NASDAQ$SMTC

Semtech Corp. · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Semtech's Q2 2025 financial results were announced, showcasing sequential growth in net sales and improvements in gross and operating margins.

Semtech reported a solid second quarter with sequential growth in net sales and improved margins. The company's financial performance reflects its strategic execution and disciplined approach to growth, positioning it favorably for future market opportunities.

  • Net sales reached $215.4 million, reflecting a 4% sequential increase.
  • GAAP gross margin improved to 49.0%, up 70 basis points sequentially.
  • GAAP operating margin increased to 3.6%, a 210 basis points sequential improvement.
  • Non-GAAP diluted earnings per share was reported at $0.11.

Headline financials

Total Revenue

$215M

Previous: $238M-9.7%
EPS

-$2.61

Previous: $0.11-2472.7%
GAAP Gross Margin

49.0%

Previous: 42.3%+15.8%
Non-GAAP Gross Margin

50.4%

Previous: 49.6%+1.6%
GAAP Operating Margin

3.6%

No prior period
Non-GAAP Operating Margin

14.2%

Previous: 13.6%+4.4%
Adjusted EBITDA Margin

18.8%

No prior period
Capital Expenditures

-$4.75M

Previous: -$20.9M+77.3%
Free Cash Flow

-$175M

Previous: -$403M+56.6%
Net Income

-$170M

Previous: -$382M+55.4%
Operating Income

$7.77M

Previous: -$300M+102.6%
Gross Profit

$105M

Previous: $101M+4.7%
Cash & Equivalents

$116M

Previous: $148M-21.6%
Total Assets

$1.37B

Previous: $2.12B-35.4%
R&D Expense

$40.1M

No prior period
Stock-Based Comp

$17.1M

Previous: $13.4M+27.9%

Revenue & EPS history

Semtech · Revenue · Quarterly

$215M

Q2 2025-9.7%vs Q2 2024
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Semtech · $291M total across 3 segments · Q1 2027

  • Signal Integrity
    $102M
  • Analog Mixed Signal and Wireless
    $101M
  • IoT Systems and Connectivity
    $88.3M

Forward guidance

Semtech anticipates net sales of $233.0 million +/- $5.0 million and a Non-GAAP gross margin of 52.0% +/- 50 bps for the third quarter of fiscal year 2025.

Tailwinds

  • Net sales are expected to be $233.0 million +/- $5.0 million.
  • Non-GAAP gross margin is projected to be 52.0% +/- 50 bps.
  • Operating income is forecasted to be $40.2 million +/- $2.8 million.
  • Operating margin is anticipated to be 17.2% +/- 80 bps.
  • Diluted earnings per share are expected to be $0.23 +/- $0.03.

Headwinds

  • Operating expenses, net are expected to be $81.0 million +/- $1.0 million.
  • Interest expense, net is projected to be $18.8 million.
  • The normalized tax rate is expected to be 15%.
  • Adjusted EBITDA is forecasted to be $48.7 million +/- $2.8 million.
  • Adjusted EBITDA margin is anticipated to be 20.9% +/- 80 bps.

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 Q2 2025

Historical avgQ2 2025

+1.9%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+4.0%

Avg return

30 days after

63%

43 / 68 earnings

Positive

+24.0%

Q3 2025

Best reaction

-28.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+1.7%-17.3%+15.1%
Q3 2026+2.3%+5.9%+7.9%
Q2 2026+15.2%+13.9%+20.8%
Q1 2026-4.3%-3.3%+15.8%
Q4 2025+21.1%+27.2%-18.7%
Q3 2025+24.0%+25.8%+26.7%
Q2 2025+14.6%+18.3%+28.0%
Q1 2025+1.6%-14.5%-11.7%
Q4 2024+5.4%+1.2%+28.4%
Q3 2024+16.4%+23.6%+22.7%
Q2 2024+10.8%+6.9%-3.5%
Q1 2024+6.5%+3.3%+18.2%
Q4 2023-18.8%-27.3%-37.4%
Q3 2023+1.7%+0.6%-2.1%
Q2 2023-28.2%-26.7%-37.2%
Q1 2023+0.4%-3.0%-18.9%
Q4 2022+9.8%+11.9%-2.2%
Q3 2022+4.1%-0.4%+3.8%
Q2 2022+12.6%+11.8%+12.6%
Q1 2022+3.4%+5.9%+7.5%
Q4 2021-4.7%+0.5%-2.5%
Q3 2021+2.1%+4.5%+6.1%
Q2 2021-4.9%-6.4%-18.2%
Q1 2021+4.9%+7.2%+2.5%
Q4 2020-12.4%-26.5%+17.9%
Q3 2020+0.5%+1.6%+15.9%
Q2 2020-2.9%-2.7%+13.6%
Q1 2020-5.6%-7.9%+10.7%
Q4 2019-4.8%-0.4%-2.8%
Q3 2019+12.9%+13.6%-1.5%
Q2 2019+13.9%+19.7%+11.4%
Q1 2019+8.0%+10.5%+5.0%
Q4 2018+10.7%+13.6%+23.7%
Q3 2018-12.1%-12.8%-11.7%
Q2 2018-0.1%-1.6%-0.3%
Q1 2018-1.3%-3.5%-3.8%
Q4 2017+1.6%+2.4%-0.1%
Q3 2017+2.8%+9.2%+11.5%
Q2 2017+4.7%+6.9%+5.6%
Q1 2017+2.5%+2.6%+0.6%
Q4 2016+5.1%
Q3 2016+0.4%
Q2 2016-2.2%
Q1 2016-8.1%
Q4 2015-12.0%
Q3 2015-1.6%
Q2 2015+7.7%
Q1 2015+8.6%
Q4 2014+3.0%
Q3 2014-4.7%
Q2 2014+0.8%
Q1 2014-3.1%
Q4 2013+8.3%
Q3 2013+11.8%
Q2 2013-1.4%
Q1 2013-0.1%
Q4 2012+0.0%
Q3 2012+0.7%
Q2 2012-6.8%
Q1 2011-4.6%
Q1 2012-1.2%
Q4 2009-1.4%
Q4 2011-1.4%
Q3 2011+1.9%
Q3 2010+1.9%
Q4 2010+4.7%
Q2 2010+4.7%
Q2 2011+4.7%

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