MACOM(MTSI) - 2025 Q3 - Quarterly Results

MACOM Fiscal Third Quarter 2025 Financial Results MACOM's fiscal third quarter 2025 results present strong financial performance, a positive management outlook, and detailed financial statements Financial Highlights 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 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] 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 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 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 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 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 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 $68.2 million for Q3 2025 - Management uses non-GAAP financial measures to evaluate ongoing operating performance by excluding items such as intangible amortization, share-based compensation, acquisition-related costs, and non-cash interest[10][11] Q3 FY2025 GAAP to Non-GAAP Net Income Reconciliation | Description | Amount ($ 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 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] - 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][9]