Guides 37% Year Over Year Revenue Growth for 1Q26
HILLSBORO, Ore.--(BUSINESS WIRE)--February 10, 2026--
Lattice Semiconductor Corporation (Nasdaq: LSCC), the low power programmable leader, announced financial results today for the fiscal fourth quarter and full year ended January 3, 2026.
Revenue for the full year 2025 was $523.3 million, with GAAP gross margin of 68.2% and GAAP net income of $0.02 per diluted share. On a non-GAAP basis, gross margin was 69.3%, with net income per diluted share of $1.05. GAAP net income and GAAP net income margin for the full year 2025 were $3.1 million and 0.6%, respectively, with adjusted EBITDA of $183.0 million and a 35.0% adjusted EBITDA margin for the full year 2025.
Revenue for the fourth quarter of 2025 was $145.8 million, with GAAP gross margin of 68.5%, and GAAP net loss of $(0.06) per diluted share. On a non-GAAP basis, gross margin was 69.4%, with net income per diluted share of $0.32. GAAP net loss and GAAP net income margin for the fourth quarter of 2025 were $(7.6) million and (5.2)%, respectively, with adjusted EBITDA of $53.2 million, which is a 36.5% adjusted EBITDA margin for the fourth quarter of 2025. GAAP net cash flow from operating activities for the fourth quarter of 2025 was $57.6 million, which is a GAAP operating cash flow margin of 39.5%, and free cash flow and free cash flow margin of $44.0 million and 30.2%, respectively.
Ford Tamer, Chief Executive Officer, said, "2025 was a pivotal year where we delivered on what we said we would do: stabilized revenue, normalized channel inventories, and drove exceptional data center growth, with server revenues up approximately 85% year over year. We advanced our leadership product roadmap, strengthened our software and solutions, and secured design wins across all our segments to fuel production ramps. We finished the year with strong momentum led by accelerating growth in AI and datacenters, higher Lattice FPGA attach rates per system and increasing ASPs as diversified customers move to our newer product platforms and solutions. When taken together, we believe we are positioned for higher growth in 2026 and beyond."
Lorenzo Flores, Chief Financial Officer, said, "We delivered solid operating results, supported by disciplined execution, durable gross margin and improving free cash flow margins. We also delivered on our commitment to grow earnings faster than revenue. Given our normalized Industrial and Automotive channel inventory, we expect revenue to better track consumption in 2026. In Communications and Computing, demand remains strong, supported by sustained datacenter momentum. We remain focused on executing our strategy, including investing to strengthen our market leadership in Small and Mid-range FPGAs and drive our highly successful Companion Chip expansion."
Selected Fourth Quarter and Full Year 2025 Financial Results and Comparisons (in thousands, except per share data)
GAAP Financial Results (unaudited)
---------------------------------------------------------------------------------
Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y FY 2025 FY 2024 FY/FY
-------- -------- --------- -------- -------- -------- -------- ----------
Revenue $145,792 $133,349 $117,419 9.3% 24.2% $523,262 $509,401 2.7%
Gross Margin
% 68.5% 67.9% 61.1% 60 bps 740 bps 68.2% 66.8% 140 bps
R&D Expense
% 36.7% 37.2% 32.9% (50) bps 380 bps 35.9% 31.3% 460 bps
SG&A Expense
% 30.4% 31.0% 25.1% (60) bps 530 bps 29.4% 23.0% 640 bps
Operating
Expenses $98,851 $92,061 $83,962 7.4% 17.7% $345,711 $305,943 13.0%
Income
(loss) from
Operations $1,086 $(1,534) $(12,209) (170.8)% (108.9)% $11,232 $34,457 (67.4)%
Net Income
(loss) $(7,645) $2,794 $16,514 (373.6)% (146.3)% $3,084 $61,131 (95.0)%
Net Income
(loss) per
Share -
