Allegro MicroSystems Reports First Quarter 2026 Results

Allegro MicroSystems, Inc., a global leader in power and sensing semiconductor solutions for motion control and energy-efficient systems, has released its financial results for the first quarter of fiscal year 2026, ending June 27, 2025. The company reported a significant year-over-year increase in sales and improvements in several key financial metrics.

Financial Highlights

For the first quarter of fiscal year 2026, Allegro MicroSystems reported:

• Net sales of $203 million, a 22% increase compared to the same period last year.
• Non-GAAP diluted EPS of $0.09, nearly tripling from the previous year's $0.03.
• Gross margin of 44.9% on a GAAP basis and 48.2% on a non-GAAP basis.
• Operating margin of (1.3)% on a GAAP basis and 11.1% on a non-GAAP basis.
• Free cash flow of $51 million, representing 25% of sales.

Business and Operational Highlights

The company experienced robust growth in its key segments:

• Automotive sales increased by 13% year-over-year to $144 million.
• Industrial and Other sales surged by 50% year-over-year to $59 million.

Allegro also noted strong bookings, an increasing backlog, and a return to growth in automotive and industrial end markets.

Strategic Initiatives and Corporate Developments

Allegro MicroSystems focused on improving cash flow, gross margin, and return on invested capital. The company made voluntary debt repayments of $35 million during the first quarter, in addition to $105 million in the prior fiscal year.

Management's Perspective

Mike Doogue, President and CEO, highlighted the company's strong financial performance and positive momentum across the business. Derek D’Antilio, Executive Vice President and CFO, emphasized the focus on cash flow and improving financial metrics.

Future Outlook

For the second quarter of fiscal year 2026, ending September 26, 2025, Allegro MicroSystems expects:

• Total net sales to be in the range of $205 million to $215 million, implying a 12% year-over-year growth at the midpoint.
• Non-GAAP gross margin between 48% and 50%.
• Operating expenses of approximately $73 million.
• Interest expense of approximately $5 million, inclusive of an expected additional voluntary debt repayment of $25 million.
• Non-GAAP diluted EPS between $0.10 and $0.14, up 50% year-over-year at the midpoint.

SEC Filing: ALLEGRO MICROSYSTEMS, INC. [ ALGM ] - 8-K - Jul. 31, 2025