Allegro MicroSystems(ALGM) - 2026 Q2 - Quarterly Results

Financial Performance - Total net sales for the second quarter of fiscal year 2026 were $214 million, representing a 14% increase year-over-year[1][2] - Automotive sales reached $155.8 million, up 12% from the previous quarter and 12% year-over-year, while Industrial and Other sales were $58.4 million, a 22% increase year-over-year[2][16] - The company expects total net sales for the third quarter to be between $215 million and $225 million, implying a growth of 24% year-over-year at the midpoint[3] - Total net sales for the three-month period ended September 26, 2025, reached $214.294 million, a 14% increase from $187.391 million in the same period last year[17] - For the six-month period ended September 26, 2025, total net sales were $417.699 million, an 18% increase compared to $354.310 million in the prior year[17] Profitability - Non-GAAP EPS for the second quarter was $0.13, an increase of over 60% year-over-year[2] - Operating income for the second quarter was $6.2 million, compared to an operating loss of $6.6 million in the same period last year[16] - The company reported a net income of $6.5 million for the second quarter, a significant recovery from a net loss of $33.7 million in the prior year[16] - The company reported a net income of $6.583 million for the three-month period ended September 26, 2025, compared to a net loss of $33.613 million in the same period last year[21] - GAAP Net Income for the three-month period was $6,583,000, compared to a loss of $13,162,000 in the previous quarter[29] Expenses - Research and development expenses for the second quarter were $50.9 million, up from $43.5 million year-over-year[16] - GAAP Operating Expenses for the three-month period were $93,049,000, compared to $94,042,000 in the previous quarter, showing a slight decrease of 1.1%[27] - Non-GAAP Operating Expenses decreased to $76,456,000 from $75,312,000, indicating a 1.5% reduction[27] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $126.814 million, down from $199.038 million at the end of the previous year[21] - Total assets decreased to $1.384 billion as of September 26, 2025, from $1.421 billion as of March 28, 2025[19] - Total liabilities decreased to $438.499 million from $489.861 million during the same period[19] Non-GAAP Measures - Non-GAAP financial measures are regularly reviewed to evaluate business performance, including non-GAAP Gross Profit and non-GAAP Operating Income[22] - The company plans to continue using non-GAAP measures to provide supplemental information regarding operating performance, excluding certain non-cash or infrequent items[23] - Non-GAAP Gross Profit for the same period was $106,194,000, up from $97,984,000, reflecting an 8.3% increase[26] - Non-GAAP Operating Income for the three-month period was $29,738,000, up from $22,672,000, marking a 31.5% increase[28] - Non-GAAP Net Income attributable to Allegro MicroSystems for the three-month period ended September 26, 2025, was $23,753,000, an increase from $15,959,000 in the previous quarter[32] Margins - Gross margin for the third quarter is projected to be between 49% and 51%[4] - Non-GAAP Gross Margin for the three-month period was 49.6%, up from 48.2% in the previous quarter[26] - Non-GAAP Operating Margin for the three-month period was 13.9%, compared to 11.1% in the previous quarter, indicating a significant improvement[28] Taxation - The GAAP effective tax rate for the three-month period ended September 26, 2025, was 342.5%[31] - Non-GAAP effective tax rate for the three-month period ended September 26, 2025, was 5.7%[31] Other Financial Metrics - Adjusted EBITDA for the three-month period was $40,823,000, compared to $33,368,000 in the previous quarter, representing a 22.3% growth[29] - Non-GAAP Profit before Tax for the three-month period was $25,252,000, an increase from $17,710,000, reflecting a 42.5% rise[30] - The company incurred transaction-related costs of $1,000 for the three-month period ended September 26, 2025[32] - The company reported a loss on change in fair value of forward repurchase contract of $34,752,000 for the three-month period ended September 27, 2024[32]