MACOM Technology Solutions Holdings Inc (MTSI)
NASDAQ:MTSI
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MACOM Technology Solutions Holdings
(NASDAQ:MTSI)
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Rating:73Outperform
Price Target:
$345.00
▲(24.56% Upside)
Action:ReiteratedDate:05/07/26
The score is driven primarily by solid fundamentals with some cash-conversion softness, plus a strong and upbeat earnings call featuring improved margin outlook, record bookings/backlog, and strong Data Center momentum. Technicals are bullish but look stretched, while valuation is a notable headwind due to the high P/E and no dividend yield provided.
Positive Factors
Sustained high margins
MACOM now operates with very high gross and operating margins that reflect a structurally advantaged product mix (high-performance RF/optical components) and improving scale. Management guidance and sequential margin expansion indicate durable margin leverage as Data Center and mix shift toward higher-value products persist.
Negative Factors
Weaker cash conversion recently
Although cash flows are positive, recent deterioration in FCF conversion versus earnings suggests working capital and timing pressures. This intermittent cash conversion softness can constrain reinvestment cadence, elevate sensitivity to inventory swings, and make funding R&D or ramps more dependent on maintaining high margins and order visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained high margins
MACOM now operates with very high gross and operating margins that reflect a structurally advantaged product mix (high-performance RF/optical components) and improving scale. Management guidance and sequential margin expansion indicate durable margin leverage as Data Center and mix shift toward higher-value products persist.
Read all positive factors
MACOM Technology Solutions Holdings (MTSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.24B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)67.1
Beta (1Y)1.43
Revenue Growth29.12%
EPS GrowthN/A
CountryUS
Employees1,700
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.18
Shares Outstanding75,011,970
10 Day Avg. Volume947,424
30 Day Avg. Volume1,086,585
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)7.10
Price to Sales (P/S)9.75
P/FCF Ratio48.89
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue25.58
Enterprise Value/Gross Profit46.97
Enterprise Value/Ebitda99.51
Forecast
1Y Price Target
$362.22Price Target Upside30.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)4.47
Revenue Forecast (FY)$1.17B
MACOM Technology Solutions Holdings Business Overview & Revenue Model
Company Description
MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and light...
How the Company Makes Money
MACOM makes money primarily by selling semiconductor devices and related solutions to original equipment manufacturers (OEMs) and other customers that integrate these components into larger systems. Its revenue model is largely product sales, with...
MACOM Technology Solutions Holdings Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and multiple record metrics: robust revenue growth (Q2 revenue $289M, +6.4% sequential, >22% YoY), outsized bookings (1.5:1), improving gross and operating margins (58.5% gross, 27.8% operating), healthy cash balances ($664.9M) and a bullish Data Center outlook (Data Center growth raised materially). Execution risks remain (inventory build, ongoing R&D spend, timing of CW laser commercialization, supply chain/regulatory dependencies), but management provided clear capacity plans, moderate CapEx guidance and near‑term margin targets. Given the weight and magnitude of positive results, forward guidance, and balance‑sheet strength, the positives substantially outweigh the listed challenges.Positive Updates
Record Quarterly Revenue and Strong YoY Growth
Q2 FY2026 revenue of $289.0M, up 6.4% sequentially and over 22% year‑over‑year, driven by growth across Data Center, Industrial & Defense (I&D) and Telecom.
Negative Updates
Rising Operating Expenses from R&D Investments
Adjusted OpEx of $88.6M in Q2 (R&D $59.1M, SG&A $29.5M) increased sequentially driven by continuing R&D and employee‑related costs; management expects OpEx to grow with the business as R&D investments remain a priority.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong YoY Growth
Q2 FY2026 revenue of $289.0M, up 6.4% sequentially and over 22% year‑over‑year, driven by growth across Data Center, Industrial & Defense (I&D) and Telecom.
