Press Releases May 7, 2026 07:00 AM

Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2026 Results

Allegro MicroSystems reports strong Q4 and fiscal year 2026 financial results with significant sales and EPS growth driven by automotive and data center markets.

By Sofia Navarro ALGM

Allegro MicroSystems, Inc. announced financial results for its fourth quarter and fiscal year ended March 27, 2026, reporting a 26% year-over-year increase in Q4 sales to $243 million and 23% annual sales growth to $890 million. Non-GAAP EPS nearly tripled in Q4 to $0.17, with full-year non-GAAP EPS more than doubling to $0.54. The growth was driven by strong automotive sales including xEV and ADAS segments and record data center sales, which accounted for 14% of Q4 revenues. The company expects continued growth in fiscal 2027 with anticipated net sales growth of approximately 23% in Q1. Allegro remains confident in executing toward its target financial model.

Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2026 Results
ALGM

Key Points

  • Fourth quarter sales increased 26% year-over-year to $243 million, full fiscal year sales increased 23% to $890 million.
  • Non-GAAP EPS nearly tripled year-over-year in Q4 to $0.17 and more than doubled for the full fiscal year to $0.54.
  • Strong sales growth driven by automotive segment (xEV, ADAS) and record data center sales comprising 14% of Q4 revenue.
  • Fiscal year 2027 outlook supports continued growth with anticipated 23% year-over-year sales increase in Q1 and gross margin of 50-51%.

Fourth Quarter Sales Increased by 26% Year-over-Year to $243 Million
Fiscal Year 2026 Sales Increased by 23% Year-over-Year to $890 Million

MANCHESTER, N.H., May 07, 2026 (GLOBE NEWSWIRE) -- 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 fourth quarter and full fiscal year ended March 27, 2026.

“We finished fiscal year 2026 with strong momentum, delivering a fifth consecutive quarter of sales growth at $243 million. Non-GAAP EPS nearly tripled year-over-year to $0.17. For the full year, sales grew 23% to $890 million and non-GAAP EPS more than doubled to $0.54. These results reflect strength in Focus Auto sales - including xEV and ADAS – and Data Center, which reached a record 14% of total Q4 sales,” said Mike Doogue, President and CEO of Allegro MicroSystems. “As we enter fiscal 2027, we see demand trends that support continued growth, and remain confident in our ability to execute towards our target financial model.”

Fourth Quarter and Full Fiscal Year 2026 Financial Highlights:

In thousands, except per share dataThree-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) Net Sales              Automotive$163,909  $164,543  $139,494  $628,561  $535,205 Industrial and Other 79,278   64,667   53,330   261,535   189,801 Total net sales$243,187  $229,210  $192,824  $890,096  $725,006 GAAP Financial Measures              Gross margin % 47.0%  46.7%  41.4%  46.3%  44.3%Operating margin % 2.2%  4.2%  (6.8)%  2.1%  (2.7)%Diluted EPS$(0.09) $0.04  $(0.08) $(0.08) $(0.39)Non-GAAP Financial Measures              Gross margin % 50.0%  49.9%  45.6%  49.4%  48.0%Operating margin % 15.6%  15.4%  9.0%  14.1%  9.5%Diluted EPS$0.17  $0.15  $0.06  $0.54  $0.24                     

Business Outlook

For the first quarter of fiscal year 2027 ending June 26, 2026, the Company expects total net sales to be in the range of
$245 million to $255 million. At the midpoint of this range, it implies growth in net sales of 23% year-over-year.

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

  • Gross Margin is expected to be between 50% and 51%,
  • Operating expenses are expected to be $80 million, plus or minus $2 million, and
  • Diluted Earnings per Share is expected to be between $0.19 and $0.23.

Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, 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, May 7, 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.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, please visit https://www.allegromicro.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors and trends affecting our business, including the projected size and growth of markets in which we operate or may operate, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 28, 2025, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our dependence on growth in the end markets that use our products and the impact that slowdowns in such growth could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the risk of unsolicited acquisition proposals; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; any failure to maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the risks presented by climate change; the risks related to ESG matters; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.


ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)       Three-Month Period Ended  Twelve-Month Period Ended  March 27, 2026  March 28, 2025  March 27, 2026  March 28, 2025 Net sales$243,187  $192,824  $890,096  $725,006 Cost of goods sold 128,912   112,945   478,126   403,479 Gross profit 114,275   79,879   411,970   321,527 Operating expenses:           Research and development 55,535   47,618   205,804   179,649 Selling, general and administrative 46,740   45,459   181,089   161,680 Impairment of assets held for sale 6,590   —   6,590   — Total operating expenses 108,865   93,077   393,483   341,329 Operating income (loss) 5,410   (13,198)  18,487   (19,802)Interest and other expense (8,097)  (5,240)  (33,388)  (31,142)Loss on change in fair value of forward repurchase contract —   —   —   (34,752)Loss before income taxes (2,687)  (18,438)  (14,901)  (85,696)Income tax provision (benefit) 13,749   (3,700)  (248)  (12,933)Net loss (16,436)  (14,738)  (14,653)  (72,763)Net income attributable to non-controlling interests 52   62   244   247 Net loss attributable to Allegro MicroSystems, Inc.$(16,488) $(14,800) $(14,897) $(73,010)Net loss per common share attributable to Allegro MicroSystems, Inc.:           Basic$(0.09) $(0.08) $(0.08) $(0.39)Diluted$(0.09) $(0.08) $(0.08) $(0.39)Weighted average shares outstanding:           Basic 185,309,271   184,169,928   185,035,670   187,707,391 Diluted 185,309,271   184,169,928   185,035,670   187,707,391 


Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

 Three-Month Period Ended  Change  Twelve-Month Period Ended  Change  March 27,
2026
  March 28,
2025
  Amount  %  March 27,
2026
  March 28,
2025
  Amount  %  (Dollars in thousands)  (Dollars in thousands) Automotive$163,909  $139,494  $24,415   18% $628,561  $535,205  $93,356   17%Industrial and Other 79,278   53,330   25,948   49%  261,535   189,801   71,734   38%Total net sales$243,187  $192,824  $50,363   26% $890,096  $725,006  $165,090   23%


ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
       March 27  March 28,  2026
(Unaudited)  2025 Assets     Current assets:     Cash and cash equivalents$168,753  $121,334 Restricted cash 6,604   9,773 Trade accounts receivable, net 93,248   84,598 Inventories 181,752   183,914 Prepaid income taxes 1,179   36,662 Prepaid expenses and other current assets 52,070   30,247 Assets held for sale —   16,508 Total current assets 503,606   483,036 Property, plant and equipment, net 308,258   302,919 Deferred income tax assets 80,221   68,528 Goodwill 203,291   202,475 Intangible assets, net 238,675   262,115 Equity investment in related party 22,296   31,695 Other assets 59,828   70,193 Total assets$1,416,175  $1,420,961 Liabilities, Non-Controlling Interest and Stockholders’ Equity     Current liabilities:     Trade accounts payable$44,438  $38,733 Amounts due to related party 4,794   6,535 Accrued expenses and other current liabilities 95,163   65,570 Current portion of long-term debt 1,530   1,423 Total current liabilities 145,925   112,261 Long-term debt 285,746   344,703 Other long-term liabilities 28,059   32,897 Total liabilities 459,730   489,861 Commitments and contingencies     Stockholders’ Equity:     Preferred stock —   — Common stock 1,854   1,843 Additional paid-in capital 1,050,582   1,012,055 Accumulated deficit (68,488)  (53,591)Accumulated other comprehensive loss (29,201)  (30,752)Equity attributable to Allegro MicroSystems, Inc. 954,747   929,555 Non-controlling interest 1,698   1,545 Total stockholders’ equity 956,445   931,100 Total liabilities, non-controlling interest and stockholders’ equity$1,416,175  $1,420,961 



ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)       Three-Month Period Ended  Twelve-Month Period Ended  March 27, 2026  March 28, 2025  March 27, 2026  March 28, 2025 Cash flows from operating activities:           Net loss$(16,436) $(14,738) $(14,653) $(72,763)Adjustments to reconcile net loss to net cash provided by operating activities:           Depreciation and amortization 17,765   15,924   67,593   64,502 Amortization of deferred financing costs 297   732   2,245   2,513 Deferred income taxes (4,009)  (4,755)  (11,994)  (16,301)Stock-based compensation 10,647   9,617   47,910   41,868 Loss on change in fair value of forward repurchase contract —   —   —   34,752 Impairment of assets held for sale 6,590   —   6,590   — Provisions for inventory and expected credit losses 1,435   1,697   8,989   9,216 Other non-cash reconciling items 348   339   653   6,984 Changes in operating assets and liabilities:           Trade accounts receivable 6,403   (1,275)  (9,201)  33,081 Inventories (4,994)  7,914   (6,267)  (30,160)Payment to related party (15,000)  —   (15,000)  — Prepaid expenses and other assets 22,935   (3,200)  40,634   (4,601)Trade accounts payable (7,685)  (1,423)  5,996   4,044 Due to and from related parties 46   4,551   (1,740)  5,115 Other changes in operating assets and liabilities, net 17,372   4,970   41,314   (16,337)Net cash provided by operating activities 35,714   20,353   163,069   61,913 Cash flows from investing activities:           Purchases of property, plant and equipment (17,016)  (5,391)  (38,176)  (39,955)Purchases of intangible assets —   (1,180)  —   (1,180)Acquisition of business, net of cash acquired —   —   —   319 Investment in debt security (3,541)  —   (3,541)  — Net cash used in investing activities (20,557)  (6,571)  (41,717)  (40,816)Cash flows from financing activities:           Net proceeds from Refinanced Term Loan Facility 285,000   (402)  285,000   193,081 Repayment of term loan (285,000)  (30,000)  (345,000)  (105,000)Finance lease payments (516)  (498)  (1,368)  (1,201)Receipts on related party notes receivable —   —   —   1,875 Payments for intangible assets (1,000)  —   (5,000)  — Payments for taxes related to net share settlement of equity awards (2,258)  (3,458)  (12,612)  (16,238)Proceeds from issuance of common stock under employee stock purchase plan 1,427   1,524   3,337   3,511 Repurchases of common stock —   —   —   (853,921)Payments for taxes related to repurchase of common stock —   —   (1,713)  — Net proceeds from issuance of common stock —   —   —   665,850 Dividends paid to non-controlling interest —   (19)  (23)  (19)Net cash used in financing activities (2,347)  (32,853)  (77,379)  (112,062)Effect of exchange rate changes on cash and cash equivalents and restricted cash (852)  1,216   277   (89)Net increase (decrease) in cash and cash equivalents and restricted cash 11,958   (17,855)  44,250   (91,054)Cash and cash equivalents and restricted cash at beginning of period 163,399   148,962   131,107   222,161 Cash and cash equivalents and restricted cash at end of period$175,357  $131,107  $175,357  $131,107                 

Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision (Benefit), non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as a percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision (Benefit), management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision (Benefit) across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.

Non-GAAP Income Tax Provision (Benefit)

In calculating the non-GAAP Income Tax Provision (Benefit), we adjust for the tax effect of adjustments to GAAP results which represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below. We also adjust for any discrete tax items and the impact of non-recurring tax law changes to ensure the non-GAAP Income Tax Rate (“NG ETR”) reflects future operations.

Our fiscal year 2026 and 2027 NG ETR excludes the impact of the 2025 One Big Beautiful Bill Act’s one-time research and development amortization election which accelerates the amortization of previously capitalized domestic research and development over a two-year period. The NG ETR is applied to non-GAAP Profit before Tax to arrive at the tax effect of adjustments to GAAP results.

Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Gross Profit$114,275  $107,101  $79,879  $411,970  $321,527 GAAP Gross Margin (% of net sales) 47.0%  46.7%  41.4%  46.3%  44.3%               Non-GAAP adjustments              Transaction-related costs —   —   —   —   14 Purchased intangible amortization 5,089   5,089   4,957   20,357   19,582 Restructuring costs 723   659   2,350   2,838   4,088 Stock-based compensation 1,033   1,017   697   3,955   2,877 Other costs 442   449   —   935   — Total Non-GAAP Adjustments$7,287  $7,214  $8,004  $28,085  $26,561                Non-GAAP Gross Profit$121,562  $114,315  $87,883  $440,055  $348,088 Non-GAAP Gross Margin (% of net sales) 50.0%  49.9%  45.6%  49.4%  48.0%


Reconciliation of Non-GAAP Operating Expenses                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Operating Expenses$108,865  $97,527  $93,077  $393,483  $341,329                Research and Development Expenses              GAAP Research and Development Expenses 55,535   52,878   47,618   205,804   179,649 Non-GAAP adjustments              Transaction-related costs —   33   3   33   1,571 Purchased intangible amortization 6   5   —   22   — Restructuring costs 1,674   2,663   4,429   7,107   5,426 Stock-based compensation 4,385   3,596   3,406   15,799   14,624 Other costs(1) 956   196   —   1,299   3 Non-GAAP Research and Development Expenses 48,514   46,385   39,780   181,544   158,025                Selling, General and Administrative Expenses              GAAP Selling, General and Administrative Expenses 46,740   44,649   45,459   181,089   161,680 Non-GAAP adjustments              Transaction-related costs 496   3   116   630   1,353 Purchased intangible amortization 558   535   535   2,163   2,140 Restructuring costs 2,630   2,032   1,656   7,004   6,011 Stock-based compensation 5,229   8,207   5,513   28,156   24,366 Other costs(1) 2,628   1,260   6,921   10,202   6,303 Non-GAAP Selling, General and Administrative Expenses 35,199   32,612   30,718   132,934   121,507                Impairment of assets held for sale 6,590   —   —   6,590   —                Total Non-GAAP Adjustments 25,152   18,530   22,579   79,005   61,797                Non-GAAP Operating Expenses$83,713  $78,997  $70,498  $314,478  $279,532                (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. 


Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Operating Income (Loss)$5,410  $9,574  $(13,198) $18,487  $(19,802)GAAP Operating Margin (% of net sales) 2.2%  4.2%  (6.8)%  2.1%  (2.7)%               Transaction-related costs 496   36   119   663   2,938 Impairment of assets held for sale 6,590   —   —   6,590   — Purchased intangible amortization 5,653   5,629   5,492   22,542   21,722 Restructuring costs 5,027   5,354   8,435   16,949   15,525 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Other costs(1) 4,026   1,905   6,921   12,436   6,306 Total Non-GAAP Adjustments$32,439  $25,744  $30,583  $107,090  $88,358                Non-GAAP Operating Income$37,849  $35,318  $17,385  $125,577  $68,556 Non-GAAP Operating Margin (% of net sales) 15.6%  15.4%  9.0%  14.1%  9.5%               (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. 


Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Net (Loss) Income$(16,436) $8,362  $(14,738) $(14,653) $(72,763)GAAP Net (Loss) Income Margin (% of net sales) (6.8)%  3.6%  (7.6)%  (1.6)%  (10.0)%               Interest expense 5,136   4,910   6,874   22,135   30,366 Interest income (269)  (114)  (222)  (776)  (1,524)Income tax provision (benefit) 13,749   (7,868)  (3,700)  (248)  (12,933)Depreciation & amortization 17,765   17,001   15,924   67,593   64,502 EBITDA$19,945  $22,291  $4,138  $74,051  $7,648                Transaction-related costs 496   36   119   663   5,742 Impairment of assets held for sale 6,590   —   —   6,590   — Restructuring costs 4,830   5,000   8,277   16,057   15,112 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Loss on change in fair value of forward repurchase contract —   —   —   —   34,752 Other costs(1) 7,184   6,037   6,301   24,796   7,911 Adjusted EBITDA$49,692  $46,184  $28,451  $170,067  $113,032 Adjusted EBITDA Margin (% of net sales) 20.4%  20.1%  14.8%  19.1%  15.6%               (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. 



