Second Quarter Sales Increased by 29% Year-over-Year to $277 Million
Record Industrial & Other and Data Center Sales
GAAP EPS Quadrupled and Non-GAAP EPS Doubled Year-over-Year
MANCHESTER, N.H., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. ("Allegro" or the "Company") (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its second quarter ended September 25, 2026.
"We saw continued strong momentum in our fiscal second quarter, delivering our seventh consecutive quarter of sequential sales growth. Sales were $277 million, representing a 29% increase year-over-year. GAAP earnings per share quadrupled from $0.03 per share in the fiscal second quarter of 2026 to $0.12. Non-GAAP EPS grew to $0.26, doubling over the second quarter of fiscal 2026. Broad year-over-year sales growth in Automotive and Industrial end markets drove this strong performance, led by data center, which established a new record," said Mike Doogue, President and CEO of Allegro. "Our forward demand signals strengthened significantly this quarter. We delivered our highest quarterly design-win performance since our 2020 IPO--up nearly 40% year-over-year--and bookings increased for the eighth consecutive quarter. With record design wins, a robust backlog, and expanding content across our target Automotive and Industrial markets, the leading indicators across our business give us high confidence in our path to exceed our target model of mid-teens annual sales growth."
"During the quarter, we also continued to execute on our strategic priorities of expanding profitability and generating strong cash flow," said Derek D'Antilio, Executive Vice President and CFO of Allegro. "On September 30, 2026, following the close of the second quarter, we made another $25 million voluntary debt repayment, underscoring the strength of our balance sheet and our confidence in Allegro's anticipated free cash flow generation."
Second Quarter Financial Highlights:
In
thousands,
except per
share data Three-Month Period Ended Six-Month Period Ended
-------------------------------------------------- --------------------------------
September 25, June 26, September September 25, September 26,
2026 2026 26, 2025 2026 2025
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------- ------------- ------------ ------------- -------------
Net Sales
Automotive $ 172,492 $ 165,349 $ 155,845 $ 337,841 $ 300,109
Industrial
and Other 104,392 93,894 58,449 198,286 117,590
--------- --------- ----------- --------- ---------
Total net
sales $ 276,884 $ 259,243 $ 214,294 $ 536,127 $ 417,699
========= ========= =========== ========= =========
GAAP
Financial
Measures
Gross margin
% 49.2% 48.5% 46.3% 48.8% 45.6%
Operating
margin % 12.8% 9.8% 2.9% 11.4% 0.8%
Diluted EPS $ 0.12 $ 0.08 $ 0.03 $ 0.21 $ (0.04)
Non-GAAP
Financial
Measures
Gross margin
% 51.5% 51.1% 49.6% 51.3% 48.9%
Operating
margin % 20.6% 19.4% 13.9% 20.0% 12.5%
Diluted EPS $ 0.26 $ 0.23 $ 0.13 $ 0.48 $ 0.21
Business Outlook
For the third quarter of fiscal year 2027 ending December 25, 2026, the Company expects total net sales to be in the range of $278 million to $288 million. At the midpoint of this range, it implies growth in net sales of 23% year-over-year.
The Company also estimates the following results on a non-GAAP basis:
-- Gross Margin is expected to be between 51.5% and 52.5%,
-- Operating expenses are expected to be $87 million, plus or minus $1
million, and
-- Diluted Earnings per Share is expected to be between $0.25 and $0.29,
with the mid-point of this range implying an 80% year-over-year increase.
Allegro has not provided a reconciliation of its third fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles ("GAAP") measures. Certain factors that are materially significant to Allegro's ability to estimate these items are out of its control and/or cannot be reasonably predicted.
Earnings Webcast
A webcast will be held on Thursday, October 29, 2026 at 8:30 a.m., Eastern Time. Michael C. Doogue, President and Chief Executive Officer, and Derek P. D'Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro's business and financial results.
The webcast will be available on the Investor Relations section of the Company's website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.
