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Why Is Lattice (LSCC) Down 14.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Lattice Semiconductor (LSCC - Free Report) . Shares have lost about 14.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lattice due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Lattice Semiconductor Corporation before we dive into how investors and analysts have reacted as of late.
Lattice's Q4 Earnings Meet Estimates on Healthy Revenue Growth
Lattice reported relatively modest fourth-quarter 2025 results, with revenues beating the Zacks Consensus Estimate and adjusted earnings meeting the same.
The Hillsboro-based semiconductor company reported revenue growth driven by rising AI and data center demand, higher FPGA attach rates, and increasing average selling prices as customers adopt newer platforms and design wins.
Net Income
On a GAAP basis, the company reported a net loss of $7.6 million or a loss of 6 cents per share against a net income of $16.5 million or 12 cents per share in the year-ago quarter. Despite higher revenues, GAAP earnings declined sharply due to higher operating costs and income tax expense.
Non-GAAP net income in the reported quarter was $43.7 million or 32 cents per share compared with $20.2 million or 15 cents per share in the prior-year quarter. The adjusted earnings were in line with the Zacks Consensus Estimate.
For 2025, Lattice reported GAAP net income of $3.1 million or 2 cents per share compared with $61.1 million or 44 cents per share in 2024. Non-GAAP net income for 2025 was $145.2 million or $1.05 per share compared with $124.4 million or 90 cents per share in 2024.
Revenues
Net sales in the quarter rose to $145.8 million from $117.4 million in the year-ago quarter, backed by solid growth in the Communications & Computing segment. The top line beat the Zacks Consensus Estimate of $143.5 million. For 2025, revenues increased to $523.3 million from $509.4 million in 2024.
In the fourth quarter, Communications and Computing revenues increased to $92.6 million from $58 million, driven by sustained datacenter momentum. Revenues from Industrial and Automotive declined to $44.1 million from $49.2 million in the prior-year quarter. Total Consumer revenues were $9.1 million, down from $10.2 million.
Region-wise, in the fourth quarter of 2025, the company generated 73% of revenues from Asia, while 14% of the net sales came from the Americas. Europe and Africa contributed 13% of the total revenues.
Other Details
Non-GAAP gross profit aggregated $101.2 million compared with $72.9 million in the year-ago quarter, with respective margins of 69.4% and 62.1%. For 2025, non-GAAP gross profit increased to $362.7 million from $343.2 million in 2024, with respective margins of 69.3% and 67.4%.
During the quarter, non-GAAP operating expenses increased to $56.4 million from the prior-year figure of $52.8 million, and adjusted EBITDA increased to $53.2 million from $29.1 million in the year-ago quarter, with respective margins of 36.5% and 24.8%.
Cash Flow & Liquidity
In the fourth quarter, Lattice generated $57.6 million in cash from operations compared with $45.4 million in the year-earlier quarter. For 2025, the company generated $175.1 million of cash from operating activities compared with $140.9 million in 2024.
As of Jan. 3, 2026, it had $133.9 million in cash and cash equivalents with $15.3 million of other long-term liabilities compared with respective tallies of $136.3 million and $23.9 million a year ago.
Outlook
For the first quarter of 2026, Lattice expects revenues in the range of $158-$172 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 $59-$61 million, and non-GAAP earnings are expected to be in the band of 34-38 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 18.21% due to these changes.
VGM Scores
Currently, Lattice has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lattice has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Lattice (LSCC) Down 14.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Lattice Semiconductor (LSCC - Free Report) . Shares have lost about 14.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lattice due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Lattice Semiconductor Corporation before we dive into how investors and analysts have reacted as of late.
Lattice's Q4 Earnings Meet Estimates on Healthy Revenue Growth
Lattice reported relatively modest fourth-quarter 2025 results, with revenues beating the Zacks Consensus Estimate and adjusted earnings meeting the same.
The Hillsboro-based semiconductor company reported revenue growth driven by rising AI and data center demand, higher FPGA attach rates, and increasing average selling prices as customers adopt newer platforms and design wins.
Net Income
On a GAAP basis, the company reported a net loss of $7.6 million or a loss of 6 cents per share against a net income of $16.5 million or 12 cents per share in the year-ago quarter. Despite higher revenues, GAAP earnings declined sharply due to higher operating costs and income tax expense.
Non-GAAP net income in the reported quarter was $43.7 million or 32 cents per share compared with $20.2 million or 15 cents per share in the prior-year quarter. The adjusted earnings were in line with the Zacks Consensus Estimate.
For 2025, Lattice reported GAAP net income of $3.1 million or 2 cents per share compared with $61.1 million or 44 cents per share in 2024. Non-GAAP net income for 2025 was $145.2 million or $1.05 per share compared with $124.4 million or 90 cents per share in 2024.
Revenues
Net sales in the quarter rose to $145.8 million from $117.4 million in the year-ago quarter, backed by solid growth in the Communications & Computing segment. The top line beat the Zacks Consensus Estimate of $143.5 million. For 2025, revenues increased to $523.3 million from $509.4 million in 2024.
In the fourth quarter, Communications and Computing revenues increased to $92.6 million from $58 million, driven by sustained datacenter momentum. Revenues from Industrial and Automotive declined to $44.1 million from $49.2 million in the prior-year quarter. Total Consumer revenues were $9.1 million, down from $10.2 million.
Region-wise, in the fourth quarter of 2025, the company generated 73% of revenues from Asia, while 14% of the net sales came from the Americas. Europe and Africa contributed 13% of the total revenues.
Other Details
Non-GAAP gross profit aggregated $101.2 million compared with $72.9 million in the year-ago quarter, with respective margins of 69.4% and 62.1%. For 2025, non-GAAP gross profit increased to $362.7 million from $343.2 million in 2024, with respective margins of 69.3% and 67.4%.
During the quarter, non-GAAP operating expenses increased to $56.4 million from the prior-year figure of $52.8 million, and adjusted EBITDA increased to $53.2 million from $29.1 million in the year-ago quarter, with respective margins of 36.5% and 24.8%.
Cash Flow & Liquidity
In the fourth quarter, Lattice generated $57.6 million in cash from operations compared with $45.4 million in the year-earlier quarter. For 2025, the company generated $175.1 million of cash from operating activities compared with $140.9 million in 2024.
As of Jan. 3, 2026, it had $133.9 million in cash and cash equivalents with $15.3 million of other long-term liabilities compared with respective tallies of $136.3 million and $23.9 million a year ago.
Outlook
For the first quarter of 2026, Lattice expects revenues in the range of $158-$172 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 $59-$61 million, and non-GAAP earnings are expected to be in the band of 34-38 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 18.21% due to these changes.
VGM Scores
Currently, Lattice has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a grade of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lattice has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.