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Introduction & Market Context
Lattice Semiconductor Corporation (NASDAQ:LSCC) presented its Q3 2025 earnings results on November 3, 2025, showcasing quarterly revenue of $133.3 million and continued momentum in its core business segments. The company’s stock, which closed at $72.96 (down 0.19%) in regular trading, saw a 1.4% increase to $73.98 in after-hours trading following the earnings release.
The low-power programmable leader continues to benefit from increased AI adoption across its product portfolio, with its Communications & Computing segment achieving record revenue. Lattice’s performance remains solid against the backdrop of normalizing inventory levels in the Industrial and Automotive sectors.
Quarterly Performance Highlights
Lattice reported Q3 2025 revenue of $133.3 million, representing a 7.6% increase quarter-over-quarter and a 4.9% rise year-over-year. The company maintained strong profitability with a non-GAAP gross margin of 69.5% and adjusted EBITDA of 35.6%.
CEO Ford Tamer highlighted the company’s performance in the earnings presentation, noting the broad-based growth and strong non-GAAP earnings. "We are seeing the AI infrastructure tsunami," Tamer remarked during the earnings call, emphasizing Lattice’s strategic focus on AI-driven growth opportunities.
As shown in the following revenue breakdown by end market, Communications & Computing has emerged as Lattice’s dominant segment:
The Communications & Computing segment now accounts for 56% of total revenue, followed by Industrial & Automotive at 38%, and Consumer at 6%. This distribution reflects Lattice’s strategic pivot toward higher-growth technology markets, particularly those leveraging AI capabilities.
Detailed Financial Analysis
Lattice’s financial results demonstrate a consistent growth trajectory over multiple quarters. The company’s revenue has shown steady improvement from $115.7M in Q1 2021 to the current $133.3M in Q3 2025.
The following financial charts illustrate Lattice’s performance trends across key metrics:
Operating profit reached $38.7 million in Q3 2025, representing an operating margin of 29%. This reflects Lattice’s ability to maintain profitability while investing in growth initiatives. Earnings per share came in at $0.28, meeting analyst expectations and showing a 17% increase year-over-year.
The company’s cash flow generation remains robust, with operating cash flow of $47.1 million (35.4% margin) and free cash flow of $34 million (25.5% margin) for the quarter, providing Lattice with financial flexibility for future investments and potential shareholder returns.
Strategic Initiatives & Product Development
Lattice continues to execute on its product roadmap, with the Q3 presentation highlighting the launch of the Lattice MachXO5™ NX TDQ family. This new product line strengthens the company’s position in the programmable logic market and addresses emerging customer requirements.
The company reported increasing AI usage across its product portfolio, aligning with broader industry trends toward AI integration in various applications. During the earnings call, management indicated that AI server content is significantly higher compared to traditional servers, providing a growth catalyst for Lattice’s solutions.
Lattice also noted progress in normalizing Industrial and Automotive channel inventory, suggesting improved supply chain conditions that could support future growth. The company remains on track to achieve high-teens percentage of new product revenue for the full year 2025, indicating successful market adoption of recent product introductions.
Forward Guidance & Outlook
Looking ahead, Lattice provided an optimistic outlook for Q4 2025, with revenue expected to range between $138 million and $148 million. This guidance represents potential sequential growth of 3.5% to 11% and year-over-year growth of approximately 22%.
The detailed Q4 2025 outlook is presented in the following guidance slide:
Gross margin is projected to remain strong at 69.5% (±1%) on a non-GAAP basis, while operating expenses are expected to be between $54 million and $55 million. The company forecasts earnings per share in the range of $0.30 to $0.34, which would represent sequential growth of 7% to 21% compared to Q3 2025.
Management expressed confidence in the company’s growth trajectory, particularly in the Communications and Computing sectors, where they anticipate 20-40% growth. Lattice expects data center revenue to constitute approximately 60% of total revenue by 2026, highlighting the strategic importance of this market segment.
As Lattice continues to focus on AI applications and expand its Nexus platform, the company appears well-positioned to capitalize on emerging opportunities in programmable logic solutions while navigating potential challenges in supply chain management and evolving market dynamics.
Full presentation:
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