Basic $(0.06) $0.02 $0.12 $(0.08) $(0.18) $0.02 $0.44 $(0.42)
Net Income
(loss) per
Share -
Diluted $(0.06) $0.02 $0.12 $(0.08) $(0.18) $0.02 $0.44 $(0.42)
Net Income
(loss) (730) (1930)
Margin (5.2)% 2.1% 14.1% bps bps 0.6% 12.0% (1140) bps
Operating
Cash Flow
Margin 39.5% 35.3% 38.7% 420 bps 80 bps 33.5% 27.7% 580 bps
Non-GAAP* Financial Results (unaudited)
---------------------------------------------------------------------------------
Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y FY 2025 FY 2024 FY/FY
-------- -------- --------- -------- -------- -------- -------- ----------
Revenue
(GAAP) $145,792 $133,349 $117,419 9.3% 24.2% $523,262 $509,401 2.7%
Gross Margin
% 69.4% 69.5% 62.1% (10) bps 730 bps 69.3% 67.4% 190 bps
R&D Expense (110)
% 24.8% 24.2% 25.9% 60 bps bps 24.8% 25.1% (30) bps
SG&A Expense (290)
% 16.4% 16.2% 19.3% 20 bps bps 16.9% 17.6% (70) bps
Operating
Expenses $56,394 $53,900 $52,799 4.6% 6.8% $213,536 $215,562 (0.9)%
Income from
Operations $44,819 $38,733 $20,097 15.7% 123.0% $149,175 $127,617 16.9%
Net Income $43,725 $38,157 $20,181 14.6% 116.7% $145,225 $124,415 16.7%
Net Income
per Share -
Basic $0.32 $0.28 $0.15 $0.04 $0.17 $1.06 $0.90 $0.16
Net Income
per Share -
Diluted $0.32 $0.28 $0.15 $0.04 $0.17 $1.05 $0.90 $0.15
Adjusted
EBITDA
Margin 36.5% 35.6% 24.8% 90 bps 1170 bps 35.0% 31.8% 320 bps
Free Cash
Flow (360)
Margin 30.2% 25.5% 33.8% 470 bps bps 25.3% 23.5% 180 bps
GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. Additional information relating to these measures is included below in "Non-GAAP Financial Measures." For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."
Fourth Quarter and Full Year 2025 Highlights:
-- Accelerated New Product Revenue Growth: Revenue of our new products
grew approximately 70% compared to 2024, with a record total number of
design wins.
-- Expanded Product Portfolio by 60% in 2025: Launched a steady cadence of
new vision, motion control, security and general purpose devices in 2025.
Many additional devices are planned for 2026, including improved Radiant
tool support, IP, solutions, and enablement to build upon Lattice's Small
FPGA leadership and growing share of the Mid-range FPGA market.
-- Normalized Channel Inventory: Achieved overall target level of channel
inventory.
-- Extended Repurchase Program: Lattice repurchased $100 million of its
common stock in 2025. Lattice's Board of Directors authorized the Company
to repurchase up to an additional $250 million of its outstanding common
stock reflecting the Company's strong financial position and capital
allocation strategy.
-- Over 20 Industry Honors: Lattice was selected as 'Most Respected Public
Semiconductor Company' at the 2025 Global Semiconductor Alliance (GSA)
Awards; was awarded multiple times in 2025 as a Top Workplace in the
Technology Industry; received Frost & Sullivan Institute 2025 Visionary
Growth Leadership Best Practices Recognition; received multiple awards
for innovation including, 'Most Innovative Company of the Year' in the
Hardware category at the 20th Annual 2025 Globee Cybersecurity Awards for
Technology; and received SEAL and Environment + Energy Leader
sustainability awards.
Business Outlook - First Quarter of 2026:
-- Revenue for the first quarter of 2026 is expected to be between $158
million and $172 million.
-- Gross margin percentage for the first quarter of 2026 is expected to be
69.5% plus or minus 1% on a non-GAAP basis.
-- Total operating expenses for the first quarter of 2026 are expected to
be between $59 million and $61 million on a non-GAAP basis.
-- Income tax rate for the first quarter of 2026 is expected to be between
4% and 6% on a non-GAAP basis.
-- Net income for the first quarter of 2026 is expected to be between
$0.34 and $0.38 per share on a non-GAAP basis.
Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the first quarter of 2026, certain items that affect reconciliation of non-GAAP financial measures for non-GAAP gross margin percentage, non-GAAP total operating expenses, non-GAAP income tax rate, and non-GAAP net income are not available on a forward-looking basis because such items cannot be reasonably calculated without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP financial measures, including certain large and/or unpredictable charges such as stock-based compensation expense; performance-based equity expense; legal expense outside the ordinary course of business; restructuring; and impairment charges. Consequently, the Company is unable to calculate the most directly comparable GAAP measure to non-GAAP gross margin percentage, non-GAAP total operating expenses, non-GAAP income tax rate, and non-GAAP net income for the Company's first quarter 2026 quarterly guidance.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company's financial results for the fiscal fourth quarter and full year 2025, and business outlook on Tuesday, February 10 at 5:00 p.m. Eastern Time. The dial-in number for the live audio call is 1-877-407-3982 or 1-201-493-6780 with conference identification number 13757937. A live webcast of the conference call will also be available on the investor relations section of www.latticesemi.com. The Company's financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.
Forward-Looking Statements Notice:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve estimates, assumptions, risks and uncertainties. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are neither historical facts nor assurances of future performance and may be forward-looking. Such forward-looking statements include, but are not limited to, statements relating to: our revenue and EPS growth, future financial performance and related drivers; our expectations related to market recovery and growth including AI and datacenter-related growth; statements about attach rates and ASP growth; our expectations regarding our share repurchase program; the statements under the heading "Business Outlook - First Quarter of 2026." Other forward-looking statements may be indicated by words such as "will," "could," "should," "would," "may," "expect," "plan," "project," "anticipate," "intend," "forecast," "future, " "believe," "estimate," "predict," "propose," "potential," "continue" or the negative of these terms or other comparable terminology.
Estimates of future revenue and other financial and operational outcomes are inherently uncertain due to factors such as: global economic conditions which may affect customer demand; the cyclical nature of the semiconductor industry including fluctuating customer and distributor purchasing patterns, inventory levels, and order timing; pricing and inflationary pressures; competitive actions; international trade disputes and sanctions; the impact of tariffs, trade restrictions, export controls, license requirements or similar actions on us or our suppliers and customers, including the impact on the costs of our products, the products into which they are integrated, and the impact on demand due to costs and uncertainty; the potential impact of global pandemics; and other significant risks and uncertainties that are beyond our ability to predict or control. Actual gross margin percentage, operating expenses, tax rate, and net income could vary from the estimates on the basis of, among other things, changes in revenue levels, changes in product pricing and mix, changes in wafer, assembly, test and other costs, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes.
Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. New risk factors emerge from time to time and it is not possible for the Company to predict all risk factors. You should not rely on forward-looking statements because actual results could differ materially from those expressed in any forward-looking statements. In addition, any forward-looking statement applies only as of the date on which it is made. The Company does not intend to and undertakes no obligation to update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Non-GAAP Financial Measures:
Included within this press release and the accompanying tables and notes are certain non-GAAP financial measures that supplement the Company's consolidated financial information prepared in accordance with U.S. GAAP, including non-GAAP gross margin, gross margin percentage, R&D expense, SG&A expense, operating expenses, income from operations, income tax expense, net income, net income per share -- basic, and net income per share -- diluted, adjusted EBITDA, adjusted EBITDA margin, free cash flow, and free cash flow margin. The non-GAAP measures presented exclude charges and adjustments primarily related to stock-based compensation and related payroll tax effects; accruals related to the portion of our annual incentive plan that we intend to settle in shares of our common stock; transformation activities; legal expense outside the ordinary course of business; amortization of acquired intangible assets; restructuring plans and other charges; impairment charges; and the estimated tax effect of these items, non-cash changes in net deferred income taxes, change in tax law and other tax adjustments; and depreciation and other amortization. These charges and adjustments are a result of periodic or non-core operating activities of the Company. The Company describes these non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures in the tables and notes attached to this press release.
