Revenue grew 27.5% YoY in 2027Q1 to $259.2M, with gross margin expanding to 48.5% from 41.4% in 2025Q4, though operating margin at 9.8% remains below the 2024Q4 peak of 6.6% due to R&D intensity at 21% of revenue.
Allegro MicroSystems, Inc. (ALGM) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 |
|---|
| Sales/Revenue | 945.93M | 890.1M | 725.01M | 1.05B | 973.65M | 768.67M | 591.21M | 650.09M | 724.31M |
| Revenue Growth % | 24.22% | 22.77% | -30.91% | 7.78% | 26.67% | 30.02% | -9.06% | -10.25% | - |
| Cost of Goods Sold | 499.49M | 477.45M | 403.48M | 474.84M | 427.57M | 361.21M | 312.31M | 388.81M | 404.49M |
| COGS % of Revenue | - | 53.64% | 55.65% | 45.25% | 43.91% | 46.99% | 52.83% | 59.81% | 55.84% |
| Gross Profit | 446.44M | 412.64M | 321.53M | 574.53M | 546.08M | 407.46M | 278.9M | 261.28M | 319.82M |
| Gross Margin % | 47.2% | 46.36% | 44.35% | 54.75% | 56.09% | 53.01% | 47.17% | 40.19% | 44.16% |
| Gross Profit Growth % | - | 28.34% | -44.04% | 5.21% | 34.02% | 46.09% | 6.75% | -18.31% | - |
| Operating Expenses | 387.64M | 369.96M | 341.33M | 378.29M | 342.77M | 272.81M | 266.74M | 208.45M | 219.82M |
| OpEx % of Revenue | - | 41.56% | 47.08% | 36.05% | 35.2% | 35.49% | 45.12% | 32.06% | 30.35% |
| Selling, General & Admin | 174.84M | 171.29M | 161.68M | 188.43M | 194.72M | 150.94M | 153.48M | 106.4M | 112.24M |
| SG&A % of Revenue | - | 19.24% | 22.3% | 17.96% | 20% | 19.64% | 25.96% | 16.37% | 15.5% |
| Research & Development | 212.8M | 198.66M | 179.65M | 176.64M | 150.85M | 121.87M | 108.65M | 102.05M | 107.58M |
| R&D % of Revenue | - | 22.32% | 24.78% | 16.83% | 15.49% | 15.86% | 18.38% | 15.7% | 14.85% |
| Other Operating Expenses | 0 | 0 | 0 | 13.22M | -2.8M | 0 | 4.62M | 0 | 0 |
| Operating Income | 58.81M | 42.69M | -19.8M | 196.24M | 203.31M | 136.65M | 12.16M | 52.83M | 100M |
| Operating Margin % | 6.22% | 4.8% | -2.73% | 18.7% | 20.88% | 17.78% | 2.06% | 8.13% | 13.81% |
| Operating Income Growth % | - | 315.58% | -110.09% | -3.47% | 48.78% | 1023.95% | -76.99% | -47.17% | - |
| EBITDA | 127.05M | 110.28M | 44.7M | 267.63M | 254.12M | 185.18M | 60.47M | 116.88M | 159.95M |
| EBITDA Margin % | 13.43% | 12.39% | 6.17% | 25.5% | 26.1% | 24.09% | 10.23% | 17.98% | 22.08% |
| EBITDA Growth % | 142.7% | 146.72% | -83.3% | 5.32% | 37.23% | 206.25% | -48.27% | -26.93% | - |
| D&A (Non-Cash Add-back) | 68.24M | 67.59M | 64.5M | 71.38M | 50.81M | 48.53M | 48.31M | 64.05M | 59.95M |
| EBIT | 35.64M | 18.49M | -55.33M | 205.56M | 213.68M | 143.25M | 2.38M | 53.39M | 100.65M |
| Net Interest Income | -26.61M | -33.39M | -28.84M | -7.62M | -612K | -1.06M | -2.6M | -110K | -1.21M |
| Interest Income | 678K | 0 | 1.52M | 3.14M | 1.72M | 1.44M | 1.23M | 0 | 0 |
| Interest Expense | 27.29M | 33.39M | 30.37M | 10.76M | 2.34M | 2.5M | 3.83M | 110K | 1.21M |
| Other Income/Expense | -46.29M | -57.59M | -65.89M | -1.45M | 8.04M | 4.1M | -13.61M | 450K | -557K |
| Pretax Income | 12.52M | -14.9M | -85.7M | 194.8M | 211.35M | 140.75M | -1.45M | 53.28M | 99.44M |
| Pretax Margin % | 1.32% | -1.67% | -11.82% | 18.56% | 21.71% | 18.31% | -0.25% | 8.2% | 13.73% |
| Income Tax | -1.91M | -248K | -12.93M | 41.91M | 23.85M | 21.19M | -19.55M | 16.17M | 14.6M |
| Effective Tax Rate % | -15.27% | 1.66% | 15.09% | 21.51% | 11.29% | 15.06% | 1347.48% | 30.36% | 14.68% |
| Net Income | 14.2M | -14.9M | -73.01M | 152.7M | 187.36M | 119.41M | 17.95M | 36.97M | 84.72M |
| Net Margin % | 1.5% | -1.67% | -10.07% | 14.55% | 19.24% | 15.53% | 3.04% | 5.69% | 11.7% |
| Net Income Growth % | 120.71% | 79.6% | -147.81% | -18.5% | 56.91% | 565.11% | -51.44% | -56.36% | - |
| Net Income (Continuing) | 14.43M | -14.65M | -72.76M | 152.89M | 187.49M | 119.56M | 18.1M | 37.1M | 84.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.69M | 1.7M | 1.54M | 1.28M | 1.19M | 1.16M | 1.12M | 950K | 814K |
| EPS (Diluted) | 0.08 | -0.08 | -0.39 | 0.78 | 0.97 | 0.62 | 0.09 | 0.20 | 0.45 |
| EPS Growth % | 119.11% | 79.36% | -150% | -19.59% | 56.45% | 554.7% | -52.65% | -55.56% | - |
| EPS (Basic) | - | -0.08 | -0.39 | 0.79 | 0.98 | 0.63 | 0.09 | 0.20 | 0.45 |
| Diluted Shares Outstanding | 187.77M | 185.31M | 187.71M | 194.67M | 193.69M | 191.81M | 189.59M | 189.43M | 187.75M |
| Basic Shares Outstanding | 185.81M | 185.31M | 187.71M | 192.57M | 191.2M | 189.75M | 189.59M | 189.43M | 187.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | 2228.04% | - | - |
Quick answers to the most common questions about buying ALGM stock.
