$SMTC (+3.05%) Semtech Corporation reported earnings

Q3 FY2025 results ended October 27th, 2024

- Revenue: $236.8M, +17.9% YoY

- Net loss: $7.6M vs loss of $38.3M YoY

- Record data center sales of $43.1M, +58% QoQ

- Adjusted EBITDA: $51.1M, margin of 21.6% vs 14.0% YoY

CEO Hong Hou: "We are very pleased to report broad-based growth across each of our end markets, and particularly in data center, where we project AI-driven product demand to be a long-term and transformational growth engine for Semtech."

Revenue & Growth

- Net sales: $236.8M, +17.9% YoY, +10% QoQ

- Data center sales reached record $43.1M, +58% QoQ

- Successfully driving market share gains and SAM expansion

- Broad-based growth across all end markets

Profits & Financials

- GAAP gross margin: 51.1%, up from 46.3% YoY

- Operating margin: 7.5% vs -6.2% YoY

- Interest expense: $20.3M vs $27.7M YoY

- Free cash flow: $29.1M vs -$12.4M YoY

Business Highlights

- Made principal prepayments on credit facility in Q3 and Q4

- Achieved multi-generational roadmap alignment with customers

- Demonstrated leverage in operating model

- Maintained prudent spending while driving growth

Future Outlook (Q4 FY2025)

- Revenue: $250M ± $5M

- Non-GAAP gross margin: 52.8% ± 50bps

- Operating margin: 19.7% ± 70bps

- Diluted EPS: $0.32 ± $0.03

- Adjusted EBITDA margin: 22.8% ± 70bps