Read all positive updates
Company Guidance
MACOM guided Q3 revenue of $331–339 million with adjusted gross margin of 59–60% and adjusted EPS of $1.31–1.37 on ~78.5 million fully diluted shares, expecting sequential revenue growth in all three end markets (Data Center ~35% seq., Industrial & Defense ~≈10% seq., Telecom low single-digit seq.). For context, Q2 revenue was $289M with adjusted EPS $1.09 (77.6M shares), adjusted gross profit $169M (58.5% GM, +90 bps Q/Q), adjusted operating income $80.5M (27.8% OM) and a record 1.5:1 book-to-bill (18% of revenue booked and shipped within the quarter) with backlog at record levels. Management reiterated they expect adjusted operating margin to be about 30% next quarter, an adjusted tax rate of ~3%, Q2 adjusted net income of $84.3M, Q2 cash from operations of ~$78.7M (Q3 CFO >$80M; FY26 CFO expected to exceed $300M), Q2 cash & short-term investments $664.9M (net cash approx. $325M vs. $340M convertible notes), Q2 inventory $252.2M (turns 1.9x), Q2 CapEx $13.2M and FY26 CapEx expected $55–65M.MACOM Technology Solutions Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02B | 967.26M | 729.58M | 648.41M | 675.17M | 606.92M |
| Gross Profit | 555.94M | 531.44M | 371.40M | 362.06M | 380.59M | 310.94M |
| EBITDA | 262.39M | 39.79M | 163.91M | 179.69M | 304.65M | 133.49M |
| Net Income | 162.09M | -54.21M | 76.86M | 91.58M | 439.95M | 37.97M |
Balance Sheet | ||||||
| Total Assets | 2.11B | 2.10B | 1.76B | 1.55B | 1.57B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 768.49M | 785.98M | 581.89M | 514.53M | 586.53M | 344.90M |
| Total Debt | 567.67M | 537.99M | 487.78M | 487.33M | 600.43M | 528.55M |
| Total Liabilities | 752.41M | 776.26M | 629.30M | 605.64M | 729.07M | 662.41M |
| Stockholders Equity | 1.35B | 1.33B | 1.13B | 947.60M | 842.75M | 471.74M |
Cash Flow | ||||||
| Free Cash Flow | 132.74M | 192.82M | 140.20M | 142.22M | 150.47M | 130.46M |
| Operating Cash Flow | 211.63M | 235.37M | 162.64M | 166.92M | 176.98M | 148.41M |
| Investing Cash Flow | -309.27M | -328.26M | -181.13M | 36.34M | -182.86M | -2.58M |
| Financing Cash Flow | -16.22M | 58.10M | -9.06M | -149.02M | -28.91M | -119.09M |
MACOM Technology Solutions Holdings Technical Analysis
Positive
276.97
Price Trends
237.30
Positive
213.87
Positive
175.50
Positive
Market Momentum
10.43
Negative
69.51
Neutral
92.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTSI, the sentiment is Positive. The current price of 276.97 is above the 20-day moving average (MA) of 241.68, above the 50-day MA of 237.30, and above the 200-day MA of 175.50, indicating a bullish trend. The MACD of 10.43 indicates Negative momentum. The RSI at 69.51 is Neutral, neither overbought nor oversold. The STOCH value of 92.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTSI.
MACOM Technology Solutions Holdings Risk Analysis
MACOM Technology Solutions Holdings disclosed 48 risk factors in its most recent earnings report. MACOM Technology Solutions Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MACOM Technology Solutions Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.06B | 38.82 | 17.44% | ― | 19.12% | 10.38% | |
75 Outperform | $17.15B | 148.97 | 0.44% | ― | 17.45% | -61.07% | |
74 Outperform | $16.99B | 39.37 | 22.70% | ― | 30.96% | 37.48% | |
73 Outperform | $23.24B | 67.11 | 12.60% | ― | 29.12% | ― | |
65 Neutral | $8.25B | 21.13 | 9.69% | ― | -1.09% | 515.86% | |
64 Neutral | $9.77B | 58.25 | 6.30% | 4.37% | 2.33% | -6.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MTSI
MACOM Technology Solutions Holdings
344.47
224.81
187.87%
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MACOM Technology Solutions Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
MACOM Shareholders Back Board, Pay and Auditor at Meeting
Positive
Mar 9, 2026
On March 5, 2026, MACOM held its 2026 Annual Meeting of Stockholders in Chelmsford, Massachusetts, where shareholders elected all nominated directors to serve until the 2027 annual meeting and approved, on an advisory basis, executive compensation...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.