MACOM Technology Solutions Holdings, Inc. MTSI reported third-quarter fiscal 2025 earnings of 90 cents per share, which beat the Zacks Consensus Estimate by a penny. The company reported earnings of 66 cents per share a year ago.
MACOM Technology’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 0.9%.
MTSI posted revenues of $252 million in the third quarter of fiscal 2025, surpassing the Zacks Consensus Estimate by 0.81%. The company reported revenues of $190.5 million in the year-ago quarter.
Despite posting better-than-expected results, MTSI shares lost 8.11% in Thursday’s trading session.
MACOM Technology Solutions Holdings, Inc. price-consensus-eps-surprise-chart | MACOM Technology Solutions Holdings, Inc. Quote
Telecom Market: MTSI generated revenues of $68.1 million (27% of total revenues) from the telecom market, up 34.6% year over year. Growth in this segment is driven by continued high demand for MACOM’s products supporting U.S. 5G infrastructure expansion and growing momentum in 100G/lane platforms, 800G SR8, 400G SR4, and early adoption of 1.6T platforms.
Data Center Market: The data center market contributed $75.8 million (30.1% of total revenues), reflecting a robust year-over-year growth of 54.7%. The strong performance was fueled by increasing demand from Internet service providers for MACOM’s 800G, 1.6T, Linear Pluggable Optics, and Active Copper Cables solutions.
Industrial & Defense Market: This market accounted for the largest share, delivering $108.2 million (42.9% of total revenues), up 19% year over year. MACOM continues to see heightened demand for solutions related to electronic warfare, secure communications, and integrated battlefield systems. The company is also benefiting from growing European defense demand and the expansion of its MESC facility in France.
In the third quarter of fiscal 2025, MACOM’s non-GAAP gross margin was 57.6%, expanding 10 basis points from 57.5% in the year-ago quarter.
Non-GAAP operating expenses were $81.7 million, up 27.9% year over year. As a percentage of revenues, operating expenses improved to 32.4%, contracting 110 basis points from the prior-year quarter.
As a result, MACOM’s non-GAAP operating margin was 25.2%, expanding 120 basis points from the prior-year quarter’s 24%.
As of July 4, 2025, cash equivalents and short-term investments were $735.2 million, up from $681.5 million in the previous quarter.
Story Continues