Lattice Semiconductor’s Q3 Earnings Call: Our Top 5 Analyst Questions

6 days ago 5

Jabin Bastian

Sun, November 9, 2025 astatine 11:34 PM CST 4 min read

Lattice Semiconductor’s 3rd 4th results were met with a antagonistic marketplace reaction, contempt the institution gathering Wall Street’s expectations for some gross and non-GAAP profit. Management attributed the quarter’s show to accelerating request successful communications and computing, particularly from information halfway and AI infrastructure customers. CEO Ford Tamer highlighted expanding plan wins successful low-power field-programmable gross arrays (FPGAs) for information center, security, and committee absorption applications, portion noting that normalization of transmission inventory successful concern and automotive markets remained a drag. Tamer acknowledged, “The momentum highlights our differentiated worth proposition... and sets the instauration for accelerated growth.”

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Revenue: $133.3 cardinal vs expert estimates of $133 cardinal (4.9% year-on-year growth, successful line)
Adjusted EPS: $0.28 vs expert estimates of $0.28 (in line)
Adjusted EBITDA: $47.45 cardinal vs expert estimates of $46.03 cardinal (35.6% margin, 3.1% beat)
Revenue Guidance for Q4 CY2025 is $143 cardinal astatine the midpoint, astir successful enactment with what analysts were expecting
Adjusted EPS guidance for Q4 CY2025 is $0.32 astatine the midpoint, astir successful enactment with what analysts were expecting
Operating Margin: -1.2%, down from 5.9% successful the aforesaid 4th past year
Inventory Days Outstanding: 193, down from 218 successful the erstwhile quarter
Market Capitalization: $8.68 billion

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

Kevin Garrigan (Jefferies) asked if assurance successful the 2026 outlook was babelike connected inventory normalization successful concern and auto. CEO Ford Tamer explained that accelerating communications and compute maturation would thrust results, portion inventory normalization would adhd further upside.
David Williams (The Benchmark Company) questioned what changed management’s assurance recently. Tamer and CFO Lorenzo Flores pointed to stronger bookings, accrued AI CapEx from hyperscalers, and greater lawsuit enactment arsenic cardinal changes successful the past 90 days.
Tristan Gerra (Robert W. Baird) pressed connected sequential maturation fluctuations successful communications and compute. Flores clarified that server request remained the main driver, and wide trajectory was robust contempt insignificant quarter-to-quarter variations.
Gary Mobley (Loop Capital) asked astir the magnitude of undershipment successful concern and automotive and immoderate proviso concatenation issues successful communications and compute. Tamer confirmed undershipment would beryllium resolved by year-end, and Flores noted extended pb times were manageable and provided amended proviso planning.
Melissa Weathers (Deutsche Bank) inquired astir the size of the post-quantum cryptography (PQC) marketplace and pricing trends. Tamer emphasized PQC’s relation successful information plan wins, portion Flores said the company’s pricing strategy remained value-driven and unchangeable contempt supplier pressures.