Lattice Semiconductor (LSCC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $120.1M–$120.2M, up 2–2.3% sequentially but down 14.7–15% year-over-year, in line with guidance and reflecting industry headwinds and inventory normalization.

• Non-GAAP gross margin was 69%, with GAAP gross margin at 68.0%, showing resilience despite a challenging macro environment.

• Adjusted EBITDA margin reached 33.4%, with non-GAAP net income at $30.7M ($0.22 per share) and GAAP net income at $5.0M.

• Record design win momentum, especially in AI, robotics, automotive, AR/VR, security, and new product families.

• Management remains cautious due to macroeconomic, geopolitical, and tariff uncertainties.

Financial highlights

• Q1 2025 revenue: $120.1M (+2% QoQ, -15% YoY); non-GAAP gross margin: 69%; GAAP gross margin: 68.0%.

• Adjusted EBITDA: $40.1M (33.4% margin); non-GAAP operating margin: 26.2%; non-GAAP EPS: $0.22.

• Operating cash flow: $31.9M; free cash flow: $23.3M; cash and equivalents: $127.6M.

• Inventory decreased by $8–8.5M to $94.9M; DSO at 64 days; DIO at 225 days.

• Share repurchases totaled $25M; $75M remains authorized.

Outlook and guidance

• Q2 2025 revenue expected between $118.5M–$128.5M; non-GAAP gross margin guidance at 69% ±1%.

• Non-GAAP OpEx expected between $50.5M–$52.5M; non-GAAP EPS guidance: $0.22–$0.26.

• Management expects continued AI-related revenue growth and further sequential growth, but remains cautious on 2H 2025 due to market and tariff uncertainties.

• 2025 revenue outlook unchanged, expecting low single-digit growth; 2026 growth expected in the 15–20% range.

• Liquidity and financial resources are sufficient for at least the next 12 months.