Lattice Semiconductor Corp (LSCC) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and …

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Wed, February 11, 2026 at 2:01 PM GMT+9 4 min read

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**Q4 Revenue:** $145.8 million, up 9.3% sequentially and 24.2% year over year.

**Full Year 2025 Revenue:** $523.3 million, up 2.7% from the previous year.

**Q1 2026 Revenue Guidance:** $165 million at the midpoint, representing over 37% year over year growth.

**Q1 2026 EPS Guidance:** $0.36 at the midpoint, nearly 65% year over year growth.

**Non-GAAP Gross Margin 2025:** 69.3%, expanded 190 basis points.

**Non-GAAP Operating Margin 2025:** Expanded 340 basis points.

**EBITDA Margin 2025:** Increased 320 basis points to 35%.

**Non-GAAP EPS 2025:** $1.05, up 17% year over year.

**GAAP Net Cash Flow from Operating Activities 2025:** $175.1 million, up from $140.9 million in 2024.

**Free Cash Flow 2025:** $133 million, with a 25.3% margin.

**Q4 Gross Margin:** 69.4% on a non-GAAP basis.

**Q4 Non-GAAP Operating Expense:** $56.4 million, up 5% sequentially.

**Q4 Non-GAAP EPS:** $0.32, up 14% quarter on quarter.

**Q4 GAAP Net Cash Flow from Operating Activities:** $57.6 million, with a 39.5% margin.

**Q4 Free Cash Flow:** $44 million, with a 30.2% margin.

**Full Year 2025 Share Repurchase:** Approximately 1.8 million shares or $100 million.

**New Product Revenue Growth 2025:** Approximately 70%.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Lattice Semiconductor Corp (NASDAQ:LSCC) reported a strong Q4 2025 revenue of $145.8 million, marking a 9.3% sequential increase and a 24.2% year-over-year growth.

The company achieved a full-year revenue of $523.3 million, aligning with expectations and demonstrating successful execution of their business strategy.

LSCC's Q1 2026 revenue guidance of $165 million at the midpoint represents over 37% year-over-year growth, indicating strong recovery and momentum.

The company is seeing accelerated design momentum in both data center AI and physical AI, with significant design wins in industrial robotics and human-machine interfaces.

LSCC's non-GAAP EPS guidance for Q1 2026 is $0.36 at the midpoint, reflecting nearly 65% year-over-year growth, showcasing strong operating leverage and profitability.

Negative Points

The industrial and automotive segment experienced an 18% decline in revenue in 2025, attributed to the normalization of channel inventory.

Non-GAAP gross margin slightly decreased in Q4 2025 compared to Q3, reflecting shifts in product mix.

The company faces increased lead times and tight supply conditions, particularly in substrates and assembly, which could impact future operations.

Despite strong performance, LSCC's guidance range for Q1 2026 revenue is wider than usual, indicating potential uncertainty in revenue realization.

The company is investing heavily in R&D and infrastructure, which could pressure operating expenses and margins if growth targets are not met.

 






Story Continues  

Q & A Highlights

Q: Can you discuss the dynamics in the data center and how you’re looking at that business going forward, especially in terms of server CPU strength and supply constraints? A: Ford Tamer, CEO: We see strong demand driven by CapEx growth, increased attach rates, and higher ASPs. Server units are expected to grow from 15.3 million to 16.5 million in 2026. Our attach rate has been increasing, and we expect to surpass three FPGA units per server this year, contributing to a significant increase in business.

Q: Can you provide assumptions for Q1 guidance by segment, particularly regarding industrials and automotive recovery? A: Lorenzo Flores, CFO: We are positive about trends across the business. Communications and compute are leading, but we also expect growth in industrials and automotive as channel inventory normalizes.

Q: How should we think about the growth potential of the physical AI opportunity? A: Ford Tamer, CEO: We see tremendous momentum in physical AI, with partnerships like Nvidia’s Holoscan and collaborations with NXP. The opportunity is vast, especially in markets like aerospace defense and industrial robotics, where we are gaining share.

Q: Are you seeing any increased competitive pressure or pricing aggression from competitors in the data center market? A: Ford Tamer, CEO: We focus on customer-first strategies, providing low power, small size, and cost-effective solutions. Our market share in small to mid-range FPGAs is growing, and we expect it to continue.

Q: Are there any supply constraints or component shortages impacting your business? A: Ford Tamer, CEO: We have been proactive in managing supply, ordering more materials since last summer. While the situation is tight, especially in substrates and assembly, we are working closely with suppliers and customers to ensure adequate supply.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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