MACOM Technology Solutions Holdings, Inc. Q4 FY2025 earnings call

• General company update: Q4 2025 revenue was $261.2 million, adjusted EPS was $0.94 per diluted share. Full year 2025 revenue was $967 million, +32% YoY; EPS was $3.47, +35% YoY. Free cash flow was $193 million, and cash/short-term investments were $786 million. Q4 book-to-bill ratio was just over 1.0:1; FY '25 book-to-bill was 1.1:1 with record backlog. - New products: Launched over 200 new products in FY '25. - Acquisitions/technology: Agreed to license HRL's T3L GaN on Silicon Carbide process. Upgrading IC design centers in Southern California and Central Europe. - End markets: Data Center growth strong with 200-gig PDs and 1.6T solutions; Telecom has satellite-based broadband and DOCSIS 4.0 opportunities; Industrial & Defense has growth in radar and electronic warfare.

For the fourth quarter of fiscal 2025, revenue by end market was as follows: Industrial & Defense was $115.6 million, Telecom was $66 million, and Data Center was $79.6 million. In the fourth quarter, Industrial & Defense was up approximately 7% sequentially, Data Center was up approximately 5% sequentially, and Telecom was slightly down sequentially. Both Industrial & Defense and Data Center revenues were annual and quarterly records. For the full fiscal year 2025, total revenue was $967 million, representing more than a 32% increase year-over-year. Industrial & Defense contributed approximately 115.6 / 967 * 100 ≈ 11.95% of full-year revenue, Telecom contributed ~6.82%, and Data Center contributed ~8.23%.

• Fiscal Q1 2026 revenue expected to be in the range of $265 million to $273 million. - Adjusted gross margin expected to be in the range of 56.5% to 58.5%. - Adjusted earnings per share expected to be between $0.98 and $1.02. - Expect to achieve $1 billion in annual revenues based on trailing 12-month performance.

• Supply chain challenges that could impact production and delivery. - Market volatility in end markets affecting revenue and margins. - Potential delays in product ramp-ups due to various factors like talent acquisition or technology adoption.

Q: Kyle Bleustein on Telecom business and ACC engagements A: Stephen Daly on 5G continuing to grow as a core business and satellite communications/LBO as pull factors, and that ACC engagements are ongoing with major hyperscalers but no comment on pre-revenue topics Q: David Williams on 100G to 200-gig transition A: Stephen Daly on 100G growth continuing and massive growth at higher data rates like 200 gig per lane for 1.6T as a fast-growing part of Data Center business Q: Harsh Kumar on growth drivers A: Stephen Daly on Data Center rollout, Telecom bounce back sequentially, and strong October bookings as key growth drivers Q: Karl Ackerman on backlog and order visibility A: Stephen Daly on healthy backlog but not breaking out by product line or market per se Q: Tore Svanberg on growth and capacity A: Stephen Daly on double-digit growth expected in 2026, driven by Data Center, and capacity managed well with actions like moving PDs to larger facilities Q: Blayne Curtis on book-to-bill A: Stephen Daly on book-to-bill variability over quarters but strong October bookings starting fiscal '26 well Q: Sean O'Loughlin on competitor merger A: Stephen Daly on no direct impact on MACOM as not in handset business, but potential opportunities from restructuring Q: William Stein on industrial market and gross margins A: Stephen Daly on industrial trends having positive potential and defense being a tailwind for gross margins Q: Tim Savageaux on data center growth sustainability A: Stephen Daly on sustainable growth with base case guidance, expecting continued growth in Data Center Q: Quinn Bolton on TIA/driver market share A: Stephen Daly on competitive landscape, not commenting on specific share shifts