remaining. ["$833.7 million remains authorized"](0001628280-25-048253|0) --- ## Appendix: quick “filing anchors” (so you can trace everything fast) - FY2025 Consolidated statements (3-year P&L): ["Revenue $ 3,718,971"](0001604778-25-000041|0) - FY2025 segment rollup (3-year): ["HPA $ 637,261"](0001604778-25-000041|0) ["ACG $ 2,609,189"](0001604778-25-000041|0) - Customer concentration (Apple/Samsung): ["Apple ... 47%"](0001604778-25-000041|0) ["Samsung ... 10%"](0001604778-25-000041|0) - Q2 FY2026 income statement: ["Revenue $ 1,058,503"](0001628280-25-048253|0) - Q2 FY2026 segments + reconciliation: ["Total segment operating income"](0001628280-25-048253|0) - 2026 restructuring actions + expected charges: ["close its North Carolina fabrication facility"](0001628280-25-048253|0) ["$30.0 million to $40.0 million"](0001628280-25-048253|0) If you want, I can continue the dive by extracting (and tabulating) **debt structure/notes**, **cash flow + working capital**, and **stock-based comp / dilution mechanics** directly from the same 10‑K / 10‑Q corpus (but I’m keeping this first cut centered on the highest-signal drivers and tables already supported by retrieved chunks).