Lattice Semiconductor (LSCC) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $170.9M, up 42% year-over-year, driven by strong demand in Compute & Communications, data center, AI, and industrial automation.

• Non-GAAP EPS grew 86% year-over-year to $0.41, with adjusted EBITDA margin at 39.6%.

• Announced definitive agreement to acquire AMI for $1.65B, combining hardware and firmware for a secure management platform, expected to be immediately accretive.

• Strong backlog, bookings, and design win momentum, with demand visibility extending into 2027.

• Net income rose to $21.8M from $5.0M in Q1 2025, reflecting higher revenue and improved margins.

Financial highlights

• Q1 2026 revenue: $170.9M, up 42% year-over-year and 17% sequentially.

• Non-GAAP gross margin: 70.0%, up 100 bps year-over-year; GAAP gross margin: 68.8%.

• Adjusted EBITDA margin: 39.6%; operating margin: 34.4%.

• Free cash flow: $39.7M; operating cash flow: $50.3M.

• Ended Q1 with $140M in cash and no debt; repurchased $15M of stock.

Outlook and guidance

• Q2 2026 revenue guidance: $175M–$195M, midpoint implies nearly 50% year-over-year growth and 8% sequential growth.

• Q2 non-GAAP gross margin expected at 70% ±1%; non-GAAP OpEx $64M–$67M, mainly R&D investments.

• Q2 non-GAAP EPS guidance: $0.42–$0.46, midpoint implies over 80% year-over-year growth.

• AMI acquisition expected to close in Q3 2026 and be accretive to gross margin, free cash flow, and EPS.

• Expect to exceed $1B annual revenue run rate by end of 2026, exclusive of AMI.