Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2025 Results

MANCHESTER, N.H., May 08, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its fourth quarter and full fiscal year ended March 28, 2025. “During the fourth quarter, we delivered on our commitments with sales of $193 million, up 8% sequentially, and non-GAAP EPS of $0.06,” said Mike Doogue, President and CEO of Allegro. “While the environment remains dynamic, we are encouraged by the positive momentum we are seeing across the business and the signals we are seeing from our customers. We are taking actions to accelerate growth in strategic focus areas, secure important customer wins and drive operating efficiencies, while improving profitability. As Allegro’s CEO, I am excited to leverage the breadth and depth of my experience to help accelerate our path toward our target financial model and unlock additional shareholder value.” Fourth Quarter and Full Fiscal Year 2025 Financial Highlights: In thousands, except per share data Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Sales Automotive $140,880 $130,066 $181,939 $544,023 $759,454 Industrial and other 51,944 47,806 58,642 180,983 289,913 Total net sales $192,824 $177,872 $240,581 $725,006 $1,049,367 GAAP Financial Measures Gross margin % 41.4% 45.7% 51.2% 44.3% 54.8%Operating margin % (6.8)% (0.0)% 6.6% (2.7)% 18.7%Diluted EPS $(0.08) $(0.04) $(0.04) $(0.39) $0.78 Non-GAAP Financial Measures Gross margin % 45.6% 49.1% 53.8% 48.0% 56.3%Operating margin % 9.0% 10.8% 23.8% 9.5% 28.5%Diluted EPS $0.06 $0.07 $0.25 $0.24 $1.35 Business Outlook For the first quarter of fiscal year 2026 ending June 27, 2025, the Company expects total net sales to be in the range of $192 million to $202 million. At the mid-point of this range, it implies net sales growth of 18% year-over-year. The Company also estimates the following results on a non-GAAP basis: Gross Margin is expected to be between 46% and 48%,Interest expense of approximately $5 million inclusive of a $25 million voluntary debt payment made on April 30, andDiluted Earnings per Share are expected to be between $0.06 and $0.10. Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted. Earnings Webcast A webcast will be held on Thursday, May 8, 2025 at 8:30 a.m., Eastern Time. Michael C. Doogue, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results. The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days. About Allegro MicroSystemsAllegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs, to propel automotive, clean energy and industrial automation forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in “automotive grade” technology and a partner in our customers' success. For additional information, please visit https://www.allegromicro.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements. Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the risk of unsolicited acquisition proposals; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; risks related to ESG matters; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise. This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison. This press release may not be reproduced, forwarded to any person or published, in whole or in part. ALLEGRO MICROSYSTEMS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share amounts)(Unaudited) Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 March 29, 2024 March 28, 2025 March 29, 2024 Net sales $192,824 $240,581 $725,006 $1,049,367 Cost of goods sold 112,945 117,333 403,479 474,838 Gross profit 79,879 123,248 321,527 574,529 Operating expenses: Research and development 47,618 45,839 179,649 176,638 Selling, general and administrative 45,459 48,294 161,680 188,429 Impairment of long-lived assets — 13,218 — 13,218 Total operating expenses 93,077 107,351 341,329 378,285 Operating (loss) income (13,198) 15,897 (19,802) 196,244 Interest and other (expense) income (5,240) 1,354 (31,142) (1,447)Loss on change in fair value of forward repurchase contract — — (34,752) — (Loss) income before income taxes (18,438) 17,251 (85,696) 194,797 Income tax (benefit) provision (3,700) 24,325 (12,933) 41,909 Net (loss) income (14,738) (7,074) (72,763) 152,888 Net income attributable to non-controlling interests 62 41 247 191 Net (loss) income attributable to Allegro MicroSystems, Inc. $(14,800) $(7,115) $(73,010) $152,697 Net (loss) income per common share attributable to Allegro MicroSystems, Inc.: Basic $(0.08) $(0.04) $(0.39) $0.79 Diluted $(0.08) $(0.04) $(0.39) $0.78 Weighted average shares outstanding: Basic 184,169,928 193,139,519 187,707,391 192,573,169 Diluted 184,169,928 194,487,307 187,707,391 194,674,352 Supplemental Schedule of Total Net Sales The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations: Three-Month Period Ended Change Twelve-Month Period Ended Change March 28, 2025 March 29, 2024 Amount % March 28, 2025 March 29, 2024 Amount % (Dollars in thousands) (Dollars in thousands) Automotive $140,880 $181,939 $(41,059) (23)% $544,023 $759,454 $(215,431) (28)%Industrial and other 51,944 58,642 (6,698) (11)% 180,983 289,913 (108,930) (38)%Total net sales $192,824 $240,581 $(47,757) (20)% $725,006 $1,049,367 $(324,361) (31)% ALLEGRO MICROSYSTEMS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) March 28, March 29, 2025(Unaudited) 2024 Assets Current assets: Cash and cash equivalents $121,334 $212,143 Restricted cash 9,773 10,018 Trade accounts receivable, net 84,598 118,508 Inventories 183,914 162,302 Prepaid income taxes 36,662 31,908 Prepaid expenses and other current assets 30,247 33,584 Current portion of related party notes receivable — 3,750 Assets held for sale 16,508 — Total current assets 483,036 572,213 Property, plant and equipment, net 302,919 321,175 Deferred income tax assets 68,528 54,496 Goodwill 202,475 202,425 Intangible assets, net 262,115 276,854 Related party notes receivable, less current portion — 4,688 Equity investment in related party 31,695 26,727 Other assets 70,193 72,025 Total assets $1,420,961 $1,530,603 Liabilities, Non-Controlling Interests and Stockholders’ Equity Current liabilities: Trade accounts payable $38,733 $35,964 Amounts due to related party 6,535 1,626 Accrued expenses and other current liabilities 65,570 76,389 Current portion of long-term debt 1,423 3,929 Total current liabilities 112,261 117,908 Long-term debt 344,703 249,611 Other long-term liabilities 32,897 31,368 Total liabilities 489,861 398,887 Commitments and contingencies Stockholders’ Equity: Preferred stock — — Common stock 1,843 1,932 Additional paid-in capital 1,012,055 694,332 (Accumulated deficit) retained earnings (53,591) 463,012 Accumulated other comprehensive loss (30,752) (28,841)Equity attributable to Allegro MicroSystems, Inc. 929,555 1,130,435 Non-controlling interests 1,545 1,281 Total stockholders’ equity 931,100 1,131,716 Total liabilities, non-controlling interests and stockholders’ equity $1,420,961 $1,530,603 ALLEGRO MICROSYSTEMS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(Unaudited) Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 March 29, 2024 March 28, 2025 March 29, 2024 Cash flows from operating activities: Net (loss) income $(14,738) $(7,074) $(72,763) $152,888 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 15,924 21,834 64,502 71,382 Amortization of deferred financing costs 732 235 2,513 527 Deferred income taxes (4,755) 9,640 (16,301) (18,613)Stock-based compensation 9,617 9,618 41,868 42,457 Loss on change in fair value of forward repurchase contract — — 34,752 — Provisions for inventory and expected credit losses 1,697 435 9,216 10,286 Change in fair value of marketable securities — — — 3,579 Impairment of long-lived assets — 13,218 — 13,218 Other non-cash reconciling items 339 52 6,984 70 Changes in operating assets and liabilities: Trade accounts receivable (1,275) (5,400) 33,081 (7,964)Inventories 7,914 4,061 (30,160) (15,848)Prepaid expenses and other assets (3,200) (28,181) (4,601) (41,266)Trade accounts payable (1,423) (3,049) 4,044 (12,653)Due to and from related parties 4,551 (1,586) 5,115 5,231 Accrued expenses and other current and long-term liabilities 4,970 (1,039) (16,337) (21,579)Net cash provided by operating activities 20,353 12,764 61,913 181,715 Cash flows from investing activities: Purchases of property, plant and equipment (5,391) (14,272) (39,955) (124,772)Purchases of intangible assets (1,180) — (1,180) — Acquisition of business, net of cash acquired and working capital adjustment — — 319 (408,119)Sales of marketable securities — — — 16,175 Net cash used in investing activities (6,571) (14,272) (40,816) (516,716)Cash flows from financing activities: Net proceeds from Refinanced 2023 Term Loan Facility (402) — 193,081 — Repayment of 2023 Term Loan Facility (30,000) (625) (105,000) (625)Borrowings of senior secured debt, net of deferred financing costs — — — 245,452 Repayment of 2020 Term Loan Facility — — — (25,000)Repayments of other debt — (99) — (842)Finance lease payments (498) (142) (1,201) (142)Receipts on related party notes receivable — 937 1,875 3,750 Payments for taxes related to net share settlement of equity awards (3,458) (1,077) (16,238) (25,900)Proceeds from issuance of common stock under employee stock purchase plan 1,524 1,736 3,511 3,635 Repurchases of common stock — — (853,921) — Net proceeds from issuance of common stock — — 665,850 — Dividends paid to non-controlling interest (19) — (19) — Payment of debt issuance costs — — — (1,450)Net cash (used in) provided by financing activities (32,853) 730 (112,062) 198,878 Effect of exchange rate changes on cash and cash equivalents and restricted cash 1,216 (796) (89) (421)Net decrease in cash and cash equivalents and restricted cash (17,855) (1,574) (91,054) (136,544)Cash and cash equivalents and restricted cash at beginning of period 148,962 223,735 222,161 358,705 Cash and cash equivalents and restricted cash at end of period: $131,107 $222,161 $131,107 $222,161 Non-GAAP Financial Measures In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities. The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs. Non-GAAP Income Tax Provision In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision: Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments. Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Gross Profit $79,879 $81,215 $123,248 $321,527 $574,529 GAAP Gross Margin (% of net sales) 41.4% 45.7% 51.2% 44.3% 54.8% Non-GAAP adjustments Transaction-related costs — 5 566 14 1,089 Purchased intangible amortization 4,957 4,875 4,959 19,582 9,282 Restructuring costs 2,350 522 1 4,088 167 Stock-based compensation 697 802 734 2,877 5,359 Total Non-GAAP Adjustments $8,004 $6,204 $6,260 $26,561 $15,897 Non-GAAP Gross Profit $87,883 $87,419 $129,508 $348,088 $590,426 Non-GAAP Gross Margin (% of net sales) 45.6% 49.1% 53.8% 48.0% 56.3% Reconciliation of Non-GAAP Operating Expenses Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Operating Expenses $93,077 $81,256 $107,351 $341,329 $378,285 Research and Development Expenses GAAP Research and Development Expenses 47,618 43,317 45,839 179,649 176,638 Non-GAAP adjustments Transaction-related costs 3 333 929 1,571 1,281 Restructuring costs 4,429 568 621 5,426 1,529 Stock-based compensation 3,406 3,960 3,554 14,624 13,894 Other costs(1) — — — 3 — Non-GAAP Research and Development Expenses 39,780 38,456 40,735 158,025 159,934 Selling, General and Administrative Expenses GAAP Selling, General and Administrative Expenses 45,459 37,939 48,294 161,680 188,429 Non-GAAP adjustments Transaction-related costs 116 148 5,649 1,353 20,068 Purchased intangible amortization 535 535 542 2,140 1,752 Restructuring costs 1,656 1,264 1,819 6,011 7,614 Stock-based compensation 5,513 5,826 5,330 24,366 23,204 Other costs(1) 6,921 391 3,514 6,303 3,897 Non-GAAP Selling, General and Administrative Expenses 30,718 29,775 31,440 121,507 131,894 Impairment of long-lived assets — — 13,218 — 13,218 Total Non-GAAP Adjustments 22,579 13,025 35,176 61,797 86,457 Non-GAAP Operating Expenses $70,498 $68,231 $72,175 $279,532 $291,828 (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Operating (Loss) Income $(13,198) $(41) $15,897 $(19,802) $196,244 GAAP Operating Margin (% of net sales) (6.8)% —% 6.6% (2.7)% 18.7% Transaction-related costs 119 486 7,144 2,938 22,438 Impairment of long-lived assets — — 13,218 — 13,218 Purchased intangible amortization 5,492 5,410 5,501 21,722 11,034 Restructuring costs 8,435 2,354 2,441 15,525 9,310 Stock-based compensation 9,616 10,588 9,618 41,867 42,457 Other costs(1) 6,921 391 3,514 6,306 3,897 Total Non-GAAP Adjustments $30,583 $19,229 $41,436 $88,358 $102,354 Non-GAAP Operating Income $17,385 $19,188 $57,333 $68,556 $298,598 Non-GAAP Operating Margin (% of net sales) 9.0% 10.8% 23.8% 9.5% 28.5% (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Net (Loss) Income $(14,738) $(6,799) $(7,074) $(72,763) $152,888 GAAP Net (Loss) Income Margin (% of net sales) (7.6)% (3.8)% (2.9)% (10.0)% 14.6% Interest expense 6,874 7,762 5,382 30,366 10,763 Interest income (222) (388) (594) (1,524) (3,144)Income