Allegro MicroSystems Reports Second Quarter 2026 Results
30-Oct-2025 07:00:02 EDT
Allegro MicroSystems Reports Second Quarter 2026 Results Sales Increased 14% Year-Over-Year to $214 Million
GlobeNewswire October 30, 2025
MANCHESTER, N.H., Oct. 30, 2025 (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 26, 2025.
“We delivered strong second quarter results, with sales of $214 million, up 14% year-over-year, and led by growth in both e-Mobility and Industrial & Other, increasing 21% and 23% year-over-year, respectively. Non-GAAP EPS was $0.13, increasing more than 60% year-over-year,” said Mike Doogue, President and CEO of Allegro. “We saw broad strength in second quarter Automotive sales with growth in e-Mobility and Other Auto, while data center delivered record sales to fuel year-over-year growth in Industrial. In addition to this strong financial performance, year-to-date design wins are well ahead of fiscal 2025, with second quarter wins led by e-Mobility and data center.”
Second Quarter Financial Highlights:
In thousands, except per share data
Three-Month Period Ended
Six-Month Period Ended
September 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net Sales
Automotive
$
155,845
$
144,264
$
139,680
$
300,109
$
267,074
Industrial and Other
58,449
59,141
47,711
117,590
87,236
Total net sales
$
214,294
$
203,405
$
187,391
$
417,699
$
354,310
GAAP Financial Measures
Gross margin %
46.3
%
44.9
%
45.7
%
45.6
%
45.3
%
Operating margin %
2.9
%
(1.3
)%
2.2
%
0.8
%
(1.9
)%
Diluted EPS
$
0.03
$
(0.07
)
$
(0.18
)
$
(0.04
)
$
(0.27
)
Non-GAAP Financial Measures
Gross margin %
49.6
%
48.2
%
48.8
%
48.9
%
48.8
%
Operating margin %
13.9
%
11.1
%
11.7
%
12.5
%
9.0
%
Diluted EPS
$
0.13
$
0.09
$
0.08
$
0.21
$
0.11
Business Outlook
For the third quarter of fiscal year 2026 ending December 26, 2025, the Company expects total net sales to be in the range of $215 million to $225 million. At the midpoint of this range, it implies growth in net sales of 24% year-over-year.
The Company also estimates the following results on a non-GAAP basis:
Gross Margin is expected to be between 49% and 51%,
Interest expense is expected to be approximately $5 million, and
Diluted Earnings per Share is expected to be between $0.12 and $0.16.
Allegro has not provided a reconciliation of its third fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Interest Expense, 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 30, 2025 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 automotive, clean energy and industrial automation 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 affecting our business 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 on 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 28, 2025, 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; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; 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 compensate for decreases in average selling prices of our products and increases in input costs; 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 impacting us, our key suppliers or our manufacturing partners; 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 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; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; 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 risk of unsolicited acquisition proposals; 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 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; 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; the risks presented by climate change; the risks related to ESG matters; 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 26, 2025
September 27, 2024
September 26, 2025
September 27, 2024
Net sales
$
214,294
$
187,391
$
417,699
$
354,310
Cost of goods sold
115,002
101,729
227,105
193,877
Gross profit
99,292
85,662
190,594
160,433
Operating expenses:
Research and development
50,891
43,510
97,391
88,714
Selling, general and administrative
42,158
38,085
89,700
78,282
Total operating expenses
93,049
81,595
187,091
166,996
Operating income (loss)
6,243
4,067
3,503
(6,563
)
Interest and other expense
(8,958
)
(12,398
)
(16,211
)
(18,341
)
Loss on change in fair value of forward repurchase contract
—
(34,752
)
—
(34,752
)
Loss before income taxes
(2,715
)
(43,083
)
(12,708
)
(59,656
)
Income tax benefit
(9,298
)
(9,470
)
(6,129
)
(8,430
)
Net income (loss)
6,583
(33,613
)
(6,579
)
(51,226
)
Net income attributable to non-controlling interests
64
62
129
124
Net income (loss) attributable to Allegro MicroSystems, Inc.
