Lattice's Q3 Earnings Meet Estimates on Higher Revenues

Lattice Semiconductor LSCC 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.

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 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 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 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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This article originally published on Zacks Investment Research (zacks.com).

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