tax (benefit) provision (3,700) (803) 24,325 (12,933) 41,909 Depreciation & amortization 15,924 16,123 21,737 64,502 71,382 EBITDA $4,138 $15,895 $43,776 $7,648 $273,798 Transaction-related costs 119 486 7,144 5,742 22,438 Impairment of long-lived assets — — 13,218 — 13,218 Restructuring costs 8,277 2,354 2,441 15,112 9,310 Stock-based compensation 9,616 10,588 9,618 41,867 42,457 Loss on change in fair value of forward repurchase contract — — — 34,752 — Other costs(1) 6,301 998 (2,319) 7,911 3,020 Adjusted EBITDA $28,451 $30,321 $73,878 $113,032 $364,241 Adjusted EBITDA Margin (% of net sales) 14.8% 17.0% 30.7% 15.6% 34.7% (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. Reconciliation of Non-GAAP Profit before Tax Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP (Loss) Income before Income Taxes $(18,438) $(7,602) $17,251 $(85,696) $194,797 Transaction-related costs 119 486 7,144 5,742 22,438 Transaction-related interest 272 192 163 1,314 325 Impairment of long-lived assets — — 13,218 — 13,218 Purchased intangible amortization 5,492 5,410 5,501 21,722 11,034 Restructuring costs 8,482 2,354 2,441 15,317 9,310 Stock-based compensation 9,616 10,588 9,618 41,867 42,457 Loss on change in fair value of forward repurchase contract — — — 34,752 — Other costs(1) 6,689 1,427 (2,319) 12,351 3,020 Total Non-GAAP Adjustments $30,670 $20,457 $35,766 $133,065 $101,802 Non-GAAP Profit before Tax $12,232 $12,855 $53,017 $47,369 $296,599 (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Income Tax (Benefit) Provision $(3,700) $(803) $24,325 $(12,933) $41,909 GAAP effective tax rate 20.1% 10.6% 141.0% 15.1% 21.5% Tax effect of adjustments to GAAP results 4,126 398 (19,263) 14,200 (9,135) Non-GAAP Income Tax (Benefit) Provision $426 $(405) $5,062 $1,267 $32,774 Non-GAAP effective tax rate 3.5% (3.2)% 9.5% 2.7% 11.0% Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1) $(14,800) $(6,860) $(7,115) $(73,010) $152,697 GAAP Basic weighted average common shares 184,169,928 184,011,189 193,139,519 187,707,391 192,573,169 GAAP Diluted weighted average common shares 184,169,928 184,011,189 194,487,307 187,707,391 194,674,352 GAAP Basic (Loss) Earnings per Share $(0.08) $(0.04) $(0.04) $(0.39) $0.79 GAAP Diluted (Loss) Earnings per Share $(0.08) $(0.04) $(0.04) $(0.39) $0.78 Transaction-related costs 119 486 7,144 5,742 22,438 Transaction-related interest 272 192 163 1,314 325 Impairment of long-lived assets — — 13,218 — 13,218 Purchased intangible amortization 5,492 5,410 5,501 21,722 11,034 Restructuring costs 8,482 2,354 2,441 15,317 9,310 Stock-based compensation 9,616 10,588 9,618 41,867 42,457 Loss on change in fair value of forward repurchase contract — — — 34,752 — Other costs(2) 6,689 1,427 (2,319) 12,351 3,020 Total Non-GAAP Adjustments 30,670 20,457 35,766 133,065 101,802 Tax effect of adjustments to GAAP results(3) (4,126) (398) 19,263 (14,200) 9,135 Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. $11,744 $13,199 $47,914 $45,855 $263,634 Basic weighted average common shares 184,169,928 184,011,189 193,139,519 187,707,391 192,573,169 Diluted weighted average common shares 185,247,919 184,485,792 194,487,307 188,629,402 194,674,352 Non-GAAP Basic Earnings per Share $0.06 $0.07 $0.25 $0.24 $1.37 Non-GAAP Diluted Earnings per Share $0.06 $0.07 $0.25 $0.24 $1.35 (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests. (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments. (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results. Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales Three-Month Period Ended Twelve-Month Period Ended March 28, 2025 December 27, 2024 March 29, 2024 March 28, 2025 March 29, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Operating Cash Flow $20,353 $(8,183) $12,764 $61,913 $181,715 GAAP Operating Cash Flow (% of net sales) 10.6% -4.6% 5.3% 8.5% 17.3%Non-GAAP adjustments Purchases of property, plant and equipment (5,391) (13,615) (14,272) (39,955) (124,772) Non-GAAP Free Cash Flow $14,962 $(21,798) $(1,508) $21,958 $56,943 Non-GAAP Free Cash Flow (% of net sales) 7.8% (12.3)% (0.6)% 3.0% 5.4% Investor Contact:Jalene HooverVP of Investor Relations & Corporate Communications+1 (512) 751-6526jhoover@allegromicro.com

Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2025 Results

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