About Allegro MicroSystems
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro's commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, please visit https://www.allegromicro.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors and trends affecting our business, including the projected size and growth of markets in which we operate or may operate, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expect," "exploring," "plan," "anticipate," "could," "intend, " "target," "project," "would," "contemplate," "believe," "estimate," "predict," "potential," "seek," or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.
Forward-looking statements are based on our management's current expectations, beliefs and assumptions and information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations, " and Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended March 27, 2026, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the "SEC"). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to maintain or improve our gross margins may be adversely affected by decreases in average selling prices of our products, increases in input costs or shifts in product,
customer or channel mix; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control, including conflicts in the Middle East, impacting us, our key suppliers or our manufacturing partners or other third-party suppliers of components, materials or subassemblies; our ability to develop new product features or new products in a timely and cost-effective manner; our dependence on growth in the end markets that use our products, and the impact that slowdowns in such growth, including as a result of volatility in demand for emerging technologies or changes in government incentives, could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact on the market price of our common stock from future sales of our common stock by large stockholders, or the perception that such sales could occur; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; the risks presented by the use of artificial intelligence, machine learning and automated decision-making technologies by us and others; any failure to maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.
You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.
This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.
This press release may not be reproduced, forwarded to any person or published, in whole or in part.
ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)
Three-Month Period Ended Six-Month Period Ended
--------------------------- ---------------------------
September September September September
25, 2026 26, 2025 25, 2026 26, 2025
------------ ------------ ------------ ------------
Net sales $ 276,884 $ 214,294 $ 536,127 $ 417,699
Cost of goods sold 140,722 115,002 274,355 227,105
----------- ----------- ----------- -----------
Gross profit 136,162 99,292 261,772 190,594
Operating
expenses:
Research and
development 55,756 50,891 110,924 97,391
Selling, general
and
administrative 44,958 42,158 89,933 89,700
----------- ----------- ----------- -----------
Total operating
expenses 100,714 93,049 200,857 187,091
----------- ----------- ----------- -----------
Operating income 35,448 6,243 60,915 3,503
Interest and other
expense (7,620) (8,958) (15,662) (16,211)
----------- ----------- ----------- -----------
Income (loss)
before income
taxes 27,828 (2,715) 45,253 (12,708)
----------- ----------- ----------- -----------
Income tax
provision
(benefit) 4,510 (9,298) 6,016 (6,129)
----------- ----------- ----------- -----------
Net income (loss) 23,318 6,583 39,237 (6,579)
Net income
attributable to
non-controlling
interests 61 64 109 129
----------- ----------- ----------- -----------
Net income (loss)
attributable to
Allegro
MicroSystems,
Inc. $ 23,257 $ 6,519 $ 39,128 $ (6,708)
=========== =========== =========== ===========
Net income (loss)
per common share
attributable to
Allegro
MicroSystems,
Inc.:
Basic $ 0.12 $ 0.04 $ 0.21 $ (0.04)
=========== =========== =========== ===========
Diluted $ 0.12 $ 0.03 $ 0.21 $ (0.04)
