Allegro MicroSystems, Inc. reported a significant increase in financial performance for the first quarter of fiscal year 2026, ending June 27, 2025. The company generated net sales of $203.4 million, a 21.9% increase from $166.9 million in the same period last year. Gross profit also rose to $91.3 million, compared to $74.8 million, resulting in a gross margin of 44.9%. Despite these gains, Allegro recorded a net loss of $13.2 million, an improvement from the $17.6 million loss reported in the prior year.
The increase in revenue was primarily driven by strong demand in automotive and industrial markets, particularly in data center applications, industrial automation, and e-Mobility products, including advanced driver assistance systems (ADAS) and components for electric vehicles (EVs). Automotive sales rose to $144.3 million, up 13.2% year-over-year, while industrial and other sales surged by 49.6% to $59.1 million. Geographic sales also reflected growth, particularly in Greater China, where sales increased by 80.7%.
Operationally, Allegro's total operating expenses increased to $94.0 million, up from $85.4 million, largely due to higher selling, general, and administrative costs. Research and development expenses remained relatively stable, increasing slightly to $46.5 million. The company reported a decrease in cost of goods sold as a percentage of total net sales, which fell to 55.1% from 55.2%, attributed to higher production volumes supporting increased sales.
In terms of strategic developments, Allegro continues to focus on expanding its market presence and product offerings. The company is investing in its operations in key regions, including China, Europe, Japan, and India, to enhance customer service and drive sales growth. As of June 27, 2025, Allegro had $129.1 million in cash and cash equivalents, down from $121.3 million at the end of the previous fiscal year, and a working capital of $326.4 million. The company anticipates that its existing cash will be sufficient to support its growth initiatives and capital expenditures over the next 12 months, although it may seek additional funding to further its strategic objectives.
About ALLEGRO MICROSYSTEMS, INC.
Allegro MicroSystems, Inc. is a leading global designer and manufacturer of semiconductor solutions, specializing in magnetic sensor and power integrated circuits (ICs) for automotive and industrial applications. With a focus on e-Mobility and clean energy, Allegro targets the growing demand for advanced driver assistance systems (ADAS) and electrification in vehicles. The company emphasizes innovation and sustainability, leveraging proprietary technologies to enhance energy efficiency and system reliability across diverse markets.
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