Operating margins have faced severe compression, falling from 25.3% in 2023Q4 to 15.3% in 2026Q1, as fixed costs scale faster than revenue.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Jan'22 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Apr'99 | Mar'97 | Mar'96 | Apr'95 |
|---|
| Sales/Revenue | 574.01M | 523.26M | 509.4M | 737.15M | 660.36M | 515.33M | 408.12M | 404.09M | 398.8M | 385.96M | 427.05M | 405.97M | 366.13M | 332.52M | 279.26M | 318.37M | 297.77M | 194.42M | 222.26M | 228.71M | 245.46M | 211.06M | 225.83M | 209.66M | 229.13M | 295.33M | 567.76M | 245.9M | 204.1M | 198.2M | 144.1M |
| Revenue Growth % | 17.45% | 2.72% | -30.9% | 11.63% | 28.14% | 26.27% | 1% | 1.33% | 3.33% | -9.62% | 5.19% | 10.88% | 10.11% | 19.08% | -12.28% | 6.92% | 53.16% | -12.53% | -2.82% | -6.82% | 16.3% | -6.54% | 7.71% | -8.49% | -22.42% | -47.98% | 130.89% | 20.48% | 2.98% | 37.54% | 14.18% |
| Cost of Goods Sold | 190.08M | 166.32M | 169M | 222.48M | 208.31M | 193.65M | 162.81M | 165.67M | 179.36M | 169.38M | 180.62M | 186.06M | 159.94M | 154.28M | 128.5M | 129.77M | 117.94M | 90.08M | 102.83M | 103.16M | 106.73M | 95.92M | 96.86M | 89.27M | 91.55M | 111.5M | 217.83M | 89.3M | 75.1M | 75.1M | 52.9M |
| COGS % of Revenue | - | 31.79% | 33.18% | 30.18% | 31.54% | 37.58% | 39.89% | 41% | 44.98% | 43.89% | 42.29% | 45.83% | 43.68% | 46.4% | 46.01% | 40.76% | 39.61% | 46.33% | 46.27% | 45.1% | 43.48% | 45.45% | 42.89% | 42.58% | 39.95% | 37.75% | 38.37% | 36.32% | 36.8% | 37.89% | 36.71% |
| Gross Profit | 383.93M | 356.94M | 340.4M | 514.67M | 452.05M | 321.68M | 245.31M | 238.42M | 219.44M | 216.58M | 246.43M | 219.91M | 206.19M | 178.24M | 150.76M | 188.6M | 179.82M | 104.34M | 119.43M | 125.55M | 138.73M | 115.14M | 128.97M | 120.4M | 137.58M | 183.83M | 349.93M | 156.6M | 129M | 123.1M | 91.2M |
| Gross Margin % | 66.89% | 68.22% | 66.82% | 69.82% | 68.46% | 62.42% | 60.11% | 59% | 55.02% | 56.11% | 57.71% | 54.17% | 56.32% | 53.6% | 53.99% | 59.24% | 60.39% | 53.67% | 53.73% | 54.9% | 56.52% | 54.55% | 57.11% | 57.42% | 60.05% | 62.25% | 61.63% | 63.68% | 63.2% | 62.11% | 63.29% |
| Gross Profit Growth % | - | 4.86% | -33.86% | 13.85% | 40.53% | 31.13% | 2.89% | 8.65% | 1.32% | -12.11% | 12.06% | 6.66% | 15.68% | 18.23% | -20.06% | 4.88% | 72.34% | -12.63% | -4.88% | -9.5% | 20.5% | -10.73% | 7.13% | -12.49% | -25.16% | -47.47% | 123.45% | 21.4% | 4.79% | 34.98% | 15.88% |
| Operating Expenses | 351.88M | 341.62M | 305.94M | 302.4M | 264.68M | 220.86M | 192.94M | 179.38M | 191.19M | 225.41M | 249.69M | 263.8M | 164.55M | 148.11M | 149.93M | 140.69M | 124.69M | 108.91M | 139.67M | 374.85M | 151.22M | 169.16M | 192.01M | 214.99M | 207.29M | 209.06M | 240.01M | 81.5M | 70M | 65.2M | 53.9M |
| OpEx % of Revenue | - | 65.29% | 60.06% | 41.02% | 40.08% | 42.86% | 47.28% | 44.39% | 47.94% | 58.4% | 58.47% | 64.98% | 44.94% | 44.54% | 53.69% | 44.19% | 41.87% | 56.02% | 62.84% | 163.9% | 61.61% | 80.15% | 85.02% | 102.54% | 90.47% | 70.79% | 42.27% | 33.14% | 34.3% | 32.9% | 37.4% |
