Key Highlights

  • Revenue rose 118% to USD 291.0 million, while FPGA Revenue grew approximately 90% on Data Center AI demand.
  • Non-GAAP Earnings were USD 0.72 per diluted share, and GAAP earnings were USD 0.08 per diluted share.
  • Adjusted EBITDA was USD 131.0 million, a 45.0% margin, and free Cash Flow was USD 77.6 million.
  • The AMI Acquisition closed on July 27, and fourth-quarter revenue guidance is approximately USD 335 million.

Quarter in Numbers

Lattice Semiconductor Corporation (NASDAQ:LSCC), a low power programmable and platform firmware company, reported fiscal third-quarter 2026 revenue of USD 291.0 million for the quarter ended October 3, 2026, up 118.3% from USD 133.3 million a year earlier and 44.7% from USD 201.1 million in the second quarter. Results include AMI from its acquisition date of July 27, 2026, while prior periods do not.

GAAP gross Margin was 67.4%, compared with 70.3% in the second quarter and 67.9% a year earlier, and non-GAAP gross margin was 70.9%, compared with 71.7% and 69.5%. GAAP Net Income was USD 11.2 million, a 3.9% margin, or USD 0.08 per diluted share, versus USD 19.4 million and USD 0.14 in the second quarter. Non-GAAP net income was USD 103.7 million, or USD 0.72 per diluted share, up from USD 74.4 million in the second quarter and USD 38.2 million a year earlier.

Operating Leverage

Non-GAAP income from operations was USD 119.6 million, up 55.1% sequentially and 208.7% year over year. Non-GAAP Research and Development was 19.0% of revenue, down from 24.2%, and non-GAAP selling, general and administrative expense was 10.7%, down from 16.2%. GAAP operating expenses were USD 172.2 million versus USD 92.1 million, reflecting the added AMI cost base, and the GAAP Operating Margin was about 8.2% by our calculation.

Adjusted EBITDA was USD 131.0 million, a 45.0% margin, which means that nearly half of each revenue dollar converted to adjusted EBITDA. GAAP net income margin, at 3.9%, was far lower because of amortization, share-based compensation and acquisition-related items excluded from the non-GAAP measures. Operating Cash Flow was USD 95.0 million, a 32.7% margin, and free cash flow was USD 77.6 million, a 26.7% margin.

Management Commentary

Chief executive Ford Tamer said record revenue and non-GAAP Earnings Per Share rose roughly 118% and 160%, respectively, with FPGA revenue up about 90% on accelerating data center AI Demand and continued momentum in industrial and embedded applications. He cited strong bookings, Backlog and design wins supporting the fourth-quarter revenue outlook of about USD 335 million, and said the AMI addition expands the opportunity in security, control and management solutions, with early commercial momentum in security retrofit, rack boot, plug and play, and power and cooling.

The chief financial officer said Operating Leverage translated accelerating demand into faster earnings growth, and that priorities include investing in small and mid-range FPGAs, expanding the combined portfolio, advancing the companion chip opportunity, expanding free cash flow and reducing debt.

Fourth-Quarter Guidance and Integration Markers

The company projects fourth-quarter revenue growth of approximately 130% year over year, with industrial and embedded revenue growth accelerating to 70%. The revenue outlook of about USD 335 million is roughly 15% above the third-quarter figure by our calculation. The sequential revenue gain of 44.7% combines organic demand with the first months of AMI, and the release does not separate the two in the headline figures. Items to track include the full-quarter contribution from AMI, GAAP margin pressure from acquisition-related costs, Debt reduction and the pace of data center demand.