Lattice Semiconductor Corporation (Nasdaq: LSCC), a leading player in low-power programmable solutions, unveiled impressive financial results for the third quarter of 2025, ending September 27, showcasing robust growth in its Communications and Computing segments. The company reported a record revenue of $133.3 million, marking a 7.6% increase from the previous quarter and a 4.9% rise year-over-year.

On the profitability front, Lattice achieved a GAAP gross margin of 67.9% and a net income of $2.8 million, translating to $0.02 per diluted share. Adjusted for non-GAAP metrics, the gross margin improved to 69.5%, with net income per diluted share reaching $0.28. The company reported an adjusted EBITDA of $47.4 million, reflecting a strong 35.6% adjusted EBITDA margin.

2. Operating Cash Flow and Free Cash Flow Highlights

The operating cash flow for the quarter stood at $47.0 million, yielding a GAAP operating cash flow margin of 35.3%. Additionally, Lattice generated a free cash flow of $34.0 million, with a free cash flow margin of 25.5%. These figures underscore the company's operational efficiency and commitment to generating shareholder value.

3. Executive Insights

Ford Tamer, Lattice Semiconductor's Chief Executive Officer, expressed satisfaction with the quarterly results, stating, "We delivered a strong quarter, with broad-based growth across our end markets, and grew non-GAAP earnings 17% quarter over quarter." Tamer emphasized the record revenue achieved in the Communications and Computing business, coupled with an optimistic outlook for sustained growth into the fourth quarter and beyond. He noted a significant anticipated increase in revenue and non-GAAP EPS of 13% and 29%, respectively, in the latter half of 2025 compared to the first half.

CFO Lorenzo Flores highlighted the company's successful trajectory, pointing out growth in revenue, non-GAAP gross margin, and profitability on both a sequential and year-over-year basis. He noted that Lattice's Industrial and Automotive markets are rebounding, with inventory levels expected to normalize by the year's end. Flores added, "We remain focused on executing our strategy, including making investments to strengthen our leadership in Small and Mid-Range FPGAs."

4. Business Outlook for Fourth Quarter 2025

Looking ahead, Lattice Semiconductor provided guidance for the fourth quarter of 2025, projecting a revenue growth of 22% year-over-year. The company anticipates total operating expenses for the quarter to be between $54.5 million and $56.5 million on a non-GAAP basis. This updated guidance reflects Lattice's ongoing commitment to driving profitability while investing in future growth opportunities.

5. Selected Financial Results Summary

The following table provides a snapshot of Lattice Semiconductor's key financial metrics for Q3 2025 compared to previous quarters:

Metric	Q3 2025	Q2 2025	Q3 2024	Q/Q Change	Y/Y Change
Revenue	$133,349	$123,971	$127,091	7.6%	4.9%
GAAP Gross Margin %	67.9%	68.4%	69.0%	-0.5%	-1.1%
Non-GAAP Gross Margin %	69.5%	69.3%	69.0%	0.2%	0.5%
Operating Expenses	$92,061	$80,045	$80,161	15.0%	14.8%
Net Income	$2,794	$2,913	$7,190	-4.1%	-61.1%
Net Income per Share - Diluted	$0.02	$0.02	$0.05	0%	-$0.03

6. Conclusion

Lattice Semiconductor's latest earnings report underscores its strong market position and operational efficiency, particularly within the Communications and Computing sectors. With a promising outlook for continued revenue growth and strategic investments in key areas, Lattice is well-positioned to navigate the evolving landscape of programmable solutions. Investors and analysts alike will be keenly observing the company's performance as it heads into the final quarter of 2025.

Original press release