Lattice Semiconductor’s third quarter results were met with a negative market reaction, despite the company meeting Wall Street’s expectations for both revenue and non-GAAP profit. Management attributed the quarter’s performance to accelerating demand in communications and computing, especially from data center and AI infrastructure customers. CEO Ford Tamer highlighted expanding design wins in low-power field-programmable gate arrays (FPGAs) for data center, security, and board management applications, while noting that normalization of channel inventory in industrial and automotive markets remained a drag. Tamer acknowledged, “The momentum highlights our differentiated value proposition... and sets the foundation for rapid growth.”
Is now the time to buy LSCC? Find out in our full research report (it’s free for active Edge members).
Lattice Semiconductor (LSCC) Q3 CY2025 Highlights:
- Revenue: $133.3 million vs analyst estimates of $133 million (4.9% year-on-year growth, in line)
- Adjusted EPS: $0.28 vs analyst estimates of $0.28 (in line)
- Adjusted EBITDA: $47.45 million vs analyst estimates of $46.03 million (35.6% margin, 3.1% beat)
- Revenue Guidance for Q4 CY2025 is $143 million at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for Q4 CY2025 is $0.32 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: -1.2%, down from 5.9% in the same quarter last year
- Inventory Days Outstanding: 193, down from 218 in the previous quarter
- Market Capitalization: $8.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lattice Semiconductor’s Q3 Earnings Call
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Kevin Garrigan (Jefferies) asked if confidence in the 2026 outlook was dependent on inventory normalization in industrial and auto. CEO Ford Tamer explained that accelerating communications and compute growth would drive results, while inventory normalization would add further upside.
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David Williams (The Benchmark Company) questioned what changed management’s confidence recently. Tamer and CFO Lorenzo Flores pointed to stronger bookings, increased AI CapEx from hyperscalers, and greater customer activity as key changes in the past 90 days.
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Tristan Gerra (Robert W. Baird) pressed on sequential growth fluctuations in communications and compute. Flores clarified that server demand remained the main driver, and overall trajectory was robust despite minor quarter-to-quarter variations.
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Gary Mobley (Loop Capital) asked about the amount of undershipment in industrial and automotive and any supply chain issues in communications and compute. Tamer confirmed undershipment would be resolved by year-end, and Flores noted extended lead times were manageable and provided better supply planning.
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Melissa Weathers (Deutsche Bank) inquired about the size of the post-quantum cryptography (PQC) market and pricing trends. Tamer emphasized PQC’s role in security design wins, while Flores said the company’s pricing strategy remained value-driven and stable despite supplier pressures.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of inventory normalization in industrial and automotive and its impact on shipment alignment, (2) continued growth and design win momentum in communications and data center markets, and (3) rollouts of new Nexus and Avant FPGA products. Progress in security applications and the adoption of post-quantum cryptography solutions will also be important indicators for future growth.
Lattice Semiconductor currently trades at $64.00, down from $72.84 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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