Allegro MicroSystems reported third-quarter fiscal 2025 revenue of $178 million, surpassing the midpoint of guidance but declining 30% year-over-year. Automotive sales, which make up the majority of revenue, fell 33%, while industrial and other sales declined 21%. The company posted a GAAP net loss of $6.8 million, or $(0.04) per share, compared to a net income of $33.4 million in the prior year. On a non-GAAP basis, diluted EPS was $0.07, down from $0.32 a year earlier.

Gross margin on a GAAP basis declined to 45.7% from 52.5% in Q3 2024, while non-GAAP gross margin was 49.1%. Operating expenses remained flat sequentially at $81.3 million but declined from $97.1 million a year earlier. Adjusted EBITDA was $30.3 million, down from $87.2 million in Q3 2024.

For the fourth quarter, Allegro projects revenue between $180 million and $190 million, with non-GAAP gross margin between 46% and 48%. The company expects operating expenses to rise 5% sequentially due to annual payroll tax resets, and interest expense to be approximately $6 million. Non-GAAP diluted EPS is forecast between $0.03 and $0.07.

CEO Vineet Nargolwala emphasized Allegro’s continued investment in new magnetic sensing and power products, positioning the company for long-term growth despite short-term challenges.