Lattice Semiconductor Corporation Revenue & Financials

Lattice Semiconductor reported FY2025 revenue of $523.3 million for the fiscal year ended January 3, 2026, representing a 2.7% increase from $509.4 million in FY2024 and a 29.0% decline from the FY2023 peak of $737.2 million. The modest year-over-year growth masks a significant sequential acceleration: Q1 2025 revenue was $120.2 million, Q2 was $124.0 million, Q3 was $133.3 million, and Q4 was $145.8 million, with the company guiding Q1 2026 revenue to $170.9 million—a 42% year-over-year increase that signals the end of the inventory correction and the beginning of a new growth cycle. GAAP gross margin was 68.2% in FY2025, up from 66.8% in FY2024, while non-GAAP gross margin expanded to 69.3% from 67.4%. This margin expansion during a revenue recovery is unusual and reflects favorable product mix shift toward higher-margin Communications and Computing products, particularly control-plane FPGAs for AI servers. GAAP operating income was $11.2 million in FY2025, down from $34.5 million in FY2024, as the company increased R&D spending by 18.0% to $188.0 million and SG&A by 31.3% to $153.6 million to support growth initiatives and the CEO transition. However, non-GAAP operating income—which excludes stock-based compensation, restructuring, and other non-core charges—was $149.2 million, yielding a 28.5% non-GAAP operating margin, up from 25.1% in FY2024. This divergence between GAAP and non-GAAP results is primarily driven by stock-based compensation, which totaled $115.6 million in FY2025 compared to $53.0 million in FY2024, reflecting aggressive equity grants to attract and retain talent in a competitive semiconductor labor market. GAAP net income was $3.1 million ($0.02 per diluted share) in FY2025, down from $61.1 million ($0.44 per diluted share) in FY2024. Non-GAAP net income was $145.2 million ($1.05 per diluted share), up from $124.4 million ($0.90 per diluted share), demonstrating the company's underlying earnings power. The balance sheet at January 3, 2026, showed total assets of $883.1 million, total stockholders' equity of $714.1 million, and cash and cash equivalents of $133.9 million. The company carried minimal debt—total liabilities were just $169.1 million, giving Lattice a debt-to-equity ratio of approximately 5.4% and substantial financial flexibility to fund the pending AMI acquisition. Operating cash flow was $175.1 million in FY2025, with free cash flow of approximately $118.3 million over the trailing twelve months. Capital expenditures were $42.5 million, reflecting the fabless model's capital efficiency. The company returned $85.9 million to shareholders through stock repurchases in the first nine months of 2025 and maintained a disciplined capital allocation framework prioritizing organic growth, strategic M&A, and shareholder returns. The stock price, which traded as low as $46.43 in the prior 52 weeks, reached $155.82 by mid-2026, delivering a one-year total return of 237% that dramatically outperformed the S&P 500's 28% gain. At a market capitalization exceeding $18.5 billion, Lattice trades at approximately 35x trailing revenue and over 1,000x trailing GAAP earnings—valuation multiples that reflect investor optimism about the AMI acquisition and AI-driven demand but that also create substantial downside risk if execution falters.