Semtech Reports Record Q2 Sales Growth

Semtech(NASDAQ:SMTC) reported fiscal Q2 2026 earnings on Aug. 25, 2025, posting record net sales of $257.6 million, up 20% year over year, and adjusted EPS of $0.41. Management highlighted a dramatic reduction in net leverage from 8.8x to 1.6x, robust growth in data center and LoRa product lines (non-GAAP), and outlined strategic investments positioning the company for continued multi-year expansion. Key insights focus on operational milestones impacting long-term investment value, the strength of data center demand, and product roadmap execution. The fiscal Q2 2026 period ended on July 27, 2025.During fiscal Q2 2026, adjusted EBITDA rose 39% year over year to $56.5 million, and operating cash flow surged to $44.4 million versus negative $5 million in the prior year period. Management reduced debt by $879 million from the time the current CEO started and sequentially lowered adjusted net interest expense from $5.0 million to $4.1 million, freeing up capital for R&D and growth initiatives.Semtech's decisive deleveraging has sharply improved financial flexibility, enabling the company to pursue higher-value investments while mitigating risk from prior balance sheet constraints.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool