Companies /Technology

Semtech Corp

NASDAQ: SMTC Semiconductors
$132.15
▼ $0.81 (−0.61%) today
Markets closed · 4:19pm ET

Q4 2025 Earnings

Reported Mar 13, 2025, 4:13pm ET · SEC source
$0.40
Beat +25.63%
EPS · est. $0.32
$251.0M
Beat +0.70%
Revenue · est. $249.3M
−15.2%
Trailing market
SMTC vs S&P since report
7 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Mar 13Mar 14report 4:13pm ETearnings+1.6%+9.3%
−12%−6%0+6%Mar 13Mar 14earnings+1.6%+9.3%
SMTC +9.3%S&P 500 +1.6%
−12%−6%0+6%Mar 13Mar 14report 4:13pm ETearnings+2.0%+9.3%
−12%−6%0+6%Mar 13Mar 14earnings+2.0%+9.3%
SMTC +9.3%NASDAQ +2.0%
−8%0+8%+16%Mar 12Mar 21report 4:13pm ETearnings+2.2%+8.4%
−8%0+8%+16%Mar 12Mar 21earnings+2.2%+8.4%
SMTC +8.4%S&P 500 +2.2%
−8%0+8%+16%Mar 12Mar 21report 4:13pm ETearnings+2.6%+8.4%
−8%0+8%+16%Mar 12Mar 21earnings+2.6%+8.4%
SMTC +8.4%NASDAQ +2.6%
−3.37%
Day of report
+21.06%
Next session
+24.24%
One week
−17.46%
30 days

S&P 500 over the same 30 days: −2.23%.

Did SMTC Beat Earnings? Q4 2025 Results

Semtech closed out fiscal year 2025 on a note of genuine recovery, posting Q4 revenue of $251.00 million, up 6% sequentially and well ahead of the $192.90 million reported in the year-ago quarter, while non-GAAP diluted EPS came in at $0.40. The most compelling part of the story was the balance sheet transformation: total long-term debt fell from $1.37 billion to $505.90 million, a 68% reduction in net debt year-over-year that CFO Mark Lin flagged as a defining achievement of the fiscal year. That deleveraging, though it came at the cost of a $144.70 million debt extinguishment loss during FY25, helped stockholders' equity swing from a deficit of $307.40 million to a positive $542.40 million. GAAP net income reached $39.10 million, a sharp reversal from the $642.40 million loss in Q4 FY24, which had been burdened by massive goodwill and intangible impairments. Looking ahead, Semtech guided Q1 FY26 revenue of $250.00 million and non-GAAP diluted EPS of $0.37, with management focused on portfolio simplification, strategic R&D investment, and continued margin expansion.

Key Takeaways
  • Sequential improvement in net sales, gross margin, operating margin, and EPS each quarter of FY25
  • Significant debt reduction with net debt decreasing 68% year-over-year
  • GAAP gross margin expansion to 52.0% in Q4, up from negative 0.2% in Q4 FY24
  • Non-GAAP adjusted EBITDA margin expanded to 23.0% in Q4 from 12.5% in Q4 FY24
  • Free cash flow turned positive at $30.9 million in Q4 vs $12.2 million in Q4 FY24

“Fiscal year 2025 represented a year of positive inflection on many fronts, with sequential improvement for each quarter reported in net sales, gross margin, operating margin and earnings per share.”

Semtech CEO, on the earnings call

Forward Guidance & Outlook

For Q1 fiscal year 2026, Semtech guided net sales of $250.0 million +/- $5.0 million, non-GAAP adjusted gross margin of 53.0% +/- 50 bps, non-GAAP adjusted operating expenses of $87.0 million +/- $1.0 million, non-GAAP adjusted operating income of $45.5 million +/- $3.0 million, non-GAAP adjusted operating margin of 18.2% +/- 80 bps, non-GAAP adjusted interest expense of $6.3 million, non-GAAP adjusted diluted EPS of $0.37 +/- $0.03, non-GAAP adjusted EBITDA of $53.3 million +/- $3.0 million, and non-GAAP adjusted EBITDA margin of 21.3% +/- 80 bps. The company's three core priorities for the new fiscal year are portfolio optimization and simplification, strategic R&D investment, and driving margin expansion.

SMTC YoY Financials

Revenue$251.0M
Gross Profit$130.5M
Operating Income$21.2M
Net Income$39.1M

SMTC Revenue by Segment

Signal Integrity
Analog Mixed Signal and Wireless
IoT Systems and Connectivity

Figures from SEC filings and company reports. Not investment advice.