The Company's management believes that these non-GAAP financial measures provide an additional and useful way of viewing aspects of our performance that, when viewed in conjunction with our GAAP results, provide a more comprehensive understanding of the various factors and trends affecting our ongoing financial performance and operating results than GAAP measures alone. Management also uses these non-GAAP measures for strategic and business decision-making, internal budgeting, forecasting, and resource allocation processes and believes that investors should have access to similar data. The non-GAAP financial information used by the Company may differ from that used by other companies. These non-GAAP measures are included solely for informational and comparative purposes and are not meant as a substitute for GAAP and should be considered together with the consolidated financial information located in the tables attached to this press release.
About Lattice Semiconductor Corporation:
Lattice Semiconductor (Nasdaq: LSCC) is the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive and consumer markets. Our technology, long-standing relationships, and commitment to world-class support let our customers quickly and easily unleash their innovation to create a smart, secure, and connected world.
For more information about Lattice, please visit www.latticesemi.com. You can also follow us via LinkedIn, X, Facebook, YouTube, WeChat, or Weibo.
Lattice Semiconductor Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
------------------------------- ----------------------
January September December January December
3, 27, 28, 3, 28,
2026 2025 2024 2026 2024
--------- --------- --------- --------- -----------
Revenue $145,792 $133,349 $117,419 $523,262 $509,401
Cost of sales 45,855 42,822 45,666 166,319 169,001
------- ------- ------- ------- -------
Gross margin 99,937 90,527 71,753 356,943 340,400
------- ------- ------- ------- -------
Operating expenses:
Research and
development 53,433 49,633 38,580 187,983 159,302
Selling,
general, and
administrative 44,293 41,402 29,474 153,632 116,942
Amortization of
acquired
intangible
assets 19 20 870 52 3,479
Restructuring
and other 1,106 1,006 1,109 4,044 12,291
Impairment of
acquired
intangible
assets -- -- 13,929 -- 13,929
------- ------- ------- ------- -------
Total
operating
expenses 98,851 92,061 83,962 345,711 305,943
------- ------- ------- ------- -------
Income (loss) from
operations 1,086 (1,534) (12,209) 11,232 34,457
Interest income
(expense), net 628 602 772 2,896 3,948
Other income
(expense), net (446) (22) (2,135) (751) (2,176)
------- ------- ------- ------- -------
Income (loss)
before income
taxes 1,268 (954) (13,572) 13,377 36,229
Income tax expense
(benefit) 8,913 (3,748) (30,086) 10,293 (24,902)
------- ------- ------- ------- -------
Net income
(loss) $ (7,645) $ 2,794 $ 16,514 $ 3,084 $ 61,131
======= ======= ======= ======= =======
Net income (loss)
per share:
Basic $ (0.06) $ 0.02 $ 0.12 $ 0.02 $ 0.44
======= ======= ======= ======= =======
Diluted $ (0.06) $ 0.02 $ 0.12 $ 0.02 $ 0.44
======= ======= ======= ======= =======
Shares used in per
share
calculations:
Basic 136,718 136,877 137,861 137,091 137,623
======= ======= ======= ======= =======
Diluted 136,718 138,103 138,322 138,238 138,322
======= ======= ======= ======= =======
Lattice Semiconductor Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
January 3, December 28,
2026 2024
------------ ----------------
Assets
Current assets:
Cash and cash equivalents $ 133,886 $ 136,291
Accounts receivable, net 102,277 81,060
Inventories, net 89,202 103,410
Other current assets 38,509 44,073
-------- ----------
Total current assets 363,874 364,834
Property and equipment, net 77,032 52,988
Operating lease right-of-use assets 39,459 13,870
Intangible assets, net 4,143 4,587
Goodwill 315,358 315,358
