Lattice Semiconductor Delivers Strong Q3 Results as CEO Ford Tamer Highlights Record Communications and Computing Revenue and Accelerating Profitability

Lattice Semiconductor Corporation (Nasdaq: LSCC), the low power programmable leader, announced financial results today for the fiscal third quarter ended September 27, 2025.

Revenue for the third quarter of 2025 was $133.3 million, with GAAP gross margin of 67.9%, and GAAP net income of $0.02 per diluted share. On a non-GAAP basis, gross margin was 69.5%, with net income per diluted share of $0.28. GAAP net income and GAAP net income margin for the third quarter of 2025 were $2.8 million and 2.1%, respectively, with adjusted EBITDA of $47.4 million, which is a 35.6% adjusted EBITDA margin for the third quarter of 2025. GAAP net cash flow from operating activities for the third quarter of 2025 was $47.0 million, which is a GAAP operating cash flow margin of 35.3%, and free cash flow and free cash flow margin of $34.0 million and 25.5%, respectively.

Ford Tamer, Chief Executive Officer, said, "We delivered a strong quarter, with broad-based growth across our end markets, and grew non-GAAP earnings 17% quarter over quarter. Our Communications and Computing business achieved record revenue, and we are expecting continued growth into the fourth quarter and beyond. We continue to drive operating leverage and expand profitability, with significant revenue and non-GAAP EPS growth of 13% and 29%, respectively, expected in the second half of 2025 compared to the first half of 2025."

Lorenzo Flores, Chief Financial Officer, said, "We grew revenue, non-GAAP gross margin, and non-GAAP profitability both sequentially and on a year-on-year basis. Our Industrial and Automotive markets continue to recover, with inventory levels expected to be normalized by the end of the year, as discussed at the start of 2025. We remain focused on executing our strategy, including making investments to strengthen our leadership in Small and Mid-Range FPGAs."

* GAAP represents U.S. Generally Accepted Accounting Principles. Non-GAAP represents GAAP excluding the impact of certain activities which the Company's management excludes in analyzing the Company's operating results and in understanding trends in the Company's earnings. Additional information relating to these measures is included below in “Non-GAAP Financial Measures.” For a reconciliation of GAAP to non-GAAP results, see accompanying tables "Reconciliation of U.S. GAAP to Non-GAAP Financial Measures."

Recent Highlights:

• Industry's First PQC-Ready FPGA: Launched the Lattice MachXO5™-NX TDQ family delivers unmatched security, reliability, and flexibility for Computing, Communications, Industrial, and Automotive applications as the threat of quantum-enabled cyberattacks rises. This is the industry’s first secure control FPGAs with full Commercial National Security Algorithm (CNSA) 2.0-compliant post-quantum cryptography (PQC) support.
• Growing Business Momentum at OCP Global Summit: Recent AI announcements generated higher interest in Lattice's low-power solutions at the OCP Global Summit, and accelerated existing momentum of Lattice's datacenter solutions for hyperscalers, neo-Cloud, enterprise, server and communications OEMs, and ODM partners.
• Disciplined Capital Allocation: Lattice repurchased common stock valued at $85 million through the first nine months of 2025.
• Top Workplace: Lattice was recognized as a 2025 Top Workplace in Oregon and Southwest Washington, and a Top Workplace for Employee Appreciation and Employee Wellbeing.

Business Outlook - Fourth Quarter of 2025:

• Revenue for the fourth quarter of 2025 is expected to be between $138 million and $148 million.
• Gross margin percentage for the fourth quarter of 2025 is expected to be 69.5% plus or minus 1% on a non-GAAP basis.
• Total operating expenses for the fourth quarter of 2025 are expected to be between $54.5 million and $56.5 million on a non-GAAP basis.
• Income tax rate for the fourth quarter of 2025 is expected to be between 3% and 5% on a non-GAAP basis.
• Net income for the fourth quarter of 2025 is expected to be between $0.30 and $0.34 per share on a non-GAAP basis.

Non-GAAP Financial Measures: In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release makes reference to non-GAAP financial measures. With respect to the outlook for the fourth quarter of 2025, certain items that affect reconciliation of non-GAAP financial measures for non-GAAP gross margin percentage, non-GAAP total operating expenses, non-GAAP income tax rate, and non-GAAP net income arenot available on a forward-looking basis because such items cannot be reasonably calculated without unreasonable efforts due to the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP financial measures, including certain large and/or unpredictable charges such as stock-based compensation expense; performance-based equity expense; legal expense outside the ordinary course of business; restructuring; and impairment. Consequently, the Company is unable to calculate the most directly comparable GAAP measure to non-GAAP gross margin percentage, non-GAAP total operating expenses, non-GAAP income tax rate, and non-GAAP net income for the Company’s fourth quarter 2025 quarterly guidance.