Lattice Semiconductor (NASDAQ:LSCC) saw its stock price plummet 8.81% in after-hours trading on Monday, following the release of its third-quarter earnings report and fourth-quarter guidance. Despite meeting analyst expectations for Q3, the company's outlook for Q4 appears to have disappointed investors.

For the third quarter of 2025, Lattice Semiconductor reported adjusted earnings per share of $0.28, in line with analyst estimates. Revenue for the quarter came in at $133.349 million, slightly beating the consensus estimate of $133.028 million. The company's adjusted gross margin stood at a healthy 69.5%, showcasing strong operational efficiency.

However, the after-hours sell-off seems to be primarily driven by the company's fourth-quarter guidance. Lattice Semiconductor forecasts Q4 revenue between $138 million and $148 million, with non-GAAP earnings per share expected to be in the range of $0.30 to $0.34. While this guidance represents potential growth, it may have fallen short of more optimistic market expectations, leading to the sharp decline in stock price. Investors will be closely watching how the company navigates the coming quarter and whether it can exceed these projections to regain market confidence.