Q3 2025 Nordic Semiconductor ASA Earnings Call Transcript
Key Points
- Nordic Semiconductor ASA (NDCVF) reported a 13% year-on-year revenue increase in Q3 2025, reaching $179 million, which is at the high end of their guidance range.
- The company achieved a gross margin of 52%, supported by a favorable product mix and contributions from the cloud service business.
- The acquisition of Memfault has strengthened Nordic's cloud service offerings, contributing positively to gross margins.
- Nordic remains the leader in Bluetooth Low Energy end product certifications, with 31% of designs certified in Q3.
- The launch of the nRF54 Series, including the high-performance 54LM20A, is expected to drive future growth, with volume production planned to start in Q1 next year.
- Revenue from customers outside the top 10 remains 35% below peak levels, indicating a need for further growth in the broad market.
- The transition from nRF52 and nRF53 Series to the new nRF54 Series is creating a timing gap, with less than 10% of certifications in Q3 for the new products.
- Operating expenses increased, with R&D spending at 27% of revenue, above the target model of 15% to 20%.
- The company experienced a cash outflow of $26.6 million in Q3, partly due to the Memfault acquisition.
- Visibility on demand trends remains limited, with guidance only provided for the upcoming quarter, reflecting uncertainty in the market.
At this time, I would like to welcome everyone to this Nordic Semiconductor quarterly presentation third quarter 2025. Today's call is being recorded. If you have any objections, please disconnect at this time. (Operator Instructions)
I'd now like to introduce Head of Investor Relations, Steel. Steel, over to you.
Thank you, Patrick, and good morning, everyone. As Patrick said, this presentation is being recorded and will be accessible on the Nordic website in the Investor Relations section. And additional, for those of you who missed the release, you can also find the earnings press release, quarterly report and presentation material on our website.
With me today, we have Vegard Wollan, our CEO; and PÃ¥l Elstad, our CFO. They will share details about our recent financial performance and updates on key business developments. Following the presentation, as Patrick said, we will move on to the Q&A session. During this session, live questions can be
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