MACOM Reports 32.3% Revenue Growth to $252.1 Million in Latest Quarter

MACOM Technology Solutions Holdings, Inc. reported significant financial performance improvements in its latest quarterly filing, with revenues reaching $252.1 million for the three months ended July 4, 2025, a 32.3% increase from $190.5 million in the same period last year. For the nine months, revenue surged to $706.1 million, up 33.5% from $528.9 million. The company attributed this growth to strong demand across its primary markets, particularly in Data Center and Telecom sectors, which saw increases of 54.7% and 34.6%, respectively, in the most recent quarter.

The company's gross profit also improved, totaling $139.4 million for the quarter, compared to $101.4 million a year earlier, resulting in a gross margin of 55.3%. This increase was driven by higher sales volumes and reduced production costs. However, operating expenses rose as well, with research and development costs increasing by 33.3% to $63.4 million, reflecting investments in innovation and product development. Selling, general, and administrative expenses also grew, but as a percentage of revenue, they decreased, indicating improved operational efficiency.

In terms of strategic developments, MACOM completed the acquisition of ENGIN-IC, Inc. in November 2024, enhancing its capabilities in microwave integrated circuits. Additionally, the company acquired the RF business of Wolfspeed, Inc., which included a fabrication facility in North Carolina, further expanding its operational footprint. These acquisitions are expected to bolster MACOM's product offerings and market position in the semiconductor industry.

Operationally, MACOM reported a total of 6,000 end customers across its markets, with a notable increase in customer engagement metrics. The company also saw a rise in its inventory levels, which increased to $215.4 million, reflecting preparations for future demand. As of July 4, 2025, MACOM's cash and cash equivalents stood at $125.5 million, alongside $609.8 million in short-term investments, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, MACOM anticipates continued growth driven by demand for high-performance semiconductor products, particularly in the Data Center and Telecom markets. However, the company also acknowledged potential challenges from macroeconomic conditions and geopolitical factors that could impact demand. The management remains optimistic about leveraging its recent acquisitions and expanding its product portfolio to capture market opportunities in the evolving semiconductor landscape.