Lattice's Q4 Earnings Meet Estimates on Healthy Revenue Growth

Core Insights - Lattice Semiconductor Corporation (LSCC) reported modest fourth-quarter 2025 results, with revenues exceeding estimates and adjusted earnings meeting expectations, driven by AI and data center demand [1][10] Financial Performance - The company reported a GAAP net loss of $7.6 million or 6 cents per share, compared to a net income of $16.5 million or 12 cents per share in the same quarter last year, primarily due to higher operating costs and tax expenses [2] - Non-GAAP net income for the quarter was $43.7 million or 32 cents per share, up from $20.2 million or 15 cents per share in the prior year, aligning with consensus estimates [3] - For the full year 2025, GAAP net income was $3.1 million or 2 cents per share, down from $61.1 million or 44 cents per share in 2024, while non-GAAP net income increased to $145.2 million or $1.05 per share from $124.4 million or 90 cents per share in 2024 [3] Revenue Breakdown - Net sales for the fourth quarter rose to $145.8 million from $117.4 million year-over-year, driven by growth in the Communications & Computing segment, surpassing the Zacks Consensus Estimate of $143.5 million [4][10] - Communications and Computing revenues increased significantly to $92.6 million from $58 million, while revenues from Industrial and Automotive declined to $44.1 million from $49.2 million, and Consumer revenues fell to $9.1 million from $10.2 million [5] Geographic Distribution - In Q4 2025, 73% of revenues were generated from Asia, 14% from the Americas, and 13% from Europe and Africa [6] Profitability Metrics - Non-GAAP gross profit for the quarter was $101.2 million, up from $72.9 million in the prior year, with margins improving to 69.4% from 62.1% [7] - Non-GAAP operating expenses increased to $56.4 million from $52.8 million year-over-year, while adjusted EBITDA rose to $53.2 million from $29.1 million, with respective margins of 36.5% and 24.8% [8] Cash Flow and Liquidity - The company generated $57.6 million in cash from operations in Q4, compared to $45.4 million in the same quarter last year, and for 2025, cash from operating activities totaled $175.1 million, up from $140.9 million in 2024 [11] Future Outlook - For Q1 2026, Lattice expects revenues between $158 million and $172 million, with non-GAAP gross margins projected to be between 68.5% and 70.5%, and non-GAAP earnings anticipated to be in the range of 34-38 cents per share [12]