Core Insights - M/A-Com's international operations are crucial for assessing its financial strength and growth potential, given the interconnected nature of the global economy [2][3] - The company's total revenue for the quarter ending June 2025 was $252.08 million, reflecting a 32.3% increase year-over-year [4] International Revenue Analysis - Other Countries contributed 18.4% of total revenue, amounting to $46.28 million, which was a surprise of +7.8% compared to expectations [5] - China generated $70.97 million, representing 28.2% of total revenue, exceeding projections by +8.68% [6] - Asia Pacific (excluding China) accounted for $29.54 million, or 11.7% of total revenue, also surpassing analyst expectations by +3.78% [7] Future Revenue Projections - Analysts forecast total revenue of $258.33 million for the current fiscal quarter, indicating a 28.7% increase from the prior year [8] - For the full year, expected total revenue is $961.17 million, marking a 31.7% increase compared to last year [9] Market Performance - M/A-Com's stock has declined by 11.2% over the past month, contrasting with a 2.7% increase in the Zacks S&P 500 composite [14] - Over the last three months, the company's shares have decreased by 2%, while the S&P 500 has increased by 13.2% [14]

Core Insights - MACOM Technology Solutions Holdings, Inc. (MTSI) reported third-quarter fiscal 2025 earnings of 90 cents per share, exceeding the Zacks Consensus Estimate by a penny, and up from 66 cents per share a year ago [1][9] - The company posted revenues of $252 million in the third quarter, surpassing the Zacks Consensus Estimate by 0.81%, and showing growth from $190.5 million in the same quarter last year [2][9] Revenue Breakdown - Telecom Market: Generated revenues of $68.1 million, accounting for 27% of total revenues, reflecting a year-over-year increase of 34.6%, driven by demand for products supporting U.S. 5G infrastructure [3] - Data Center Market: Contributed $75.8 million, or 30.1% of total revenues, with a robust year-over-year growth of 54.7%, fueled by demand for advanced optical solutions [4] - Industrial & Defense Market: Delivered $108.2 million, representing 42.9% of total revenues, up 19% year over year, supported by increased demand for electronic warfare and secure communications solutions [5] Operating Performance - Non-GAAP gross margin for the third quarter was 57.6%, an increase of 10 basis points from the previous year [6] - Non-GAAP operating expenses were $81.7 million, up 27.9% year over year, but as a percentage of revenues, they improved to 32.4%, a contraction of 110 basis points from the prior year [6] - Non-GAAP operating margin expanded to 25.2%, up 120 basis points from 24% in the prior year [6] Balance Sheet Highlights - As of July 4, 2025, cash equivalents and short-term investments were $735.2 million, an increase from $681.5 million in the previous quarter [7] - Inventories rose to $215.4 million from $194.5 million reported in the year-ago quarter [7] - Long-term debt was $339.4 million, slightly up from $339.1 million in the previous quarter [7] Future Guidance - For the fiscal fourth quarter, MACOM expects revenues between $256 million and $264 million, with adjusted earnings per diluted share projected in the range of 91 to 95 cents [9][10] - The Zacks Consensus Estimate for Q4 revenues is pegged at $257.5 million, and for adjusted earnings per share at 92 cents [10]

Group 1 - M/A-Com reported $252.08 million in revenue for the quarter ended June 2025, a year-over-year increase of 32.3% [1] - The EPS for the same period was $0.90, compared to $0.66 a year ago, indicating a positive trend in earnings [1] - The reported revenue exceeded the Zacks Consensus Estimate of $250.06 million by +0.81% [1] Group 2 - The consensus EPS estimate was $0.89, resulting in an EPS surprise of +1.12% [1] - M/A-Com's stock has returned -6.9% over the past month, while the Zacks S&P 500 composite increased by +1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - Revenue from Telecommunications was $68.05 million, surpassing the average estimate of $65.82 million, reflecting a year-over-year change of +34.6% [4] - Revenue from Industrial & Defense was $108.21 million, slightly below the average estimate of $108.44 million, with a year-over-year change of +19% [4] - Revenue from Data Center was $75.82 million, close to the average estimate of $75.84 million, showing a year-over-year increase of +54.7% [4]