| Selling, General & Admin | 152.28M | 153.63M | 116.94M | 137.24M | 122.08M | 105.62M | 95.33M | 82.54M | 91.05M | 90.72M | 98.6M | 97.35M | 73.53M | 67.14M | 72.32M | 68.84M | 64.36M | 52.55M | 58.68M | 58.48M | 58.45M | 57.54M | 53.8M | 50.77M | 48.1M | 53.03M | 81.08M | 39.9M | 33.6M | 31.3M | 25M |
| SG&A % of Revenue | - | 29.36% | 22.96% | 18.62% | 18.49% | 20.5% | 23.36% | 20.43% | 22.83% | 23.5% | 23.09% | 23.98% | 20.08% | 20.19% | 25.9% | 21.62% | 21.61% | 27.03% | 26.4% | 25.57% | 23.81% | 27.26% | 23.82% | 24.22% | 20.99% | 17.96% | 14.28% | 16.23% | 16.46% | 15.79% | 17.35% |
| Research & Development | 196.86M | 187.98M | 159.3M | 159.77M | 135.77M | 110.52M | 89.22M | 78.62M | 82.45M | 103.36M | 117.52M | 136.87M | 88.08M | 80.97M | 77.61M | 71.86M | 60.33M | 56.13M | 68.61M | 82.98M | 81.97M | 95.41M | 90.96M | 87.09M | 85.78M | 71.68M | 77.06M | 32M | 27.8M | 26.8M | 22.9M |
| R&D % of Revenue | - | 35.93% | 31.27% | 21.67% | 20.56% | 21.45% | 21.86% | 19.46% | 20.67% | 26.78% | 27.52% | 33.71% | 24.06% | 24.35% | 27.79% | 22.57% | 20.26% | 28.87% | 30.87% | 36.28% | 33.39% | 45.21% | 40.28% | 41.54% | 37.44% | 24.27% | 13.57% | 13.01% | 13.62% | 13.52% | 15.89% |
| Other Operating Expenses | 2M | 0 | 29.7M | 5.39M | 6.84M | 4.72M | 8.39M | 18.22M | -249K | -3.29M | 4.3M | -832K | 1.32M | -300K | 505K | 0 | 0 | 228K | 12.38M | 233.39M | 10.81M | 16.21M | 47.25M | 77.13M | 73.42M | 84.35M | 81.87M | 9.6M | 8.6M | 7.1M | 6M |
| Operating Income | 31.43M | 15.28M | 34.46M | 212.27M | 187.37M | 100.82M | 52.37M | 59.04M | -3.12M | -47.62M | -26.7M | -107.23M | 41.62M | 26.79M | -9.37M | 41.29M | 55.13M | -8.25M | -20.23M | -251.67M | -12.8M | -65.97M | -63.03M | -94.6M | -99.56M | -25.23M | 109.92M | 75.1M | 59M | 57.9M | 37.3M |
| Operating Margin % | 5.48% | 2.92% | 6.76% | 28.8% | 28.37% | 19.56% | 12.83% | 14.61% | -0.78% | -12.34% | -6.25% | -26.41% | 11.37% | 8.06% | -3.35% | 12.97% | 18.51% | -4.24% | -9.1% | -110.04% | -5.22% | -31.25% | -27.91% | -45.12% | -43.45% | -8.54% | 19.36% | 30.54% | 28.91% | 29.21% | 25.88% |
| Operating Income Growth % | - | -55.67% | -83.77% | 13.29% | 85.85% | 92.52% | -11.31% | 1992.34% | 93.45% | -78.36% | 75.1% | -357.67% | 55.36% | 385.99% | -122.68% | -25.1% | 768.07% | 59.22% | 91.96% | -1865.71% | 80.59% | -4.65% | 33.37% | 4.99% | -294.67% | -122.95% | 46.36% | 27.29% | 1.9% | 55.23% | 24.33% |
| EBITDA | 62.96M | 57.59M | 80.72M | 253.47M | 223.2M | 131.83M | 83.47M | 97.89M | 35.54M | 10.24M | 35.11M | -77.65M | 44.56M | 47.59M | 12.78M | 57.95M | 69.62M | -8.02M | 1.7M | -224.71M | 14.94M | -32.47M | 5.74M | 5.31M | -5.19M | 81.31M | 212.13M | 84.7M | 67.6M | 65M | 43.3M |
| EBITDA Margin % | 10.97% | 11.01% | 15.85% | 34.38% | 33.8% | 25.58% | 20.45% | 24.23% | 8.91% | 2.65% | 8.22% | -19.13% | 12.17% | 14.31% | 4.58% | 18.2% | 23.38% | -4.13% | 0.76% | -98.25% | 6.09% | -15.38% | 2.54% | 2.53% | -2.26% | 27.53% | 37.36% | 34.44% | 33.12% | 32.8% | 30.05% |
| EBITDA Growth % | -11.23% | -28.66% | -68.15% | 13.56% | 69.31% | 57.95% | -14.74% | 175.44% | 247.05% | -70.83% | 145.21% | -274.25% | -6.36% | 272.31% | -77.94% | -16.76% | 967.66% | -572.56% | 100.76% | -1603.7% | 146.02% | -665.5% | 8.22% | 202.27% | -106.38% | -61.67% | 150.45% | 25.3% | 4% | 50.12% | 20.95% |