Deferred income taxes 62,675 66,980
Other long-term assets 20,579 25,286
-------- ----------
$ 883,120 $ 843,903
======== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 56,518 $ 36,828
Accrued liabilities 30,594 45,638
Accrued payroll obligations 30,561 17,156
-------- ----------
Total current liabilities 117,673 99,622
Long-term operating lease liabilities,
net of current portion 36,127 9,433
Other long-term liabilities 15,266 23,916
-------- ----------
Total liabilities 169,066 132,971
Stockholders' equity 714,054 710,932
-------- ----------
$ 883,120 $ 843,903
======== ==========
Lattice Semiconductor Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Year Ended
----------------------------
January 3, December 28,
2026 2024
---------- ----------------
Cash flows from operating activities:
Net income $ 3,084 $ 61,131
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Stock-based compensation expense 115,613 52,985
Depreciation and amortization 35,481 38,737
Change in deferred income tax
provision 5,183 (12,069)
Change in noncurrent taxes
payable (384) (19,370)
Impairment charges 3,497 13,929
Charge for expiring production
materials -- 7,019
Other non-cash adjustments 7,962 10,220
Net changes in assets and
liabilities 4,671 (11,706)
-------- ---------
Net cash provided by (used in)
operating activities 175,107 140,876
-------- ---------
Cash flows from investing activities:
Capital expenditures (42,527) (20,985)
Other investing activities (19,781) (16,708)
-------- ---------
Net cash provided by (used in)
investing activities (62,308) (37,693)
-------- ---------
Cash flows from financing activities:
Repurchase of common stock (100,000) (66,998)
Net cash flows related to stock
compensation exercises (15,697) (27,462)
-------- ---------
Net cash provided by (used in)
financing activities (115,697) (94,460)
-------- ---------
Effect of exchange rate change on cash 493 (749)
-------- ---------
Net increase (decrease) in cash and cash
equivalents (2,405) 7,974
Beginning cash and cash equivalents 136,291 128,317
-------- ---------
Ending cash and cash equivalents $ 133,886 $ 136,291
======== =========
Supplemental disclosure of cash flow
information and non-cash investing and
financing activities:
Income taxes paid, net of refunds $ 7,768 $ 8,587
Operating lease payments $ 8,330 $ 9,567
Lattice Semiconductor Corporation
Supplemental Historical Financial Information
(unaudited)
Three Months Ended Year Ended
------------------------------------ -----------------------
January December December
3, September 27, 28, January 3, 28,
2026 2025 2024 2026 2024
--------- ------------- ---------- ---------- -----------
Balance Sheet
Information
A/R Days Revenue
Outstanding
(DSO) 64 65 63
Inventory Days
(DIO) 178 193 207
Revenue % (by
Geography)
Asia 73% 65% 66% 68% 65%
Americas 14% 19% 23% 19% 20%
Europe (incl.
Africa) 13% 16% 11% 13% 15%
Revenue % (by End
Market)
Communications
and Computing 64% 55% 49% 56% 45%
Industrial and
Automotive 30% 38% 42% 37% 46%
Consumer 6% 7% 9% 7% 9%
Revenue $M (by End
Market)
Communications
and Computing $92.6 $ 74.0 $58.0 $292.7 $228.1
Industrial and
Automotive $44.1 $ 50.3 $49.2 $194.0 $237.0
Consumer $ 9.1 $ 9.0 $10.2 $ 36.6 $ 44.3
Revenue % (by
Channel)
Distribution 89% 83% 84% 84% 89%
Direct 11% 17% 16% 16% 11%
Lattice Semiconductor Corporation
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
-------------------------------------- --------------------------
September December
January 3, 27, 28, January 3, December 28,
2026 2025 2024 2026 2024
------- ------ ------ ------- -------
Gross Margin
Reconciliation
GAAP Gross margin $ 99,937 $90,527 $71,753 $356,943 $340,400
Stock-based
compensation -
gross margin
(1) 1,169 1,980 1,143 5,397 2,779
Incentive
compensation to
be settled in
equity - gross
margin (2) 107 126 -- 371 --
------- ------ ------ ------- -------
Non-GAAP Gross margin $101,213 $92,633 $72,896 $362,711 $343,179