=========== =========== =========== ===========
Weighted average
shares
outstanding:
Basic 186,449,984 185,074,119 186,128,253 184,830,588
=========== =========== =========== ===========
Diluted 187,717,425 186,305,785 187,760,302 184,830,588
=========== =========== =========== ===========
Supplemental Schedule of Total Net Sales
The following table summarizes total net sales by market within the Company's unaudited condensed consolidated statements of operations:
Three-Month Period Ended Change Six-Month Period Ended Change
------------------------ ----------- ---------------------- ------------
September September September September
25, 2026 26, 2025 Amount % 25, 2026 26, 2025 Amount %
---------- ------------ ------- ---------- ---------- --------
(Dollars in thousands) (Dollars in thousands)
Automotive $ 172,492 $ 155,845 $16,647 11% $ 337,841 $ 300,109 $ 37,732 13%
Industrial
and Other 104,392 58,449 45,943 79% 198,286 117,590 80,696 69%
--------- ----------- ------ --------- --------- -------
Total net
sales $ 276,884 $ 214,294 $62,590 29% $ 536,127 $ 417,699 $118,428 28%
========= =========== ====== ========= ========= =======
ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 25, March 27,
2026
(Unaudited) 2026
--------------- ----------
Assets
Current assets:
Cash and cash equivalents $ 193,039 $ 168,753
Restricted cash 8,062 6,604
Trade accounts receivable, net 108,455 93,248
Inventories 181,594 181,752
Related party - other current
assets 22,500 --
Prepaid expenses and other current
assets 47,185 53,249
----------- ---------
Total current assets 560,835 503,606
Property, plant and equipment, net 300,656 308,258
Deferred income tax assets 84,494 80,221
Goodwill 203,109 203,291
Intangible assets, net 227,114 238,675
Equity investment in related party 15,743 22,296
Related party - other assets 12,500 15,000
Other assets 42,601 44,828
----------- ---------
Total assets $ 1,447,052 $1,416,175
=========== =========
Liabilities, Non-Controlling
Interest and Stockholders' Equity
Current liabilities:
Trade accounts payable $ 56,794 $ 44,438
Amounts due to related party 3,640 4,794
Accrued expenses and other current
liabilities 73,815 95,163
Current portion of long-term debt 1,506 1,530
----------- ---------
Total current liabilities 135,755 145,925
Long-term debt 285,649 285,746
Other long-term liabilities 21,758 28,059
----------- ---------
Total liabilities 443,162 459,730
----------- ---------
Commitments and contingencies
Stockholders' Equity:
Preferred stock -- --
Common stock 1,865 1,854
Additional paid-in capital 1,062,360 1,050,582
Accumulated deficit (29,360) (68,488)
Accumulated other comprehensive
loss (32,686) (29,201)
----------- ---------
Equity attributable to Allegro
MicroSystems, Inc. 1,002,179 954,747
Non-controlling interest 1,711 1,698
----------- ---------
Total stockholders' equity 1,003,890 956,445
----------- ---------
Total liabilities,
non-controlling interest and
stockholders' equity $ 1,447,052 $1,416,175
=========== =========
ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three-Month Period Ended Six-Month Period Ended
------------------------- -----------------------
September September September September
25, 2026 26, 2025 25, 2026 26, 2025
---------- ------------ ---------- ----------
Cash flows from
operating
activities:
Net income (loss) $ 23,318 $ 6,583 $ 39,237 $ (6,579)
Adjustments to
reconcile net
income (loss) to
net cash provided
by operating
activities:
Depreciation and
amortization 17,241 16,611 34,108 32,827
Amortization of
deferred
financing costs 298 717 595 1,650
Deferred income
taxes (2,760) 890 (4,462) (4,171)
Stock-based
compensation 14,142 13,681 28,270 24,443
Provisions for
inventory and
expected credit
losses 792 1,093 2,347 4,543
Loss in earnings
of equity
investment 2,944 2,332 6,553 3,153
Other non-cash
reconciling
items 66 217 52 159
Changes in
operating assets
and liabilities:
Trade accounts
receivable (9,794) (16,391) (15,207) (21,723)
Inventories 5,675 2,020 (2,195) 9,253
Payments to
related party (5,000) -- (20,000) --
Prepaid expenses
and other