| D&A (Non-Cash Add-back) | 31.53M | 42.31M | 46.27M | 41.2M | 35.84M | 31.02M | 31.1M | 38.85M | 38.66M | 57.86M | 61.81M | 29.58M | 2.95M | 20.81M | 22.15M | 16.67M | 14.49M | 228K | 21.93M | 26.96M | 27.75M | 33.49M | 68.78M | 99.9M | 94.38M | 106.54M | 102.21M | 9.6M | 8.6M | 7.1M | 6M |
| EBIT | 7.63M | 15.28M | 60.68M | 214.18M | 190.43M | 102.93M | 52.16M | 56.8M | -3.37M | -50.91M | -23.86M | -108.3M | 43.11M | 26.64M | 830K | 47.9M | 55.14M | -6.44M | -38.03M | -249.3M | -12.49M | -54.03M | -63.03M | -94.6M | -69.71M | -25.23M | 276.11M | 51.6M | 75.1M | 59M | 57.9M |
| Net Interest Income | 1.84M | 2.9M | 3.95M | 2.04M | -4.15M | -2.74M | -3.7M | -11.73M | -20.6M | -18.81M | -20.33M | -18.39M | -172K | -152K | 0 | 1.14M | 0 | 0 | 0 | -203.13M | 0 | 0 | 0 | 1.01M | -34.71M | 0 | 2.17M | 0 | 0 | 0 | 0 |
| Interest Income | 1.84M | 3.16M | 4.21M | 5.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.14M | 0 | 0 | 0 | 7.81M | 0 | 0 | 0 | 3.63M | 5.36M | 0 | 16.2M | 0 | 0 | 0 | 0 |
| Interest Expense | 1.27M | 264K | 266K | 2.97M | 4.15M | 2.74M | 3.7M | 11.73M | 20.6M | 18.81M | 20.33M | 18.39M | 172K | 7M | 19.38M | 0 | 0 | 3.75M | 46.37M | 210.94M | 0 | 0 | 0 | 2.62M | 40.07M | 301.25M | 14.04M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.23M | -1.9M | 1.77M | 2.59M | -5.25M | -3.19M | -3.91M | -13.98M | -20.85M | -22.09M | -16.02M | -19.22M | 1.32M | -300K | 505K | 1.43M | 2.46M | 1.81M | -17.79M | 12.54M | 16.95M | 17.08M | 11.37M | -3.06M | 6.19M | -173.96M | 152.15M | 10.6M | 8.7M | 5.4M | 26M |
| Pretax Income | 32.66M | 13.38M | 36.23M | 214.86M | 182.11M | 97.63M | 48.46M | 45.06M | -23.97M | -69.71M | -42.72M | -126.45M | 42.94M | 26.49M | -8.86M | 42.72M | 57.6M | -6.44M | -38.03M | -239.13M | 4.15M | -48.89M | -51.66M | -97.66M | -93.37M | -173.97M | 262.07M | 85.7M | 67.7M | 63.3M | 40.7M |
| Pretax Margin % | 5.69% | 2.56% | 7.11% | 29.15% | 27.58% | 18.94% | 11.87% | 11.15% | -6.01% | -18.06% | -10% | -31.15% | 11.73% | 7.97% | -3.17% | 13.42% | 19.34% | -3.31% | -17.11% | -104.56% | 1.69% | -23.16% | -22.88% | -46.58% | -40.75% | -58.91% | 46.16% | 34.85% | 33.17% | 31.94% | 28.24% |
| Income Tax | 12.78M | 10.29M | -24.9M | -44.2M | 3.23M | 1.7M | 1.06M | 1.57M | 2.35M | 849K | 9.92M | 32.54M | -5.64M | 4.17M | 20.75M | -35.51M | 531K | 517K | 180K | 686K | 1.05M | 233K | 318K | -5.85M | 81.87M | -64.45M | 94.18M | 29.1M | 22.7M | 21.5M | 13.7M |
| Effective Tax Rate % | 39.14% | 76.95% | -68.73% | -20.57% | 1.77% | 1.75% | 2.2% | 3.49% | -9.82% | -1.22% | -23.21% | -25.73% | -13.13% | 15.73% | -234.12% | -83.11% | 0.92% | -8.03% | -0.47% | -0.29% | 25.43% | -0.48% | -0.62% | 5.99% | -87.68% | 37.05% | 35.94% | 33.96% | 33.53% | 33.97% | 33.66% |
| Net Income | 19.88M | 3.08M | 61.13M | 259.06M | 178.88M | 95.92M | 47.39M | 43.49M | -26.32M | -70.56M | -54.1M | -159.23M | 48.58M | 22.32M | -29.61M | 78.23M | 57.07M | -6.96M | -38.21M | -239.82M | 3.09M | -49.12M | -51.98M | -91.81M | -175.24M | -109.52M | 167.89M | 56.6M | 45M | 41.8M | 27M |
