0000950170-25-101117
SEC filingRevenue grew 21.9% YoY driven by data center and e-Mobility, while net loss narrowed to $13.2M.
For the three months ended June 27, 2025, Allegro MicroSystems reported total net sales of $203.4 million, a 21.9% increase from $166.9 million in the prior-year period. The growth was primarily driven by data center applications, industrial automation and robotics, medical, and e-Mobility products (including ADAS and EV components). Gross profit rose 22.1% to $91.3 million, with gross margin improving 10 basis points to 44.9%, attributed to higher sales volume and favorable product mix. Operating loss narrowed significantly to $2.7 million from $10.6 million, reflecting operating leverage on higher revenue. Net loss improved 25.3% to $13.2 million, despite a higher income tax provision ($3.2 million vs. $1.0 million) and increased interest expense ($6.4 million vs. $5.4 million).
Automotive net sales increased 13.2% to $144.3 million, driven by e-Mobility products. Industrial and other net sales surged 49.6% to $59.1 million, led by data center, industrial automation, robotics, and medical applications. By product line, Magnetic Sensors grew 12.2% to $129.2 million, supported by magnetic speed, TMR, and current/isolator products. Power Integrated Circuits jumped 43.3% to $74.2 million, driven by motor and high-performance power products. Geographically, Greater China posted the strongest growth (+80.7%), while Japan and South Korea declined 17.2% and 10.0%, respectively.
Management did not provide explicit forward guidance in the MD&A. However, the company highlighted ongoing investments in R&D and strategic expansion in China, Europe, Japan, and India to directly manage and service customers. The company expects to utilize cash on hand and its revolving credit facility to support growth initiatives and capital expenditures. Key risks include inflationary pressures from global tariff policies, potential end-market demand softening, and the cyclical nature of the semiconductor industry. The company believes existing cash and operating cash flows will be sufficient for the next 12 months.
As of June 27, 2025, Allegro MicroSystems held $129.1M in cash and cash equivalents, plus $10.3M in restricted cash, totaling $139.4M. Total debt stood at $312.3M (including $1.5M current portion), resulting in net debt of $183.2M. The company's leverage remains manageable with a debt-to-equity ratio of 0.34x. Goodwill and intangible assets totaled $459.7M, representing 33% of total assets. Inventory decreased by $10.1M sequentially to $173.8M, reflecting early signs of inventory normalization.
The Notes do not disclose any material purchase commitments or contractual obligations beyond the debt facilities. The company has an undrawn $256.0M revolving credit facility (maturity 2028) with no outstanding borrowings. The Term Loan Facility (maturing 2030) had a balance of $310.0M (net of unamortized costs). The company is in compliance with all debt covenants.
During Q1 FY2026, Allegro repaid $35.0M on its term loan (with an additional $25.0M repaid on July 31, 2025). Capital expenditures totaled $10.6M, or 5.2% of net sales, focused on manufacturing capacity. No share buybacks or dividends were executed in the quarter. The company continues to prioritize debt reduction and organic investments.
Allegro operates as a single reportable segment, but disaggregates revenue by market, product, and geography. Automotive sales of $144.3M (71% of total) grew 13.2% YoY, while Industrial & Other sales of $59.1M (29%) surged 49.6% YoY. By product, magnetic sensors contributed $129.2M (63.5%) and power ICs $74.2M (36.5%). Geographically, Asia accounted for 69% of revenue (Greater China 28%, Japan 17%, South Korea 10%, other Asia 14%), Americas 16% (US 12%), and EMEA 15%.