Reconciliation of Non-GAAP Profit before Tax                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP (Loss) Income before Income Taxes$(2,687) $494  $(18,438) $(14,901) $(85,696)               Transaction-related costs 496   36   119   663   5,742 Transaction-related interest 225   225   272   1,955   1,314 Impairment of assets held for sale 6,590   —   —   6,590   — Purchased intangible amortization 5,653   5,629   5,492   22,542   21,722 Restructuring costs 5,074   5,354   8,482   17,184   15,317 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Loss on change in fair value of forward repurchase contract —   —   —   —   34,752 Other costs(1) 7,718   6,422   6,689   25,715   12,351 Total Non-GAAP Adjustments$36,403  $30,486  $30,670  $122,559  $133,065                Non-GAAP Profit before Tax$33,716  $30,980  $12,232  $107,658  $47,369                (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. 


Reconciliation of Non-GAAP Income Tax Provision (Benefit) and Non-GAAP Effective Tax Rate                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Income Tax Provision (Benefit)$13,749  $(7,868) $(3,700) $(248) $(12,933)GAAP effective tax rate (511.7)%  (1,592.7)%  20.1%  1.7%  15.1%               Tax effect of adjustments to GAAP results (11,642)  10,002   4,126   7,610   14,200                Non-GAAP Income Tax Provision$2,107  $2,134  $426  $7,362  $1,267 Non-GAAP effective tax rate 6.2%  6.9%  3.5%  6.8%  2.7%


Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share                 Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1)$(16,488) $8,299  $(14,800) $(14,897) $(73,010)GAAP Basic weighted average common shares 185,309,271   185,172,199   184,169,928   185,035,670   187,707,391 GAAP Diluted weighted average common shares 185,309,271   186,208,258   184,169,928   185,035,670   187,707,391 GAAP Basic (Loss) Income per Share$(0.09) $0.04  $(0.08) $(0.08) $(0.39)GAAP Diluted (Loss) Income per Share$(0.09) $0.04  $(0.08) $(0.08) $(0.39)               Transaction-related costs 496   36   119   663   5,742 Transaction-related interest 225   225   272   1,955   1,314 Impairment of assets held for sale 6,590   —   —   6,590   — Purchased intangible amortization 5,653   5,629   5,492   22,542   21,722 Restructuring costs 5,074   5,354   8,482   17,184   15,317 Stock-based compensation 10,647   12,820   9,616   47,910   41,867 Loss on change in fair value of forward repurchase contract —   —   —   —   34,752 Other costs(2) 7,718   6,422   6,689   25,715   12,351 Total Non-GAAP Adjustments 36,403   30,486   30,670   122,559   133,065 Tax effect of adjustments to GAAP results(3) 11,642   (10,002)  (4,126)  (7,610)  (14,200)Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.$31,557  $28,783  $11,744  $100,052  $45,855 Basic weighted average common shares 185,309,271   185,172,199   184,169,928   185,035,670   187,707,391 Diluted weighted average common shares 187,134,641   186,208,258   185,247,919   186,318,359   188,629,402 Non-GAAP Basic Earnings per Share$0.17  $0.16  $0.06  $0.54  $0.24 Non-GAAP Diluted Earnings per Share$0.17  $0.15  $0.06  $0.54  $0.24                (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests. (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments. (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction, reverses all discrete items, non-recurring law changes to calculate an annual NG ETR. This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results. 


Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales                    Three-Month Period Ended  Twelve-Month Period Ended  March 27,
2026
  December 26,
2025
  March 28,
2025
  March 27,
2026
  March 28,
2025
  (Dollars in thousands)  (Dollars in thousands) GAAP Operating Cash Flow$35,714  $45,375  $20,353  $163,069  $61,913 GAAP Operating Cash Flow (% of net sales) 14.7%  19.8%  10.6%  18.3%  8.5%Non-GAAP adjustments              Purchases of property, plant and equipment (17,016)  (4,116)  (5,391)  (38,176)  (39,955)Non-GAAP Free Cash Flow$18,698  $41,259  $14,962  $124,893  $21,958 Non-GAAP Free Cash Flow (% of net sales) 7.7%  18.0%  7.8%  14.0%  3.0%                    

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
[email protected]


Risks

  • Dependence on the cyclical semiconductor industry and potential downturns affecting automotive and industrial markets.
  • Reliance on a limited number of third-party wafer fabrication facilities and supply chain constraints.
  • Uncertainties in the macroeconomic environment or changes in customer demand that could impact sales growth and profitability.

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