assets (6,237) (11,670) 5,669 23,474
Trade accounts
payable (1,464) (2,100) 12,290 4,181
Due to and from
related parties (967) 361 (1,155) (3,272)
Other changes in
operating assets
and liabilities,
net (1,406) 6,018 (27,265) 14,042
--------- ----------- --------- ---------
Net cash provided by
operating
activities 36,848 20,362 58,837 81,980
--------- ----------- --------- ---------
Cash flows from
investing
activities:
Purchases of
property, plant
and equipment (6,343) (6,444) (14,360) (17,044)
Investment in
equity security (1,000) -- (1,000) --
--------- ----------- --------- ---------
Net cash used in
investing
activities (7,343) (6,444) (15,360) (17,044)
--------- ----------- --------- ---------
Cash flows from
financing
activities:
Repayment of term
loan -- (25,000) -- (60,000)
Finance lease
payments (258) (336) (495) (538)
Payments for
intangible
assets -- (1,000) -- (1,000)
Payments for
taxes related to
net share
settlement of
equity awards (447) (361) (18,204) (9,349)
Proceeds from
issuance of
common stock
under employee
stock purchase
plan 1,821 1,910 1,821 1,910
Payments for
taxes related to
repurchase of
common stock -- (1,713) -- (1,713)
Dividends paid to
non-controlling
interest (21) (23) (21) (23)
--------- ----------- --------- ---------
Net cash provided by
(used in) financing
activities 1,095 (26,523) (16,899) (70,713)
Effect of exchange
rate changes on
cash and cash
equivalents and
restricted cash 28 40 (834) 1,484
--------- ----------- --------- ---------
Net increase
(decrease) in cash
and cash
equivalents and
restricted cash 30,628 (12,565) 25,744 (4,293)
Cash and cash
equivalents and
restricted cash at
beginning of
period 170,473 139,379 175,357 131,107
--------- ----------- --------- ---------
Cash and cash
equivalents and
restricted cash at
end of period $ 201,101 $ 126,814 $ 201,101 $ 126,814
========= =========== ========= =========
Non-GAAP Financial Measures
In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc., non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as a percentage of net sales (collectively, the "Non-GAAP Financial Measures"). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.
The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.
Non-GAAP Income Tax Provision
In calculating the non-GAAP Income Tax Provision, we adjust for the tax effect of adjustments to GAAP results which represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below. We also adjust for any discrete tax items and the impact of non-recurring tax law changes to ensure the non-GAAP Effective Tax Rate ("NG ETR") reflects future operations.
Our fiscal year 2026 and 2027 NG ETR excludes the impact of the 2025 One Big Beautiful Bill Act's one-time research and development amortization election which accelerates the amortization of previously capitalized domestic research and development over a two-year period. The NG ETR is applied to non-GAAP Profit before Tax to arrive at the tax effect of adjustments to GAAP results.
Reconciliation of Non-GAAP Gross Profit and Non-GAAP
Gross Margin
Three-Month Period Ended Six-Month Period Ended
------------------------------------------ --------------------------------
September June 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
----------- -------- ----------- ----------- ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Gross Profit $ 136,162 $125,610 $ 99,292 $ 261,772 $ 190,594
GAAP Gross Margin (%
of net sales) 49.2% 48.5% 46.3% 48.8% 45.6%
Non-GAAP
adjustments
Purchased
intangible
amortization 5,090 5,089 5,090 10,179 10,179
Restructuring
costs 77 83 751 160 1,456
Stock-based
compensation(1) 1,082 1,172 1,017 2,254 1,905
Other costs 237 428 44 665 44
------- ------- ------- ------- --------------
Total Non-GAAP
Adjustments $ 6,486 $ 6,772 $ 6,902 $ 13,258 $ 13,584
Non-GAAP Gross
Profit $ 142,648 $132,382 $ 106,194 $ 275,030 $ 204,178
------- ------- ------- ------- --------------
Non-GAAP Gross
Margin (% of net
sales) 51.5% 51.1% 49.6% 51.3% 48.9%
(1) Included in non-GAAP stock-based compensation
charges are stock-based compensation expense and related
payroll tax effects.