For fiscal year 2026, Allegro MicroSystems, Inc. (ALGM) reported total revenue of $890.1M. This represents a 22.9% increase compared to $724.3M in 2019.
Allegro MicroSystems, Inc. (ALGM) reported a net loss of $14.9M for the fiscal year ending 2026.
Allegro MicroSystems, Inc. (ALGM) reported an operating income of $42.7M, resulting in an operating profit margin of 4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Allegro MicroSystems, Inc. (ALGM) generated $412.6M in gross profit for the year, representing a gross profit margin of 46.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Operating margin compression persists
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on Data Center Strength
Revenue grew 27.5% YoY in 2027Q1, marking the sixth consecutive quarter of growth, with data center demand offsetting automotive softness, according to recent financial statements.
The sequential acceleration from 14.4% in 2026Q2 to 27.5% in 2027Q1 suggests that the company is gaining traction in high-growth end-markets, likely driven by data center applications. However, the sustainability of this growth depends on whether it can continue to offset the lingering weakness in the automotive cycle, which remains a key end-market.
Gross Margin Recovery Masks Structural Cost Pressures
Gross margin expanded from 41.4% in 2025Q4 to 48.5% in 2027Q1, but remains below the 51.2% peak in 2024Q4, indicating incomplete recovery, as reported in quarterly filings.
The improvement in gross margin is encouraging, but the fact that it has not yet returned to prior highs suggests that the company may be facing structural cost pressures, possibly from foundry pricing or product mix. Investors should monitor whether the margin can exceed the 51% level, as that would signal a more durable recovery.
Operating Leverage Emerges as Revenue Scales
Operating income swung from a -$13.2M loss in 2025Q4 to a $25.5M profit in 2027Q1, with operating margin expanding from -6.8% to 9.8%, based on reported figures.
The dramatic improvement in operating leverage indicates that the company's fixed cost base is being utilized more efficiently as revenue grows. However, the operating margin of 9.8% is still well below the gross margin of 48.5%, suggesting that R&D and SG&A expenses remain elevated. The key question is whether this leverage can continue as growth normalizes.
GAAP Net Income Volatility Raises Quality Concerns
Despite positive operating income of $25.5M in 2027Q1, net income was only $15.9M, with a 6.1% net margin, while prior quarters showed net losses, indicating non-operating volatility, as per financial disclosures.
The gap between operating and net income suggests that non-operating items, such as interest expense or tax effects, are significantly impacting the bottom line. The company reported a net loss in 2026Q4 despite positive operating income, which may indicate one-time charges or tax anomalies. Investors should scrutinize the sustainability of these non-operating impacts.
R&D Intensity Weighs on Profitability
R&D expenses have grown from $44.3M in 2024Q4 to $55.2M in 2027Q1, representing over 21% of revenue, while SG&A has remained relatively flat, according to income statement data.
The high R&D intensity reflects the company's commitment to developing advanced sensing technologies, but it also pressures operating margins. With R&D growing faster than revenue, the company is betting on future growth, but this strategy may not pay off if revenue growth decelerates. The flat SG&A suggests some cost discipline, but the overall cost structure remains heavy.
2025Q4 Marks the Trough and Turnaround
The period from 2025Q1 to 2025Q4 saw revenue decline by up to 40% YoY and operating losses, but 2026Q1 began a recovery, with revenue growing 21.9% YoY, as reported in financial statements.
The sharp downturn in 2025 was likely due to inventory corrections and automotive weakness, but the subsequent recovery has been robust. The inflection point appears to be 2026Q1, when revenue turned positive and operating income improved. This suggests that the company has successfully navigated the cyclical trough, but the lasting impact on margins remains to be seen.
Margin Gap and EV Slowdown Pose Risks
Despite 48.5% gross margins, operating margin is only 9.8%, and a global slowdown in EV adoption could derail growth, as per recent context flags.
The wide gap between gross and operating margins indicates a high fixed-cost structure that may not be sustainable if growth slows. Additionally, the company's heavy reliance on automotive and EV content makes it vulnerable to any deceleration in EV adoption, which could lead to inventory corrections and margin compression. Short-sellers might argue that the current valuation assumes flawless execution, leaving little room for error.