MACOM (MTSI) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $235.9 million, up 30.2% year-over-year and 8.1% sequentially, with strong growth in Data Center and Telecom markets.

• Adjusted EPS was $0.85 per diluted share; net income was $31.7 million ($0.42 per share), with adjusted net income at $64.3 million.

• Book-to-bill ratio was 1.1x, marking the fifth consecutive quarter of strong bookings and record backlog.

• Completed the acquisition of ENGIN-IC, expanding MMIC and module design capabilities.

• Continued product innovation and market share gains, especially in Data Center and SATCOM.

Financial highlights

• Adjusted gross profit was $135.6 million (57.5% of revenue); gross margin improved to 55.2% from 52.5% year-over-year.

• Adjusted operating income was $59.8 million (25.4% of revenue), up 8% sequentially.

• Cash and short-term investments totaled $681.5 million; cash and cash equivalents at quarter-end were $110.9 million.

• Cash flow from operations was $38.7 million in Q2 and $105.3 million for the six months, up year-over-year.

• Net loss for the six months was $135.9 million, primarily due to a $193.1 million loss on extinguishment of debt.

Outlook and guidance

• Q3 revenue expected between $246 million and $254 million, with sequential growth in all end markets.

• Adjusted gross margin guidance: 56.5%-58.5%; adjusted EPS expected between $0.87 and $0.91.

• Industrial & Defense projected to lead with ~10% sequential growth, Data Center at 5%, Telecom slightly up.

• Estimated annual effective tax rate for FY2025 is expected to be approximately 17%.

• Near-term demand may be impacted by macroeconomic and geopolitical conditions, including tariffs and trade tensions.