Core Viewpoint - The sentiment surrounding Allegro MicroSystems, Inc. (ALGM) is currently poor, particularly in the automotive markets, but there is a belief that the worst may be nearing as 2024 begins [1]. Group 1: Company Overview - Allegro MicroSystems, Inc. is experiencing negative sentiment in the automotive sector, which is impacting its market perception [1]. Group 2: Investment Opportunities - The investment group "Value In Corporate Events" focuses on identifying actionable ideas from major corporate events such as earnings reports, mergers and acquisitions, and IPOs, providing coverage of approximately 10 major events each month [1].

Financial Performance - Net sales for the three-month period ended December 26, 2025, were $229.21 million, a 29% increase from $177.87 million for the same period in 2024[17] - Gross profit for the three-month period ended December 26, 2025, was $107.10 million, compared to $81.22 million for the same period in 2024, reflecting a gross margin improvement[17] - Operating income for the three-month period ended December 26, 2025, was $9.57 million, a significant recovery from an operating loss of $0.04 million in the same period last year[17] - Net income attributable to Allegro MicroSystems, Inc. for the three-month period ended December 26, 2025, was $8.30 million, compared to a net loss of $6.86 million for the same period in 2024[17] - Comprehensive income for the three-month period ended December 26, 2025, was $6.76 million, compared to a comprehensive loss of $14.36 million for the same period in 2024[19] - The net income for the period ending December 26, 2025, is $8,362,000, compared to a net loss of $6,799,000 for the previous period[21] - For the nine-month period ended December 26, 2025, net income was $1,783, compared to a net loss of $58,025 for the same period in 2024[26] - The company reported a basic net income per share of $0.04 for the three-month period ended December 26, 2025, compared to a loss of $0.04 per share in the same period last year[17] - The basic net income per share for the three-month period ended December 26, 2025, was $0.04, while the diluted net income per share was also $0.04[66] Assets and Liabilities - Total current assets increased to $515.41 million as of December 26, 2025, from $483.04 million as of March 28, 2025[15] - Total liabilities decreased to $458.30 million as of December 26, 2025, from $489.86 million as of March 28, 2025[15] - Total assets remained stable at $1.42 billion as of December 26, 2025, compared to $1.42 billion as of March 28, 2025[15] - The total equity at December 26, 2025, is $964,414,000, with a common stock amount of $1,852,000[21] - The company's total debt decreased to $287,714,000 as of December 26, 2025, from $346,126,000 on March 28, 2025, a reduction of 17%[59] - The fair value of the company's debt was $286,069,000 as of December 26, 2025, down from $343,275,000 on March 28, 2025, a decrease of 16.7%[50] Cash Flow and Investments - Net cash provided by operating activities for the nine-month period was $127,355, significantly up from $41,560 in the prior year[26] - The company reported a net cash used in investing activities of $21,160, a decrease from $34,245 in the prior year[26] - Cash and cash equivalents at the end of the period were $163,399, compared to $148,962 at the end of the previous year[26] Research and Development - Research and development expenses for the three-month period ended December 26, 2025, were $52.88 million, up from $43.32 million in the same period last year, indicating continued investment in innovation[17] Stock and Equity Transactions - The company issued 28,750,000 shares of common stock, raising $665,850,000 net of underwriting discounts[23] - The Company completed an Equity Offering of 28,750,000 shares at a public offering price of $24.00 per share, resulting in net proceeds of approximately $665.85 million after underwriting discounts[79] - The First Closing under the Share Repurchase Agreement involved repurchasing 28,750,000 shares for an aggregate consideration of $628.26 million, which was the Equity Offering price[80] - The Second Closing under the Share Repurchase Agreement involved repurchasing 10,017,315 shares for aggregate cash consideration of $225.55 million[81] - The Company repurchased common stock amounting to $(821,199,000)[23] Legal and Regulatory Matters - The Company is not aware of any pending or threatened legal proceedings that could have a material adverse effect on its business or financial condition[65] Restructuring and Charges - The restructuring plan initiated in January 2025 incurred costs of $754,000 and $2,328,000 for the three- and nine-month periods ended December 26, 2025, respectively, with cumulative costs reaching $8,088,000[75] - The Company incurred $3,132,000 and $6,278,000 of charges associated with additional restructuring activities during the three- and nine-month periods ended December 26, 2025, respectively[76] Market and Operational Risks - There have been no material changes in the Company's exposures to market risk since March 28, 2025[160]

Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $229 million, representing a 7% sequential increase and a 29% year-over-year increase [12][13] - Non-GAAP earnings per share (EPS) were $0.15, an increase of 15% sequentially and 114% year-over-year [15] - Gross margin was 49.9%, up 30 basis points sequentially, and operating margin was 15.4%, an increase of 150 basis points compared to Q2 [12][15] - Adjusted EBITDA was 20.1% of sales, indicating strong operating leverage [12] Business Line Data and Key Metrics Changes - Automotive sales increased by 6% sequentially and 28% year-over-year, with e-mobility sales growing by 46% year-over-year [12][13] - Industrial and other sales increased by 11% sequentially and 31% year-over-year, driven by data center growth [12][13] - Distribution sales increased by 11% sequentially and 39% year-over-year [13] Market Data and Key Metrics Changes - Sales by geography: 30% in China, 27% in the rest of Asia, 17% in Japan, 15% in the Americas, and 11% in Europe [14] - Data center sales established a new quarterly record at 10% of total sales, up 31% sequentially [7][12] Company Strategy and Development Direction - The company is focusing on growth in ADAS, xEV, and data center markets, with significant design wins in these areas [5][6] - A new isolated gate driver IC for silicon carbide transistors has been released, targeting the data center power supply market [8][10] - The company is conducting a robotics roadshow to capitalize on industrial opportunities, confirming new wins in the robotics sector [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in automotive growth, citing strong bookings and backlog, particularly in xEV and ADAS [31][42] - The company anticipates Q4 2026 sales to be in the range of $230 million to $240 million, representing a 22% year-over-year increase [17] - Management noted that inventory levels in automotive remain lean, with no significant increases observed [32][43] Other Important Information - The effective tax rate for Q3 was 7%, and interest expense was $4.7 million [15] - Cash flow from operations was $45 million, with free cash flow at $41 million, or 18% of Q3 sales [16] Q&A Session Summary Question: Gross margin concerns - Management explained that gross margin was impacted by geographic and product mix, with expectations for improvement in the next quarter [21][22] Question: Sell-in versus sell-through dynamics - Management confirmed that sell-in and sell-through were close to equal, with expectations for them to remain balanced going forward [23][25] Question: Automotive growth outlook - Management expects automotive growth to be flat to marginally down in the next quarter due to Chinese New Year, but remains optimistic about long-term growth [29][31] Question: Data center business growth - Management indicated that the data center business is expected to grow, with current sensors and gate drivers contributing to future revenue [35][36] Question: E-mobility growth rates - Management projected a 16% growth rate for the e-mobility segment, driven by strong demand in ADAS and xEV applications [94] Question: Robotics market potential - Management discussed the potential for significant revenue growth in the robotics sector, with expectations for tens of thousands of units in the near term [96][97]

Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $229 million, representing a 7% sequential increase and a 29% year-over-year increase [12][13] - Non-GAAP earnings per share (EPS) were $0.15, up 15% sequentially and 114% year-over-year [15] - Gross margin was 49.9%, an increase of 30 basis points sequentially, and operating margin was 15.4%, up 150 basis points compared to Q2 [12][15] - Adjusted EBITDA was 20.1% of sales, indicating strong operating leverage [12] Business Line Data and Key Metrics Changes - Automotive sales increased by 6% sequentially and 28% year-over-year, with e-mobility sales up 46% year-over-year [12][13] - Industrial and other sales grew by 11% sequentially and 31% year-over-year, driven by data center sales, which established a new quarterly record at 10% of total sales, up 31% sequentially [12][13][14] - Distribution sales increased by 11% sequentially and 39% year-over-year [13] Market Data and Key Metrics Changes - Sales by geography: 30% in China, 27% in the rest of Asia, 17% in Japan, 15% in the Americas, and 11% in Europe [14] - The data center segment accounted for 10% of total sales in Q3, up from 8% in the previous quarter [72] Company Strategy and Development Direction - The company is focusing on growth in ADAS, xEV, and data center markets, with significant design wins in these areas [6][11] - A new isolated gate driver IC for silicon carbide transistors has been released, targeting the data center power supply market [8][10] - The company is actively engaging in robotics, confirming high content opportunities in advanced humanoid robots [9][97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in automotive growth, citing strong bookings and backlog, particularly in e-mobility and ADAS [31][42] - The company anticipates Q4 2026 sales to be in the range of $230 million to $240 million, representing a 22% year-over-year increase [16] - Management noted that inventory levels in automotive remain lean, with no significant increases observed [32][43] Other Important Information - The effective tax rate for Q3 was 7%, and interest expense was $4.7 million [15] - Cash flow from operations was $45 million, with free cash flow at $41 million, or 18% of Q3 sales [16] Q&A Session Summary Question: Gross margin and revenue guidance - Management explained that gross margin was impacted by geographic and product mix, with expectations for improvement in the next quarter [21][22] Question: Sell-in versus sell-through dynamics - Management confirmed that sell-in and sell-through were close to equal this quarter, with expectations for them to remain balanced going forward [23][25] Question: Automotive growth outlook - Management indicated that automotive growth would be flat to marginally down in the next quarter due to Chinese New Year, but expressed confidence in long-term growth [29][31] Question: Data center business growth - Management highlighted that fan drivers are currently the largest segment in data center sales, with current sensors and gate drivers expected to contribute significantly in the future [35][36] Question: E-mobility growth rates - Management projected a 16% growth rate for the e-mobility segment, driven by strong demand in ADAS and xEV applications [94] Question: Operating expenses and future guidance - Management indicated that operating expenses would see inflationary increases, but overall discipline would be maintained [46][47] Question: Current sensing technology - Management discussed the growth potential of current sensing technologies, emphasizing the transition from Hall-effect to TMR sensors [83][84] Question: Capital allocation and debt management - Management expressed comfort with the current debt levels and indicated a balanced approach to liquidity and debt repayment [87][89]

Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $229 million, representing a 7% sequential increase and a 29% year-over-year increase [11] - Non-GAAP earnings per share (EPS) were $0.15, up 15% sequentially and 114% year-over-year [11] - Gross margin was 49.9%, an increase of 30 basis points sequentially, and operating margin was 15.4%, up 150 basis points compared to Q2 [11][13] - Adjusted EBITDA was 20.1% of sales, indicating strong operating leverage [11] Business Line Data and Key Metrics Changes - Automotive sales increased by 6% sequentially and 28% year-over-year, with e-mobility sales growing by 46% year-over-year [11] - Industrial and other sales increased by 11% sequentially and 31% year-over-year, driven by data center growth [11] - Distribution sales rose by 11% sequentially and 39% year-over-year [11] Market Data and Key Metrics Changes - Sales by geography: 30% in China, 27% in the rest of Asia, 17% in Japan, 15% in the Americas, and 11% in Europe [12] - Data center sales established a new quarterly record at 10% of total sales, up 31% sequentially [5][11] Company Strategy and Development Direction - The company is focusing on growth in ADAS, xEV, and data center markets, with significant design wins in these areas [4][6] - A new isolated gate driver IC for silicon carbide transistors has been released, targeting the data center power supply market [6][9] - The company is expanding its product portfolio to capitalize on industrial opportunities, including robotics [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in automotive growth, citing strong bookings and backlog, particularly in e-mobility and ADAS [28][40] - The company anticipates Q4 2026 sales to be in the range of $230 million to $240 million, representing a 22% year-over-year increase [14] - Management noted that inventory levels in automotive remain lean, with no significant increases observed [29][40] Other Important Information - Cash flow from operations was $45 million, with free cash flow at $41 million, or 18% of Q3 sales [13] - The company ended Q3 with cash of $163 million and a term loan balance of $285 million [13] Q&A Session Summary Question: Gross margin dynamics and guidance - Management explained that gross margin was impacted by geographic and product mix, with expectations for improvement in the next quarter [19][20] Question: Sell-in versus sell-through dynamics - Management confirmed that sell-in and sell-through were close to equal, with expectations for them to remain balanced going forward [21][23] Question: Automotive growth outlook - Management indicated that automotive growth would be flat to marginally down in the next quarter due to seasonal factors, but expressed confidence in long-term growth [27][28] Question: Data center business growth - Management highlighted that fan drivers are currently the largest segment in data center sales, with expectations for growth from current sensors and gate drivers in the future [32][34] Question: E-mobility growth expectations - Management projected a 16% growth rate for the e-mobility segment, driven by strong demand in ADAS and xEV applications [91] Question: Operating expenses and future guidance - Management indicated that operating expenses would see inflationary increases, but overall discipline would be maintained [42][56] Question: Current sensing technology and market position - Management discussed the growth potential of current sensing technologies, emphasizing the transition from Hall-effect to TMR sensors [80][82] Question: Capital allocation and debt management - Management expressed comfort with the current debt levels and indicated a balanced approach to liquidity and debt repayment [84][86]

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3QFY26 Investor Presentation Forward-looking statements This presentation and the accompanying oral remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of ...

Exhibit 99.1 Allegro MicroSystems Reports Third Quarter 2026 Results Sales Increased 29% Year-Over-Year and 7% Quarter-Over-Quarter to $229 Million Business Outlook For the fourth quarter of fiscal year 2026 ending March 27, 2026, the Company expects total net sales to be in the range of $230 million to $240 million. At the midpoint of this range, it implies growth in net sales of 22% year-over-year. The Company also estimates the following results on a non-GAAP basis: "Earlier this month, we repriced our t ...

MANCHESTER, N.H., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its third quarter ended December 26, 2025. “We delivered strong third quarter results, with sales of $229 million exceeding the high end of our guidance range. Additionally, non-GAAP EPS more than doubled year-over-year to $0.15. This perfo ...

Core Insights - Allegro MicroSystems, Inc. will host an Analyst Day on February 18, 2026, in Boston, MA, focusing on the company's strategy and growth opportunities [1][2] - The event will feature presentations from Allegro's executive leadership team, highlighting product and technology differentiators, as well as the target financial model [2] - The Analyst Day will be a hybrid event, allowing for limited in-person participation by invitation only, alongside live virtual attendance via webcast [2] Company Overview - Allegro MicroSystems is a leader in power and sensing semiconductor solutions, with over three decades of expertise in magnetic sensing and power ICs [4] - The company aims to enhance efficiency, performance, and sustainability in automotive, clean energy, and industrial automation sectors [4] - Allegro is recognized for its commitment to quality and its pioneering role in "automotive grade" technology, positioning itself as a partner in customer success [4]