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Oct 27, 2024
Semtech Q3 2025 Earnings Report
Reported net sales of $236.8 million, up 10% sequentially, with record data center net sales of $43.1 million, up 58% sequentially.
Key Takeaways
Semtech reported strong Q3 2025 results with broad-based growth across all end markets, particularly in the data center sector. The company reported positive operating and free cash flows and made principal prepayments on its credit facility.
Net sales reached $236.8 million, a 10% sequential increase.
Data center net sales hit a record $43.1 million, up 58% sequentially.
GAAP gross margin increased to 51.1%, up 210 basis points sequentially
Non-GAAP diluted earnings per share was $0.26.
Forward Guidance
Semtech anticipates net sales of approximately $250 million, plus or minus $5 million, and non-GAAP diluted earnings per share of $0.32, plus or minus $0.03 for Q4 2025.
Positive Outlook
- Net sales of $250.0 million +/-$5.0 million
- Gross margin of 52.8% +/- 50 bps
- Operating expenses, net of $82.8 +/- $1.0 million
- Operating income of $49.2 +/- $2.8 million
- Adjusted EBITDA of $56.9 +/- $2.8 million
Challenges Ahead
- Operating margin of 19.7% +/- 70 bps
- Interest expense, net of $19.0 million
- Normalized tax rate of 15%
- Diluted earnings per share of $0.32 +/- $0.03
- Adjusted EBITDA margin of 22.8% +/- 70 bps
Historical Earnings Impact
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Avg. Return Before/After Earnings
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