Core Viewpoint - M/A-Com (MTSI) reported quarterly earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing an increase from $0.73 per share a year ago, indicating a positive earnings surprise of +1.08% [1][2] Financial Performance - The company achieved revenues of $261.17 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.40% and up from $200.71 million year-over-year [2] - Over the last four quarters, M/A-Com has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance - M/A-Com shares have increased approximately 15.2% since the beginning of the year, slightly underperforming the S&P 500's gain of 15.6% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.95 for the upcoming quarter and $4.03 for the current fiscal year [7] - The Zacks Rank for M/A-Com is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Semiconductor - Analog and Mixed industry, to which M/A-Com belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - Revenue for Q4 FY2025 was $261.2 million, with adjusted EPS at $0.94 per diluted share. For the full year, FY2025 revenue reached $967 million, representing a more than 32% increase year over year, and EPS was $3.47, up more than 35% year over year [5][23][24] - Free cash flow generated was $193 million, with cash and short-term investments totaling approximately $786 million at year-end [5][31] - The adjusted operating margin for FY2025 grew by 140 basis points to 25.4%, and cash flow from operations increased by 45% to $235.4 million [23][24] Business Line Data and Key Metrics Changes - Q4 revenue performance by end market included industrial and defense at $115.6 million, telecom at $66 million, and data center at $79.6 million. Industrial and defense revenues were up approximately 7% sequentially, while data center revenues increased by about 5% sequentially [6][24] - The company launched over 200 new products in FY2025, which contributed to revenue growth and improved gross margins [7][8] Market Data and Key Metrics Changes - U.S. domestic customers represented approximately 43% of Q4 FY2025 revenue, with full fiscal year 2025 U.S.-based revenue at around 44% [24] - The defense market saw over 50% year-over-year revenue growth, driven by high-power GaN components [11][12] Company Strategy and Development Direction - The company aims to achieve $1 billion in annual revenues, with a focus on technology and product differentiation, particularly in high-frequency and high-power IC products [7][8] - Plans to open two additional IC design centers in Southern California and Central Europe to enhance R&D capabilities and support growth opportunities [8][9] - The strategic agreement with HRL to license the 40-nanometer GaN on silicon carbide process is expected to enhance the company's capabilities in high-frequency applications [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth in FY2026, with expectations of sequential growth across all end markets, particularly in data centers [34][35] - The company anticipates continued strength in the defense business and a rebound in telecom, with a strong backlog and positive booking trends [52][64] Other Important Information - The company expects adjusted gross margin improvements of 25 to 50 basis points as production volumes increase and operational efficiencies are realized [25][72] - Capital expenditures for FY2026 are estimated to be between $50 million and $55 million, aimed at upgrading production equipment and expanding capacity [31] Q&A Session Summary Question: Insights on telecom business outlook - Management highlighted 5G growth and satellite communications as key drivers for the telecom business in FY2026, with expectations of continued growth in metro long-haul segments [38] Question: Demand trends between 100G and 200G solutions - The company noted stable growth in the 100G business, with significant growth expected in the 200G segment, particularly for 1.6T applications [42][43] Question: Update on HRL IP license agreement - The HRL technology is expected to enhance capabilities in high-frequency SATCOM bands, transitioning from PHEMT GaAs technology to GaN technology, which offers higher power density and efficiency [46][47] Question: Drivers of growth in FY2026 - Growth is primarily driven by the rollout of 1.6T and 800G platforms, along with a rebound in telecom and strength in the defense sector [52] Question: Size of the LEO satellite market - The LEO business is expected to grow significantly over the next 12-18 months, potentially reaching hundreds of millions of dollars, with the company supporting various levels of the supply chain [54] Question: Competitive landscape post-merger of competitors - Management does not anticipate a direct impact from the merger, as the companies involved are not customers or suppliers, but sees potential opportunities arising from restructuring [81]