| Net Margin % | 3.46% | 0.59% | 12% | 35.14% | 27.09% | 18.61% | 11.61% | 10.76% | -6.6% | -18.28% | -12.67% | -39.22% | 13.27% | 6.71% | -10.6% | 24.57% | 19.17% | -3.58% | -17.19% | -104.86% | 1.26% | -23.27% | -23.02% | -43.79% | -76.48% | -37.08% | 29.57% | 23.02% | 22.05% | 21.09% | 18.74% |
| Net Income Growth % | -61.29% | -94.96% | -76.4% | 44.82% | 86.49% | 102.4% | 8.96% | 265.23% | 62.7% | -30.43% | 66.03% | -427.77% | 117.64% | 175.39% | -137.84% | 37.08% | 920.35% | 81.79% | 84.07% | -7853.51% | 106.3% | 5.5% | 43.38% | 47.61% | -60% | -165.23% | 196.62% | 25.78% | 7.66% | 54.81% | 20% |
| Net Income (Continuing) | 19.88M | 3.08M | 61.13M | 259.06M | 178.88M | 95.92M | 47.39M | 43.49M | -26.32M | -70.56M | -52.64M | -159.23M | 48.58M | 22.32M | -29.61M | 78.23M | 57.07M | -6.96M | -38.21M | -239.82M | 3.09M | -49.12M | -51.98M | -91.81M | -175.24M | -109.52M | 167.89M | 42M | 56.6M | 45M | 41.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.14 | 0.02 | 0.44 | 1.85 | 1.27 | 0.67 | 0.34 | 0.32 | -0.21 | -0.58 | -0.45 | -1.36 | 0.40 | 0.19 | -0.25 | 0.65 | 0.48 | -0.06 | -0.33 | -2.09 | 0.03 | -0.43 | -0.46 | -0.82 | -1.59 | -1.01 | 1.47 | 0.60 | 0.49 | 0.47 | 0.36 |
| EPS Growth % | -60.5% | -94.93% | -76.22% | 45.67% | 89.55% | 97.06% | 6.25% | 252.38% | 63.79% | -28.89% | 66.91% | -440% | 110.53% | 176% | -138.46% | 35.42% | 896.02% | 81.73% | 84.21% | -7066.67% | 106.98% | 6.52% | 43.9% | 48.43% | -57.43% | -168.71% | 145% | 22.45% | 4.26% | 30.56% | 16.13% |
| EPS (Basic) | - | 0.02 | 0.44 | 1.88 | 1.30 | 0.70 | 0.35 | 0.33 | -0.21 | -0.58 | -0.45 | -1.36 | 0.41 | 0.19 | -0.25 | 0.66 | 0.49 | -0.06 | -0.33 | -2.09 | 0.03 | -0.43 | -0.46 | -0.82 | -1.59 | -1.01 | 1.65 | 0.60 | 0.49 | 0.47 | 0.36 |
| Diluted Shares Outstanding | 139.39M | 138.24M | 138.32M | 139.79M | 140.67M | 142.14M | 141.28M | 137.27M | 126.56M | 122.68M | 119.99M | 117.39M | 120.25M | 117.08M | 117.19M | 121.14M | 120.14M | 115.38M | 115.29M | 114.92M | 115.02M | 113.53M | 112.98M | 111.79M | 110.19M | 108.81M | 104.08M | 93.71M | 91.51M | 88.49M | 75.56M |
| Basic Shares Outstanding | 136.81M | 137.09M | 137.62M | 137.69M | 137.32M | 136.62M | 135.22M | 132.47M | 125.34M | 121.66M | 119.99M | 117.08M | 117.71M | 115.7M | 117.19M | 117.88M | 116.73M | 115.38M | 115.29M | 114.92M | 114.19M | 113.53M | 112.98M | 111.79M | 110.19M | 108.81M | 101.72M | 93.71M | 91.51M | 88.49M | 75.56M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operating margin compression
As indicated by the quarterly financial data, LSCC experienced a significant revenue swing from a 31.2% contraction in 2024Q4 to a 42.2% expansion by 2026Q1, suggesting that the company's top-line performance remains highly sensitive to cyclical inventory adjustments and broader semiconductor demand fluctuations.
The erratic growth trajectory highlights the difficulty in maintaining consistent momentum within the industrial and automotive end-markets. Investors should monitor whether the recent rebound in 2026Q1 represents a sustainable recovery or merely a temporary replenishment of channel inventory following the prior year's sharp declines.