Reconciliation of Non-GAAP Operating Expenses
Three-Month Period Ended Six-Month Period Ended
---------------------------------- ----------------------------
September June 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
----------- -------- ----------- ----------- ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Operating Expenses $ 100,714 $100,143 $ 93,049 $ 200,857 $ 187,091
Research and
Development Expenses
GAAP Research and
Development Expenses 55,756 55,168 50,891 110,924 97,391
Non-GAAP adjustments
Purchased intangible
amortization 5 6 8 11 11
Restructuring costs 80 134 1,639 214 2,770
Stock-based
compensation(1) 4,659 6,613 4,907 11,272 7,818
Other costs(2) 560 514 112 1,074 147
------- ------- ------- ------- --------------
Non-GAAP Research and
Development Expenses 50,452 47,901 44,225 98,353 86,645
Selling, General and
Administrative
Expenses
GAAP Selling, General
and Administrative
Expenses 44,958 44,975 42,158 89,933 89,700
Non-GAAP adjustments
Transaction-related
costs -- 9 1 9 131
Purchased intangible
amortization 535 535 535 1,070 1,070
Restructuring costs 224 443 1,158 667 2,342
Stock-based
compensation(1) 8,456 9,420 7,757 17,876 14,720
Other costs(2) 567 487 476 1,054 6,314
------- ------- ------- ------- --------------
Non-GAAP Selling,
General and
Administrative
Expenses 35,176 34,081 32,231 69,257 65,123
Total Non-GAAP
Adjustments 15,086 18,161 16,593 33,247 35,323
Non-GAAP Operating
Expenses $ 85,628 $ 81,982 $ 76,456 $ 167,610 $ 151,768
------- ------- ------- ------- --------------
(1) Included in non-GAAP stock-based compensation
charges are stock-based compensation expense and related
payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring
charges that are individually immaterial for separate
disclosure, such as project evaluation costs, which
consist of costs and estimated costs incurred in connection
with other non-recurring transactions.
Reconciliation of Non-GAAP Operating Income and Non-GAAP
Operating Margin
Three-Month Period Ended Six-Month Period Ended
----------------------------------------- --------------------------------
June
September 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
----------- ------- ----------- ----------- ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Operating Income $ 35,448 $25,467 $ 6,243 $ 60,915 $ 3,503
GAAP Operating Margin (%
of net sales) 12.8% 9.8% 2.9% 11.4% 0.8%
Transaction-related
costs -- 9 1 9 131
Purchased intangible
amortization 5,630 5,630 5,633 11,260 11,260
Restructuring costs 381 660 3,548 1,041 6,568
Stock-based
compensation(1) 14,197 17,205 13,681 31,402 24,443
Other costs(2) 1,364 1,429 632 2,793 6,505
------- ------ ------- ------- --------------
Total Non-GAAP
Adjustments $ 21,572 $24,933 $ 23,495 $ 46,505 $ 48,907
Non-GAAP Operating
Income $ 57,020 $50,400 $ 29,738 $ 107,420 $ 52,410
------- ------ ------- ------- --------------
Non-GAAP Operating
Margin (% of net
sales) 20.6% 19.4% 13.9% 20.0% 12.5%
(1) Included in non-GAAP stock-based compensation
charges are stock-based compensation expense and related
payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring
charges that are individually immaterial for separate
disclosure such as project evaluation costs, which
consist of costs and estimated costs incurred in connection
with other non-recurring transactions.
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted
EBITDA Margin
Three-Month Period Ended Six-Month Period Ended
----------------------------------------- --------------------------------
June
September 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
----------- ------- ----------- ----------- ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Net Income (Loss) $ 23,318 $15,919 $ 6,583 $ 39,237 $ (6,579)
GAAP Net Income (Loss)
Margin (% of net
sales) 8.4% 6.1% 3.1% 7.3% (1.6)%
Interest expense 4,469 4,384 5,730 8,853 12,089
Interest income (267) (405) (159) (672) (393)
Income tax provision
(benefit) 4,510 1,506 (9,298) 6,016 (6,129)
Depreciation &
amortization 17,241 16,867 16,611 34,108 32,827
------- ------ ------- ------- --------------
EBITDA $ 49,271 $38,271 $ 19,467 $ 87,542 $ 31,815
------- ------ ------- ------- --------------
Transaction-related
costs -- 9 1 9 131
Restructuring costs 381 662 3,403 1,043 6,227
Stock-based
compensation(1) 14,197 17,205 13,681 31,402 24,443
Other costs(2) 5,378 5,902 4,271 11,280 11,575
------- ------ ------- ------- --------------
Adjusted EBITDA $ 69,227 $62,049 $ 40,823 $ 131,276 $ 74,191
------- ------ ------- ------- --------------
Adjusted EBITDA Margin
(% of net sales) 25.0% 23.9% 19.0% 24.5% 17.8%
(1) Included in non-GAAP stock-based compensation
charges are stock-based compensation expense and related
payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring
charges that are individually immaterial for separate
disclosure such as project evaluation costs, which
consist of costs and estimated costs incurred in connection
with other non-recurring transactions, certain impacts
of foreign currency exchange gain (loss), net, and
income (loss) in earnings of equity investments.
