LOWELL, Mass., May 07, 2026 (GLOBE NEWSWIRE) -- MACOM Technology Solutions Holdings, Inc. (“MACOM”) (Nasdaq: MTSI), a leading supplier of semiconductor products, today announced its financial results for its fiscal second quarter ended April 3, 2026.
Second Quarter Fiscal Year 2026 GAAP Results
- Revenue was $289.0 million, an increase of 22.5%, compared to $235.9 million in the previous year fiscal second quarter and an increase of 6.4% compared to $271.6 million in the prior fiscal quarter;
- Gross margin was 56.9%, compared to 55.2% in the previous year fiscal second quarter and 55.9% in the prior fiscal quarter;
- Income from operations was $50.8 million, or 17.6% of revenue, compared to income from operations of $34.9 million, or 14.8% of revenue, in the previous year fiscal second quarter and income from operations of $43.3 million, or 15.9% of revenue, in the prior fiscal quarter; and
- Net income was $46.3 million, or $0.60 per diluted share, compared to net income of $31.7 million, or $0.42 per diluted share, in the previous year fiscal second quarter, and net income of $48.8 million, or $0.64 per diluted share, in the prior fiscal quarter.
Second Quarter Fiscal Year 2026 Adjusted Non-GAAP Results
- Adjusted gross margin was 58.5%, compared to 57.5% in the previous year fiscal second quarter and 57.6% in the prior fiscal quarter;
- Adjusted income from operations was $80.5 million, or 27.8% of revenue, compared to adjusted income from operations of $59.8 million, or 25.4% of revenue, in the previous year fiscal second quarter and adjusted income from operations of $74.0 million, or 27.2% of revenue, in the prior fiscal quarter; and
- Adjusted net income was $84.3 million, or $1.09 per diluted share, compared to adjusted net income of $64.3 million, or $0.85 per diluted share, in the previous year fiscal second quarter and adjusted net income of $78.2 million, or $1.02 per diluted share, in the prior fiscal quarter.
Management Commentary
“We are pleased with our first half fiscal year results and look forward to strong revenue growth and profitability in the second half,” said Stephen G. Daly, President and Chief Executive Officer, MACOM.
Business Outlook
For the fiscal third quarter ending July 3, 2026, MACOM expects revenue to be in the range of $331 million to $339 million. Adjusted gross margin is expected to be between 59.0% and 60.0%, and adjusted earnings per diluted share is expected to be between $1.31 and $1.37 utilizing an anticipated non-GAAP income tax rate of 3% and 78.5 million fully diluted shares outstanding.
Conference Call
MACOM will host a conference call on Thursday, May 7, 2026, at 8:30 a.m. Eastern Time to discuss its fiscal second quarter 2026 financial results and business outlook. Investors and analysts may visit MACOM's Investor Relations website at https://ir.macom.com/events-webcasts to register for a user-specific access code for the live call or to access the live webcast. A replay of the call will be available within 24 hours and remain accessible by all interested parties for approximately 90 days.
About MACOM
MACOM designs and manufactures high-performance semiconductor products for the Industrial and Defense, Data Center and Telecommunications industries. MACOM services over 6,000 customers annually with a broad product portfolio that incorporates RF, Microwave, Analog and Mixed Signal and Optical semiconductor technologies. MACOM has achieved certification to the IATF16949 automotive standard, the AS9100D aerospace standard, the ISO9001 international quality standard and the ISO14001 environmental management standard. MACOM operates facilities across the United States, Europe, Asia and is headquartered in Lowell, Massachusetts.
Special Note Regarding Forward-Looking Statements
This press release and the associated earnings call contains forward-looking statements. These forward-looking statements include, among others, statements about MACOM’s strategic plans, priorities and long-term growth drivers, our ability to execute our long-term strategy, strengthen our position and drive market share gains and growth, our ability to develop new products and differentiated solutions, achieve market acceptance of those products and solutions and better address certain markets, expand our capabilities and extend our product offerings, including through our fabrication facility execution and continued improvements, our team’s capabilities and technologies and expansion and growth thereof and any potential financial benefits derived by and financial impact to MACOM therefrom, strength and competitiveness of new product introductions and technology portfolio expansion, including the anticipated rate of new product introductions and technology licensing and transfer activities, anticipated demand for our products, including backlog levels and book-to-bill trends, MACOM’s profitability, revenue targets, gross margin and operating margin improvements, end-market-specific revenue growth expectations, prospects and growth opportunities in our three primary markets, including the anticipated timing of production programs and associated revenues, the potential impact to our business of an economic downturn or recession, anticipated financial and business performance improvements, expectations regarding cash flow from operations and capital expenditures, our anticipated non-GAAP income tax rate and the expected impact of recent tax legislation thereon, MACOM’s strategic investment and other plans, including investments and agreements intended to further strengthen our supply chain and support our revenue growth objectives, negotiation and finalization of a definitive agreement with, and receipt of, funding from the Federal and State governments, the estimated financial results for our 2026 fiscal third quarter and the stated business outlook and future results of operations.
