ALGM Filings — Allegro Microsystems, Inc. - FilingSpy
ALGM
Allegro Microsystems, Inc.
A maker of the tiny magnetic sensors and power chips that quietly run modern life, Allegro MicroSystems builds the components that measure wheel speed for anti-lock brakes, position for electric power steering, and current for everything from car motors to AI data centers. The company traces back to the semiconductor division of Sprague Electric, spun off in 1990 and bought by Japan's Sanken Electric. Fun fact: the "Allegro" name means "fast and lively" in music — fitting for chips that track motion, and the company still calls New Hampshire home.
Allegro returned to net income of $15.9M as revenue rose 27.5% on data center and automotive demand.
growth accelerated for the fifth straight quarter. Net sales rose 27.5% to $259.2 million and widened 3.6 points to 48.5%, driven by a 58.8% increase in Industrial and Other sales on data center demand. The company is now profitable, but fell 64.3% as built up.
Key takeaways
rose 27.5% to $259.2 million, the fifth consecutive quarter of growth, as the customer correction that began in FY2024 continued to recede.
Industrial and Other sales rose 58.8%, which management attributed to data center demand, while Automotive sales rose 14.6% on ADAS and xEV components.
widened 3.6 points to 48.5%, benefiting from higher sales volume, , pricing actions, and a favorable product mix shift.
Section summaries
Management's Discussion and Analysis
Q1 FY2027 net sales rose 27.5% to $259.2M, swinging to $15.9M net income driven by data center and automotive demand.
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Total increased 27.5% to $259.2M, with Industrial and Other surging 58.8% on data center demand and Automotive up 14.6% on ADAS and xEV components.
expanded to 48.5% from 44.9%, benefiting from higher sales volume, , pricing actions, and a favorable product mix shift.
Power IC sales jumped 47.4% on motor and high-performance power products, while Magnetic Sensor sales grew 16.0% on current sensors and TMR solutions.
The company swung to of $15.9 million from a net loss of $14.8 million a year ago, and reached 9.8%, up from negative 6.8%.
fell 64.3% to $22.0 million, pressured by a $25.1 million net increase in operating assets and liabilities including higher inventories and .
stood at $285.7 million, essentially flat sequentially, after the company refinanced its term loans in the prior quarter with a new $285 million tranche maturing in 2030.
What changed
The 27.5% growth rate accelerated from 22.8% in FY2026 and 6.6% sequentially, confirming the correction has ended and demand is building rather than merely restocking.
reached 48.5%, the highest since Q2 FY2024, moving closer to the 50% threshold flagged in prior quarters as a key recovery marker, though it remains below the 54.8% reported in FY2024 before the downturn.
Industrial and Other sales growth accelerated to 58.8% from 37.8% in FY2026, suggesting the data center demand vector flagged in earlier filings is strengthening rather than moderating as the laps the prior year's depressed base.
The company returned to of $15.9 million, the second consecutive quarter of profitability after four quarters of losses, and of 9.8% is the widest since Q4 FY2023.
What to watch
Whether can reach 50% in Q2 FY2027 as production volumes continue to recover, or whether the 48.5% level represents a ceiling given the product mix shifts following the Crocus acquisition.
Whether the 58.8% growth in Industrial and Other sales sustains as data center demand continues, or moderates as the laps the prior year's depressed base.
Whether recovers from the $22.0 million level as the build normalizes, and whether of $14.0 million remains sufficient to service the $285.7 million in .
Any impact from the newly cited geopolitical risks — the U.S.-Israel-Iran conflict and China's rare-earth export restrictions — on the company's supply chain or automotive customer demand.
SG&A expenses declined 5.4% due to lower outside services, while R&D rose 18.6% on higher personnel costs, both leveraging down as a percentage of sales.
fell to $22.0M from $61.6M, pressured by a $25.1M net increase in operating assets and liabilities including higher inventories and .
The company expects existing cash to fund operations and growth over the next 12 months, with strategic investments planned in China, Europe, Japan, and India.
Quantitative and Qualitative Disclosures About Market Risk
There have not been any material changes in our exposures to market risk since March 27, 2026. For details on the Company’s interest rate, foreign currency exchange rate, and inflation risks, see Part I, Item 7A. “Quantitative and Qualitative Disclosures About Market Risks” in o…
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There have not been any material changes in our exposures to market risk since March 27, 2026. For details on the Company’s interest rate, foreign currency exchange rate, and inflation risks, see Part I, Item 7A. “Quantitative and Qualitative Disclosures About Market Risks” in our 2026 Annual Report.
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From time to time, we may be involved in claims, regulatory examinations or investigations and proceedings arising in the ordinary course of our business. The outcome of any such claims or proceedings, regardless of the merits, and the Company’s ultimate liability, if any, is in…
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From time to time, we may be involved in claims, regulatory examinations or investigations and proceedings arising in the ordinary course of our business. The outcome of any such claims or proceedings, regardless of the merits, and the Company’s ultimate liability, if any, is inherently uncertain. We are not currently party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results, cash flows or financial condition.
Various risk factors associated with our business are included in our 2026 Annual Report, as filed with the SEC on May 21, 2026. There have been no material changes to those risk factors previously disclosed in our 2026 Annual Report.
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Various risk factors associated with our business are included in our 2026 Annual Report, as filed with the SEC on
May 21, 2026. There have been no material changes to those risk factors previously disclosed in our 2026 Annual Report.