Group 1 - MACOM Technology Solutions Holdings, Inc. announced the retirement of Director Susan Ocampo from its Board of Directors, effective August 31, 2025, after a fifteen-year tenure [1][2] - Susan Ocampo has been a significant contributor to MACOM's development since joining the Board in August 2010, following the acquisition of MACOM by her and her late husband in 2009 [1][2] - The company provides high-performance semiconductor products for various industries, including Industrial and Defense, Data Center, and Telecommunications, serving over 6,000 customers annually [2] Group 2 - MACOM has achieved multiple certifications, including IATF16949 for automotive, AS9100D for aerospace, ISO9001 for quality, and ISO14001 for environmental management [2] - The company operates facilities across the United States, Europe, and Asia, with its headquarters located in Lowell, Massachusetts [2]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for July 4, 2025, show significant revenue growth and a net loss, primarily due to a one-time debt extinguishment loss Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 4, 2025 | September 27, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $125,466 | $146,806 | | Short-term investments | $609,760 | $435,082 | | Inventories | $215,388 | $194,490 | | Total current assets | $1,127,355 | $903,078 | | Total assets | $2,003,272 | $1,755,640 | | **Liabilities & Equity** | | | | Short-term debt | $160,844 | $— | | Total current liabilities | $294,647 | $108,184 | | Long-term debt | $339,351 | $448,281 | | Total liabilities | $739,921 | $629,297 | | Total stockholders' equity | $1,263,351 | $1,126,343 | Condensed Consolidated Statements of Operations Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2025 | Q3 2024 | YoY Change | Nine Months 2025 | Nine Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $252,079 | $190,486 | +32.3% | $706,088 | $528,868 | +33.5% | | Gross Profit | $139,436 | $101,409 | +37.5% | $386,701 | $283,931 | +36.2% | | Income from Operations | $37,660 | $19,716 | +91.0% | $90,057 | $46,132 | +95.2% | | Net Income (Loss) | $36,534 | $19,939 | +83.2% | $(99,330) | $47,445 | N/A | | Diluted EPS | $0.48 | $0.27 | +77.8% | $(1.35) | $0.65 | N/A | - The nine-month net loss was primarily driven by a **$193.1 million loss** on the extinguishment of debt[12](index=12&type=chunk) Condensed Consolidated Statements of Cash Flows Cash Flow Summary (Nine Months Ended, in thousands) | Cash Flow Activity | July 4, 2025 | June 28, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $165,732 | $100,311 | | Net cash used in investing activities | $(246,131) | $(148,615) | | Net cash provided by (used in) financing activities | $58,796 | $(8,434) | | **Net Change in Cash** | **$(21,340)** | **$(56,648)** | | Cash and cash equivalents - End of period | $125,466 | $117,304 | - Operating cash flow for the nine months ended July 4, 2025, increased significantly to **$165.7 million**, despite a net loss, primarily due to non-cash charges like a **$193.1 million loss** on debt extinguishment and **$61.6 million** in share-based compensation[20](index=20&type=chunk)[147](index=147&type=chunk) Notes to Condensed Consolidated Financial Statements Revenue by Market (Nine Months Ended, in thousands) | Market | July 4, 2025 | June 28, 2024 | % Change | | :--- | :--- | :--- | :--- | | Industrial & Defense | $304,148 | $258,792 | +17.5% | | Data Center | $213,286 | $141,662 | +50.6% | | Telecom | $188,654 | $128,414 | +46.9% | | **Total** | **$706,088** | **$528,868** | **+33.5%** | - The company completed the acquisition of ENGIN-IC, Inc. on November 5, 2024, for approximately **$14.4 million** to expand MMIC design capabilities, and the RF Business from Wolfspeed, Inc. on December 2, 2023, for **$75.0 million** cash and **$57.7 million** stock[39](index=39&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - On December 12, 2024, the company exchanged **$288.8 million** of 2026 Convertible Notes for **$257.7 million** of new 2029 Convertible Notes, common stock, and cash, resulting in a pre-tax debt extinguishment charge of **$193.1 million**[65](index=65&type=chunk) Share-Based Compensation Expense (in thousands) | Period | Three Months Ended July 4, 2025 | Nine Months Ended July 4, 2025 | | :--- | :--- | :--- | | Cost of revenue | $1,728 | $6,376 | | Research and development | $7,109 | $25,235 | | Selling, general and administrative | $8,469 | $29,982 | | **Total** | **$17,306** | **$61,593** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 33.5% revenue growth to strong market performance, improved gross margin, and increased operating expenses, maintaining strong liquidity despite a one-time debt loss Results of Operations Revenue Growth by Market (Nine Months Ended July 4, 2025 vs. June 28, 2024) | Market | Revenue Increase (in millions) | % Change | | :--- | :--- | :--- | | Industrial & Defense | $45.4 | +17.5% | | Data Center | $71.6 | +50.6% | | Telecom | $60.2 | +46.9% | | **Total** | **$177.2** | **+33.5%** | - Gross margin for the nine months ended July 4, 2025, increased to **54.8%** from 53.7%, driven by higher sales volume and decreased production supply costs[137](index=137&type=chunk) - Research and development (R&D) expenses increased by **37.0%** to **$181.6 million**, primarily due to higher employee-related costs, share-based compensation, and development supplies[138](index=138&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **9.3%** to **$115.1 million**, mainly due to higher employee-related costs and share-based compensation[139](index=139&type=chunk) Liquidity and Capital