Lattice shares jump 10.7% after hours; Q3 profit tops estimates

Lattice Semiconductor said on Nov. 2 that third-quarter revenue rose 118.3% from a year earlier to $291.0 million, and it expects fourth-quarter revenue of $325 million to $345 million.

Shares jumped 10.7% in after-hours trading as of 5:30 p.m. ET, from a regular-session close of $95.47.

The company's press release said non-GAAP earnings were 72 cents per diluted share, which topped the 56 cents consensus estimate compiled by Finnhub.

The quarter is the first to include AMI, which Lattice completed acquiring on July 27. Results include AMI from that date, while prior periods do not.

Lattice sells programmable chips and platform firmware for the Compute, Communications, Industrial and Embedded markets.

Here's how the company did:

• Revenue: $291.0 million vs. $133.3 million a year earlier
• Non-GAAP EPS: 72 cents vs. 56 cents expected, according to Finnhub
• GAAP net income: $11.2 million, or 8 cents per diluted share, vs. $2.8 million a year earlier

GAAP gross margin was 67.4%, down from 67.9% a year earlier, while non-GAAP gross margin was 70.9%.

Revenue has risen in each of the last three quarters, from $133.3 million in the third quarter of 2025 to $201.1 million in the second quarter of fiscal 2026, according to its SEC filings.

Chief Executive Officer Ford Tamer said, "Strong bookings, backlog and design wins support our fourth-quarter revenue outlook of approximately $335 million and reinforce our confidence in growth into 2027 and beyond."

Guidance

For the fourth quarter, the company expects non-GAAP net income of 82 cents to 86 cents per share.

It also expects non-GAAP gross margin of 72.0%, plus or minus 1%, and non-GAAP operating expenses of $95 million to $101 million.

The company expects a non-GAAP income tax rate of 4% to 6%.

Segment results

FPGA revenue grew approximately 90% from a year earlier, the company said.

Compute and Communications revenue was $171.9 million, up from $74.0 million a year earlier. Industrial and Embedded revenue was $80.0 million, up from $59.3 million. AMI contributed $39.1 million.

Costs and cash

Acquisition-related expenses were $25.9 million in the quarter. Interest expense, net was $9.6 million.

Adjusted EBITDA was $131.0 million, a 45.0% margin, compared with $47.4 million a year earlier.

Operating cash flow was $95.0 million, and free cash flow was $77.6 million. Long-term debt was $869.1 million at the end of the quarter.