- Allegro MicroSystems (ALGM, Financial) reports Q4 FY2025 revenue of $193 million, marking an 8% sequential increase.
- Full fiscal year 2025 revenue declines 31% from the previous year to $725 million.
- Company forecasts 18% year-over-year revenue growth for Q1 FY2026.
Allegro MicroSystems (ALGM) announced its financial results for the fourth quarter and the full fiscal year 2025. The company reported Q4 revenues of $193 million, an increase of 8% on a sequential basis. However, the full year revenue of $725 million represented a significant decrease of 31% compared to $1.05 billion in FY2024.
The automotive segment was the primary contributor to Allegro's Q4 revenue, generating $140.9 million, while industrial and other segments accounted for $51.9 million. Despite these contributions, both segments experienced year-over-year declines.
Profitability metrics showed strain, with the Q4 GAAP gross margin falling to 41.4% from 51.2% in the prior year, and non-GAAP gross margin dropping to 45.6% from 53.8%. The company's GAAP operating margin was negative at -6.8% for Q4 and -2.7% for the full year, a significant drop from positive figures in previous periods.
Looking forward, Allegro provided optimistic guidance for Q1 FY2026, projecting revenue between $192 million and $202 million, which at the midpoint would imply an 18% year-over-year growth. The company expects non-GAAP gross margins to fall between 46% and 48%, with non-GAAP EPS anticipated to range from $0.06 to $0.10.
In a move to strengthen their financial position, Allegro also made a $25 million voluntary debt payment in April 2025, signaling confidence in their cash flow despite the challenging year.
The upcoming quarter is seen as a potential turning point for Allegro, with projected positive revenue growth marking a hopeful recovery phase after a year of significant challenges.