Gross Margin %
Reconciliation
GAAP Gross margin % 68.5% 67.9% 61.1% 68.2% 66.8%
Stock-based
compensation -
gross margin
(1) 0.8% 1.5% 1.0% 1.0% 0.6%
Incentive
compensation to
be settled in
equity - gross
margin (2) 0.1% 0.1% -- 0.1% --
------- ------ ------ ------- -------
Non-GAAP Gross margin
% 69.4% 69.5% 62.1% 69.3% 67.4%
Research and Development Expense % (R&D Expense %) Reconciliation
GAAP R&D Expense % 36.7% 37.2% 32.9% 35.9% 31.3%
Stock-based
compensation -
R&D (1) (10.3)% (11.4)% (6.1)% (9.6)% (5.7)%
Incentive
compensation to
be settled in
equity - R&D
(2) (0.6)% (0.6)% -- (0.5)% --
Transformation
charges (1.0)% (1.0)% (0.9)% (1.0)% (0.5)%
------- ------ ------ ------- -------
Non-GAAP R&D Expense
% 24.8% 24.2% 25.9% 24.8% 25.1%
Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation
GAAP SG&A Expense % 30.4% 31.0% 25.1% 29.4% 23.0%
Stock-based
compensation -
SG&A (1) (13.3)% (14.1)% (5.6)% (11.6)% (4.4)%
Incentive
compensation to
be settled in
equity - SG&A
(2) (0.7)% (0.7)% -- (0.7)% --
Legal expenses
(3) 0.0% 0.0% (0.2)% (0.2)% (1.0)%
------- ------ ------ ------- -------
Non-GAAP SG&A Expense
% 16.4% 16.2% 19.3% 16.9% 17.6%
(1) Includes stock-based compensation and related payroll tax expenses.
(2) Includes accruals for the portion of our annual incentive plan that we
intend to settle in equity.
(3) Includes legal expenses outside the ordinary course of business,
including those incurred defending against claims brought against the
Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R.
Oswalde.
Lattice Semiconductor Corporation
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
---------------------------------------- ---------------------------
September
January 3, 27, December 28, January 3, December 28,
2026 2025 2024 2026 2024
------- ------- ------- -------- -------
Operating Expenses
Reconciliation
GAAP Operating expenses $ 98,851 $ 92,061 $ 83,962 $ 345,711 $305,943
Stock-based
compensation -
operations (1) (34,450) (33,998) (13,712) (110,897) (50,939)
Incentive
compensation to be
settled in equity -
operations (2) (1,800) (1,770) -- (6,234) --
Transformation
charges (1,488) (1,347) (1,032) (5,388) (2,770)
Legal expenses (3) -- (6) (181) (1,107) (5,248)
Amortization of
acquired intangible
assets (19) (20) (870) (52) (3,479)
Restructuring and
other (1,203) (1,020) (1,439) (5,000) (14,016)
Impairment charges (3,497) -- (13,929) (3,497) (13,929)
------- ------- ------- -------- -------
Non-GAAP Operating
expenses $ 56,394 $ 53,900 $ 52,799 $ 213,536 $215,562
Income from Operations
Reconciliation
GAAP Income (loss) from
operations $ 1,086 $ (1,534) $(12,209) $ 11,232 $ 34,457
Stock-based
compensation (1) 35,619 35,978 14,855 116,294 53,718
Incentive
compensation to be
settled in equity
(2) 1,907 1,896 -- 6,605 --
Transformation
charges 1,488 1,347 1,032 5,388 2,770
Legal expenses (3) -- 6 181 1,107 5,248
Amortization of
acquired intangible
assets 19 20 870 52 3,479
Restructuring and
other 1,203 1,020 1,439 5,000 14,016
Impairment charges 3,497 -- 13,929 3,497 13,929
------- ------- ------- -------- -------
Non-GAAP Income from
operations $ 44,819 $ 38,733 $ 20,097 $ 149,175 $127,617
Income from Operations %
Reconciliation
GAAP Income (loss) from
operations % 0.7% (1.2)% (10.4)% 2.1% 6.8%
Cumulative effect of
non-GAAP Gross
Margin and Operating
adjustments 30.0% 30.2% 27.5% 26.4% 18.3%
------- ------- ------- -------- -------
Non-GAAP Income from
operations % 30.7% 29.0% 17.1% 28.5% 25.1%
Other Income (Expense)
Reconciliation
GAAP Other income
(expense), net $ (446) $ (22) $ (2,135) $ (751) $ (2,176)
Write-off of debt
costs and
non-recoverable
investment 198 -- 2,023 198 2,023
------- ------- ------- -------- -------
Non-GAAP Other income
(expense), net $ (248) $ (22) $ (112) $ (553) $ (153)
(1) Includes stock-based compensation and related payroll tax expenses.
