Kyle Smith's questions to Semtech Corp (SMTC) leadership • Q4 2025
Question
Kyle Smith, on for Tore Svanberg, asked about the free cash flow outlook for fiscal 2026, including expectations for operating cash flow and CapEx. He also requested an overview of the unbundling trend in the TIA market and Semtech's ability to capture share.
Answer
Executive Mark Lin highlighted strong Q4 cash flow and noted that the recent debt reduction, providing $40 million in annual cash interest savings, will be a significant tailwind for operating cash flow. He suggested historical CapEx is a reasonable proxy for future needs. President and CEO Hong Hou added that the historical practice of bundling DSPs and TIAs is ending, creating a level playing field where Semtech can compete effectively. He expressed confidence in gaining market share due to the company's best-in-class TIA solutions.