Financial Data and Key Metrics Changes - Revenue for Q4 FY2025 was $261.2 million, with adjusted EPS at $0.94 per diluted share. For the full year, FY2025 revenue reached $967 million, representing over a 32% increase year over year, and EPS was $3.47, up more than 35% year over year [5][23] - Free cash flow generated was $193 million, with cash and short-term investments totaling approximately $786 million at year-end [5][31] - Q4 adjusted operating income was $67 million, a 5.5% sequential increase and a 32.1% year-over-year increase [27] Business Line Data and Key Metrics Changes - Q4 revenue by end market included industrial and defense at $115.6 million, telecom at $66 million, and data center at $79.6 million. Industrial and defense revenue was up approximately 7% sequentially, while data center revenue increased by about 5% sequentially [6][24] - The company launched over 200 new products in FY2025, which contributed to revenue growth and improved gross margins [7][8] Market Data and Key Metrics Changes - U.S. domestic customers represented approximately 43% of Q4 FY2025 revenue, with full-year U.S.-based revenue at around 44% [24] - The defense market saw over 50% year-over-year revenue growth, driven by high-power GaN components [11] Company Strategy and Development Direction - The company aims to achieve $1 billion in annual revenues, with a focus on technology and product differentiation, particularly in high-frequency and high-power IC products [7][8] - Plans to open two additional IC design centers in Southern California and Central Europe to enhance R&D capabilities [8] - The strategic agreement with HRL to license the 40-nanometer GaN on silicon carbide process is expected to enhance MACOM's capabilities in high-frequency applications [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth in FY2026, driven by strong demand in data centers, telecom, and defense markets [34][35] - The company anticipates sequential revenue growth across all end markets, with data center leading at approximately 5% growth [34] - Management highlighted a strong backlog and positive booking trends as indicators of future performance [52][66] Other Important Information - The company expects adjusted gross margin improvements of 25-50 basis points as production volumes increase [25] - Capital expenditures for FY2026 are estimated to be between $50 million and $55 million, aimed at upgrading production equipment and expanding capacity [31] Q&A Session Summary Question: Insights on telecom business outlook - Management identified 5G growth and satellite communications as key drivers for the telecom business in FY2026 [38] Question: Demand trends between 100G and 200G solutions - The company expects continued growth in the 100G segment, with significant growth anticipated in the 200G segment, particularly for 1.6T applications [43] Question: Update on HRL IP license agreement - The HRL technology is expected to enhance capabilities in high-frequency SATCOM bands, transitioning from PHEMT GaAs technology to GaN technology [47] Question: Drivers of growth in guidance - Growth is primarily driven by the rollout of 1.6T and 800G platforms, along with a rebound in telecom and strength in defense [52] Question: Size of the LEO satellite market - The LEO business is expected to grow significantly over the next 12-18 months, potentially reaching hundreds of millions in size [54] Question: Backlog and order visibility - The backlog is healthy, particularly in the data center segment, but specific breakdowns by product line are not provided [58] Question: RF business yield enhancements - Management expects gross margin improvements from yield enhancements and operational performance across all fabs [60]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $261.2 million, with adjusted EPS at $0.94 per diluted share. For the full year, FY25 revenue reached $967 million, representing a more than 32% increase year over year, and EPS was $3.47, up more than 35% year over year [4][24][29] - Free cash flow generated was $193 million, with cash and short-term investments totaling approximately $786 million at year-end [4][32] - The adjusted operating margin for FY25 grew by 140 basis points to 25.4%, and cash flow from operations increased by 45% to $235.4 million [24][32] Business Line Data and Key Metrics Changes - Q4 revenue performance by end market included industrial and defense at $115.6 million, telecom at $66 million, and data center at $79.6 million. Industrial and defense revenues were up approximately 7% sequentially, and data center revenues were up approximately 5% sequentially [5][25] - The company launched over 200 new products in FY25, which contributed to revenue growth and improved gross margins [6][7] Market Data and Key Metrics Changes - U.S. domestic customers represented approximately 43% of Q4 revenue, with full fiscal year 2025 U.S.-based revenue at approximately 44% [25] - The defense market saw over 50% year-over-year revenue growth, driven by high-power GaN components [11][12] Company Strategy and Development Direction - The company aims to achieve $1 billion in annual revenues, with a focus on technology and product differentiation, particularly in high-frequency and high-power IC products [6][7] - Plans to open two additional IC design centers to enhance R&D capabilities and expand market share [8] - The strategic agreement with HRL to license the T3L process is expected to enhance MACOM's capabilities in high-frequency applications and capture significant market share [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth in FY2026, driven by data center demand and improvements in telecom and defense sectors [34][41] - The company anticipates continued growth in the LEO satellite market, with potential revenues in the hundreds of millions of dollars [42][43] - Management highlighted strong October bookings as a positive indicator for the start of FY2026 [41] Other Important Information - The company expects Q1 FY2026 revenue to be in the range of $265-$273 million, with adjusted gross margin anticipated between $56.5-$58.5 million [33][34] - Capital expenditures for FY2026 are estimated to be $50-$55 million, focusing on upgrading production equipment and expanding capacity [32] Q&A Session Summary Question: Insights on telecom business outlook - Management identified 5G growth and satellite communications as key drivers for the telecom business in FY2026 [36] Question: Demand trends between 100G and 200G solutions - The 100G business is stable, while significant growth is expected in the 200G segment, particularly for 1.6T applications [37] Question: Update on HRL IP license agreement - The HRL technology complements existing processes and is expected to enhance capabilities in high-frequency SATCOM applications [39] Question: Factors driving growth in FY2026 - Growth is primarily driven by the rollout of 1.6T and 800G platforms, along with a recovery in telecom and strength in defense [41] Question: Size of the LEO satellite market - The LEO business is expected to grow significantly over the next 12-18 months, potentially reaching hundreds of millions in revenue [42][43] Question: Competitive landscape post-merger of competitors - Management does not anticipate significant changes in the competitive landscape due to the merger, as it does not directly impact MACOM [57]

