Allegro MicroSystems Reports Second Quarter 2026 Results

MANCHESTER, N.H., Oct. 30, 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 second quarter ended September 26, 2025. “We delivered strong second quarter results, with sales of $214 million, up 14% year-over-year, and led by growth in both e-Mobility and Industrial & Other, increasing 21% and 23% year-over-year, respectively. Non-GAAP EPS was $0.13, increasing more than 60% year-over-year,” said Mike Doogue, President and CEO of Allegro. “We saw broad strength in second quarter Automotive sales with growth in e-Mobility and Other Auto, while data center delivered record sales to fuel year-over-year growth in Industrial. In addition to this strong financial performance, year-to-date design wins are well ahead of fiscal 2025, with second quarter wins led by e-Mobility and data center." Second Quarter Financial Highlights: In thousands, except per share data Three-Month Period Ended Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Sales Automotive $155,845 $144,264 $139,680 $300,109 $267,074 Industrial and Other 58,449 59,141 47,711 117,590 87,236 Total net sales $214,294 $203,405 $187,391 $417,699 $354,310 GAAP Financial Measures Gross margin % 46.3% 44.9% 45.7% 45.6% 45.3%Operating margin % 2.9% (1.3)% 2.2% 0.8% (1.9)%Diluted EPS $0.03 $(0.07) $(0.18) $(0.04) $(0.27)Non-GAAP Financial Measures Gross margin % 49.6% 48.2% 48.8% 48.9% 48.8%Operating margin % 13.9% 11.1% 11.7% 12.5% 9.0%Diluted EPS $0.13 $0.09 $0.08 $0.21 $0.11 Business Outlook For the third quarter of fiscal year 2026 ending December 26, 2025, the Company expects total net sales to be in the range of $215 million to $225 million. At the midpoint of this range, it implies growth in net sales of 24% year-over-year. The Company also estimates the following results on a non-GAAP basis: Gross Margin is expected to be between 49% and 51%,Interest expense is expected to be approximately $5 million, andDiluted Earnings per Share is expected to be between $0.12 and $0.16. Allegro has not provided a reconciliation of its third 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, October 30, 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 MicroSystems Allegro 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 28, 2025, 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; our dependence on growth in the end markets that use our products and the impact that slowdowns in such growth could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; 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 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 risks presented by climate change; the 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 Six-Month Period Ended September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024 Net sales $214,294 $187,391 $417,699 $354,310 Cost of goods sold 115,002 101,729 227,105 193,877 Gross profit 99,292 85,662 190,594 160,433 Operating expenses: Research and development 50,891 43,510 97,391 88,714 Selling, general and administrative 42,158 38,085 89,700 78,282 Total operating expenses 93,049 81,595 187,091 166,996 Operating income (loss) 6,243 4,067 3,503 (6,563)Interest and other expense (8,958) (12,398) (16,211) (18,341)Loss on change in fair value of forward repurchase contract — (34,752) — (34,752)Loss before income taxes (2,715) (43,083) (12,708) (59,656)Income tax benefit (9,298) (9,470) (6,129) (8,430)Net income (loss) 6,583 (33,613) (6,579) (51,226)Net income attributable to non-controlling interests 64 62 129 124 Net income (loss) attributable to Allegro MicroSystems, Inc. $6,519 $(33,675) $(6,708) $(51,350)Net income (loss) per common share attributable to Allegro MicroSystems, Inc.: Basic $0.04 $(0.18) $(0.04) $(0.27)Diluted $0.03 $(0.18) $(0.04) $(0.27)Weighted average shares outstanding: Basic 185,074,119 189,182,850 184,830,588 191,324,281 Diluted 186,305,785 189,182,850 184,830,588 191,324,281 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 Six-Month Period Ended Change September 26, 2025 September 27, 2024 Amount % September 26, 2025 September 27, 2024 Amount % (Dollars in thousands) (Dollars in thousands) Automotive $155,845 $139,680 $16,165 