Fourth Quarter Sales Increased by 26% Year-over-Year to $243 Million
Fiscal Year 2026 Sales Increased by 23% Year-over-Year to $890 Million

MANCHESTER, N.H., May 07, 2026 (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 27, 2026.

“We finished fiscal year 2026 with strong momentum, delivering a fifth consecutive quarter of sales growth at $243 million. Non-GAAP EPS nearly tripled year-over-year to $0.17. For the full year, sales grew 23% to $890 million and non-GAAP EPS more than doubled to $0.54. These results reflect strength in Focus Auto sales - including xEV and ADAS – and Data Center, which reached a record 14% of total Q4 sales,” said Mike Doogue, President and CEO of Allegro MicroSystems. “As we enter fiscal 2027, we see demand trends that support continued growth, and remain confident in our ability to execute towards our target financial model.”

Fourth Quarter and Full Fiscal Year 2026 Financial Highlights:

In thousands, except per share data	Three-Month Period Ended												Twelve-Month Period Ended
	March 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Net Sales
Automotive	$	163,909			$	164,543			$	139,494			$	628,561			$	535,205
Industrial and Other		79,278				64,667				53,330				261,535				189,801
Total net sales	$	243,187			$	229,210			$	192,824			$	890,096			$	725,006
GAAP Financial Measures
Gross margin %		47.0	%			46.7	%			41.4	%			46.3	%			44.3	%
Operating margin %		2.2	%			4.2	%			(6.8	)%			2.1	%			(2.7	)%
Diluted EPS	$	(0.09	)		$	0.04			$	(0.08	)		$	(0.08	)		$	(0.39	)
Non-GAAP Financial Measures
Gross margin %		50.0	%			49.9	%			45.6	%			49.4	%			48.0	%
Operating margin %		15.6	%			15.4	%			9.0	%			14.1	%			9.5	%
Diluted EPS	$	0.17			$	0.15			$	0.06			$	0.54			$	0.24

Business Outlook

For the first quarter of fiscal year 2027 ending June 26, 2026, the Company expects total net sales to be in the range of
$245 million to $255 million. At the midpoint of this range, it implies growth in net sales of 23% year-over-year.

The Company also estimates the following results on a non-GAAP basis:

• Gross Margin is expected to be between 50% and 51%,
• Operating expenses are expected to be $80 million, plus or minus $2 million, and
• Diluted Earnings per Share is expected to be between $0.19 and $0.23.
  

Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, 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 7, 2026 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 electrification, automation, AI data center, and robotics 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 and trends affecting our business, including the projected size and growth of markets in which we operate or may operate, 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								Twelve-Month Period Ended
	March 27, 2026				March 28, 2025				March 27, 2026				March 28, 2025
Net sales	$	243,187			$	192,824			$	890,096			$	725,006
Cost of goods sold		128,912				112,945				478,126				403,479
Gross profit		114,275				79,879				411,970				321,527
Operating expenses:
Research and development		55,535				47,618				205,804				179,649
Selling, general and administrative		46,740				45,459				181,089				161,680
Impairment of assets held for sale		6,590				—				6,590				—
Total operating expenses		108,865				93,077				393,483				341,329
Operating income (loss)		5,410				(13,198	)			18,487				(19,802	)
Interest and other expense		(8,097	)			(5,240	)			(33,388	)			(31,142	)
Loss on change in fair value of forward repurchase contract		—				—				—				(34,752	)
Loss before income taxes		(2,687	)			(18,438	)			(14,901	)			(85,696	)
Income tax provision (benefit)		13,749				(3,700	)			(248	)			(12,933	)
Net loss		(16,436	)			(14,738	)			(14,653	)			(72,763	)
Net income attributable to non-controlling interests		52				62				244				247
Net loss attributable to Allegro MicroSystems, Inc.	$	(16,488	)		$	(14,800	)		$	(14,897	)		$	(73,010	)
Net loss per common share attributable to Allegro MicroSystems, Inc.:
Basic	$	(0.09	)		$	(0.08	)		$	(0.08	)		$	(0.39	)
Diluted	$	(0.09	)		$	(0.08	)		$	(0.08	)		$	(0.39	)
Weighted average shares outstanding:
Basic		185,309,271				184,169,928				185,035,670				187,707,391
Diluted		185,309,271				184,169,928				185,035,670				187,707,391

