Lattice Semiconductor (LSCC) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $170.9 million, up 42% year-over-year, driven by strong demand in Compute and Communications, especially data center and AI-related applications, and robust performance across all end markets.

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

• Announced definitive agreement to acquire AMI for $1.65 billion (cash and stock), aiming to create a comprehensive secure management and control platform and accelerate growth.

• Strong backlog, design win momentum, and bookings extend well into 2027, positioning for a multi-year growth cycle.

• Net income rose to $21.8 million from $5.0 million in Q1 2025, reflecting improved margins.

Financial highlights

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

• Q1 non-GAAP EPS: $0.41, up 86% year-over-year; GAAP net income: $21.8 million (12.8% margin); non-GAAP net income: $57.0 million.

• Q1 non-GAAP gross margin: 70.0%, up 100 bps year-over-year; GAAP gross margin: 68.8%.

• Adjusted EBITDA: $67.8 million (39.6% margin); free cash flow: $39.7 million.

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

Outlook and guidance

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

• Q2 non-GAAP gross margin expected at 70% ±1%; non-GAAP operating expense between $64 million–$67 million.

• 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 immediately accretive to gross margin, free cash flow, and EPS on a non-GAAP basis.

• Income tax rate for Q2 expected between 4% and 6% on a non-GAAP basis.