Lattice Semiconductor(LSCC) - 2025 Q4 - Annual Results

Financial Performance - Revenue for the full year 2025 was $523.3 million, with a GAAP gross margin of 68.2% and a non-GAAP net income per diluted share of $1.05[5] - Fourth quarter revenue was $145.8 million, representing a 24.2% year-over-year increase, with a GAAP net loss of $(7.6) million[6] - Server revenues increased approximately 85% year-over-year, driven by strong data center growth[7] - New product revenue grew approximately 70% compared to 2024, with a record total number of design wins[9] - Revenue guidance for the first quarter of 2026 is expected to be between $158 million and $172 million[14] - Revenue for the three months ended January 3, 2026, was $145.8 million, a 9.8% increase from $133.3 million for the same period in 2025[22] - The company reported a GAAP net income for the three months ended January 3, 2026, was a loss of $7.645 million, compared to a profit of $2.794 million for the same period in 2025[37] - Non-GAAP net income for the three months ended January 3, 2026, was $43.725 million, up from $38.157 million in the previous year, representing a 4.1% increase[37] Margins and Expenses - Adjusted EBITDA margin for the full year 2025 was 35.0%, an increase of 320 basis points from the previous year[8] - Non-GAAP gross margin for Q1 2026 is expected to be 69.5% plus or minus 1%[14] - Gross margin for the three months ended January 3, 2026, was $99.9 million, resulting in a gross margin percentage of 68.5%, compared to 67.8% in the previous year[22] - GAAP Gross Margin for Q1 2026 was $99,937, representing a 10.5% increase from $90,527 in Q4 2025[31] - Non-GAAP Gross Margin for Q1 2026 was $101,213, up from $92,633 in Q4 2025, indicating a strong performance[31] - GAAP R&D Expense as a percentage of revenue was 36.7% in Q1 2026, slightly down from 37.2% in Q4 2025[31] - Non-GAAP R&D Expense percentage improved to 24.8% in Q1 2026 from 24.2% in Q4 2025[31] - GAAP Operating Expenses for Q1 2026 totaled $98,851, an increase from $92,061 in Q4 2025[34] - Non-GAAP Operating Expenses for Q1 2026 were $56,394, compared to $53,900 in Q4 2025, reflecting ongoing investment in operations[34] Cash Flow and Investments - Operating cash flow margin for Q4 2025 was 39.5%, with free cash flow of $44.0 million[6] - Cash flows from operating activities for the year ended January 3, 2026, were $175.1 million, compared to $140.9 million in the previous year, indicating a 24.3% increase[27] - Free cash flow for the year ended January 3, 2026, was $132.580 million, an increase from $119.891 million in 2024, indicating a growth of 10.3%[45] - Capital expenditures for the year ended January 3, 2026, were $42.527 million, up from $20.985 million in 2024[45] Stockholder Activities - The company repurchased $100 million of its common stock in 2025, with an additional $250 million authorized for repurchase[9] - The company repurchased $100 million of common stock during the year ended January 3, 2026, compared to $67 million in the previous year[27] Geographic and Sector Performance - The company’s revenue by geography showed Asia contributing 73% for the three months ended January 3, 2026, up from 65% in the same period in 2025[29] - The communications and computing sector accounted for 64% of total revenue for the three months ended January 3, 2026, compared to 55% in the previous year[29] Other Financial Metrics - The cumulative effect of non-GAAP Gross Margin and Operating adjustments was 30.0% in Q1 2026, slightly down from 30.2% in Q4 2025[34] - Adjusted EBITDA for the year ended January 3, 2026, was $182.955 million, compared to $161.966 million in 2024, reflecting a growth of 12.1%[40] - GAAP net income margin for the three months ended January 3, 2026, was -5.2%, while the adjusted EBITDA margin was 36.5%[44] - Stock-based compensation for the three months ended January 3, 2026, amounted to $35.619 million, compared to $35.978 million in the previous year[40] - The cumulative effect of non-GAAP adjustments for the three months ended January 3, 2026, was $0.38 per share, compared to $0.26 per share in the previous year[40] - Basic shares used in per share calculations for the three months ended January 3, 2026, were 136,718 thousand, compared to 136,877 thousand in the previous year[40]