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 27, 2026				March 28, 2025				Amount				%				March 27, 2026				March 28, 2025				Amount				%
	(Dollars in thousands)																(Dollars in thousands)
Automotive	$	163,909			$	139,494			$	24,415				18	%		$	628,561			$	535,205			$	93,356				17	%
Industrial and Other		79,278				53,330				25,948				49	%			261,535				189,801				71,734				38	%
Total net sales	$	243,187			$	192,824			$	50,363				26	%		$	890,096			$	725,006			$	165,090				23	%

ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
	March 27				March 28,
	2026 (Unaudited)				2025
Assets
Current assets:
Cash and cash equivalents	$	168,753			$	121,334
Restricted cash		6,604				9,773
Trade accounts receivable, net		93,248				84,598
Inventories		181,752				183,914
Prepaid income taxes		1,179				36,662
Prepaid expenses and other current assets		52,070				30,247
Assets held for sale		—				16,508
Total current assets		503,606				483,036
Property, plant and equipment, net		308,258				302,919
Deferred income tax assets		80,221				68,528
Goodwill		203,291				202,475
Intangible assets, net		238,675				262,115
Equity investment in related party		22,296				31,695
Other assets		59,828				70,193
Total assets	$	1,416,175			$	1,420,961
Liabilities, Non-Controlling Interest and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	44,438			$	38,733
Amounts due to related party		4,794				6,535
Accrued expenses and other current liabilities		95,163				65,570
Current portion of long-term debt		1,530				1,423
Total current liabilities		145,925				112,261
Long-term debt		285,746				344,703
Other long-term liabilities		28,059				32,897
Total liabilities		459,730				489,861
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—				—
Common stock		1,854				1,843
Additional paid-in capital		1,050,582				1,012,055
Accumulated deficit		(68,488	)			(53,591	)
Accumulated other comprehensive loss		(29,201	)			(30,752	)
Equity attributable to Allegro MicroSystems, Inc.		954,747				929,555
Non-controlling interest		1,698				1,545
Total stockholders’ equity		956,445				931,100
Total liabilities, non-controlling interest and stockholders’ equity	$	1,416,175			$	1,420,961

ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
	Three-Month Period Ended								Twelve-Month Period Ended
	March 27, 2026				March 28, 2025				March 27, 2026				March 28, 2025
Cash flows from operating activities:
Net loss	$	(16,436	)		$	(14,738	)		$	(14,653	)		$	(72,763	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		17,765				15,924				67,593				64,502
Amortization of deferred financing costs		297				732				2,245				2,513
Deferred income taxes		(4,009	)			(4,755	)			(11,994	)			(16,301	)
Stock-based compensation		10,647				9,617				47,910				41,868
Loss on change in fair value of forward repurchase contract		—				—				—				34,752
Impairment of assets held for sale		6,590				—				6,590				—
Provisions for inventory and expected credit losses		1,435				1,697				8,989				9,216
Other non-cash reconciling items		348				339				653				6,984
Changes in operating assets and liabilities:
Trade accounts receivable		6,403				(1,275	)			(9,201	)			33,081
Inventories		(4,994	)			7,914				(6,267	)			(30,160	)
Payment to related party		(15,000	)			—				(15,000	)			—
Prepaid expenses and other assets		22,935				(3,200	)			40,634				(4,601	)
Trade accounts payable		(7,685	)			(1,423	)			5,996				4,044
Due to and from related parties		46				4,551				(1,740	)			5,115
Other changes in operating assets and liabilities, net		17,372				4,970				41,314				(16,337	)
Net cash provided by operating activities		35,714				20,353				163,069				61,913
Cash flows from investing activities:
Purchases of property, plant and equipment		(17,016	)			(5,391	)			(38,176	)			(39,955	)
Purchases of intangible assets		—				(1,180	)			—				(1,180	)
Acquisition of business, net of cash acquired		—				—				—				319
Investment in debt security		(3,541	)			—				(3,541	)			—
Net cash used in investing activities		(20,557	)			(6,571	)			(41,717	)			(40,816	)
Cash flows from financing activities:
Net proceeds from Refinanced Term Loan Facility		285,000				(402	)			285,000				193,081
Repayment of term loan		(285,000	)			(30,000	)			(345,000	)			(105,000	)
Finance lease payments		(516	)			(498	)			(1,368	)			(1,201	)
Receipts on related party notes receivable		—				—				—				1,875
Payments for intangible assets		(1,000	)			—				(5,000	)			—
Payments for taxes related to net share settlement of equity awards		(2,258	)			(3,458	)			(12,612	)			(16,238	)
Proceeds from issuance of common stock under employee stock purchase plan		1,427				1,524				3,337				3,511
Repurchases of common stock		—				—				—				(853,921	)
Payments for taxes related to repurchase of common stock		—				—				(1,713	)			—
Net proceeds from issuance of common stock		—				—				—				665,850
Dividends paid to non-controlling interest		—				(19	)			(23	)			(19	)
Net cash used in financing activities		(2,347	)			(32,853	)			(77,379	)			(112,062	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(852	)			1,216				277				(89	)
Net increase (decrease) in cash and cash equivalents and restricted cash		11,958				(17,855	)			44,250				(91,054	)
Cash and cash equivalents and restricted cash at beginning of period		163,399				148,962				131,107				222,161
Cash and cash equivalents and restricted cash at end of period	$	175,357			$	131,107			$	175,357			$	131,107

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 (Benefit), 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 (Benefit), management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision (Benefit) 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 (Benefit)

In calculating the non-GAAP Income Tax Provision (Benefit), 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												Twelve-Month Period Ended
	March 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Gross Profit	$	114,275			$	107,101			$	79,879			$	411,970			$	321,527
GAAP Gross Margin (% of net sales)		47.0	%			46.7	%			41.4	%			46.3	%			44.3	%
Non-GAAP adjustments
Transaction-related costs		—				—				—				—				14
Purchased intangible amortization		5,089				5,089				4,957				20,357				19,582
Restructuring costs		723				659				2,350				2,838				4,088
Stock-based compensation		1,033				1,017				697				3,955				2,877
Other costs		442				449				—				935				—
Total Non-GAAP Adjustments	$	7,287			$	7,214			$	8,004			$	28,085			$	26,561
Non-GAAP Gross Profit	$	121,562			$	114,315			$	87,883			$	440,055			$	348,088
Non-GAAP Gross Margin (% of net sales)		50.0	%			49.9	%			45.6	%			49.4	%			48.0	%