(2) Includes accruals for the portion of our annual incentive plan that we
intend to settle in equity.
(3) Includes legal expenses outside the ordinary course of business,
including those incurred defending against claims brought against the
Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R.
Oswalde.
Lattice Semiconductor Corporation
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
September
January 3, 27, December 28, January 3, December 28,
2026 2025 2024 2026 2024
------------- ------------ ------------- ------------- ---------------
Income Tax Expense
(Benefit)
Reconciliation
GAAP Income tax
expense (benefit) $ 8,913 $ (3,748) $ (30,086) $ 10,293 $ (24,902)
Estimated tax
effect of
non-GAAP
adjustments 9,220 1,693 4,735 15,157 16,416
Non-cash changes
in net deferred
income taxes
(4) (16,659) 1,532 25,757 (19,157) 22,315
Change in tax law
(5) -- 1,679 170 -- (6,832)
----------- ---------- ----------- ----------- -----------
Non-GAAP Income tax
expense $ 1,474 $ 1,156 $ 576 $ 6,293 $ 6,997
Net Income
Reconciliation
GAAP Net income
(loss) $ (7,645) $ 2,794 $ 16,514 $ 3,084 $ 61,131
Stock-based
compensation
(1) 35,619 35,978 14,855 116,294 53,718
Incentive
compensation to
be settled in
equity (2) 1,907 1,896 -- 6,605 --
Transformation
charges 1,488 1,347 1,032 5,388 2,770
Legal expenses
(3) -- 6 181 1,107 5,248
Amortization of
acquired
intangible
assets 19 20 870 52 3,479
Restructuring and
other 1,203 1,020 1,439 5,000 14,016
Impairment
charges 3,497 -- 13,929 3,497 13,929
Write-off of debt
costs and
non-recoverable
investment 198 -- 2,023 198 2,023
Estimated tax
effect of
non-GAAP
adjustments (9,220) (1,693) (4,735) (15,157) (16,416)
Non-cash changes
in net deferred
income taxes
(4) 16,659 (1,532) (25,757) 19,157 (22,315)
Change in tax law
(5) -- (1,679) (170) -- 6,832
----------- ---------- ----------- ----------- -----------
Non-GAAP Net income $ 43,725 $ 38,157 $ 20,181 $ 145,225 $ 124,415
(1) Includes stock-based compensation and related payroll tax expenses.
(2) Includes accruals for the portion of our annual incentive plan that we
intend to settle in equity.
(3) Includes legal expenses outside the ordinary course of business,
including those incurred defending against claims brought against the
Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R.
Oswalde.
(4) Includes non-cash changes in net deferred income taxes associated with
$4.9 million of certain tax matters related to prior fiscal periods in
the third quarter of fiscal 2025 and $27.7 million of certain tax
matters related to prior fiscal periods in the fourth quarter of fiscal
2024.
(5) Includes an increase in our provision for U.S. tax on foreign
operations resulting from The 2017 Tax Cuts and Jobs Act and is related
to the capitalization and subsequent amortization of R&D costs for tax
purposes which was made permanent in the 2025 Tax Act in the third
quarter of fiscal 2025.
