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Mar 29

Lattice Q1 2025 Earnings Report

Lattice posted sequential revenue growth with margin improvements, supported by strong demand in AI, automotive, and security applications.

Key Takeaways

Lattice Semiconductor delivered a solid Q1 2025 performance, growing revenue to $120.1 million and improving adjusted EBITDA margin to 33.4%. The company reported a GAAP net income of $5.0 million and generated $23.3 million in free cash flow.

Revenue rose to $120.1 million, up from Q4 2024.

Non-GAAP EPS reached $0.22, significantly higher than GAAP EPS of $0.04.

Adjusted EBITDA margin expanded to 33.4%.

Momentum driven by design wins in AI, automotive, and security markets.

Total Revenue
$120M
Previous year: $141M
-14.7%
EPS
$0.22
Previous year: $0.29
-24.1%
Gross Margin
68%
Previous year: 68.3%
-0.4%
Net Income Margin
4.2%
Previous year: 10.5%
-60.0%
Operating Cash Flow Margin
26.5%
Previous year: 21%
+26.2%
Gross Profit
$81.7M
Previous year: $68.3
+119660222.1%
Cash and Equivalents
$128M
Previous year: $0.11
+115967272627.3%
Free Cash Flow
$23.3M
Previous year: $26.1M
-10.8%
Total Assets
$824M
Previous year: $816M
+1.0%

Lattice

Lattice

Lattice Revenue by Segment

Lattice Revenue by Geographic Location

Forward Guidance

Lattice projects Q2 2025 revenue between $118.5M and $128.5M with stable margins and profitability.

Positive Outlook

  • Revenue guidance of $118.5M–$128.5M indicates stable outlook.
  • Non-GAAP gross margin expected around 69% ±1%.
  • Non-GAAP EPS forecasted between $0.22 and $0.26.
  • Total operating expenses expected to stay within $50.5M–$52.5M.
  • Non-GAAP income tax rate projected between 5% and 6%.

Challenges Ahead

  • Market and industry conditions could impact future performance.
  • Inventory days rose YoY, potentially signaling excess supply.
  • Free cash flow margin dropped from prior quarter.
  • Net income margin declined significantly YoY.
  • Continued macroeconomic uncertainty may affect demand.

Revenue & Expenses

Visualization of income flow from segment revenue to net income