Lattice Semiconductor (LSCC) Q4 2025 earnings summary

Executive summary

• Achieved record full-year 2025 revenue of $523.3M, up 2.7% year-over-year, with Q4 revenue of $145.8M, up 24.2% year-over-year and 9.3% sequentially, driven by strong data center and physical AI markets.

• Server revenues grew approximately 85% year-over-year, with new product revenue up about 70% year-over-year.

• Normalized channel inventory and expanded product portfolio by 60% in 2025, positioning for higher growth in 2026.

• Secured record design wins across all segments and received over 20 industry honors, including major innovation and sustainability awards.

• Entering 2026 with high confidence, supported by a strong backlog, durable data center demand, and expanding use cases for companion FPGAs.

Financial highlights

• Q4 2025 revenue was $145.8M, up 9.3% sequentially and 24.2% year-over-year; full year 2025 revenue reached $523.3M, up 2.7%.

• Q4 non-GAAP gross margin was 69.4%; full year non-GAAP gross margin expanded 190 bps to 69.3%.

• Q4 non-GAAP operating margin was 30.7%; full-year non-GAAP operating margin was 28.5%.

• Q4 non-GAAP EPS was $0.32; full year non-GAAP EPS was $1.05; Q4 GAAP EPS was $(0.06), full-year GAAP EPS was $0.02.

• Q4 free cash flow was $44M (30.2% margin); full year free cash flow $133M (25.3% margin); Q4 operating cash flow was $57.6M (39.5% margin).

Outlook and guidance

• Q1 2026 revenue guidance: $158M–$172M (midpoint $165M), up 37% year-over-year and 13% sequentially.

• Q1 2026 non-GAAP EPS guidance: $0.34–$0.38; gross margin expected at 69.5% ± 1%.

• Operating expenses for Q1 2026 projected at $59M–$61M (non-GAAP); tax rate 4%–6%.

• Full year 2026 expected to grow at least 20% year-over-year, with potential for higher growth based on current visibility.

• Gross margin for 2026 expected to remain in the Q1 range; OpEx to increase in H1, then slow in H2.