Broadcom (AVGO -6.33%) held its Q1 2025 earnings call on March 7, 2025, at 5:00 p.m. ET. The call included prepared remarks from Ji Yoo, Director of Investor Relations, Hock Tan, President and CEO, and Kirsten Spears, Chief Financial Officer.
Total revenue for the quarter was a record $14.9 billion, up 25% year on year, with consolidated adjusted EBITDA reaching a record $10.1 billion, up 41% year on year. Semiconductor revenue was $8.2 billion, up 11% year on year, driven by AI, which saw revenue of $4.1 billion, up 77% year on year. The company expects Q2 AI revenue to grow to $4.4 billion, up 44% year on year.
Infrastructure Software revenue was $6.7 billion, up 47% year on year, exaggerated by deals that slipped from Q4 to Q1. The company is converting from perpetual licenses to full subscription models, with over 60% of the transition complete. Approximately 70% of the largest 10,000 customers have adopted VCF, enabling them to create private cloud environments on-prem.
Free cash flow in the quarter was $6 billion, representing 40% of revenue. The company ended the quarter with $9.3 billion in cash and $68.8 billion in gross principal debt. During the quarter, Broadcom repaid $495 million of fixed-rate debt and $7.6 billion of floating-rate debt, reducing debt by a net $1.1 billion.
For Q2, Broadcom expects consolidated revenue of $14.9 billion, with Semiconductor revenue of approximately $8.4 billion, up 17% year on year, and Infrastructure Software revenue of approximately $6.5 billion, up 23% year on year. Adjusted EBITDA is expected to be about 66%.
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