These forward-looking statements reflect MACOM’s current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause those events or our actual activities or results to differ materially from those indicated by the forward-looking statements, including statements regarding our business outlook, strategic plans and priorities, expectations, anticipated drivers of future revenue growth, our plans for use of our cash and cash equivalents and short-term investments, interest rate and foreign currency risks, our ability to meet working capital requirements, estimates and objectives for future operations, our future results of operations and our financial position; and those other factors described in “Risk Factors” in MACOM’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC. These forward-looking statements speak only as of the date of this press release, and MACOM undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Discussion Regarding the Use of Historical and Forward-Looking Non-GAAP Financial Measures
In addition to United States Generally Accepted Accounting Principles (“GAAP”) reporting, MACOM provides investors with financial measures that have not been calculated in accordance with GAAP, such as: non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP income from operations and operating margin, non-GAAP EBITDA, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP diluted shares, non-GAAP income tax rate and non-GAAP interest income. In this release or elsewhere, we may alternatively refer to such non-GAAP measures as “adjusted” measures. This non-GAAP information excludes the effect, where applicable, of intangible amortization expense, share-based compensation expense, non-cash interest, net, acquisition and integration related costs, loss on debt extinguishment, and the tax effect of each non-GAAP adjustment.
Management believes these excluded items are not reflective of our underlying performance and uses these non-GAAP financial measures to: evaluate our ongoing operating performance and compare it against prior periods, make operating decisions, forecast future periods, evaluate potential acquisitions, compare our operating performance against peer companies and assess certain compensation programs. We believe this non-GAAP financial information provides additional insight into our ongoing performance and have therefore chosen to provide this information to investors to help them evaluate the results of our ongoing operations and enable more meaningful period-to-period comparisons. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. We have not provided a reconciliation with respect to any forward-looking non-GAAP financial data presented because we do not have and cannot reliably estimate certain key inputs required to calculate the most comparable GAAP financial data, such as future acquisition costs, the possibility and impact of any litigation costs, changes in our GAAP effective tax rate and impairment charges. We believe these unknown inputs are likely to have a significant impact on any estimate of the comparable GAAP financial data.
Investors are cautioned against placing undue reliance on non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Additional information and management’s assessment regarding why certain items are excluded from our non-GAAP measures are summarized below:
Amortization Expense – is related to acquired intangible assets which are based upon valuation methodologies and are generally amortized over the expected life of the intangible asset at the time of acquisition, which may result in amortization amounts that vary over time. This non-cash expense is not considered by management in making operating decisions.
Share-Based Compensation Expense – includes share-based compensation expense for awards that are equity and liability classified on our balance sheet and the related employer tax expense at vesting. Share-based compensation expense is partially outside of our control due to factors such as stock price volatility and interest rates, which may be unrelated to our operating performance during the period in which the expense is incurred. It is an expense based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly between companies. Share-based compensation expense amounts are not considered by management in making operating decisions.
Non-cash Interest, Net – includes amounts associated with the amortization of certain fees associated with the establishment or amendment of our convertible notes that are being amortized over the life of the agreements. We believe these amounts are non-cash in nature, are not correlated to future business operations and do not reflect our ongoing operations.
Acquisition and Integration Related Costs – includes items such as professional fees, employee severance and other costs incurred in connection with acquisitions and integration specific activities which are not expected to have a continuing contribution to operations and the amortization of the fair market step-up value of acquired inventory and fixed assets. We believe the exclusion of these items is useful in providing management a basis to evaluate ongoing operating activities and strategic decision making.
Loss on Debt Extinguishment – includes loss on exchange of our convertible notes. This fiscal year 2025 loss is primarily non-cash and we do not believe this amount is reflective of our ongoing operations.
Tax Effect of Non-GAAP Adjustments – includes adjustments to arrive at an estimate of our non-GAAP income tax rate associated with our non-GAAP income over a period of time. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors including our historical and forecast earnings by jurisdiction, discrete items, cash taxes paid in relation to our non-GAAP net income before income taxes and our ability to realize tax assets. We generally assess this non-GAAP income tax rate quarterly and have utilized 3% for our first two fiscal quarters of fiscal year 2026 and for our fiscal year 2025. Our historical effective income tax rate under GAAP has varied significantly from our non-GAAP income tax rate due primarily to income taxed in foreign jurisdictions at generally lower tax rates, research and development tax credits and acquisition expenses. We believe it is beneficial for management to review our non-GAAP income tax rate on a consistent basis over periods of time. Items such as those noted above may have a significant impact on our GAAP income tax expense and associated effective tax rate over time.
