NASDAQ$ALGM

Allegro MicroSystems Inc · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Delivered on commitments with third quarter sales and non-GAAP EPS both above the midpoint of guidance.

Allegro MicroSystems reported Q3 2025 sales of $177.872 million and non-GAAP EPS of $0.07, exceeding the midpoint of guidance. The company introduced a record number of new magnetic sensing and power products, expanding its differentiated portfolios and positioning itself for above-market growth.

  • Delivered third quarter sales above guidance.
  • Introduced a record number of new magnetic sensing and power products.
  • Expanded differentiated portfolios.
  • Positioned well for above market growth.

Headline financials

Total Revenue

$178M

Previous: $255M-30.2%
EPS (adj)

$0.07

Previous: $0.17-58.8%
Non-GAAP Gross Margin

49.1%

No prior period
Non-GAAP Operating Margin

10.8%

No prior period
Adjusted EBITDA Margin

17.0%

No prior period
Non-GAAP Free Cash Flow % of Net Sales

-12.3%

No prior period
Operating Margin

0.0%

No prior period
GAAP Gross Margin

45.7%

No prior period
Capital Expenditures

-$34.6M

Previous: -$111M+68.7%
Net Income

-$6.8M

Previous: $33.3M-120.4%
Operating Income

-$41K

Previous: $36.7M-100.1%
Gross Profit

$81.2M

Previous: $134M-39.3%
R&D Expense

$42.4M

Previous: $43.1M-1.7%
Stock-Based Comp

$10.6M

Previous: $10.9M-3.0%

Revenue & EPS history

Allegro MicroSystems · Revenue · Quarterly

$178M

Q3 2025-30.2%vs Q3 2024
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Allegro MicroSystems · $890M total across 2 segments · Q4 2026

  • Automotive
    $629M
  • Industrial and Other
    $262M

Forward guidance

For the fourth quarter of fiscal year 2025 ending March 28, 2025, the Company expects total net sales to be in the range of $180 million to $190 million. The Company also estimates the following results on a non-GAAP basis:

Tailwinds

  • Gross Margin is expected to be between 46% and 48%, which contemplates the impact of annual pricing agreements ahead of cost reductions, as well as higher capacity charges resulting from adjusted production levels in the quarter,
  • Operating expenses are expected to increase by approximately 5% sequentially to $72 million, primarily due to annual payroll tax resets,
  • As a result of the expected repricing of the term loan and anticipated $30 million Q4 debt repayment, the Company now expects Interest Expense to be approximately $6 million, and
  • Diluted Earnings per Share are expected to be between $0.03 and $0.07.
  • Diluted Earnings per Share are expected to be between $0.03 and $0.07.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+1.4%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+5.9%

Avg return

30 days after

62%

16 / 26 earnings

Positive

+15.2%

Q3 2023

Best reaction

-16.3%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-6.7%
Q3 2026+9.8%+12.6%+5.6%
Q2 2026-1.3%-10.7%-13.2%
Q1 2026-7.2%-7.8%-8.9%
Q4 2025+12.7%+40.7%+54.1%
Q3 2025+5.0%+4.8%-2.4%
Q2 2025-5.0%-7.1%-2.2%
Q1 2025-5.2%-11.4%+2.0%
Q4 2024-8.9%-2.8%+0.1%
Q3 2024+10.5%+14.0%+25.2%
Q2 2024+1.3%+1.6%+5.9%
Q1 2024-16.3%-17.6%-25.9%
Q4 2023+4.8%+3.2%+5.7%
Q3 2023+15.2%+20.7%+28.3%
Q2 2023+11.8%+14.0%+36.5%
Q1 2023+3.9%+6.4%+2.2%
Q4 2022-9.4%-6.6%-3.2%
Q3 2022+0.9%-2.0%-5.1%
Q2 2022+2.0%-4.0%-5.4%
Q1 2021+8.4%+11.6%+20.3%
Q1 2022+8.4%+11.6%+20.3%
Q4 2020+3.1%-0.7%+11.7%
Q4 2021+3.1%-0.7%+11.7%
Q3 2020-4.4%-0.6%-16.2%
Q3 2021-4.4%-0.6%-16.2%
Q2 2021+5.5%+9.4%+17.4%
Q2 2020
Q1 2020

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