Lattice Semiconductor Q2 2025 slides: Revenue grows 3.2%, record design wins

Introduction & Market Context

Lattice (OTC:LTTC) Semiconductor Corporation (NASDAQ:LSCC) presented its Q2 2025 corporate overview on August 4, 2025, highlighting financial growth and strategic positioning in the programmable logic market. The company reported quarterly revenue of $124 million, representing a 3.2% increase from the previous quarter, alongside improved profitability metrics and record design wins.

The presentation comes as Lattice continues its recovery from earlier challenges, with the stock closing at $48.99, down 0.55% for the day, though showing a 1.1% gain in aftermarket trading. The company’s focus on low-power programmable solutions appears to be gaining traction across multiple sectors, particularly in AI and cloud computing applications.

Quarterly Performance Highlights

Lattice reported solid financial results for Q2 2025, showing sequential improvement across key metrics. Revenue reached $124 million, up 3.2% from the previous quarter’s $120.15 million. The company achieved a gross margin of 69.3% and an adjusted EBITDA of 34.1%, while earnings per share increased to $0.24 from $0.22 in Q1.

As shown in the following quarterly financial overview, Lattice’s performance demonstrates continued recovery and growth momentum:

The company’s revenue breakdown shows a significant concentration in the Communications & Computing segment at 56%, followed by Industrial & Automotive at 38%, and Consumer at 6%. This represents a shift toward higher-margin communications and computing applications compared to previous quarters.

CEO Ford Tamer commented on the results: "We delivered another strong quarter, with broad-based growth across key financial metrics and record design wins. Communications and computing markets remain solid..."

The following chart illustrates Lattice’s financial performance trends over recent quarters, showing gradual improvement in key metrics:

Strategic Initiatives

Lattice positions itself as "The Low Power Programmable Leader," emphasizing three core value propositions that differentiate its offerings in the competitive FPGA market:

The company’s product portfolio spans multiple platforms including Avant, Nexus 2, and Nexus, with various device families targeting different application needs:

A key focus of Lattice’s strategy is its software solution stack, which enables customers to implement specialized applications more efficiently:

Lattice is particularly emphasizing its role in AI innovation, targeting three key areas: Gen AI servers, sensor proliferation, and intelligent edge computing. The company claims deployment at the majority of hyperscalers and OEM/ODMs, with some AI servers containing up to 50 Lattice FPGAs per rack.

Competitive Industry Position

Lattice claims to be the #1 supplier for small FPGAs worldwide, with a customer base that includes major technology companies across multiple sectors. The presentation highlights the company’s broad market reach from edge to cloud:

In the automotive sector, Lattice is targeting multiple application areas including infotainment, ADAS, networking, electric powertrain, edge AI, lighting, and security:

The company is also emphasizing its security innovation capabilities, focusing on hardware roots of trust, cyber resiliency, and post-quantum cryptography:

Forward-Looking Statements

While specific forward guidance wasn’t detailed in the presentation materials, Lattice’s emphasis on record design wins suggests confidence in future revenue growth. The company is expanding its product portfolio across software solutions, mid-range FPGAs, and small FPGAs, with multiple new products in development.

This represents a more optimistic outlook compared to the cautious stance taken during Q1 2025, when the company expressed concerns about potential tariff impacts and provided guidance for Q2 2025 revenue between $118.5 million and $128.5 million. The actual Q2 result of $124 million falls within this guidance range.

The company’s focus on AI, automotive, and security applications aligns with high-growth segments of the semiconductor market, potentially positioning Lattice for continued expansion if execution remains strong. However, investors should note that the broader semiconductor industry continues to face cyclical challenges and competitive pressures that could impact future performance.

Full presentation:

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