$
6,519
$
(33,675
)
$
(6,708
)
$
(51,350
)
Net income (loss) per common share attributable to Allegro MicroSystems, Inc.:
Basic
$
0.04
$
(0.18
)
$
(0.04
)
$
(0.27
)
Diluted
$
0.03
$
(0.18
)
$
(0.04
)
$
(0.27
)
Weighted average shares outstanding:
Basic
185,074,119
189,182,850
184,830,588
191,324,281
Diluted
186,305,785
189,182,850
184,830,588
191,324,281
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 26, 2025
September 27, 2024
Amount
%
September 26, 2025
September 27, 2024
Amount
%
(Dollars in thousands)
(Dollars in thousands)
Automotive
$
155,845
$
139,680
$
16,165
12
%
$
300,109
$
267,074
$
33,035
12
%
Industrial and Other
58,449
47,711
10,738
23
%
117,590
87,236
30,354
35
%
Total net sales
$
214,294
$
187,391
$
26,903
14
%
$
417,699
$
354,310
$
63,389
18
%
ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
September 26,
March 28,
2025 (Unaudited)
2025
Assets
Current assets:
Cash and cash equivalents
$
117,492
$
121,334
Restricted cash
9,322
9,773
Trade accounts receivable, net
105,770
84,598
Inventories
170,681
183,914
Prepaid income taxes
9,363
36,662
Prepaid expenses and other current assets
40,324
30,247
Assets held for sale
16,508
16,508
Total current assets
469,460
483,036
Property, plant and equipment, net
300,438
302,919
Deferred income tax assets
72,955
68,528
Goodwill
203,467
202,475
Intangible assets, net
250,929
262,115
Equity investment in related party
28,542
31,695
Other assets
58,537
70,193
Total assets
$
1,384,328
$
1,420,961
Liabilities, Non-Controlling Interest and Stockholders' Equity
Current liabilities:
Trade accounts payable
$
41,761
$
38,733
Amounts due to related party
3,263
6,535
Accrued expenses and other current liabilities
74,082
65,570
Current portion of long-term debt
1,553
1,423
Total current liabilities
120,659
112,261
Long-term debt
286,135
344,703
Other long-term liabilities
31,705
32,897
Total liabilities
438,499
489,861
Commitments and contingencies
Stockholders' Equity:
Preferred stock
—
—
Common stock
1,851
1,843
Additional paid-in capital
1,029,002
1,012,055
Accumulated deficit
(60,299
)
(53,591
)
Accumulated other comprehensive loss
(26,379
)
(30,752
)
Equity attributable to Allegro MicroSystems, Inc.
944,175
929,555
Non-controlling interest
1,654
1,545
Total stockholders' equity
945,829
931,100
Total liabilities, non-controlling interest and stockholders' equity
$
1,384,328
$
1,420,961
ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
Three-Month Period Ended
Six-Month Period Ended
September 26, 2025
September 27, 2024
September 26, 2025
September 27, 2024
Cash flows from operating activities:
Net income (loss)
$
6,583
$
(33,613
)
$
(6,579
)
$
(51,226
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
16,611
15,997
32,827
32,455
Amortization of deferred financing costs
717
306
1,650
1,087
Deferred income taxes
890
(2,796
)
(4,171
)
(7,795
)
Stock-based compensation
13,681
11,545
24,443
21,663
Loss on change in fair value of forward repurchase contract
—
34,752
—
34,752
Provisions for inventory and expected credit losses
1,093
2,111
4,543
4,488
Other non-cash reconciling items
217
6,563
159
6,577
Changes in operating assets and liabilities:
Trade accounts receivable
(16,391
)
(13,717
)
(21,723
)
41,417
Inventories
2,020
(2,845
)
9,253
(18,831
)
Prepaid expenses and other assets
(9,338
)
(14,093
)
26,627
(15,808
)
Trade accounts payable
(2,100
)
13,470
4,181
13,670
Due to and from related parties
361
695
(3,272
)
4,132
Other changes in operating assets and liabilities, net
6,018
(2,828
)
14,042
(16,838
)
Net cash provided by operating activities
20,362
15,547
81,980
49,743
Cash flows from investing activities:
Purchases of property, plant and equipment
(6,444
)
(9,972
)
(17,044
)
(20,949
)
Net cash used in investing activities
(6,444
)
(9,972
)
(17,044
)
(20,949
)
Cash flows from financing activities:
Net proceeds from Refinanced 2023 Term Loan Facility
—
193,483
—
193,483
Repayment of term loan
(25,000
)
—
(60,000
)
(50,000
)
Finance lease payments
(336
)
(240
)
(538
)
(385
)
Receipts on related party notes receivable
—
937
—
1,875