Resources - As of July 4, 2025, the company held **$125.5 million** in cash and cash equivalents and **$609.8 million** in liquid short-term investments[154](index=154&type=chunk) - Net cash from operating activities for the nine months ended July 4, 2025, was **$165.7 million**, a significant increase from **$100.3 million** in the prior-year period[146](index=146&type=chunk)[147](index=147&type=chunk) - The company exchanged a portion of its 2026 Convertible Notes for new 2029 Convertible Notes, resulting in net proceeds of approximately **$63.7 million** for general corporate purposes[155](index=155&type=chunk) - Capital expenditures for the fourth fiscal quarter are anticipated to be between **$17.0 million** and **$23.0 million**, including investments for the newly acquired RTP Fab[150](index=150&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on investments and foreign currency risk on intercompany debt, mitigated by hedging contracts for Euro and Yen exposures - The company's primary market risks are interest rate fluctuations on its cash and investment portfolio and foreign currency exchange rate changes[161](index=161&type=chunk) - A hypothetical **1%** change in interest rates would impact annual interest income by approximately **$7.4 million**, based on balances as of July 4, 2025[162](index=162&type=chunk) - To mitigate foreign currency risk on intercompany debt, the company held **$33.0 million** in notional forward foreign currency contracts (Euro and Yen) as of July 4, 2025[164](index=164&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of July 4, 2025, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[165](index=165&type=chunk) - No material changes occurred during the most recent fiscal quarter that affected internal control over financial reporting[166](index=166&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company was not involved in any material pending legal proceedings during the three and nine months ended July 4, 2025 - The company was not involved in any material pending legal proceedings during the reported periods[86](index=86&type=chunk)[169](index=169&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the 2024 Annual Report on Form 10-K, except as updated in prior quarterly reports - There have been no material changes in the risk factors from those described in the 2024 Annual Report on Form 10-K, except as updated in previous 10-Q filings for the current fiscal year[170](index=170&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company repurchased 12,442 shares of common stock, primarily for tax obligations related to restricted stock awards Issuer Purchases of Equity Securities (Quarter Ended July 4, 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 5 - May 2, 2025 | 4,850 | $99.29 | | May 3 - May 30, 2025 | 5,710 | $122.53 | | May 31 - July 4, 2025 | 1,882 | $129.02 | | **Total** | **12,442** | **$114.45** | - The shares were withheld from employees to cover tax withholding obligations upon the vesting of restricted stock awards, known as "withhold to cover"[172](index=172&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the third fiscal quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended July 4, 2025[173](index=173&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data files

Financial Performance - M/A-Com reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and up from $0.66 per share a year ago, representing an earnings surprise of +1.12% [1] - The company posted revenues of $252.08 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.81%, and an increase from year-ago revenues of $190.49 million [2] Market Performance - M/A-Com shares have increased approximately 7% since the beginning of the year, compared to the S&P 500's gain of 7.9% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $254.09 million, and for the current fiscal year, it is $3.46 on revenues of $958.14 million [7] - The semiconductor industry, particularly the Analog and Mixed segment, is ranked in the top 24% of Zacks industries, suggesting a favorable outlook for M/A-Com [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $252.1 million, up 6.9% sequentially, marking a new quarterly record [27] - Adjusted EPS for Q3 was $0.90, an increase from $0.85 in Q2 2025 [31] - Adjusted gross profit was $145.2 million, representing 57.6% of revenue, slightly ahead of prior quarters [28] - Cash flow from operations was approximately $60.4 million, up $21.6 million sequentially [32] - Cash and short-term investments totaled $735.2 million, an increase of $53.7 million from Q2 [34] Business Line Data and Key Metrics Changes - Industrial and Defense (IND) revenue was $108.2 million, up 10% sequentially; Data Center revenue was $75.8 million, up 5%; Telecom revenue was $68.1 million, up 4% [6] - The book-to-bill ratio for Q3 was just over 1.1, indicating strong demand and a record backlog [7] - The data center business is expected to see significant growth across almost all data rates and platforms, with a record 200G per