Lattice Semiconductor (LSCC) Financials

Lattice Semiconductor’s latest quarter shows a strong rebound in profitability and cash generation after a weak finish to 2025. In Q1 2026, revenue rose to $170.9 million, up from $145.8 million in Q4 2025, while net income swung back to $21.8 million from a $7.6 million loss in the prior quarter. Cash from operations also improved to $50.3 million, giving the company a solid start to the year.

Over the last four years, the broad trend has been growth in revenue and a meaningful improvement in earnings power, but with some volatility. Lattice posted much stronger profits in 2023, softened through parts of 2024 and early 2025, then recovered again in Q1 2026. The balance sheet remains healthy, with more cash than debt and a strong equity base, though goodwill and intangibles make up a large portion of assets after prior acquisitions.

• Revenue rebounded sequentially in Q1 2026, rising to $170.9 million from $145.8 million in Q4 2025 and topping Q1 2025’s $120.2 million by a wide margin.
• Profitability improved sharply, with net income of $21.8 million in Q1 2026 versus a net loss of $7.6 million in Q4 2025.
• Operating cash flow was strong at $50.3 million in Q1 2026, suggesting earnings are still converting into cash.
• The company ended Q1 2026 with $140.0 million in cash and equivalents, up from $118.0 million at the end of Q3 2025.
• Debt appears manageable, with total liabilities of $158.8 million against $740.2 million in equity.
• Gross margin remained healthy in Q1 2026, with gross profit of $117.6 million on revenue of $170.9 million.
• Longer-term trend shows meaningful earnings recovery from 2022, when Lattice was already profitable but has since expanded its revenue base and retained earnings substantially.
• Research and development spending remains elevated at $50.8 million in Q1 2026, which supports innovation but keeps a lid on near-term operating margin.
• Goodwill and intangible assets are large on the balance sheet, reflecting acquisition activity and increasing the amount of acquisition-related accounting value on the books.
• Operating expenses are still heavy relative to revenue, with SG&A and R&D together consuming a significant share of quarterly sales.

What stands out most is the quarter-to-quarter swing in profitability. Q3 2025 and Q1 2026 were profitable, but Q4 2025 slipped into the red as operating income nearly broke even and tax expenses worsened the bottom line. That kind of volatility suggests Lattice’s earnings are sensitive to sales timing and operating leverage.

From a financial strength standpoint, Lattice looks solid. Current assets of $386.2 million more than cover current liabilities of $111.0 million, and the company generated positive cash from operations in each of the periods shown, including during weaker earnings quarters. That gives it flexibility to keep investing, repurchasing stock, and pursuing acquisitions.

For retail investors, the key takeaway is that LSCC still looks like a fundamentally healthy semiconductor company with improving momentum, but not a perfectly smooth growth story. Revenue growth and cash generation are encouraging, while the main risks are margin volatility, ongoing acquisition-related balance sheet items, and the company’s still-elevated expense structure.