Reconciliation of Non-GAAP Profit before Tax
Three-Month Period Ended Six-Month Period Ended
--------------------------------- ----------------------------
June
September 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
----------- ------- ----------- ----------- ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Income (Loss)
before Income Taxes $ 27,828 $17,425 $ (2,715) $ 45,253 $ (12,708)
Transaction-related
costs -- 9 1 9 131
Transaction-related
interest 225 225 645 450 1,505
Purchased intangible
amortization 5,630 5,630 5,633 11,260 11,260
Restructuring costs 381 662 3,736 1,043 6,756
Stock-based
compensation(1) 14,197 17,205 13,681 31,402 24,443
Other costs(2) 5,418 5,941 4,271 11,359 11,575
------- ------ ------- ------- --------------
Total Non-GAAP
Adjustments $ 25,851 $29,672 $ 27,967 $ 55,523 $ 55,670
Non-GAAP Profit before
Tax $ 53,679 $47,097 $ 25,252 $ 100,776 $ 42,962
------- ------ ------- ------- --------------
(1) Included in non-GAAP stock-based compensation
charges are stock-based compensation expense and related
payroll tax effects.
(2) Included in non-GAAP other costs are non-recurring
charges that are individually immaterial for separate
disclosure such as project evaluation costs, which
consist of costs and estimated costs incurred in connection
with other non-recurring transactions, certain impacts
of foreign currency exchange gain (loss), net, and
income (loss) in earnings of equity investments.
Reconciliation of Non-GAAP Income Tax Provision and
Non-GAAP Effective Tax Rate
Three-Month Period Ended Six-Month Period Ended
---------------------------------------- --------------------------------
June
September 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
----------- ------ ----------- ----------- ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Income Tax
Provision
(Benefit) $ 4,510 $1,506 $ (9,298) $ 6,016 $ (6,129)
GAAP
effective
tax rate 16.2% 8.6% 342.5% 13.3% 48.2%
Tax effect of
adjustments
to GAAP
results 968 3,071 10,733 4,039 9,250
Non-GAAP Income
Tax Provision $ 5,478 $4,577 $ 1,435 $ 10,055 $ 3,121
------- ----- ------- ------- --------------
Non-GAAP
Effective Tax
Rate 10.2% 9.7% 5.7% 10.0% 7.3%
Reconciliation of Non-GAAP Net Income Attributable
to Allegro MicroSystems, Inc. and Non-GAAP Earnings
per Share
Three-Month Period Ended Six-Month Period Ended
------------------------------------------ ------------------------------
September June 26, September September September 26,
25, 2026 2026 26, 2025 25, 2026 2025
------------ ------------ ------------ ------------ ---------------
(Dollars in thousands) (Dollars in thousands)
GAAP Net Income (Loss)
Attributable to Allegro
MicroSystems, Inc.(1) $ 23,257 $ 15,871 $ 6,519 $ 39,128 $ (6,708)
GAAP Basic weighted
average common shares 186,449,984 185,806,543 185,074,119 186,128,253 184,830,588
GAAP Diluted weighted
average common shares 187,717,425 187,770,061 186,305,785 187,760,302 184,830,588
----------- ----------- ----------- ----------- --------------
GAAP Basic Income (Loss)
per Share $ 0.12 $ 0.09 $ 0.04 $ 0.21 $ (0.04)
GAAP Diluted Income
(Loss) per Share $ 0.12 $ 0.08 $ 0.03 $ 0.21 $ (0.04)
----------- ----------- ----------- ----------- --------------