lane product revenue anticipated in Q4 [14] Market Data and Key Metrics Changes - The IND market remains strong, particularly in the U.S. and European markets, driven by military and defense applications [10] - Telecom orders are solid, especially in 5G infrastructure and broadband access, despite expectations of limited growth in the global radio access network market [12] - The data center market continues to expand, with demand for high-performance connectivity ICs supporting 800G and 1.6T deployments [13] Company Strategy and Development Direction - The company focuses on technology differentiation across all product lines, aiming to enable high power, high frequency, and high data rate applications [9] - The strategy includes strengthening RF microwave and optical systems engineering capabilities to engage customers early in system architecture discussions [9] - The company aims to be the premier designer and manufacturer of high-frequency and high-power GaN IC semiconductors in Europe, leveraging its European Semiconductor Center [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and cash generation capabilities, expecting continued revenue and profitability growth [35] - The company anticipates a slight decline in telecom revenues sequentially but expects overall growth in the telecom business year-over-year [37] - Management highlighted the importance of the RTP fab transfer, which is expected to enhance production capacity and yield improvements over the next few quarters [45] Other Important Information - The company has executed a plan to increase fab output capacity by up to 30% with the purchase of discounted fab equipment [24] - Susan Ocampo will retire from the Board of Directors effective August 31, 2025, after 15 years of service [38][39] Q&A Session Summary Question: RTP fab conveyance and margin headwind - Management discussed the transition of the RTP fab and the expected timeline for improvements to turn the margin headwind into a tailwind, estimating 25 to 50 basis points of improvement over the next few quarters [45][46] Question: LPO adoption and customer engagement - Management provided insights into the LPO ecosystem and the increasing customer engagement, indicating a positive outlook for broader adoption in fiscal 2026 [52][54] Question: Industrial and Defense trends - Management clarified that most growth in the IND category is driven by defense, with a book-to-bill ratio above one for several quarters [58] Question: Telecom business outlook - Management noted that while there is a modest sequential decline in telecom, the overall year-over-year growth is expected to be strong, particularly in SATCOM and 5G [65][84] Question: Data center growth drivers - Management highlighted broad strength across all data rates in the data center segment, with significant year-over-year growth anticipated [68][70]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $252.1 million, representing a sequential increase of 6.9% [23] - Adjusted gross profit was $145.2 million, or 57.6% of revenue, slightly ahead of prior quarters [24] - Adjusted net income increased approximately 6.1% to $68.2 million compared to $64.3 million in Q2 2025 [27] - Adjusted earnings per diluted share was $0.90, up from $0.85 in Q2 2025 [27] - Cash flow from operations was approximately $60.4 million, up $21.6 million sequentially [28] Business Line Data and Key Metrics Changes - Industrial and Defense (IND) revenue was $108.2 million, up 10% sequentially; Data Center revenue was $75.8 million, up 5% sequentially; Telecom revenue was $68.1 million, up 4% sequentially [5] - The Q3 book-to-bill ratio was just over 1.1, indicating strong demand and a record backlog [6] - The data center business is expected to see significant growth across almost all data rates and platforms, with a record 200G per lane product revenue anticipated in Q4 [12] Market Data and Key Metrics Changes - The IND market remains strong, particularly in the US and European markets, with opportunities in military space electronics and electronic warfare [8] - Telecom orders are solid, especially in 5G infrastructure and broadband access, despite expectations of limited growth in the global radio access network market [10] - The data center market continues to grow, driven by high-performance connectivity ICs supporting 800G and 1.6T deployments [11] Company Strategy and Development Direction - The company focuses on technology differentiation across all product lines, aiming to enable high power, high frequency, and high data rate applications [7] - The strategy includes strengthening RF microwave and optical systems engineering capabilities to engage customers early in system architecture discussions [7] - The company aims to be the premier designer and manufacturer of high-frequency and high-power GaN IC semiconductors in Europe, leveraging its European Semiconductor Center [21] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to improve yields and operational metrics at the RTP fab, which came under full