Adjusted EBITDA – is a calculation that adds depreciation expense to our adjusted income from operations. Management reviews and utilizes this measure for operational analysis purposes. We believe competitors and others in the financial industry also utilize this measure for analysis purposes.
Incremental Shares – is the number of potential shares of common stock issuable upon the exercise of stock options, restricted stock, restricted stock units and conversion of convertible debt which were not included in the calculation of our GAAP diluted shares. We believe competitors and others in the financial industry utilize this non-GAAP measure for analysis purposes.
Company Contact:
MACOM Technology Solutions Holdings, Inc.
Stephen Ferranti
Senior Vice President, Corporate Development and Investor Relations
P: 978-656-2977
E: [email protected]
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
Three Months Ended Six Months Ended April 3, 2026
January 3, 2026
April 4, 2025
April 3, 2026
April 4, 2025
Revenue$288,955 $271,612 $235,887 $560,567 $454,009 Cost of revenue 124,522 119,833 105,731 244,355 206,744 Gross profit 164,433 151,779 130,156 316,212 247,265 Operating expenses: Research and development 68,983 66,459 57,837 135,442 118,206 Selling, general and administrative 44,619 42,023 37,449 86,642 76,662 Total operating expenses 113,602 108,482 95,286 222,084 194,868 Income from operations 50,831 43,297 34,870 94,128 52,397 Other income (expense): Interest income 7,759 7,990 7,239 15,749 14,239 Interest expense (1,667) (1,698) (1,179) (3,365) (2,545)Loss on extinguishment of debt — — — — (193,098)Total other income (expense) 6,092 6,292 6,060 12,384 (181,404)Income (loss) before income taxes 56,923 49,589 40,930 106,512 (129,007)Income tax expense 10,592 822 9,264 11,414 6,857 Net income (loss)$46,331 $48,767 $31,666 $95,098 $(135,864) Net income (loss) per share: Income (loss) per share - Basic$0.62 $0.65 $0.43 $1.27 $(1.85)Income (loss) per share - Diluted$0.60 $0.64 $0.42 $1.23 $(1.85)Weighted average common shares: Shares - Basic 75,283 74,822 74,358 75,053 73,540 Shares - Diluted 77,555 76,718 75,741 77,137 73,540
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited andin thousands)
April 3, 2026
October 3, 2025
ASSETS Current assets: Cash and cash equivalents$98,521 $112,142 Short-term investments 566,337 673,833 Accounts receivable, net 159,599 148,646 Inventories 252,195 237,844 Prepaid and other current assets 49,398 32,623 Total current assets 1,126,050 1,205,088 Property and equipment, net 234,960 230,291 Goodwill and intangible assets, net 402,988 414,885 Deferred income taxes 201,956 207,999 Other long-term assets 48,623 45,097 Total assets$2,014,577 $2,103,360 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt$— $160,946 Accounts payable 62,131 67,588 Accrued liabilities 87,572 96,585 Total current liabilities 149,703 325,119 Finance lease obligations, less current portion 30,157 30,504 Financing obligation 36,713 37,014 Long-term debt obligations 340,186 339,630 Other long-term liabilities 40,061 43,998 Total liabilities 596,820 776,265 Stockholders’ equity 1,417,757 1,327,095 Total liabilities and stockholders’ equity$2,014,577 $2,103,360
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
Six Months Ended April 3, 2026
April 4, 2025
CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)$95,098 $(135,864)Depreciation and intangible asset amortization 31,017 30,800 Share-based compensation 44,776 44,287 Deferred income taxes 6,649 (2,747)Loss on extinguishment of debt — 193,098 Other adjustments, net (1,954) (2,351)Accounts receivable (10,954) (24,724)Inventories (14,390) (14,961)Accrued and other liabilities (9,058) 1,647 Change in other operating assets and liabilities (19,595) 16,161 Net cash provided by operating activities 121,589 105,346 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of business, net — (12,684)Sales, purchases