Semtech Corporation

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 1.2× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 1.2× operating cash profit, lifted by income outside the core business.

  Semtech's reported profit is 1.2× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Semtech's reported profit is 1.2× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Shareholders being diluted. Shares outstanding up 46% from January 2023 to August 2026.

  Semtech had 46% more shares at August 2026 than at January 2023, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Semtech had 46% more shares at August 2026 than at January 2023, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Sales growing faster than profits. Since FY Jan 2023: revenue +39%, operating profit −65%.

  Since FY Jan 2023, Semtech's revenue changed +39% while operating profit fell 65%: costs rose faster than sales.

• Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $595M in FY Jan 2021 to $1.0B in FY Jan 2026.

  Semtech's fiscal-year revenue rose in each of the five years to FY Jan 2026, from $595M to $1.0B.