control ahead of schedule [20] - The company anticipates revenue and profitability growth in Q4 2025, with adjusted gross margin expected to be between 56% and 58% [33] - Management noted that while telecom revenues may slightly decline sequentially, the overall telecom business is expected to grow over 40% year-over-year [59] Other Important Information - The company has executed a plan to increase fab output capacity by up to 30% with the purchase of discounted fab equipment [21] - Susan Ocampo will retire from the Board of Directors effective August 31, 2025, after 15 years of service [34][35] Q&A Session Summary Question: RTP fab conveyance and margin headwind - Management discussed the transition of the RTP fab and the expected timeline for improvements to turn the margin headwind into a tailwind, estimating a 25 to 50 basis points improvement over the next few quarters [41][42] Question: LPO adoption pipeline - Management highlighted the growing interest in LPO solutions, with one customer already in production and expectations for more business in 2026 [50] Question: Industrial and Defense trends - The growth in the IND category is primarily driven by defense, with a book-to-bill ratio over one for several quarters [53] Question: Telecom business outlook - Management noted that while there may be slight sequential declines, the telecom business is expected to grow over 40% year-over-year [59] Question: Data center growth drivers - The data center segment is experiencing broad strength across all data rates, with significant year-over-year growth anticipated [62]

[MACOM Fiscal Third Quarter 2025 Financial Results](index=1&type=section&id=MACOM%20Fiscal%20Third%20Quarter%202025%20Financial%20Results) MACOM's fiscal third quarter 2025 results present strong financial performance, a positive management outlook, and detailed financial statements [Financial Highlights](index=1&type=section&id=Financial%20Highlights) MACOM reported strong financial results for the third fiscal quarter of 2025, with significant year-over-year and sequential growth in revenue, and substantial increases in both GAAP and non-GAAP net income and earnings per share Q3 Fiscal 2025 GAAP Financial Highlights | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | Q2 FY2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $252.1M | $190.5M | +32.3% | $235.9M | +6.9% | | Gross Margin | 55.3% | 53.2% | +210 bps | 55.2% | +10 bps | | Income from Operations | $37.7M | $19.7M | +91.4% | $34.9M | +8.0% | | Net Income | $36.5M | $19.9M | +83.4% | $31.7M | +15.1% | | Diluted EPS | $0.48 | $0.27 | +77.8% | $0.42 | +14.3% | Q3 Fiscal 2025 Adjusted Non-GAAP Financial Highlights | Metric | Q3 FY2025 | Q3 FY2024 | YoY Change | Q2 FY2025 | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted Gross Margin | 57.6% | 57.5% | +10 bps | 57.5% | +10 bps | | Adjusted Income from Operations | $63.5M | $45.6M | +39.3% | $59.8M | +6.2% | | Adjusted Net Income | $68.2M | $48.9M | +39.5% | $64.3M | +6.1% | | Adjusted Diluted EPS | $0.90 | $0.66 | +36.4% | $0.85 | +5.9% | [Management Commentary and Business Outlook](index=1&type=section&id=Management%20Commentary%20and%20Business%20Outlook) Management expressed confidence in the company's performance, attributing strong results to a competitive product portfolio and growing market momentum, while issuing a positive outlook for Q4 FY2025 - President and CEO Stephen G. Daly stated that the quarterly results demonstrate the growing competitiveness of MACOM's diverse product portfolio and increasing market momentum[4](index=4&type=chunk) Q4 Fiscal 2025 Business Outlook | Metric | Expected Range | | :--- | :--- | | Revenue | $256M - $264M | | Adjusted Gross Margin | 56.0% - 58.0% | | Adjusted Earnings per Diluted Share | $0.91 - $0.95 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents MACOM's unaudited consolidated financial statements, detailing the company's financial position, operational performance, and cash flow activities [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter ended July 4, 2025, MACOM generated $252.1 million in revenue, a 32.3% increase year-over-year, with net income reaching $36.5 million or $0.48 per diluted share Income Statement Summary | Line Item | Three Months Ended July 4, 2025 ($ thousands) | Three Months Ended June 28, 2024 ($ thousands) | | :--- | :--- | :--- | | Revenue | $252,079 | $190,486 | | Gross Profit | $139,436 | $101,409 | | Income from Operations | $37,660 | $19,716 | | Net Income | $36,534 | $19,939 | | Diluted EPS | $0.48 | $0.27 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 4, 2025, MACOM's total assets increased to $2.00 billion, driven by growth in current assets including cash, cash equivalents, and short-term investments, while total liabilities also rose Balance Sheet Summary | Line Item | July 4, 2025 ($ thousands) | September 27, 2024 ($ thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $125,466 | $146,806 | | Short-term investments | $609,760 | $435,082 | | Total current assets | $1,127,355 | $903,078 | | Total assets | $2,003,272 | $1,755,640 | | **Liabilities & Equity** | | | | Total current liabilities | $294,647 | $108,184 | | Total liabilities | $739,921 | $629,297 | | Total stockholders' equity | $1,263,351 | $1,126,343 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended July 4, 2025, net cash provided by operating activities significantly improved to $165.7 million, while the company used $246.1 million in investing activities and generated $58.8 million from financing activities Cash Flow Summary (Nine Months Ended) | Line Item | July 4, 2025 ($ thousands) | June 28, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $165,732 | $100,311 | | Net cash used in investing activities | ($246,131) | ($148,615) | | Net cash provided by (used in) financing activities | $58,796 | ($8,434) | | Net change in cash and cash equivalents | ($21,340) | ($56,648) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=2&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section explains MACOM's use of non-GAAP financial measures and provides a detailed reconciliation to comparable GAAP figures, showing an adjusted non-GAAP net income of $68.2 million for Q3 2025 - Management uses non-GAAP financial measures to evaluate ongoing operating performance by excluding items such as intangible amortization, share-based compensation, acquisition-related costs, and non-cash interest[10](index=10&type=chunk)[11](index=11&type=chunk) Q3 FY2025 GAAP to Non-GAAP Net Income Reconciliation | Description | Amount ($ thousands) | | :--- | :--- | | **Net income - GAAP** | **$36,534** | | Amortization expense | $4,967 | | Share-based compensation expense | $19,568 | | Non-cash interest, net | $381 | | Acquisition and integration related costs | $1,321 | | Tax effect of non-GAAP adjustments | $5,436 | | **Adjusted net income (Non-GAAP)** | **$68,207** | [About MACOM & Forward-Looking Statements](index=2&type=section&id=About%20MACOM%20%26%20Forward-Looking%20Statements) MACOM manufactures high-performance semiconductor products for Industrial and Defense, Data Center, and Telecommunications sectors, with this report containing forward-looking statements subject to inherent risks and uncertainties - MACOM designs and manufactures semiconductor products for the Industrial and Defense, Data Center, and Telecommunications industries, serving over **6,000 customers** annually[7](index=7&type=chunk) - The press release contains forward-looking statements about strategic plans, growth, and financial outlook, which are subject to risks and uncertainties that could cause actual results to differ materially[8](index=8&type=chunk)[9](index=9&type=chunk)

Core Viewpoint - MACOM Technology Solutions Holdings, Inc. reported strong financial results for its fiscal third quarter ended July 4, 2025, showcasing significant revenue growth and improved profitability metrics, indicating a competitive position in the semiconductor market [1][3]. Financial Results - Revenue for the third quarter was $252.1 million, representing a 32.3% increase year-over-year from $190.5 million and a 6.9% increase from the previous quarter's $235.9 million [8]. - Gross margin was reported at 55.3%, up from 53.2% in the same quarter last year and slightly improved from 55.2% in the prior quarter [8]. - Income from operations was $37.7 million, or 14.9% of revenue, compared to $19.7 million (10.4% of revenue) in the previous year and $34.9 million (14.8% of revenue) in the prior quarter [8]. - Net income was $36.5 million, translating to $0.48 per diluted share, compared to $19.9 million ($0.27 per diluted share) in the previous year and $31.7 million ($0.42 per diluted share) in the prior quarter [8]. Adjusted Financial Metrics - Adjusted gross margin was 57.6%, consistent with 57.5% in the previous year and prior quarter [8]. - Adjusted income from operations was $63.5 million, or 25.2% of revenue, compared to $45.6 million (24.0% of revenue) in the previous year and $59.8 million (25.4% of revenue) in the prior quarter [8]. - Adjusted net income was $68.2 million, or $0.90 per diluted share, compared to $48.9 million ($0.66 per diluted share) in the previous year and $64.3 million ($0.85 per diluted share) in the prior quarter [8]. Business Outlook - For the fiscal fourth quarter ending October 3, 2025, MACOM expects revenue to be in the range of $256 million to $264 million, with an adjusted gross margin between 56.0% and 58.0% [3]. - Adjusted earnings per diluted share are anticipated to be between $0.91 and $0.95, based on a non-GAAP income tax rate of 3% and 76.5 million fully diluted shares outstanding [3]. Company Overview - MACOM designs and manufactures high-performance semiconductor products for various industries, including Industrial and Defense, Data Center, and Telecommunications, serving over 6,000 customers annually [5]. - The company has achieved multiple certifications, including IATF16949 for automotive, AS9100D for aerospace, ISO9001 for quality, and ISO14001 for environmental management [5].