Allegro MicroSystems Reports First Quarter 2026 Results

Core Insights - Allegro MicroSystems reported a strong first quarter with sales of $203 million, representing a 22% year-over-year increase, driven by significant growth in e-Mobility and Industrial sectors, which grew by 31% and 50% respectively [1][2][19] - The company achieved a non-GAAP EPS of $0.09, nearly tripling year-over-year, indicating substantial operating leverage in its business model [2] - Free cash flow for the quarter was $51 million, accounting for 25% of sales, alongside voluntary debt repayments totaling $35 million [2][11] Financial Performance - Total net sales for the quarter were $203.4 million, up from $166.9 million in the same period last year, marking a $36.5 million increase [19] - Automotive sales reached $144.3 million, a 13% increase from $127.4 million, while Industrial and Other sales surged to $59.1 million, a 50% increase from $39.5 million [19] - Gross margin improved to 44.9% from 44.8% year-over-year, while non-GAAP gross margin was reported at 48.2% [18][28] Business Outlook - For the second quarter of fiscal year 2026, Allegro expects total net sales to range between $205 million and $215 million, implying a 12% year-over-year growth at the midpoint [3] - The company anticipates a gross margin between 48% and 50% and operating expenses of approximately $73 million [3] Cash Flow and Debt Management - Allegro's free cash flow was $51 million for the quarter, with a focus on improving cash flow and return on invested capital [2] - The company made voluntary debt repayments of $35 million during the quarter, following $105 million in the previous fiscal year [2][11] Earnings Webcast - A webcast discussing the financial results and business outlook was scheduled for July 31, 2025, featuring the President and CEO along with the CFO [5][6]