and maturities of investments 105,582 (132,976)Purchases of property and equipment (26,126) (13,498)Purchases of software licenses and licensed technology (7,420) (8,779)Other investing 1,480 804 Net cash provided by (used in) investing activities 73,516 (167,133)CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from convertible notes — 86,629 Repayment of convertible notes (161,151) — Payments for fee on convertible note exchange and debt issuance costs — (23,126)Payments on finance leases and other financing activities (1,286) (498)Proceeds from employee stock purchases 5,212 4,537 Common stock withheld for taxes on employee equity awards (51,475) (41,260)Net cash (used in) provided by financing activities (208,700) 26,282 Foreign currency effect on cash (26) (375)NET CHANGE IN CASH AND CASH EQUIVALENTS (13,621) (35,880)CASH AND CASH EQUIVALENTS — Beginning of period 112,142 146,806 CASH AND CASH EQUIVALENTS — End of period$98,521 $110,926
RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(unaudited and in thousands, except per share data)
Three Months Ended
Six Months Ended
April 3, 2026
January 3, 2026
April 4, 2025
April 3, 2026
April 4, 2025
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Gross profit - GAAP$164,433 56.9 $151,779 55.9 $130,156 55.2 $316,212 56.4 $247,265 54.5 Amortization expense 1,623 0.6 1,621 0.6 3,343 1.4 3,244 0.6 6,675 1.5 Share-based compensation expense 2,716 0.9 2,794 1.0 1,765 0.7 5,510 1.0 5,263 1.2 Acquisition and integration related costs 269 0.1 278 0.1 356 0.2 547 0.1 1,750 0.4 Adjusted gross profit (Non-GAAP)$169,041 58.5 $156,472 57.6 $135,620 57.5 $325,513 58.1 $260,953 57.5
Six Months Ended
April 3, 2026
January 3, 2026
April 4, 2025
April 3, 2026
April 4, 2025
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Amount
% Revenue
Income from operations - GAAP$50,831 17.6 $43,297 15.9 $34,870 14.8 $94,128 16.8 $52,397 11.5 Amortization expense 3,336 1.2 3,470 1.3 4,960 2.1 6,806 1.2 11,469 2.5 Share-based compensation expense 24,621 8.5 26,629 9.8 19,096 8.1 51,250 9.1 48,483 10.7 Acquisition and integration related costs 1,664 0.6 577 0.2 878 0.4 2,241 0.4 2,877 0.6 Adjusted income from operations (Non-GAAP)$80,452 27.8 $73,973 27.2 $59,804 25.4 $154,425 27.5 $115,226 25.4 Depreciation expense 9,013 3.1 8,656 3.2 6,803 2.9 17,669 3.2 13,543 3.0 Adjusted EBITDA (Non-GAAP)$89,465 31.0 $82,629 30.4 $66,607 28.2 $172,094 30.7 $128,769 28.4
Six Months Ended April 3, 2026
January 3, 2026April 4, 2025
April 3, 2026
April 4, 2025 Amount
% Revenue
Amount% RevenueAmount
% Revenue
Amount
% Revenue
Amount% RevenueNet income (loss) - GAAP$46,331 16.0 $48,767 18.0 $31,666 13.4 $95,098 17.0 $(135,864)(29.9)Amortization expense 3,336 1.2 3,470 1.3 4,960 2.1 6,806 1.2 11,469 2.5 Share-based compensation expense 24,621 8.5 26,629 9.8 19,096 8.1 51,250 9.1 48,483 10.7 Non-cash interest, net 380 0.1 381 0.1 380 0.2 761 0.1 687 0.2 Acquisition and integration related costs 1,664 0.6 577 0.2 878 0.4 2,241 0.4 2,877 0.6 Loss on debt extinguishment — — — — — — — — 193,098 42.5 Tax effect of non-GAAP adjustments 7,984 2.8 (1,597)(0.6) 7,276 3.1 6,387 1.1 3,029 0.7 Adjusted net income (Non-GAAP)$84,316 29.2 $78,227 28.8 $64,256 27.2 $162,543 29.0 $123,779 27.3
Six Months Ended April 3, 2026
January 3, 2026
April 4, 2025
April 3, 2026
April 4, 2025 Net income
Income per diluted share
Net income
Income per diluted share
Net income
Income per diluted share
Net income (loss)
Income (loss) per diluted share
Net incomeIncome per diluted shareNet income (loss) - GAAP diluted$46,331 $0.60 $48,767 $0.64 $31,666 $0.42 $95,098 $1.23 $(135,864)$(1.85) Adjusted net income (Non-GAAP)$84,316 $1.09 $78,227 $1.02 $64,256 $0.85 $162,543 $2.11 $123,779 $1.64
Shares
Shares
Shares
Shares
Diluted shares - GAAP77,555 76,718 75,741 77,137 73,540 Incremental shares— — — — 2,127 Adjusted diluted shares (Non-GAAP)77,555 76,718 75,741 77,137 75,667