Lattice Semiconductor Corporation
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
------------------------------- ------------------------
January September December January
3, 27, 28, 3, December 28,
2026 2025 2024 2026 2024
--------- --------- --------- --------- -------------
Net Income Per Share Reconciliation
GAAP Net income
(loss) per share -
basic $ (0.06) $ 0.02 $ 0.12 $ 0.02 $ 0.44
Cumulative effect
of Non-GAAP
adjustments 0.38 0.26 0.03 1.04 0.46
------- ------- ------- ------- ---------
Non-GAAP Net income
per share - basic $ 0.32 $ 0.28 $ 0.15 $ 1.06 $ 0.90
GAAP Net income
(loss) per share -
diluted $ (0.06) $ 0.02 $ 0.12 $ 0.02 $ 0.44
Cumulative effect
of Non-GAAP
adjustments 0.38 0.26 0.03 1.03 0.46
------- ------- ------- ------- ---------
Non-GAAP Net income
per share - diluted $ 0.32 $ 0.28 $ 0.15 $ 1.05 $ 0.90
Shares used in per
share calculations:
Basic 136,718 136,877 137,861 137,091 137,623
Diluted 138,727 138,103 138,322 138,238 138,322
Reconciliation of Net income to Adjusted EBITDA
GAAP Net income
(loss) $ (7,645) $ 2,794 $ 16,514 $ 3,084 $ 61,131
Interest (income)
expense, net (628) (602) (772) (2,896) (3,948)
Income tax
expense
(benefit) 8,913 (3,748) (30,086) 10,293 (24,902)
Amortization of
acquired
intangible
assets 19 20 870 52 3,479
Depreciation and
other
amortization 8,633 8,734 9,131 34,333 34,502
Stock-based
compensation
(1) 35,619 35,978 14,855 116,294 53,718
Incentive
compensation to
be settled in
equity (2) 1,907 1,896 -- 6,605 --
Transformation
charges 1,488 1,347 1,032 5,388 2,770
Legal expenses
(3) -- 6 181 1,107 5,248
Restructuring and
other 1,203 1,020 1,439 5,000 14,016
Impairment
charges 3,497 -- 13,929 3,497 13,929
Write-off of debt
costs and
non-recoverable
investment 198 -- 2,023 198 2,023
------- ------- ------- ------- ---------
Adjusted EBITDA $ 53,204 $ 47,445 $ 29,116 $182,955 $ 161,966
(1) Includes stock-based compensation and related payroll tax expenses.
(2) Includes accruals for the portion of our annual incentive plan that we
intend to settle in equity.
(3) Includes legal expenses outside the ordinary course of business,
including those incurred defending against claims brought against the
Company by Steven A.W. De Jaray, Perienne De Jaray and Darrell R.
Oswalde.
Lattice Semiconductor Corporation
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
--------------------------------------- --------------------------
September December
January 3, 27, 28, January 3, December 28,
2026 2025 2024 2026 2024
------- ------- ------ ------- -------
Reconciliation of Net
income margin to
Adjusted EBITDA
margin
GAAP Net income
(loss) margin (5.2)% 2.1% 14.1% 0.6% 12.0%
Cumulative
effect of
EBITDA
adjustments 41.7% 33.5% 10.7% 34.4% 19.8%
------- ------- ------ ------- -------
Adjusted EBITDA
margin 36.5% 35.6% 24.8% 35.0% 31.8%
Reconciliation of
GAAP Net Cash
Provided by Operating
Activities to Free
Cash Flow
GAAP Net cash
provided by
operating
activities $ 57,584 $ 47,100 $45,421 $175,107 $140,876
Operating cash
flow margin 39.5% 35.3% 38.7% 33.5% 27.7%
Capital
expenditures (13,607) (13,074) (5,754) (42,527) (20,985)
------- ------- ------ ------- -------
Free cash flow $ 43,977 $ 34,026 $39,667 $132,580 $119,891
======= ======= ====== ======= =======
Free cash flow
margin 30.2% 25.5% 33.8% 25.3% 23.5%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260210022695/en/
CONTACT: MEDIA:
Sophia Hong
Lattice Semiconductor Corporation
503-268-8786
Sophia.Hong@latticesemi.com
INVESTORS:
Rick Muscha
Lattice Semiconductor Corporation
408-826-6000
Rick.Muscha@latticesemi.com
(END) Dow Jones Newswires
February 10, 2026 16:00 ET (21:00 GMT)