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Lattice's Q3 Earnings Meet Estimates on Higher Revenues
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Key Takeaways
Lattice's Q3 revenues grew to $133.34M, matching estimates and driven by AI server market demand.
Non-GAAP EPS of $0.28 met expectations, supported by gains in the Communications & Computing segment.
Q4 revenues are projected between $138M-$148M with non-GAAP EPS seen in the $0.30-$0.34 range.
Lattice Semiconductor (LSCC - Free Report) reported relatively modest third-quarter 2025 results, with both the top and bottom lines matching the respective Zacks Consensus Estimate. The Hillsboro-based semiconductor company reported a revenue expansion backed by healthy traction in the AI server market. Management’s strong focus on expanding the FPGA portfolio through innovations is a tailwind.
Net Income
On a GAAP basis, the company reported a net income of $2.79 million or 2 cents per share compared with $7.19 million or 5 cents per share in the year-ago quarter. Higher operating expenses primarily contributed to the decline in the bottom line.
Non-GAAP net income in the reported quarter was $38.15 million or 28 cents per share compared with $32.54 million or 24 cents per share in the prior-year quarter. The adjusted earnings matched the Zacks Consensus Estimate.
Lattice Semiconductor Corporation Price, Consensus and EPS Surprise
Net sales in the quarter rose to $133.34 million from $127.09 million in the year-ago quarter, backed by solid growth in the Communications & Computing segment. The top line matched the consensus estimate of $133 million.
In the third quarter, Communications and Computing revenues increased to $74 million from $61 million with normalized inventory, solid demand and strength in AI server market. Revenues from Industrial and Automotive declined to $50.3 million from $54.2 million in the prior-year quarter, owing to higher channel inventory levels. Total Consumer revenues were $9 million, down from $11.9 million. Region-wise, in the third quarter of 2025, the company generated 65% of revenue from Asia, while 19% of the net sales came from the Americas. Europe and Africa contributed 16% of the total revenues. Other Details
Adjusted EBITDA increased to $47.4 million from $42.5 million in the year-ago quarter. GAAP operating expenses rose to $92.1 million from $80.2 million in the year-ago quarter.
Cash Flow & Liquidity
In the first nine months of 2025, Lattice generated $117.5 million in cash from operating activities compared with $95.4 million in the prior-year period. As of Sept. 27, 2025, the company had $117.9 million in cash and cash equivalents with $17.6 million in other long-term liabilities. Outlook
For the fourth quarter of 2025, Lattice expects revenues in the range of $138-$148 million. Non-GAAP gross margin is anticipated to be in the band of 68.5%-70.5%. Non-GAAP total operating expenses are projected to be in the range of $54.5-$56.5 million, with non-GAAP net income within 30-34 cents per share.
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. The company delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.
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Lattice's Q3 Earnings Meet Estimates on Higher Revenues
Key Takeaways
Lattice Semiconductor (LSCC - Free Report) reported relatively modest third-quarter 2025 results, with both the top and bottom lines matching the respective Zacks Consensus Estimate. The Hillsboro-based semiconductor company reported a revenue expansion backed by healthy traction in the AI server market. Management’s strong focus on expanding the FPGA portfolio through innovations is a tailwind.
Net Income
On a GAAP basis, the company reported a net income of $2.79 million or 2 cents per share compared with $7.19 million or 5 cents per share in the year-ago quarter. Higher operating expenses primarily contributed to the decline in the bottom line.
Non-GAAP net income in the reported quarter was $38.15 million or 28 cents per share compared with $32.54 million or 24 cents per share in the prior-year quarter. The adjusted earnings matched the Zacks Consensus Estimate.
Lattice Semiconductor Corporation Price, Consensus and EPS Surprise
Lattice Semiconductor Corporation price-consensus-eps-surprise-chart | Lattice Semiconductor Corporation Quote
Revenues
Net sales in the quarter rose to $133.34 million from $127.09 million in the year-ago quarter, backed by solid growth in the Communications & Computing segment. The top line matched the consensus estimate of $133 million.
In the third quarter, Communications and Computing revenues increased to $74 million from $61 million with normalized inventory, solid demand and strength in AI server market. Revenues from Industrial and Automotive declined to $50.3 million from $54.2 million in the prior-year quarter, owing to higher channel inventory levels. Total Consumer revenues were $9 million, down from $11.9 million.
Region-wise, in the third quarter of 2025, the company generated 65% of revenue from Asia, while 19% of the net sales came from the Americas. Europe and Africa contributed 16% of the total revenues.
Other Details
Adjusted EBITDA increased to $47.4 million from $42.5 million in the year-ago quarter. GAAP operating expenses rose to $92.1 million from $80.2 million in the year-ago quarter.
Cash Flow & Liquidity
In the first nine months of 2025, Lattice generated $117.5 million in cash from operating activities compared with $95.4 million in the prior-year period. As of Sept. 27, 2025, the company had $117.9 million in cash and cash equivalents with $17.6 million in other long-term liabilities.
Outlook
For the fourth quarter of 2025, Lattice expects revenues in the range of $138-$148 million. Non-GAAP gross margin is anticipated to be in the band of 68.5%-70.5%. Non-GAAP total operating expenses are projected to be in the range of $54.5-$56.5 million, with non-GAAP net income within 30-34 cents per share.
Zacks Rank
Lattice currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. The company delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.