12% $300,109 $267,074 $33,035 12%Industrial and Other 58,449 47,711 10,738 23% 117,590 87,236 30,354 35%Total net sales $214,294 $187,391 $26,903 14% $417,699 $354,310 $63,389 18% ALLEGRO MICROSYSTEMS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) September 26, March 28, 2025(Unaudited) 2025 Assets Current assets: Cash and cash equivalents $117,492 $121,334 Restricted cash 9,322 9,773 Trade accounts receivable, net 105,770 84,598 Inventories 170,681 183,914 Prepaid income taxes 9,363 36,662 Prepaid expenses and other current assets 40,324 30,247 Assets held for sale 16,508 16,508 Total current assets 469,460 483,036 Property, plant and equipment, net 300,438 302,919 Deferred income tax assets 72,955 68,528 Goodwill 203,467 202,475 Intangible assets, net 250,929 262,115 Equity investment in related party 28,542 31,695 Other assets 58,537 70,193 Total assets $1,384,328 $1,420,961 Liabilities, Non-Controlling Interest and Stockholders’ Equity Current liabilities: Trade accounts payable $41,761 $38,733 Amounts due to related party 3,263 6,535 Accrued expenses and other current liabilities 74,082 65,570 Current portion of long-term debt 1,553 1,423 Total current liabilities 120,659 112,261 Long-term debt 286,135 344,703 Other long-term liabilities 31,705 32,897 Total liabilities 438,499 489,861 Commitments and contingencies Stockholders’ Equity: Preferred stock — — Common stock 1,851 1,843 Additional paid-in capital 1,029,002 1,012,055 Accumulated deficit (60,299) (53,591)Accumulated other comprehensive loss (26,379) (30,752)Equity attributable to Allegro MicroSystems, Inc. 944,175 929,555 Non-controlling interest 1,654 1,545 Total stockholders’ equity 945,829 931,100 Total liabilities, non-controlling interest and stockholders’ equity $1,384,328 $1,420,961 ALLEGRO MICROSYSTEMS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(Unaudited) Three-Month Period Ended Six-Month Period Ended September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024 Cash flows from operating activities: Net income (loss) $6,583 $(33,613) $(6,579) $(51,226)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 16,611 15,997 32,827 32,455 Amortization of deferred financing costs 717 306 1,650 1,087 Deferred income taxes 890 (2,796) (4,171) (7,795)Stock-based compensation 13,681 11,545 24,443 21,663 Loss on change in fair value of forward repurchase contract — 34,752 — 34,752 Provisions for inventory and expected credit losses 1,093 2,111 4,543 4,488 Other non-cash reconciling items 217 6,563 159 6,577 Changes in operating assets and liabilities: Trade accounts receivable (16,391) (13,717) (21,723) 41,417 Inventories 2,020 (2,845) 9,253 (18,831)Prepaid expenses and other assets (9,338) (14,093) 26,627 (15,808)Trade accounts payable (2,100) 13,470 4,181 13,670 Due to and from related parties 361 695 (3,272) 4,132 Other changes in operating assets and liabilities, net 6,018 (2,828) 14,042 (16,838)Net cash provided by operating activities 20,362 15,547 81,980 49,743 Cash flows from investing activities: Purchases of property, plant and equipment (6,444) (9,972) (17,044) (20,949)Net cash used in investing activities (6,444) (9,972) (17,044) (20,949)Cash flows from financing activities: Net proceeds from Refinanced 2023 Term Loan Facility — 193,483 — 193,483 Repayment of term loan (25,000) — (60,000) (50,000)Finance lease payments (336) (240) (538) (385)Receipts on related party notes receivable — 937 — 1,875 Payments for contingent consideration (1,000) — (1,000) — Payments for taxes related to net share settlement of equity awards (361) (1,126) (9,349) (12,297)Proceeds from issuance of common stock under employee stock purchase plan 1,910 1,987 1,910 1,987 Repurchases of common stock — (853,805) — (853,805)Payments for taxes related to repurchase of common stock (1,713) — (1,713) — Net proceeds from issuance of common stock — 665,850 — 665,850 Dividends paid to non-controlling interest (23) — (23) — Net cash (used in) provided by financing activities (26,523) 7,086 (70,713) (53,292)Effect of exchange rate changes on cash and cash equivalents and restricted cash 40 2,200 1,484 1,375 Net (decrease) increase in cash and cash equivalents and restricted