According to the reported income statements, LSCC has maintained a robust gross margin profile, consistently hovering near 68% despite significant revenue fluctuations, which suggests strong pricing power for its specialized low-power FPGA products compared to broader semiconductor industry peers.
The ability to preserve high gross margins during periods of revenue contraction implies that the company's value proposition in edge-processing remains intact. However, the occasional dips below 65% warrant investigation into whether these represent temporary price protection agreements or shifts in product mix toward lower-margin offerings.
Based on the provided financial figures, LSCC's operating margins have faced severe compression, falling from 25.3% in 2023Q4 to a low of -10.4% in 2024Q4, indicating that the company's fixed cost base is currently scaling faster than its top-line revenue growth.
The current misalignment between R&D investment and revenue generation suggests that management is prioritizing long-term platform development over immediate profitability. This strategy may be necessary for the Avant platform's success, but it leaves the company vulnerable to further margin erosion if revenue growth fails to accelerate.
As reported in recent filings, the company's net income has been significantly impacted by irregular stock-based compensation expenses, which reached $35.8 million in 2025Q3, potentially masking the underlying cash-generating capability of the core semiconductor business during periods of operational transition.
The volatility in net income, including a notable $98.7 million figure in 2023Q4 followed by subsequent losses, suggests that non-operating items and accounting adjustments are heavily influencing the bottom line. Analysts should focus on normalized earnings to better assess the true operational health of the firm.
Based on an analysis of the income statement, the primary risk to the investment thesis is the potential for structural margin degradation, as R&D and SG&A expenses have remained elevated even while revenue growth has shown signs of instability across recent quarters.
Short-term investors may focus on the inability of the company to consistently convert its high gross margins into meaningful operating income. If the current investment cycle does not yield a commensurate increase in market share, the company may face pressure to rationalize its cost structure to satisfy market expectations.
Quick answers to the most common questions about buying LSCC stock.
For fiscal year 2025, Lattice Semiconductor Corporation (LSCC) reported total revenue of $523.3M. This represents a 263.1% increase compared to $144.1M in 1995.
Lattice Semiconductor Corporation (LSCC) is profitable, generating $3.1M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Lattice Semiconductor Corporation (LSCC) reported an operating income of $15.3M, resulting in an operating profit margin of 2.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Lattice Semiconductor Corporation (LSCC) generated $356.9M in gross profit for the year, representing a gross profit margin of 68.2%. This demonstrates the company's core pricing power and production efficiency.