MarketPR
A $62.2 million sequential inventory build is the clearest operational explanation for why Credo Technology Group (NASDAQ: CRDO) posted $236.3 million in adjusted profit for the quarter ending July 31, 2026, yet generated only $82.9 million in free cash flow.
Shares have fallen 42.14% over the past month to $150.39, and the fiscal Q2 revenue report is the next data point that will decide whether the supply build was preparation or overreach.
The numbers behind the gap GAAP net income for the quarter was $129.4 million.
Reaching the $236.3 million non-GAAP figure required adding back $87.98 million in stock-based compensation, a real dilution cost to existing shareholders regardless of how it flows through the income statement.
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