Lattice Semiconductor (LSCC) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $170.9M, up 42% year-over-year, driven by strong demand in AI, data center, and across all end markets.

• Non-GAAP EPS grew 86% year-over-year to $0.41, with adjusted EBITDA margin at 39.6%.

• Announced definitive agreement to acquire AMI for $1.65B, combining hardware and firmware for a secure management platform, expected to close in Q3 2026.

• Strong backlog and design win momentum, with bookings and backlog extending into 2027.

• Channel inventory reduced to close to two months, with further reductions expected.

Financial highlights

• Q1 2026 revenue: $170.9M, up 42% year-over-year; non-GAAP EPS: $0.41, up 86% year-over-year.

• Q1 non-GAAP gross margin reached 70%, up 100 bps year-over-year; GAAP gross margin: 68.8%.

• Adjusted EBITDA margin: 39.6%; free cash flow: $39.7M.

• Ended Q1 with $140M in cash and no debt; repurchased $15M of stock.

• Operating income was $26.1M (15.3% margin), up from $7.0M in Q1 2025.

Outlook and guidance

• Q2 2026 revenue guidance: $175M–$195M, midpoint implies nearly 50% year-over-year growth.

• Q2 non-GAAP gross margin expected at 70% ±1%; non-GAAP OpEx $64M–$67M, mainly for R&D.

• Q2 non-GAAP EPS guidance: $0.42–$0.46, midpoint implies over 80% year-over-year growth.

• AI-related revenue expected to grow over the next few years, supported by strong design win pipeline.

• Targeting closure of AMI acquisition in Q3 2026.