Q2 2026 Semtech Corp Earnings Call Transcript

Aug 25, 2025 / 08:30 PM GMT

Release Date Price: €43.82 (+25.24%)

Transcript 10-Q8-K

Key Points

Positve

Semtech Corp (SMTC) achieved record net sales of $257.6 million, marking the sixth consecutive quarter of growth.
The company significantly reduced its debt by $879 million, improving its net leverage ratio from 8.8 times to 1.6 times year over year.
Semtech Corp (SMTC) reported a substantial improvement in adjusted operating income and earnings per share, with adjusted EBITDA up 39% year over year.
The data center business experienced strong growth, with net sales reaching a record $52.2 million, up 92% year over year.
The company is making strategic investments in R&D, particularly in core areas like data center, LoRa, and Perse, to drive future growth.

Negative

Adjusted gross margin for semiconductor products decreased sequentially from 63.7% to 60.7%.
The company recorded a non-cash $41.9 million goodwill impairment charge from its connected services business.
There are concerns about supply constraints in the data center market, particularly related to GPU availability in China.
High-end consumer sales are expected to decline seasonally in the fourth quarter.
The timing of certain product ramps, such as the 1.60 ACC cables, is dependent on the availability of new switch technology, which may be delayed.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SMTC.OQ - Semtech Corp
Q2 2026 Semtech Corp Earnings Call
Aug 25, 2025 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you and welcome to Semtech's 2nd quarter 2026 financial results conference call.

Participants on today's call are Hongho, our President and Chief Executive Officer, and Mark Lin, our executive Vice President and Chief Financial Officer.

Before we begin the prepared remarks, I would like to highlight upcoming investor events, including the Deutsche Bank Technology Conference on August 27th, the benchmark TMT conference on September 3rd, the JPMorgan Rising Tech Leaders Forum on September 4th, and the Piper Sandler Growth Frontiers Conference on September 10th.

Today after market close, we released our unauuddied results for the 2nd quarter of fiscal year 2026, which are posted along with an earnings call presentation

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