Reconciliation of Non-GAAP Operating Expenses
	Three-Month Period Ended												Twelve-Month Period Ended
	March 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Operating Expenses	$	108,865			$	97,527			$	93,077			$	393,483			$	341,329
Research and Development Expenses
GAAP Research and Development Expenses		55,535				52,878				47,618				205,804				179,649
Non-GAAP adjustments
Transaction-related costs		—				33				3				33				1,571
Purchased intangible amortization		6				5				—				22				—
Restructuring costs		1,674				2,663				4,429				7,107				5,426
Stock-based compensation		4,385				3,596				3,406				15,799				14,624
Other costs(1)		956				196				—				1,299				3
Non-GAAP Research and Development Expenses		48,514				46,385				39,780				181,544				158,025
Selling, General and Administrative Expenses
GAAP Selling, General and Administrative Expenses		46,740				44,649				45,459				181,089				161,680
Non-GAAP adjustments
Transaction-related costs		496				3				116				630				1,353
Purchased intangible amortization		558				535				535				2,163				2,140
Restructuring costs		2,630				2,032				1,656				7,004				6,011
Stock-based compensation		5,229				8,207				5,513				28,156				24,366
Other costs(1)		2,628				1,260				6,921				10,202				6,303
Non-GAAP Selling, General and Administrative Expenses		35,199				32,612				30,718				132,934				121,507
Impairment of assets held for sale		6,590				—				—				6,590				—
Total Non-GAAP Adjustments		25,152				18,530				22,579				79,005				61,797
Non-GAAP Operating Expenses	$	83,713			$	78,997			$	70,498			$	314,478			$	279,532
(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 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Operating Income (Loss)	$	5,410			$	9,574			$	(13,198	)		$	18,487			$	(19,802	)
GAAP Operating Margin (% of net sales)		2.2	%			4.2	%			(6.8	)%			2.1	%			(2.7	)%
Transaction-related costs		496				36				119				663				2,938
Impairment of assets held for sale		6,590				—				—				6,590				—
Purchased intangible amortization		5,653				5,629				5,492				22,542				21,722
Restructuring costs		5,027				5,354				8,435				16,949				15,525
Stock-based compensation		10,647				12,820				9,616				47,910				41,867
Other costs(1)		4,026				1,905				6,921				12,436				6,306
Total Non-GAAP Adjustments	$	32,439			$	25,744			$	30,583			$	107,090			$	88,358
Non-GAAP Operating Income	$	37,849			$	35,318			$	17,385			$	125,577			$	68,556
Non-GAAP Operating Margin (% of net sales)		15.6	%			15.4	%			9.0	%			14.1	%			9.5	%
(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 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Net (Loss) Income	$	(16,436	)		$	8,362			$	(14,738	)		$	(14,653	)		$	(72,763	)
GAAP Net (Loss) Income Margin (% of net sales)		(6.8	)%			3.6	%			(7.6	)%			(1.6	)%			(10.0	)%
Interest expense		5,136				4,910				6,874				22,135				30,366
Interest income		(269	)			(114	)			(222	)			(776	)			(1,524	)
Income tax provision (benefit)		13,749				(7,868	)			(3,700	)			(248	)			(12,933	)
Depreciation & amortization		17,765				17,001				15,924				67,593				64,502
EBITDA	$	19,945			$	22,291			$	4,138			$	74,051			$	7,648
Transaction-related costs		496				36				119				663				5,742
Impairment of assets held for sale		6,590				—				—				6,590				—
Restructuring costs		4,830				5,000				8,277				16,057				15,112
Stock-based compensation		10,647				12,820				9,616				47,910				41,867
Loss on change in fair value of forward repurchase contract		—				—				—				—				34,752
Other costs(1)		7,184				6,037				6,301				24,796				7,911
Adjusted EBITDA	$	49,692			$	46,184			$	28,451			$	170,067			$	113,032
Adjusted EBITDA Margin (% of net sales)		20.4	%			20.1	%			14.8	%			19.1	%			15.6	%
(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 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP (Loss) Income before Income Taxes	$	(2,687	)		$	494			$	(18,438	)		$	(14,901	)		$	(85,696	)
Transaction-related costs		496				36				119				663				5,742
Transaction-related interest		225				225				272				1,955				1,314
Impairment of assets held for sale		6,590				—				—				6,590				—
Purchased intangible amortization		5,653				5,629				5,492				22,542				21,722
Restructuring costs		5,074				5,354				8,482				17,184				15,317
Stock-based compensation		10,647				12,820				9,616				47,910				41,867
Loss on change in fair value of forward repurchase contract		—				—				—				—				34,752
Other costs(1)		7,718				6,422				6,689				25,715				12,351
Total Non-GAAP Adjustments	$	36,403			$	30,486			$	30,670			$	122,559			$	133,065
Non-GAAP Profit before Tax	$	33,716			$	30,980			$	12,232			$	107,658			$	47,369
(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 (Benefit) and Non-GAAP Effective Tax Rate
	Three-Month Period Ended												Twelve-Month Period Ended
	March 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Income Tax Provision (Benefit)	$	13,749			$	(7,868	)		$	(3,700	)		$	(248	)		$	(12,933	)
GAAP effective tax rate		(511.7	)%			(1,592.7	)%			20.1	%			1.7	%			15.1	%
Tax effect of adjustments to GAAP results		(11,642	)			10,002				4,126				7,610				14,200
Non-GAAP Income Tax Provision	$	2,107			$	2,134			$	426			$	7,362			$	1,267
Non-GAAP effective tax rate		6.2	%			6.9	%			3.5	%			6.8	%			2.7	%

