Semtech's $26.4m of stock compensation exceeds its $25.8m operating income
FY2027 Q2 10-Q: revenue rose 6% to $291.0m and operating income was $25.8m. In the same quarter share-based compensation jumped 61% to $26.4m, past the operating line. Income tax recorded was $112,000
aiSwingX™ Editorial · Reviewed
Published
Semtech Corporation Form 10-Q (fiscal 2027 second quarter, accession 0000088941-26-000034): consolidated statement of operations, cash flows and balance sheet; share-based compensation note; income tax note. Quarterly figures cross-checked against SEC XBRL Company Facts.
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Semtech (SMTC) reported revenue of $291.0m for the second quarter of fiscal 2027, up 6% on the prior quarter, with operating income of $25.8m. Share-based compensation in the same quarter's cash flow statement was $26.4m — $0.6m more than the operating income.
In plain terms
Semtech makes the chips that go into communications gear and connected devices. Revenue and profit both grew this quarter. What staff were paid in stock, though, came to more than the operating profit. That pay is recorded as a cost but no cash leaves the company. Very little tax was recorded this quarter.
What happened
Semtech (SMTC) makes the semiconductors that go into communications equipment and connected devices.
In the second quarter of fiscal 2027 revenue and profit grew together.
Line
Prior quarter
FY2027 Q2
Revenue
$274.4m
$291.0m (+6.0%)
Gross profit
$138.3m
$151.5m
Gross margin
50.4%
52.1%
Operating income
$(18.3)m
+$25.8m
An $18.3m operating loss in the prior quarter became $25.8m of operating income in this one.
Another line in the same quarterSubscribers
Income tax of $112,000Subscribers
Equity once rose $682.1m in a single quarterSubscribers
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What does it mean when stock pay exceeds operating income?
The relationship between the two is tabled in the subscriber section.
Did cash fall?
Operating cash for the quarter, less capital spending, is in the subscriber section.
Why is the tax so small?
Pre-tax income, tax and the effective rate are set out in the subscriber section.
Was equity ever negative?
Total equity across four quarters is in the subscriber section.
Where can I check this myself?
On SEC EDGAR, open Semtech Corporation's fiscal 2027 second-quarter 10-Q (accession 0000088941-26-000034) and read the statements of operations and cash flows.
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Semtech Corporation Form 10-Q (fiscal 2027 second quarter, accession 0000088941-26-000034): consolidated statement of operations, cash flows and balance sheet; share-based compensation note; income tax note. Quarterly figures cross-checked against SEC XBRL Company Facts. · SEC EDGAR · This article is not investment advice. Disclaimer
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