Transaction-related
costs -- 9 1 9 131
Transaction-related
interest 225 225 645 450 1,505
Purchased intangible
amortization 5,630 5,630 5,633 11,260 11,260
Restructuring costs 381 662 3,736 1,043 6,756
Stock-based
compensation(2) 14,197 17,205 13,681 31,402 24,443
Other costs(3) 5,418 5,941 4,271 11,359 11,575
----------- ----------- ----------- ----------- --------------
Total Non-GAAP
Adjustments 25,851 29,672 27,967 55,523 55,670
Tax effect of
adjustments to GAAP
results(4) (968) (3,071) (10,733) (4,039) (9,250)
----------- ----------- ----------- ----------- --------------
Non-GAAP Net Income
Attributable to Allegro
MicroSystems, Inc. $ 48,140 $ 42,472 $ 23,753 $ 90,612 $ 39,712
----------- ----------- ----------- ----------- --------------
Basic weighted average
common shares 186,449,984 185,806,543 185,074,119 186,128,253 184,830,588
Diluted weighted average
common shares 187,717,425 187,770,061 186,305,785 187,760,302 185,800,398
----------- ----------- ----------- ----------- --------------
Non-GAAP Basic Earnings
per Share $ 0.26 $ 0.23 $ 0.13 $ 0.49 $ 0.21
Non-GAAP Diluted
Earnings per Share $ 0.26 $ 0.23 $ 0.13 $ 0.48 $ 0.21
----------- ----------- ----------- ----------- --------------
(1) GAAP Net Income (Loss) Attributable to Allegro
MicroSystems, Inc. represents GAAP Net Income (Loss)
adjusted for Net Income Attributable to non-controlling
interests.
(2) Included in non-GAAP stock-based compensation
charges are stock-based compensation expense and related
payroll tax effects.
(3) Included in non-GAAP other costs are non-recurring
charges that are individually immaterial for separate
disclosure, such as project evaluation costs, which
consists of costs and estimated costs incurred in
connection with other non-recurring transactions,
certain impacts of foreign currency exchange gain
(loss), net, and income (loss) in earnings of equity
investments.
(4) To calculate the tax effect of adjustments to
GAAP results, the Company considers each Non-GAAP
adjustment by tax jurisdiction, reverses all discrete
items and non-recurring law changes to calculate an
annual NG ETR. This NG ETR is then applied to Non-GAAP
Profit Before Tax to arrive at the tax effect of adjustments
to GAAP results.
Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP
Free Cash Flow as Percentage of Net Sales
Three-Month Period Ended Six-Month Period Ended
----------------------------------------- --------------------------------
June
September 26, September September 25, September
25, 2026 2026 26, 2025 2026 26, 2025
----------- ------- ----------- --------------- -----------
(Dollars in thousands) (Dollars in thousands)
GAAP Operating
Cash Flow $ 36,848 $21,989 $ 20,362 $ 58,837 $ 81,980
GAAP Operating
Cash Flow (% of
net sales) 13.3% 8.5% 9.5% 11.0% 19.6%
Non-GAAP
adjustments
Purchases of
property,
plant and
equipment (6,343) (8,017) (6,444) (14,360) (17,044)
------- ------ ------- -------------- -------
Non-GAAP Free Cash
Flow $ 30,505 $13,972 $ 13,918 $ 44,477 $ 64,936
------- ------ ------- -------------- -------
Non-GAAP Free Cash
Flow (% of net
sales) 11.0% 5.4% 6.5% 8.3% 15.5%
Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com