MTSI Filings — Macom Technology Solutions Holdings, Inc. - FilingSpy
MTSI
Macom Technology Solutions Holdings, Inc.
A maker of high-performance analog chips for military, aerospace, data-center, and telecom gear, MACOM designs amplifiers, switches, lasers, and optical components used in everything from radar to the fiber links behind modern internet. It traces back to 1950, when four engineers in Boston founded Microwave Associates to supply radar magnetrons to the U.S. Army. Its name is a shortening of that original title, and it holds a U.S. Department of Defense "Trusted Foundry" designation, letting it build secure chips for national-security systems.
Data Center revenue rose 81.5% to $137.6M, driving total revenue up 35.8% and gross margin to 58.3%.
Data Center nearly doubled, reshaping the company's mix. Total revenue rose 35.8% to $342.2M and expanded 3.0 points to 58.3%, driven by higher-speed optical products from 100G to 1.6T, while more than doubled to $77.1M. The company repaid its remaining , leaving it debt-free with over $660M in cash and short-term investments.
Key takeaways
Data Center rose 81.5% to $137.6M, driven by higher-speed optical products spanning 100G to 1.6T, making it the largest end market for the quarter.
expanded 3.0 points to 58.3%, benefiting from higher sales of higher-margin products, partially offset by increased employee costs from the RTP Fab.
rose 104.8% to $77.1M and widened 7.6 points to 22.5%, as growth of 35.8% far outpaced the increase in operating expenses.
Section summaries
Management's Discussion and Analysis
Revenue surged 35.8% YoY to $342.2M in Q3 FY2026, led by 81.5% Data Center growth, with gross margin expanding to 58.3%.
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Total Q3 rose 35.8% to $342.2M, driven by an 81.5% surge in Data Center sales to $137.6M on higher-speed optical products (100G to 1.6T).
Industrial & Defense grew 23.3% to $133.4M, primarily from defense-related programs, while Telecom increased 4.7% to $71.3M on broadband access and PON.
reached $100.7M, including a $41.5M ; was $1.28, up 166.7% .
fell to zero after the company repaid the remaining $340.2M during the quarter, while cash and short-term investments totaled $663.0M.
was $80.0M for the quarter, up 32.4% , and rose 14.8% to $59.2M.
What changed
The Q2 FY2026 flag on Telecom growth fading from 22.9% in Q1 to 7.6% in Q2 was confirmed: Telecom rose just 4.7% in Q3, its slowest growth in over a year.
Data Center growth accelerated sharply from 36.0% in Q2 to 81.5% in Q3, settling the question of whether 100G–1.6T analog and optical demand would hold.
improved to 58.3% from 56.9% in Q2, answering the watch item on whether RTP Fab employee costs and expansion would pressure margins.
The 2026 Convertible Notes maturity path was resolved: the company repaid the remaining $340.2M during the quarter, eliminating entirely, against $663.0M in cash and short-term investments.
What to watch
Q4 FY2026 Data Center to see if the 81.5% growth rate holds or begins to moderate from this elevated level.
Q4 to see if the 58.3% level is sustainable as higher-margin Data Center mix continues to expand.
Status and financial impact of the £45M UK investee transaction announced in Q2, including any fair value adjustments.
Telecom trajectory after growth slowed to 4.7%, to confirm whether broadband access and PON demand can stabilize the .
expanded to 58.3% from 55.3% a year ago, benefiting from higher sales of higher-margin products, partially offset by increased employee costs from the RTP Fab.
Operating expenses grew slower than , with R&D up 17.2% to $74.3M and SG&A up 25.4% to $48.1M, both driven by higher headcount and employee-related costs.
A $41.5M non-cash gain on investment fair value boosted to $100.7M; the was 18.7%.
was $201.6M for nine months; liquidity remains strong with $89.6M in cash and $573.4M in short-term investments after repaying $161.2M of .
Quantitative and Qualitative Disclosures About Market Risk
Market risk is limited to interest rate and foreign exchange exposures, with immaterial sensitivity and no trading or speculative instruments.
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A 1% change in interest rates would affect annual interest income by $6.6 million based on cash and short-term investment balances as of July 3, 2026.
The company believes a change in interest rates would not materially impact results of operations but could affect and .
International customer agreements are primarily in U.S. dollars, so foreign currency exposure is limited; a 10% exchange rate change is not expected to materially impact financial position or results.
The company uses foreign currency forward contracts (not designated as hedges under ASC 815) to reduce the impact of currency changes on intercompany debt, with $58.5 million in Euro and Yen contracts as of July 3, 2026.
The fair value of these forward contracts is immaterial, and the company does not enter into financial instruments for trading or speculative purposes.
See Note 13 - Commitments and Contingencies to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for information about our legal proceedings.
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See Note 13 - Commitments and Contingencies to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for information about our legal proceedings.
Our business involves a high degree of risk. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2025 Annual Report on Form 10-K, which could materiall…
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Our business involves a high degree of risk. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2025 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. As of the date of this Quarterly Report on Form 10-Q, there have been no material changes in any of the risk factors described in our 2025 Annual Report on Form 10-K, except as discussed in Part II, “Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the fiscal quarters ended January 2, 2026 and April 3, 2026, as filed with the SEC on February 5, 2026 and May 7, 2026, respectively.