Lattice Semiconductor(US:LSCC)2025-11-03 21:06Financial Performance - Revenue for Q3 2025 was $133.3 million, representing a 7.6% increase quarter-over-quarter and a 4.9% increase year-over-year[5] - Non-GAAP net income for Q3 2025 was $38.2 million, with diluted earnings per share of $0.28, reflecting a 17.1% increase quarter-over-quarter[7] - The company expects Q4 2025 revenue to be between $138 million and $148 million, indicating a year-over-year growth of approximately 22%[14] - Revenue for the three months ended September 27, 2025, was $133.349 million, an increase from $123.971 million in the previous quarter, representing a growth of 11.0%[22] - Net income for the three months ended September 27, 2025, was $2.794 million, slightly down from $2.913 million in the previous quarter[22] - GAAP net income for the three months ended September 27, 2025, was $2.794 million, compared to $2.913 million in the previous quarter and $7.190 million in the same quarter last year[36] - Non-GAAP net income for the same period was $38.157 million, up from $32.597 million in the previous quarter and $32.544 million year-over-year[36] Margins and Expenses - Non-GAAP gross margin for Q4 2025 is projected to be 69.5% plus or minus 1%[14] - The adjusted EBITDA margin for Q3 2025 was 35.6%, showing a 150 basis points improvement year-over-year[7] - Gross margin for the same period was $90.527 million, yielding a gross margin percentage of 67.9%, compared to 68.4% in the previous quarter[30] - Research and development expenses increased to $49.633 million, accounting for 37.2% of revenue, up from 35.1% in the previous quarter[30] - Non-GAAP total operating expenses for Q4 2025 are expected to be between $54 million and $55 million[14] - Non-GAAP income from operations margin increased to 29.0% in Q3 2025, compared to 27.5% in Q2 2025 and 26.6% in Q3 2024[33] Cash Flow and Stock Repurchase - Operating cash flow for Q3 2025 was $47.0 million, with a margin of 35.3%[5] - Cash flows from operating activities for the nine months ended September 27, 2025, were $117.523 million, compared to $95.455 million for the same period in 2024, reflecting a 23.1% increase[26] - The company repurchased common stock valued at $85 million during the first nine months of 2025, demonstrating disciplined capital allocation[9] - The company repurchased $85.855 million of common stock during the nine months ended September 27, 2025[26] - Free cash flow for the quarter was $34.026 million, with a free cash flow margin of 25.5%, compared to $31.301 million and 25.2% in the previous quarter[36] - GAAP net cash provided by operating activities was $47.100 million, representing an operating cash flow margin of 35.3%[36] Market and Product Developments - Lattice launched the industry's first PQC-Ready FPGA, the MachXO5™-NX TDQ family, enhancing security against quantum-enabled cyberattacks[9] - The Industrial and Automotive markets are recovering, with inventory levels expected to normalize by the end of 2025[6] Accounts Receivable and Tax - Accounts receivable days outstanding (DSO) increased to 65 days from 63 days in the previous quarter[28] - The company reported a GAAP income tax expense of $(3.748) million for the quarter, compared to $2.169 million in the previous quarter[36] - Stock-based compensation for the quarter amounted to $35.978 million, compared to $24.141 million in the previous quarter and $16.710 million in the same quarter last year[36] - Legal expenses incurred during the quarter were $6,000, down from $568,000 in the previous quarter[36]