Semtech CorporationSMTC
NasdaqGS•Technology•Semiconductors
Semtech Corporation provides semiconductor, Internet of Things systems, and cloud connectivity service solutions in the Asia- Pacific, North America, and Europe. The company operates in three segments: Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity. It provides signal integrity products, including a portfolio of optical and copper data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers analog mixed signal and wireless products; protection devices, such as filter and termination devices which protect electronic systems from voltage spikes; and designs, develops, manufactures, and markets radio frequency products used in industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, the company offers a portfolio of IoT systems and connectivity solutions, such as modules, gateways, routers, and connected services, including wireless connectivity and cloud-based services for industrial, medical, and communications applications. It serves original equipment manufacturers, solution providers, commercial applications, infrastructure, high-end consumer, and industrial end markets. The company sells its products through direct sales personnel, independent sales representative firms, and independent distributors. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.
Semtech Corporation (SMTC) reported trailing twelve months revenue of $1.09B as of April 2026, a 14.2% increase year-over-year. Quarterly revenue reached $291.02M, reflecting continued top-line momentum.
Semtech Corporation reported a TTM net loss of $33.16M, with quarterly EBITDA of $34.95M. The operating margin contracted from 14.3% to 8.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (8.9%) and net margin (9.1%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 7.7% a year ago, signaling stronger bottom-line efficiency.
SMTC trades at a P/S of 12.8x. The price-to-book ratio of 24.3x indicates a significant premium over book value.
The company generated $28.01M in free cash flow over the trailing twelve months, a 7.0% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $1.44B in total assets with $491.98M in long-term debt against $573.32M in stockholders equity for a debt-to-equity ratio of 0.9. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 5.2%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~33.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 77.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF consistently trails net income (avg -2.5x) — earnings may be inflated by non-cash items or aggressive accounting.
D/E ratio is 0.9 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 42.3% — significant dilution, likely from stock compensation or capital raises.