ALLEGRO MICROSYSTEMS Q1 SALES JUMP 22%

By Greg Peters • Thursday, July 31 10:48 • Permanent Link

Allegro Microsystems, Inc. has reported its financial results for the first quarter ended June 27, 2025. The company's sales increased by 22% year-over-year to reach $203 million, with strong growth in both the e-mobility and industrial and other segments, which increased by 31% and 50% year-over-year, respectively.

The non-GAAP earnings per share (EPS) also showed significant improvement, reaching $0.09, nearly tripling the figure from the previous year.

In terms of net sales, the automotive segment reached $144,264, while the industrial and other segment achieved $59,141, resulting in total net sales of $203,405. This represents an increase from the previous quarter's total net sales of $192,824 and the net sales from the same period last year, which stood at $166,919.

Looking at the gross margin, the non-GAAP gross margin percentage increased to 48.2% from 45.6% in the previous quarter and 48.8% from the same period last year. Similarly, the non-GAAP operating margin percentage rose to 11.1% from 9.0% in the previous quarter and 6.0% from the same period last year.

The company's free cash flow for the first quarter was $51 million, equivalent to 25% of sales. Additionally, Allegro made voluntary debt repayments of $35 million during the quarter, in addition to $105 million in voluntary debt repayments in the prior fiscal year.

Looking ahead to the second quarter of fiscal year 2026, Allegro expects total net sales to be in the range of $205 million to $215 million, implying a net sales growth of 12% year-over-year at the midpoint. The company also anticipates non-GAAP diluted earnings per share to be between $0.10 and $0.14, representing a 50% increase year-over-year at the midpoint.

Allegro Microsystems, Inc. is set to hold a webcast on July 31, 2025, to discuss its business and financial results. The webcast will be available on the investor relations section of the company’s website.

Allegro Microsystems, Inc. is a global leader in power and sensing semiconductor solutions for motion control and energy-efficient systems. For additional information, please visit the company’s website. Following these announcements, the company's shares moved -0.41%, and are now trading at a price of $33.87. Check out the company's full 8-K submission here.

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