Payments for contingent consideration
(1,000
)
—
(1,000
)
—
Payments for taxes related to net share settlement of equity awards
(361
)
(1,126
)
(9,349
)
(12,297
)
Proceeds from issuance of common stock under employee stock purchase plan
1,910
1,987
1,910
1,987
Repurchases of common stock
—
(853,805
)
—
(853,805
)
Payments for taxes related to repurchase of common stock
(1,713
)
—
(1,713
)
—
Net proceeds from issuance of common stock
—
665,850
—
665,850
Dividends paid to non-controlling interest
(23
)
—
(23
)
—
Net cash (used in) provided by financing activities
(26,523
)
7,086
(70,713
)
(53,292
)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
40
2,200
1,484
1,375
Net (decrease) increase in cash and cash equivalents and restricted cash
(12,565
)
14,861
(4,293
)
(23,123
)
Cash and cash equivalents and restricted cash at beginning of period
139,379
184,177
131,107
222,161
Cash and cash equivalents and restricted cash at end of period
$
126,814
$
199,038
$
126,814
$
199,038
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 Income 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 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Gross Profit
$
99,292
$
91,302
$
85,662
$
190,594
$
160,433
GAAP Gross Margin (% of net sales)
46.3
%
44.9
%
45.7
%
45.6
%
45.3
%
Non-GAAP adjustments
Transaction-related costs
—
—
10
—
9
Purchased intangible amortization
5,090
5,089
4,875
10,179
9,750
Restructuring costs
751
705
16
1,456
1,216
Stock-based compensation
1,017
888
817
1,905
1,378
Other Costs
44
—
—
44
—
Total Non-GAAP Adjustments
$
6,902
$
6,682
$
5,718
$
13,584
$
12,353
Non-GAAP Gross Profit
$
106,194
$
97,984
$
91,380
$
204,178
$
172,786
Non-GAAP Gross Margin (% of net sales)
49.6
%
48.2
%
48.8
%
48.9
%
48.8
%
Reconciliation of Non-GAAP Operating Expenses
Three-Month Period Ended
Six-Month Period Ended
September 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Operating Expenses
$
93,049
$
94,042
$
81,595
$
187,091
$
166,996
Research and Development Expenses
GAAP Research and Development Expenses
50,891
46,500
43,510
97,391
88,714
Non-GAAP adjustments
Transaction-related costs
—
—
206
—
1,235
Purchased intangible amortization
8
3
—
11
—
Restructuring costs
1,639
1,131
260
2,770
429
Stock-based compensation
4,907
2,911
3,523
7,818
7,258
Other costs(1)
112
35
3
147
3
Non-GAAP Research and Development Expenses
44,225
42,420
39,518
86,645
79,789
Selling, General and Administrative Expenses
GAAP Selling, General and Administrative Expenses
42,158
47,542
38,085
89,700
78,282
Non-GAAP adjustments
Transaction-related costs
1
130
275
131
1,089
Purchased intangible amortization
535
535
535
1,070
1,070
Restructuring costs
1,158
1,184
2,046
2,342
3,091
Stock-based compensation
7,757
6,963
7,205
14,720
13,027
Other costs(1)
476
5,838
(1,820
)
6,314
(1,009
)
Non-GAAP Selling, General and Administrative Expenses
32,231
32,892
29,844
65,123
61,014
Total Non-GAAP Adjustments
16,593
18,730
12,233
35,323
26,193
Non-GAAP Operating Expenses
$
76,456
$
75,312
$
69,362
$
151,768
$
140,803
(1) 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 debt and equity financings or other non-recurring transactions.
Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin
Three-Month Period Ended
Six-Month Period Ended
September 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Operating Income (Loss)
$
6,243
$
(2,740
)
$
4,067
$
3,503
$
(6,563
)
GAAP Operating Margin (% of net sales)
2.9
%
(1.3
)%
2.2
%
0.8
%
(1.9
)%
Transaction-related costs
1
130
491
131
2,333
Purchased intangible amortization
5,633
5,627
5,410
11,260
10,820
Restructuring costs
3,548
3,020
2,322
6,568
4,736
Stock-based compensation
13,681
10,762
11,545
24,443
21,663
Other costs(1)
632
5,873
(1,817
)
6,505
(1,006
)
Total Non-GAAP Adjustments
$
23,495
$
25,412
$
17,951
$
48,907
$
38,546
Non-GAAP Operating Income
$
29,738
$
22,672
$
22,018
$
52,410
$
31,983
Non-GAAP Operating Margin (% of net sales)
13.9
%
11.1
%
11.7
%
12.5
%
9.0
%
(1) 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 debt and equity financings or other non-recurring transactions.
Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Three-Month Period Ended
Six-Month Period Ended
September 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Net Income (Loss)
$
6,583
$
(13,162
)
$
(33,613
)
$
(6,579
)
$
(51,226
)
GAAP Net Income (Loss) Margin (% of net sales)
3.1
%
(6.5
)%
(17.9
)%
(1.6
)%
(14.5
)%
Interest expense
5,730
6,359
10,353
12,089
15,730
Interest income
(159
)
(234
)
(420
)
(393
)
(914
)
Income tax (benefit) provision
(9,298
)
3,169
(9,470
)
(6,129
)
(8,430
)
Depreciation & amortization
16,611
16,216
15,997
32,827
32,455
EBITDA
$
19,467
$
12,348
$
(17,153
)
$
31,815
$
(12,385
)
Transaction-related costs
1
130
3,295
131
5,137
Restructuring costs
3,403
2,824
2,067
6,227
4,481
Stock-based compensation
13,681
10,762
11,545
24,443
21,663
Loss on change in fair value of forward repurchase contract
—
—
34,752
—
34,752
Other costs(1)
4,271
7,304
(2,195
)
11,575
612
Adjusted EBITDA
$
40,823
$
33,368
$
32,311
$
74,191
$
54,260
Adjusted EBITDA Margin (% of net sales)
19.0
%
16.4
%
17.2
%
17.8
%
15.3
%
(1) 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 debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.
Reconciliation of Non-GAAP Profit before Tax
Three-Month Period Ended
Six-Month Period Ended
September 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Loss before Income Taxes
$
(2,715
)
$
(9,993
)
$
(43,083
)
$
(12,708
)
$
(59,656
)
Transaction-related costs
1
130
3,295
131
5,137
Transaction-related interest
645
860
141
1,505
850
Purchased intangible amortization
5,633
5,627
5,410
11,260
10,820
Restructuring costs
3,736
3,020
2,067
6,756
4,481
Stock-based compensation
13,681
10,762
11,545
24,443
21,663
Loss on change in fair value of forward repurchase contract
—
—
34,752
—
34,752
Other costs(1)
4,271
7,304
1,428
11,575
4,235
Total Non-GAAP Adjustments
$
27,967
$
27,703
$
58,638
$
55,670
$
81,938
Non-GAAP Profit before Tax
$
25,252
$
17,710
$
15,555
$
42,962
$
22,282
(1) 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 debt and equity financings or other non-recurring transactions 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
September 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Income Tax (Benefit) Provision
$
(9,298
)
$
3,169
$
(9,470
)
$
(6,129
)
$
(8,430
)
GAAP effective tax rate
342.5
%
(31.7
)%
22.0
%
48.2
%
14.1
%
Tax effect of adjustments to GAAP results
10,733
(1,483
)
10,071
9,250
9,676
Non-GAAP Income Tax Provision
$
1,435
$
1,686
$
601
$
3,121
$
1,246
Non-GAAP effective tax rate
5.7
%
9.5
%
3.9
%
7.3
%
5.6
%
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 26, 2025
June 27, 2025
September 27, 2024
September 26, 2025
September 27, 2024
(Dollars in thousands)
(Dollars in thousands)
GAAP Net Income (Loss) Attributable to Allegro MicroSystems, Inc.(1)
$
6,519
$
(13,227
)
$
(33,675
)
$
(6,708
)
$
(51,350
)
GAAP Basic weighted average common shares
185,074,119
184,587,027
189,182,850
184,830,588
191,324,281
GAAP Diluted weighted average common shares
186,305,785
184,587,027
189,182,850
184,830,588
191,324,281
GAAP Basic Income (Loss) per Share
$
0.04
$
(0.07
)
$
(0.18
)
$
(0.04
)
$
(0.27
)
GAAP Diluted Income (Loss) per Share
$
0.03
$
(0.07
)
$
(0.18
)
$
(0.04
)
$
(0.27
)
Transaction-related costs
1
130
3,295
131
5,137
Transaction-related interest
645
860
141
1,505
850
Purchased intangible amortization
5,633
5,627
5,410
11,260
10,820
Restructuring costs
3,736
3,020
2,067
6,756
4,481
Stock-based compensation
13,681
10,762
11,545
24,443
21,663
Loss on change in fair value of forward repurchase contract
—
—
34,752
—
34,752
Other costs(2)
4,271
7,304
1,428
11,575
4,235
Total Non-GAAP Adjustments
27,967
27,703
58,638
55,670
81,938
Tax effect of adjustments to GAAP results(3)
(10,733
)
1,483
(10,071
)
(9,250
)
(9,676
)
Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.
$
23,753
$
15,959
$
14,892
$
39,712
$
20,912
Basic weighted average common shares
185,074,119
184,587,027
189,182,850
184,830,588
191,324,281
Diluted weighted average common shares
186,305,785
185,416,258
189,710,595
185,800,398
192,154,185
Non-GAAP Basic Earnings per Share
$
0.13
$
0.09
$
0.08
$
0.21
$
0.11
Non-GAAP Diluted Earnings per Share
$
0.13
$
0.09
$
0.08
$
0.21
$
0.11
(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 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 debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.
(3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction, reverses all discrete items, 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
