NASDAQ$SMTC

Semtech Corp. · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Reported net sales of $236.8 million, up 10% sequentially, with record data center net sales of $43.1 million, up 58% sequentially.

Semtech reported strong Q3 2025 results with broad-based growth across all end markets, particularly in the data center sector. The company reported positive operating and free cash flows and made principal prepayments on its credit facility.

  • Net sales reached $236.8 million, a 10% sequential increase.
  • Data center net sales hit a record $43.1 million, up 58% sequentially.
  • GAAP gross margin increased to 51.1%, up 210 basis points sequentially
  • Non-GAAP diluted earnings per share was $0.26.

Headline financials

Total Revenue

$237M

Previous: $201M+17.9%
EPS

-$0.10

Previous: $0.02-600.0%
GAAP Gross Margin

51.1%

No prior period
Non-GAAP Gross Margin

52.4%

No prior period
GAAP Operating Margin

7.5%

No prior period
Non-GAAP Operating Margin

18.3%

No prior period
Adjusted EBITDA Margin

21.6%

No prior period
Capital Expenditures

-$5.23M

Previous: -$27.5M+81.0%
Free Cash Flow

-$12.8M

Previous: -$65.7M+80.5%
Net Income

-$7.59M

Previous: -$38.3M+80.2%
Operating Income

$17.8M

Previous: -$12.4M+243.7%
Gross Profit

$121M

Previous: $93M+30.1%
Cash & Equivalents

$137M

Previous: $124M+10.2%
Total Assets

$1.38B

Previous: $2.04B-32.3%
R&D Expense

$42.6M

Previous: $46.8M-9.1%
Stock-Based Comp

$18.4M

Previous: $6.54M+181.5%

Revenue & EPS history

Semtech · Revenue · Quarterly

$237M

Q3 2025+17.9%vs Q3 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 approximately $250 million, plus or minus $5 million, and non-GAAP diluted earnings per share of $0.32, plus or minus $0.03 for Q4 2025.

Tailwinds

  • Net sales of $250.0 million +/-$5.0 million
  • Gross margin of 52.8% +/- 50 bps
  • Operating expenses, net of $82.8 +/- $1.0 million
  • Operating income of $49.2 +/- $2.8 million
  • Adjusted EBITDA of $56.9 +/- $2.8 million

Headwinds

  • Operating margin of 19.7% +/- 70 bps
  • Interest expense, net of $19.0 million
  • Normalized tax rate of 15%
  • Diluted earnings per share of $0.32 +/- $0.03
  • Adjusted EBITDA margin of 22.8% +/- 70 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 Q3 2025

Historical avgQ3 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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