Lattice Semiconductor Corporation Q4 FY2025 earnings call

• Ford Tamer noted that 2025 was a year of disciplined execution, with stabilization of the business, normalization of channel inventory, and progress in data center AI and physical AI. New products were a key driver, with 70% growth in 2025. Q1 2026 revenue guidance is at the midpoint of $165 million, representing over 37% year-over-year growth, and EPS guidance is $0.36 midpoint.
• Lorenzo Flores discussed full-year 2025 results, where revenue, gross margin, operating profit, and EPS were in line with expectations. Q4 2025 had revenue of $145.8 million, Q4 gross margin of 69.4%, and non-GAAP operating margin expanded to 30.7%. The balance sheet remains strong, debt-free, and the company repurchased $100 million of stock in 2025 with an additional $250 million authorized for repurchase.

For the full year 2025, Lattice's revenue was $523.3 million, up 2.7% from the prior year. Growth was driven by communications and computing, which saw a 28% increase in revenue, while industrial and automotive segments declined 18% as channel inventory was normalized. In Q4 2025, revenue reached $145.8 million, a 9.3% sequential increase and 24.2% year-over-year increase. Communications and computing had a record performance, up 25% sequentially and 60% year-over-year. New product revenue in 2025 grew approximately 70%, and the company expects new product revenue to reach the mid-20% range of total revenue in 2026.

• Q1 2026 revenue is expected to be in the range of $158 million to $172 million, with a midpoint representing 37% year-over-year growth. Gross margin is expected to be 69.5% plus or minus 1% non-GAAP. Non-GAAP operating expense is between $59 million and $61 million. Non-GAAP EPS is in the range of $0.34 to $0.38 per share.
• Full-year 2026 is expected to grow at least 20% year-over-year. Gross margin for the full year is expected to be in a similar range as Q1 with potential fluctuations due to customer mix. OpEx will have investments in R&D, income tax rate is expected to be around 47% non-GAAP, and channel inventories are normalized, setting up strong growth for 2026 and beyond.

• Supply chain constraints and increasing lead times pose challenges. The company needs to manage supply effectively to support customers and ensure continuity in meeting demand. Additionally, regulatory considerations for larger acquisitions could be a potential risk if not properly navigated.

Q: Ruben Roy asked about server growth dynamics and attach rates.

A: Ford Tamer responded that demand is strong, driven by CapEx growth, attach rates increasing (passing three units per server in 2026), and ASP growth.

Q: Melissa Weathers inquired about segment growth and physical AI opportunity.

A: Ford Tamer stated confidence in growth across segments, with strong booking into 2027 in comms and compute, and significant momentum in physical AI with partnerships and design wins in various applications like humanoids, robotaxis, etc.

Q: Christopher Rolland asked about industrial and auto inventory and normalized rates.

A: Ford Tamer mentioned managing inventory to support customer demand, with tactical adjustments as needed.

Q: Kevin Garrigan asked about competitive pressure and what keeps Lattice up at night.

A: Ford Tamer emphasized customer-first strategy and focus on supply, support, and solutions; Lorenzo Flores highlighted focus on executing ambitious plans and ensuring supply for customers.

Q: David Williams asked about design wins and their impact.

A: Ford Tamer noted record design wins in Q4 2025, supporting multi-year growth of at least 25%.