Allegro MicroSystems Inc (ALGM) Q4 2025 Earnings Report

Allegro MicroSystems, a leader in the semiconductor industry, reported a volatile Q4 2025, closing the quarter with revenues of $192.8 million, representing a sequential growth of 8.41% but a decline of 19.85% compared to the prior year. Despite the uptick in automotive sales, which rose 8% sequentially, net income turned negative at -$14.8 million, illustrating continued pressure on profitability caused by cost management challenges and inventory adjustments. CEO Mike Duke acknowledged the strategic shift in priorities focused on accelerating new product development and optimizing cost efficiencies to return to profitability and drive future growth. The management is cautiously optimistic, expecting improvements in Q1 2026 based on initial indicators of rising customer demand and inventory normalization.