Semtech Announces Fourth Quarter and Fiscal Year 2025 Results
Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its fourth quarter and fiscal ...
Fourth Quarter of Fiscal Year 2025
- Net sales of $251.0 million, up 6% sequentially
- GAAP gross margin of 52.0%, up 90 basis points sequentially and Non-GAAP adjusted gross margin of 53.2%, up 80 basis points sequentially
- GAAP operating margin of 8.5%, up 100 basis points sequentially and Non-GAAP adjusted operating margin of 19.9%, up 160 basis points sequentially
- GAAP diluted earnings per share of $0.43 and Non-GAAP adjusted diluted earnings per share of $0.40
- Operating cash flow of $33.5 million and free cash flow of $30.9 million
Fiscal Year 2025
- Net sales of $909.3 million, up 5% from fiscal year 2024
- GAAP gross margin of 50.2%, up 1,610 basis points from fiscal year 2024 and Non-GAAP adjusted gross margin of 51.5%, up 200 basis points from fiscal year 2024
- GAAP operating margin of 5.5% and Non-GAAP adjusted operating margin of 16.4%
- GAAP diluted loss per share of $2.26 and Non-GAAP adjusted diluted earnings per share of $0.88
CAMARILLO, Calif.: Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems and cloud connectivity service provider, today reported unaudited financial results for its fourth quarter and fiscal year 2025, which ended January 26, 2025.
"Fiscal year 2025 represented a year of positive inflection on many fronts, with sequential improvement for each quarter reported in net sales, gross margin, operating margin and earnings per share," said Hong Hou, Semtech's president and chief executive officer. "In the new fiscal year, we are intently focusing on three core priorities to position Semtech for future success: portfolio optimization and simplification, strategic investment in research and development and driving margin expansion, all which we believe will deliver greater value to our shareholders."
"Operating cash flow also reflected a positive inflection in our business and is expected to further benefit from lower cash interest requirements stemming from our debt reduction," said Mark Lin, Semtech's executive vice president and chief financial officer. "We executed to our previously stated capital allocation priority of reducing debt, with net debt as of the end of fiscal year 2025 decreasing 68% year-over-year, which we believe provides a stable financial foundation for long-term growth."
Fourth Quarter and Fiscal Year 2025 Results
(in millions, except per share data) | Q4'25 |
| Q3'25 |
| Q4'24 |
| FY'25 |
| FY'24 | ||||||||||
GAAP Financial Results |
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Net sales | $ | 251.0 |
|
| $ | 236.8 |
|
| $ | 192.9 |
|
| $ | 909.3 |
|
| $ | 868.8 |
|
Gross margin |
| 52.0 | % |
|
| 51.1 | % |
|
| (0.2 | )% |
|
| 50.2 | % |
|
| 34.1 | % |
Operating expenses, net | $ | 109.3 |
|
| $ | 103.2 |
|
| $ | 619.6 |
|
| $ | 406.6 |
|
| $ | 1,240.6 |
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Operating income (loss) | $ | 21.2 |
|
| $ | 17.8 |
|
| $ | (620.0 | ) |
| $ | 49.9 |
|
| $ | (944.3 | ) |
Operating margin |
| 8.5 | % |
|
| 7.5 | % |
|
| (321.3 | )% |
|
| 5.5 | % |
|
| (108.7 | )% |
Interest expense, net | $ | 16.7 |
|
| $ | 20.3 |
|
| $ | 22.1 |
|
| $ | 87.8 |
|
| $ | 92.8 |
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Goodwill impairment | $ | 7.5 |
|
| $ | — |
|
| $ | 473.8 |
|
| $ | 7.5 |
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| $ | 755.6 |
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Intangible impairments | $ | — |
|
| $ | — |
|
| $ | 131.4 |
|
| $ | — |
|
| $ | 131.4 |
|
Net income (loss) attributable to common stockholders | $ | 39.1 |
|
| $ | (7.6 | ) |
| $ | (642.4 | ) |
| $ | (161.9 | ) |
| $ | (1,092.0 | ) |
Diluted earnings (loss) per share | $ | 0.43 |
|
| $ | (0.10 | ) |
| $ | (9.98 | ) |
| $ | (2.26 | ) |
| $ | (17.03 | ) |
(in millions, except per share data) | Q4'25 |
| Q3'25 |
| Q4'24 |
| FY'25 |
| FY'24 | ||||||||||
Net sales | $ | 251.0 |
|
| $ | 236.8 |
|
| $ | 192.9 |
|
| $ | 909.3 |
|
| $ | 868.8 |
|
Non-GAAP Financial Results |
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Adjusted gross margin* |
| 53.2 | % |
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| 52.4 | % |
|
| 48.9 | % |
|
| 51.5 | % |
|
| 49.5 | % |
Adjusted operating expenses, net* | $ | 83.7 |
|
| $ | 80.6 |
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| $ | 76.5 |
|
| $ | 319.6 |
|
| $ | 337.5 |
|
Adjusted operating income* | $ | 49.8 |
|
| $ | 43.4 |
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| $ | 17.8 |
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| $ | 149.0 |
|
| $ | 92.7 |
|
Adjusted operating margin* |
| 19.9 | % |
|
| 18.3 | % |
|
| 9.2 | % |
|
| 16.4 | % |
|
| 10.7 | % |
Adjusted interest expense, net* | $ | 11.2 |
|
| $ | 18.4 |
|
| $ | 19.9 |
|
| $ | 70.6 |
|
| $ | 81.8 |
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Adjusted net income (loss) attributable to common stockholders* | $ | 34.5 |
|
| $ | 20.3 |
|
| $ | (3.7 | ) |
| $ | 67.0 |
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| $ | 9.1 |
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Adjusted diluted earnings (loss) per share* | $ | 0.40 |
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| $ | 0.26 |
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| $ | (0.06 | ) |
| $ | 0.88 |
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| $ | 0.14 |
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Adjusted EBITDA* | $ | 57.8 |
|
| $ | 51.1 |
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| $ | 24.0 |
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| $ | 182.5 |
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| $ | 122.0 |
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Adjusted EBITDA margin* |
| 23.0 | % |
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| 21.6 | % |
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| 12.5 | % |
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| 20.1 | % |
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| 14.0 | % |
*See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.
First Quarter of Fiscal Year 2026 Outlook
(in millions, except per share data) |
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Net sales | $ 250.0 |
| +/- |
| $5.0 |
Non-GAAP Financial Measures |
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Adjusted gross margin* | 53.0 % |
| +/- |
| 50 bps |
Adjusted operating expenses, net* | $ 87.0 |
| +/- |
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