MACOM — Fiscal Year 2026 Earnings Summary

Financial Performance:

• Q4 FY26 revenue was $424.8 million, up 62.7% year-over-year (YoY) and 24.1% sequentially; full-year FY26 revenue was $1,327.6 million, up 37.3% YoY.
• Q4 FY26 GAAP gross margin was 59.9% (vs. 54.5% YoY); full-year FY26 GAAP gross margin was 58.0% (vs. 54.7% FY25).
• Q4 FY26 GAAP net income was $139.4 million ($1.78 per diluted share), compared to $45.1 million ($0.59 per diluted share) YoY; full-year FY26 GAAP net income was $335.3 million ($4.31 per diluted share), compared to a net loss of $54.2 million ($0.73 per diluted share) in FY25.
• Full-year FY26 GAAP income from operations was $305.5 million, compared to $129.7 million in FY25.
• Q4 FY26 Adjusted Non-GAAP net income was $163.3 million ($2.09 per diluted share), compared to $71.4 million ($0.94 per diluted share) YoY; full-year FY26 Adjusted Non-GAAP net income was $435.7 million ($5.60 per diluted share), compared to $263.4 million ($3.47 per diluted share) in FY25.
• Q4 FY26 Adjusted Non-GAAP gross margin was 61.3% (vs. 57.1% YoY); full-year FY26 Adjusted Non-GAAP gross margin was 59.5% (vs. 57.4% FY25).
• Q4 FY26 Adjusted Non-GAAP income from operations was $162.3 million (38.2% of revenue), compared to $67.0 million (25.6% of revenue) YoY; full-year FY26 Adjusted Non-GAAP income from operations was $424.4 million (32.0% of revenue), compared to $245.7 million (25.4% of revenue) in FY25.
• FY26 Net cash provided by operating activities was $357.1 million, compared to $235.4 million in FY25.
• FY26 Net cash used in investing activities was $147.9 million, compared to $328.3 million in FY25.
• FY26 Net cash used in financing activities was $209.2 million, primarily driven by the repayment of convertible notes ($161.2 million).
• FY26 GAAP income tax expense was $54.6 million; the FY25 net loss included a $193.1 million non-cash loss on extinguishment of debt related to convertible senior notes refinancing.
• Balance sheet as of October 2, 2026, showed total assets of $2,322.9 million, total liabilities of $626.2 million, and stockholders' equity of $1,696.7 million.
• Short-term debt increased to $340.7 million as of October 2, 2026, from $160.9 million in FY25; long-term debt decreased to $0 from $339.6 million in FY25.

Guidance and Future Outlook:

• For Q1 FY27 (ending January 1, 2027), MACOM expects revenue between $450 million and $460 million.
• Adjusted gross margin for Q1 FY27 is expected to be between 62.0% and 63.0%.
• Adjusted earnings per diluted share for Q1 FY27 is expected to be between $2.21 and $2.29, utilizing an anticipated non-GAAP income tax rate of 6% and 79.0 million fully diluted shares outstanding.
• Management expects the non-GAAP income tax rate to increase to approximately 6% for FY27, primarily due to profitability growth and utilization of historical deferred tax assets.

Business Segments and Product Lines:

• MACOM designs and manufactures high-performance semiconductor products for Industrial and Defense, Data Center, and Telecommunications industries.
• The company services over 6,000 customers annually with a portfolio incorporating RF, Microwave, Analog and Mixed Signal, and Optical semiconductor technologies.
• MACOM has achieved IATF16949 automotive, AS9100D aerospace, ISO9001, and ISO14001 certifications.
• The press release mentions anticipated entry into the CW laser market and potential benefits from the conversion of development program awards and customer contract awards into production revenue.
• The company references the execution of its fabrication facility and expansion of manufacturing capacity as key growth drivers.

Market and Competitive Landscape:

• MACOM operates facilities across the United States, Europe, and Asia.
• The company notes its ability to drive market share gains and strengthen its position as a strategic priority.
• The press release highlights the potential impact of tariffs, sanctions, and trade tensions on the business.

Risks and Challenges:

• Risks include component shortages, supply chain disruptions due to geopolitical unrest, and inflationary pressures.
• Challenges involve the ability to accurately anticipate demand, manage inventory, and dependence on a limited number of customers.
• Risks related to global economic conditions, including potential recessions, and changes in U.S. and foreign government defense budgets.
• Potential impacts from tariffs, export bans, and retaliatory trade measures are noted.
• Risks associated with acquisitions, investment yields, and the ability to expand manufacturing capacity in a timely and cost-effective manner.
• The company notes the potential impact of the CHIPS Act funding and the negotiation of definitive agreements with Federal and State governments.

Management Commentary and Tone:

• Stephen G. Daly, President and CEO, stated, "We had a strong fiscal year 2026 and look forward to continued growth in fiscal 2027."
• Management expressed confidence in executing its long-term growth strategy, developing new products, and achieving market acceptance.
• The tone reflects optimism regarding profitability improvements, gross margin expansion, and end-market-specific revenue growth.

Other Key Points:

• MACOM completed an investment in IQE plc to strengthen its supply chain.
• The company is pursuing potential acquisitions and strategic investments.
• MACOM is seeking funding from Federal and State governments under the CHIPS Act.
• The FY25 net loss was significantly impacted by a $193.1 million non-cash loss on debt extinguishment related to convertible senior notes.
• The company hosts a conference call on November 5, 2026, at 8:30 a.m. Eastern Time to discuss results.
• MACOM utilizes Non-GAAP financial measures to evaluate ongoing operating performance, excluding items such as amortization, share-based compensation, acquisition costs, and non-cash interest.