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 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1)	$	(16,488	)		$	8,299			$	(14,800	)		$	(14,897	)		$	(73,010	)
GAAP Basic weighted average common shares		185,309,271				185,172,199				184,169,928				185,035,670				187,707,391
GAAP Diluted weighted average common shares		185,309,271				186,208,258				184,169,928				185,035,670				187,707,391
GAAP Basic (Loss) Income per Share	$	(0.09	)		$	0.04			$	(0.08	)		$	(0.08	)		$	(0.39	)
GAAP Diluted (Loss) Income per Share	$	(0.09	)		$	0.04			$	(0.08	)		$	(0.08	)		$	(0.39	)
Transaction-related costs		496				36				119				663				5,742
Transaction-related interest		225				225				272				1,955				1,314
Impairment of assets held for sale		6,590				—				—				6,590				—
Purchased intangible amortization		5,653				5,629				5,492				22,542				21,722
Restructuring costs		5,074				5,354				8,482				17,184				15,317
Stock-based compensation		10,647				12,820				9,616				47,910				41,867
Loss on change in fair value of forward repurchase contract		—				—				—				—				34,752
Other costs(2)		7,718				6,422				6,689				25,715				12,351
Total Non-GAAP Adjustments		36,403				30,486				30,670				122,559				133,065
Tax effect of adjustments to GAAP results(3)		11,642				(10,002	)			(4,126	)			(7,610	)			(14,200	)
Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.	$	31,557			$	28,783			$	11,744			$	100,052			$	45,855
Basic weighted average common shares		185,309,271				185,172,199				184,169,928				185,035,670				187,707,391
Diluted weighted average common shares		187,134,641				186,208,258				185,247,919				186,318,359				188,629,402
Non-GAAP Basic Earnings per Share	$	0.17			$	0.16			$	0.06			$	0.54			$	0.24
Non-GAAP Diluted Earnings per Share	$	0.17			$	0.15			$	0.06			$	0.54			$	0.24
(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, 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												Twelve-Month Period Ended
	March 27, 2026				December 26, 2025				March 28, 2025				March 27, 2026				March 28, 2025
	(Dollars in thousands)												(Dollars in thousands)
GAAP Operating Cash Flow	$	35,714			$	45,375			$	20,353			$	163,069			$	61,913
GAAP Operating Cash Flow (% of net sales)		14.7	%			19.8	%			10.6	%			18.3	%			8.5	%
Non-GAAP adjustments
Purchases of property, plant and equipment		(17,016	)			(4,116	)			(5,391	)			(38,176	)			(39,955	)
Non-GAAP Free Cash Flow	$	18,698			$	41,259			$	14,962			$	124,893			$	21,958
Non-GAAP Free Cash Flow (% of net sales)		7.7	%			18.0	%			7.8	%			14.0	%			3.0	%

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com

Source: Allegro MicroSystems, Inc.