Revenue Performance - Revenue for the fiscal fourth quarter of 2025 was $261.2 million, a 30.1% increase from $200.7 million in the same quarter of the previous year[6] - For fiscal year 2025, total revenue reached $967.3 million, a 32.6% increase from $729.6 million in fiscal year 2024[6] - Revenue for the three months ended October 3, 2025, was $261,170 million, a 3% increase from $252,079 million for the same period in 2024[29] - The company expects revenue for the fiscal first quarter of 2026 to be between $265 million and $273 million[8] Profitability Metrics - Net income for the fourth quarter was $45.1 million, or $0.59 per diluted share, compared to $29.4 million, or $0.39 per diluted share, in the previous year[6] - Adjusted net income for fiscal year 2025 was $263.4 million, or $3.47 per diluted share, compared to $188.2 million, or $2.56 per diluted share, in fiscal year 2024[6] - Net income for the three months ended October 3, 2025, was $45,120 million, compared to $36,534 million for the same period in 2024, representing a 23% increase[29] - Adjusted net income (Non-GAAP) for the twelve months ended October 3, 2025, was $263,372 million, representing 27.2% of revenue, up from $188,217 million (25.8%) year-over-year[35] Gross Margin and Profit - Gross margin for the fourth quarter was 54.5%, slightly down from 54.7% in the previous year[6] - Gross profit for the twelve months ended October 3, 2025, reached $529,002 million, compared to $393,773 million for the previous year, reflecting a 34% increase[29] - Gross profit for the three months ended October 3, 2025, was $142,301 million, representing 54.5% of revenue, compared to $139,436 million (55.3%) for the previous quarter[35] - Adjusted gross profit (Non-GAAP) for the twelve months ended October 3, 2025, was $555,289 million, accounting for 57.4% of revenue, up from $422,636 million (57.9%) year-over-year[35] Operating Expenses - Research and development expenses for the three months ended October 3, 2025, were $62,880 million, slightly down from $63,380 million in the prior quarter[29] - Operating expenses (GAAP) for the three months ended October 3, 2025, were $102,706 million, or 39.3% of revenue, compared to $101,776 million (40.4%) in the previous quarter[35] - Adjusted operating expenses (Non-GAAP) for the twelve months ended October 3, 2025, were $309,557 million, representing 32.0% of revenue, down from $247,603 million (33.9%) year-over-year[35] Strategic Initiatives - MACOM has made strategic acquisitions, including ENGIN-IC, Inc. and Linearizer Communications Group, to enhance its product offerings[11] - The company operates facilities across the United States, Europe, and Asia, servicing over 6,000 customers annually[10] - Management expressed confidence in starting fiscal 2026, building on the strong foundation established in fiscal year 2025[7] Balance Sheet and Cash Flow - Total current assets increased to $1,205,088 million as of October 3, 2025, from $903,078 million a year earlier, marking a 33% growth[31] - Cash and cash equivalents decreased to $112,142 million from $146,806 million year-over-year[31] - Net cash provided by operating activities for the twelve months ended October 3, 2025, was $235,368 million, up from $162,640 million in the previous year[33] - Total liabilities increased to $776,265 million as of October 3, 2025, compared to $629,297 million a year prior, indicating a 23% rise[31] - The company reported a loss on extinguishment of debt amounting to $193,098 million for the twelve months ended October 3, 2025[33] Shareholder Metrics - The weighted average diluted shares outstanding increased to 76,252 million for the three months ended October 3, 2025, from 75,864 million in the prior quarter[29] - Interest income (GAAP) for the three months ended October 3, 2025, was $8,016 million, or 3.1% of revenue, compared to $7,598 million (3.0%) in the previous quarter[36] - Adjusted interest income (Non-GAAP) for the twelve months ended October 3, 2025, was $25,786 million, accounting for 2.7% of revenue, compared to $18,996 million (2.6%) year-over-year[36]