cash (12,565) 14,861 (4,293) (23,123)Cash and cash equivalents and restricted cash at beginning of period 139,379 184,177 131,107 222,161 Cash and cash equivalents and restricted cash at end of period $126,814 $199,038 $126,814 $199,038 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 a 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 the non-GAAP Income Tax Provision, we adjust for the tax effect of adjustments to GAAP results which represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below. We also adjust for any discrete tax items and the impact of non-recurring tax law changes to ensure the non-GAAP Income Tax Rate (“NG ETR”) reflects future operations. Our fiscal year 2026 and 2027 NG ETR excludes the impact of the 2025 One Big Beautiful Bill Act’s one-time research and development amortization election which accelerates the amortization of previously capitalized domestic research and development over a two-year period. The NG ETR is applied to non-GAAP Profit before Tax to arrive at the tax effect of adjustments to GAAP results. Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin Three-Month Period Ended Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Gross Profit $99,292 $91,302 $85,662 $190,594 $160,433 GAAP Gross Margin (% of net sales) 46.3% 44.9% 45.7% 45.6% 45.3% Non-GAAP adjustments Transaction-related costs — — 10 — 9 Purchased intangible amortization 5,090 5,089 4,875 10,179 9,750 Restructuring costs 751 705 16 1,456 1,216 Stock-based compensation 1,017 888 817 1,905 1,378 Other Costs 44 — — 44 — Total Non-GAAP Adjustments $6,902 $6,682 $5,718 $13,584 $12,353 Non-GAAP Gross Profit $106,194 $97,984 $91,380 $204,178 $172,786 Non-GAAP Gross Margin (% of net sales) 49.6% 48.2% 48.8% 48.9% 48.8% Reconciliation of Non-GAAP Operating Expenses Three-Month Period Ended Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Operating Expenses $93,049 $94,042 $81,595 $187,091 $166,996 Research and Development Expenses GAAP Research and Development Expenses 50,891 46,500 43,510 97,391 88,714 Non-GAAP adjustments Transaction-related costs — — 206 — 1,235 Purchased intangible amortization 8 3 — 11 — Restructuring costs 1,639 1,131 260 2,770 429 Stock-based compensation 4,907 2,911 3,523 7,818 7,258 Other costs(1) 112 35 3 147 3 Non-GAAP Research and Development Expenses 44,225 42,420 39,518 86,645 79,789 Selling, General and Administrative Expenses GAAP Selling, General and Administrative Expenses 42,158 47,542 38,085 89,700 78,282 Non-GAAP adjustments Transaction-related costs 1 130 275 131 1,089 Purchased intangible amortization 535 535 535 1,070 1,070 Restructuring costs 1,158 1,184 2,046 2,342 3,091 Stock-based compensation 7,757 6,963 7,205 14,720 13,027 Other costs(1) 476 5,838 (1,820) 6,314 (1,009)Non-GAAP Selling, General and Administrative Expenses 32,231 32,892 29,844 65,123 61,014 Total Non-GAAP Adjustments 16,593 18,730 12,233 35,323 26,193 Non-GAAP Operating Expenses $76,456 $75,312 $69,362 $151,768 $140,803 (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 Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Operating Income (Loss) $6,243 $(2,740) $4,067 $3,503 $(6,563)GAAP Operating Margin (% of net sales) 2.9% (1.3)% 2.2% 0.8% (1.9)% Transaction-related costs 1 130 491 131 2,333 Purchased intangible amortization 5,633 5,627 5,410 11,260 10,820 Restructuring costs 3,548 3,020 2,322 6,568 4,736 Stock-based compensation 13,681 10,762 11,545 24,443 21,663 Other costs(1) 632 5,873 (1,817) 6,505 (1,006)Total Non-GAAP Adjustments $23,495 $25,412 $17,951 $48,907 $38,546 Non-GAAP Operating Income $29,738 $22,672 $22,018 $52,410 $31,983 Non-GAAP Operating Margin (% of net sales) 13.9% 11.1% 11.7% 12.5% 9.0% (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 Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Net Income (Loss) $6,583 $(13,162) $(33,613) $(6,579) $(51,226)GAAP Net Income (Loss) Margin (% of net sales) 3.1% (6.5)% (17.9)% (1.6)% (14.5)% Interest expense 5,730 6,359 10,353 12,089 15,730 Interest income (159) (234) (420) (393) (914)Income tax (benefit) provision (9,298) 3,169 (9,470) (6,129) (8,430)Depreciation & amortization 16,611 16,216 15,997 32,827 32,455 EBITDA $19,467 $12,348 $(17,153) $31,815 $(12,385) Transaction-related costs 1 130 3,295 131 5,137 Restructuring costs 3,403 2,824 2,067 6,227 4,481 Stock-based compensation 13,681 10,762 11,545 24,443 21,663 Loss on change in fair value of forward repurchase contract — — 34,752 — 34,752 Other costs(1) 4,271 7,304 (2,195) 11,575 612 Adjusted EBITDA $40,823 $33,368 $32,311 $74,191 $54,260 Adjusted EBITDA Margin (% of net sales) 19.0% 16.4% 17.2% 17.8% 15.3% (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 Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Loss before Income Taxes $(2,715) $(9,993) $(43,083) $(12,708) $(59,656) Transaction-related costs 1 130 3,295 131 5,137 Transaction-related interest 645 860 141 1,505 850 Purchased intangible amortization 5,633 5,627 5,410 11,260 10,820 Restructuring costs 3,736 3,020 2,067 6,756 4,481 Stock-based compensation 13,681 10,762 11,545 24,443 21,663 Loss on change in fair value of forward repurchase contract — — 34,752 — 34,752 Other costs(1) 4,271 7,304 1,428 11,575 4,235 Total Non-GAAP Adjustments $27,967 $27,703 $58,638 $55,670 $81,938 Non-GAAP Profit before Tax $25,252 $17,710 $15,555 $42,962 $22,282 (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 Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Income Tax (Benefit) Provision $(9,298) $3,169 $(9,470) $(6,129) $(8,430)GAAP effective tax rate 342.5% (31.7)% 22.0% 48.2% 14.1% Tax effect of adjustments to GAAP results 10,733 (1,483) 10,071 9,250 9,676 Non-GAAP Income Tax Provision $1,435 $1,686 $601 $3,121 $1,246 Non-GAAP effective tax rate 5.7% 9.5% 3.9% 7.3% 5.6% Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share Three-Month Period Ended Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Net Income (Loss) Attributable to Allegro MicroSystems, Inc.(1) $6,519 $(13,227) $(33,675) $(6,708) $(51,350)GAAP Basic weighted average common shares 185,074,119 184,587,027 189,182,850 184,830,588 191,324,281 GAAP Diluted weighted average common shares 186,305,785 184,587,027 189,182,850 184,830,588 191,324,281 GAAP Basic Income (Loss) per Share $0.04 $(0.07) $(0.18) $(0.04) $(0.27)GAAP Diluted Income (Loss) per Share $0.03 $(0.07) $(0.18) $(0.04) $(0.27) Transaction-related costs 1 130 3,295 131 5,137 Transaction-related interest 645 860 141 1,505 850 Purchased intangible amortization 5,633 5,627 5,410 11,260 10,820 Restructuring costs 3,736 3,020 2,067 6,756 4,481 Stock-based compensation 13,681 10,762 11,545 24,443 21,663 Loss on change in fair value of forward repurchase contract — — 34,752 — 34,752 Other costs(2) 4,271 7,304 1,428 11,575 4,235 Total Non-GAAP Adjustments 27,967 27,703 58,638 55,670 81,938 Tax effect of adjustments to GAAP results(3) (10,733) 1,483 (10,071) (9,250) (9,676)Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. $23,753 $15,959 $14,892 $39,712 $20,912 Basic weighted average common shares 185,074,119 184,587,027 189,182,850 184,830,588 191,324,281 Diluted weighted average common shares 186,305,785 185,416,258 189,710,595 185,800,398 192,154,185 Non-GAAP Basic Earnings per Share $0.13 $0.09 $0.08 $0.21 $0.11 Non-GAAP Diluted Earnings per Share $0.13 $0.09 $0.08 $0.21 $0.11 (1) GAAP Net Income (Loss) Attributable to Allegro MicroSystems, Inc. represents GAAP Net Income (Loss) 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, reverses all discrete items, non-recurring law changes to calculate an annual 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 Six-Month Period Ended September 26, 2025 June 27, 2025 September 27, 2024 September 26, 2025 September 27, 2024 (Dollars in thousands) (Dollars in thousands) GAAP Operating Cash Flow $20,362 $61,618 $15,547 $81,980 $49,743 GAAP Operating Cash Flow (% of net sales) 9.5% 30.3% 8.3% 19.6% 14.0%Non-GAAP adjustments Purchases of property, plant and equipment (6,444) (10,600) (9,972) (17,044) (20,949)Non-GAAP Free Cash Flow $13,918 $51,018 $5,575 $64,936 $28,794 Non-GAAP Free Cash Flow (% of net sales) 6.5% 25.1% 3.0% 15.5% 8.1% Investor Contact:Jalene HooverVP of Investor Relations & Corporate Communications+1 (512) 751-6526jhoover@allegromicro.com

Allegro MicroSystems Reports Second Quarter 2026 Results

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