Sales rose 29% year-over-year and 7% quarter-over-quarter to $229 million.

Allegro MicroSystems, Inc. ("Allegro" or the "Company") (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its third quarter ended December 26, 2025.

"We delivered strong third quarter results, with sales of $229 million exceeding the high end of our guidance range. Additionally,

non-GAAP EPS more than doubled year-over-year to $0.15. This performance was driven by broad strength in Automotive sales, which grew 28% year-over-year, including a 46% increase in e-Mobility. Our Industrial sales also saw robust growth, increasing 31% year-over-year, led by another record quarter in Data Center," said Mike Doogue, President and CEO of Allegro. "We continued to see growing bookings and backlog, and a significant annual increase in year-to-date design wins. We are excited to provide a deeper look into our longer-term strategy, growth drivers and target model at our upcoming Analyst Day."

Business Outlook

For the fourth quarter of fiscal year 2026 ending March 27, 2026, the Company expects total net sales to be in the range of

$230 million to $240 million. At the midpoint of this range, it implies growth in net sales of 22% year-over-year.

The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 49% and 51%,

Operating expenses are expected to increase by approximately 3% sequentially to $81 million, largely due to annual payroll tax resets,

Interest expense is expected to be approximately $5 million, and

Diluted Earnings per Share is expected to be between $0.14 and $0.18.

"Earlier this month, we repriced our term loan down another 25 basis points to SOFR plus 175 basis points resulting in an additional $700,000 reduction in annualized interest expense. This repricing reflects our lenders' confidence in our business model and financial discipline," said Derek D'Antilio, EVP and CFO of Allegro.

Allegro has not provided a reconciliation of its fourth fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles ("GAAP") measures. Certain factors that are materially significant to Allegro's ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, January 29, 2026 at 8:30 a.m., Eastern Time. Michael C. Doogue, President and Chief Executive Officer, and Derek P. D'Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro's business and financial results.

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