10-Q · August 4, 2026
Lattice delivered Q2 revenue of $201.079 million, up 62.2% year over year and 17.7% sequentially, with both end-market groups expanding and gross margin reaching 70.3%. GAAP operating margin improved sharply from 3.8% a…
Earnings analysis · 10-Q
LSCC earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Lattice delivered strong year-over-year growth, with revenue up 118.3% to $291.035 million and GAAP operating margin improving to 8.2% from negative 1.2%. FPGA growth was supplemented by $39.101 million of AMI revenue,…
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Lattice delivered strong year-over-year growth, with revenue up 118.3% to $291.035 million and GAAP operating margin improving to 8.2% from negative 1.2%. FPGA growth was supplemented by $39.101 million of AMI revenue, while management cited data-center, AI-server, hyperscaler and recovering industrial demand as key drivers. The principal offsets are a 50-basis-point gross-margin decline, $25.881 million of acquisition-related expense, and substantially higher leverage following the AMI acquisition.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.08
What stood out
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Revenue more than doubled year over year
Revenue was $291.035 million, up $157.686 million, or 118.3%, from $133.349 million in the prior-year quarter. Compute and Communications revenue increased 132% to $171.874 million, while Industrial and Embedded revenue increased 35% to $80.060 million.
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GAAP EPS and net income improved
GAAP diluted EPS rose to $0.08 from $0.02, while net income increased to $11.206 million from $2.794 million. The filing's non-GAAP earnings data is not included in the GAAP financial statements.
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Gross margin held near prior-year level
Gross margin was 67.4%, down 50 basis points from 67.9% in the prior-year quarter. Management attributed the decline primarily to $6.987 million of AMI-related acquired-intangible amortization and higher stock-based compensation, partly offset by product volume and mix.
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Operating profitability returned
Operating margin improved to 8.2% from negative 1.2%, a 940-basis-point increase. Operating income was $23.968 million versus an operating loss of $1.534 million, despite $25.881 million of acquisition-related expense.
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Both reportable segments contributed
The FPGA segment generated $251.934 million of revenue and $101.368 million of operating income, versus $133.349 million and $35.470 million, respectively, in the prior-year quarter. AMI contributed $39.101 million of revenue and $12.159 million of operating income after the July 27 acquisition.
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Cash generation increased materially
Nine-month operating cash flow was $233.594 million versus $117.523 million a year earlier, while capital expenditures were $34.967 million versus $28.920 million. Implied nine-month cash flow after capital expenditures was approximately $198.627 million, although the filing does not label this metric as free cash flow.
What to watch
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AMI integration and impairment risk
The AMI acquisition added $1.054 billion of goodwill and $551.000 million of acquired identifiable intangible assets; total goodwill was $1.3695 billion and net intangible assets were $559.718 million at October 3, 2026. The purchase-price allocation remains preliminary for up to 12 months after the July 27, 2026 closing, creating impairment and valuation risk.
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Acquisition-related leverage increased
Long-term debt was $869.080 million at October 3, 2026, versus zero at January 3, 2026, with $875.000 million of principal outstanding and a 5.76% effective term-loan interest rate. Management estimates that a 50-basis-point increase in one-month SOFR would increase quarterly interest expense by approximately $1.1 million.
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Geographic and channel concentration
Greater China represented $163.050 million, or 56%, of quarterly revenue, while Asia represented $220.935 million, or 75.9%. The filing also states that the two largest distributors represented 50% and 33% of net accounts receivable, increasing exposure to geopolitical, export-control, customer-concentration and distributor-credit risks.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS guidance. Management states that R&D and SG&A expense are expected to increase in the future but decline as a percentage of revenue, and believes liquidity is sufficient for at least the next 12 months.
Earlier filings 2
10-Q · May 4, 2026
Lattice Semiconductor Corporation (LSCC) demonstrated strong financial performance in Q1 2026 with revenue of $170.9 million, a significant increase of 42% year-over-year compared to $120.2 million in Q1 2025. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.