Core Insights - MACOM Technology Solutions Holdings, Inc. reported strong financial results for the fiscal fourth quarter and fiscal year ended October 3, 2025, with significant revenue growth and improved operational metrics [1][6]. Financial Performance - **Fourth Quarter Fiscal Year 2025 GAAP Results**: Revenue reached $261.2 million, a 30.1% increase from $200.7 million in the same quarter last year. Net income was $45.1 million, or $0.59 per diluted share, compared to $29.4 million, or $0.39 per diluted share, in the previous year [7][8]. - **Fourth Quarter Fiscal Year 2025 Adjusted Non-GAAP Results**: Adjusted net income was $71.4 million, or $0.94 per diluted share, up from $54.2 million, or $0.73 per diluted share, in the prior year [7][8]. - **Fiscal Year 2025 GAAP Results**: Total revenue for the year was $967.3 million, a 32.6% increase from $729.6 million in fiscal year 2024. However, the company reported a net loss of $54.2 million, or $0.73 loss per diluted share, primarily due to a one-time charge of $193.1 million related to debt refinancing [7][8]. - **Fiscal Year 2025 Adjusted Non-GAAP Results**: Adjusted net income for the year was $263.4 million, or $3.47 per diluted share, compared to $188.2 million, or $2.56 per diluted share, in fiscal year 2024 [7][8]. Business Outlook - For the fiscal first quarter ending January 2, 2026, MACOM expects revenue to be between $265 million and $273 million, with an adjusted gross margin anticipated between 56.5% and 58.5% [7][8]. Management Commentary - The CEO, Stephen G. Daly, expressed optimism about the company's strong foundation and future growth as they enter fiscal 2026 [6]. Company Overview - MACOM designs and manufactures high-performance semiconductor products for various industries, including Industrial and Defense, Data Center, and Telecommunications. The company serves over 6,000 customers annually and has a broad product portfolio [10].

The upcoming report from M/A-Com (MTSI) is expected to reveal quarterly earnings of $0.93 per share, indicating an increase of 27.4% compared to the year-ago period. Analysts forecast revenues of $260.13 million, representing an increase of 29.6% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a company's earnin ...

LOWELL, Mass., Nov. 04, 2025 (GLOBE NEWSWIRE) -- MACOM Technology Solutions Inc. (“MACOM”), a leading supplier of semiconductor products, today announced that it has entered into an agreement with HRL Laboratories (“HRL”) to license and manufacture HRL’s proprietary 40nm T3L GaN-on-silicon carbide (“GaN-on-SiC”) process technology. HRL and MACOM will work collaboratively on a rapid process transfer of this proprietary semiconductor process from HRL’s facility to one of MACOM’s U.S. Trusted Foundries. Under ...

Core Insights - The third-quarter 2025 investor letter from Aristotle Capital Boston, LLC indicates that U.S. small/mid-cap equities performed well, with the strategy returning 2.57% net of fees, underperforming the Russell 2500 Index's 9.00% total return [1] Company Summary: MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) - MACOM Technology Solutions Holdings, Inc. specializes in analog semiconductor solutions for both wireless and wireline applications, achieving a one-month return of 12.47% and a 52-week gain of 30.17% [2] - As of October 31, 2025, MACOM's stock closed at $148.13 per share, with a market capitalization of $11.031 billion [2] - Despite strong Q3 earnings, MACOM's stock declined due to a slight margin impact from a recent acquisition and a slower-than-expected recovery in the industrial market, which are viewed as short-term deviations from analyst forecasts [3] - The company maintains a positive outlook, citing significant demand from Data Center and 5G applications, along with the integration of recent acquisitions and a domestic manufacturing footprint as drivers for future shareholder value [3] Investment Sentiment - MACOM Technology Solutions Holdings, Inc. was held by 34 hedge fund portfolios at the end of Q2 2025, a decrease from 36 in the previous quarter, indicating a slight decline in popularity among hedge funds [4] - While MACOM is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk, suggesting a competitive investment landscape [4]

Core Insights - MACOM Technology Solutions Holdings, Inc. plans to announce its financial results for the fourth quarter and fiscal year 2025 on November 6, 2025, before market open [1] - A conference call will be held at 8:30 a.m. Eastern Time on the same day, hosted by the President and CEO, Stephen G. Daly, and the Senior Vice President and CFO, John F. Kober [1] Company Overview - MACOM designs and manufactures high-performance semiconductor products for various industries, including Telecommunications, Industrial, Defense, and Datacenter [3] - The company services over 6,000 customers annually and has a broad product portfolio that includes RF, Microwave, Analog, Mixed Signal, and Optical semiconductor technologies [3] - MACOM has achieved multiple certifications, including IATF16949 for automotive, AS9100D for aerospace, ISO9001 for international quality, and ISO14001 for environmental management [3] - The company operates facilities across the United States, Europe, and Asia, with its headquarters located in Lowell, Massachusetts [3]