A leading designer of high-frequency RF and optical components powering defense, aerospace, and 5G markets with a portfolio spanning MMICs and optoelectronic chips.
MTSI possesses an entrenched position in high-margin defense contracts that offer long-term visibility regardless of commercial market cycles. The recent revenue surge indicates successful product cycle transitions and strong demand for advanced RF components in 5G and radar applications. Significant cash reserves of $112.1M and positive operating cash flow provide flexibility to fund aggressive R&D and offset current accounting losses.
The shift from net income in previous years to a material net loss signals deteriorating profitability that warrants deep scrutiny before entry. Heavy reliance on government customers creates concentration risk where policy changes could abruptly reduce order volumes. Intense competition in the optical and RF space may pressure pricing power and compress margins further if market share is lost to larger tech giants.
MACOM Technology Solutions Holdings Inc. is a premier provider of high-performance RF and optical components serving defense, aerospace, communications, and industrial markets. The company specializes in microwave and millimeter-wave integrated circuits (MMICs) and optoelectronic products essential for 5G infrastructure, radar systems, and satellite networks. With revenue reaching $967.3M recently, MTSI leverages deep technology expertise to deliver critical solutions for next-generation connectivity and national security applications.
While revenue growth accelerated from $729.6M in 2024 to $967.3M in 2025, the company reported a net loss of $54.2M for the latest period, contrasting with prior years of profitability. Operating profit remains healthy at $129.7M, suggesting high fixed costs or significant non-cash charges are driving the bottom-line miss despite strong operational cash flow of $235.4M. The company continues to invest heavily in R&D at $244.5M and capital expenditures of $42.6M to maintain technological leadership amidst a shifting profitability landscape.
The semiconductor industry for high-frequency components is highly competitive, dominated by a mix of specialized niche players and large integrated device manufacturers. Demand is driven by accelerating 5G rollouts, advanced radar systems, and increasing requirements for electronic warfare capabilities in defense applications. Consolidation is common as larger firms attempt to acquire niche technologies, creating pressure on smaller specialists to differentiate through proprietary process innovations.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $648.4M | $729.6M | $967.3M |
| Cost of Revenue | $262.6M | $335.8M | $438.3M |
| Gross Profit | $385.8M | $393.8M | $529.0M |
| Operating Expenses | $278.4M | $320.1M | $399.4M |
| Operating Income | $107.4M | $73.7M | $129.7M |
| R&D | $148.5M | $182.2M | $244.5M |
| G&A | $129.9M | $137.9M | $154.9M |
| Stock-Based Comp | $38.1M | $45.6M | $79.4M |
| D&A | $52.2M | $67.2M | $63.3M |
| Depreciation | $24.0M | $30.1M | $31.5M |
| Amortization | $28.1M | $37.2M | $31.8M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $7.8M | $17.9M | $-158.7M |
| Interest Expense | $12.4M | $5.1M | — |
| Interest Income | $20.8M | $23.0M | $29.9M |
| Pre-Tax Income | $115.2M | $91.5M | $-29.0M |
| Income Tax | $23.6M | $14.7M | $25.2M |
| Continuing Ops | $91.6M | $76.9M | $-54.2M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $91.6M | $76.9M | $-54.2M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $91.6M | $76.9M | $-54.2M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $761.2M | $903.1M | $1.21B |
| Cash & Equivalents | $174.0M | $146.8M | $112.1M |
| Marketable Securities | $340.6M | $435.1M | $673.8M |
| Accounts Receivable | $91.3M | $105.7M | $148.6M |
| Inventory | $136.3M | $194.5M | $237.8M |
| Prepaid Expenses | $19.1M | $21.0M | $32.6M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $792.1M | $852.6M | $898.3M |
| PP&E (Net) | $149.5M | $176.0M | $230.3M |
| Intangibles | $67.0M | $76.1M | $78.6M |
| Goodwill | $323.4M | $332.2M | $336.3M |
| Operating Leases | $25.6M | $29.3M | $31.9M |
| Other LT Assets | $226.6M | $239.0M | $221.2M |
| Total Assets | $1.55B | $1.76B | $2.10B |
| Current Liabilities | $83.5M | $108.2M | $325.1M |
| Accounts Payable | $25.0M | $43.2M | $67.6M |
| Current Debt | — | — | $160.9M |
| Current Leases | $7.3M | $7.7M | $6.3M |
| Other Current Liab | $-6.1M | $-7.1M | $-5.7M |
| Long-Term Liabilities | $522.1M | $521.1M | $451.1M |
| Long-Term Debt | $447.1M | $448.3M | $339.6M |
| LT Operating Leases | $22.8M | $24.2M | $28.4M |
| Other LT Liab | $52.2M | $48.7M | $83.1M |
| Total Liabilities | $605.6M | $629.3M | $776.3M |
| Shareholders' Equity | $947.6M | $1.13B | $1.33B |
| Paid-In Capital | $1.21B | $1.31B | $1.56B |
| Retained Earnings | $-262.7M | $-185.8M | $-240.1M |
| AOCI | $-3.6M | $2.5M | $5.0M |
| Total L&E | $1.55B | $1.76B | $2.10B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $91.6M | $76.9M | $-54.2M |
| Non-Cash Adjustments | $124.4M | $34.5M | $179.4M |
| Working Capital Changes | $-49.1M | $51.3M | $110.2M |
| Cash from Operations | $166.9M | $162.6M | $235.4M |
| Capital Expenditures | $24.7M | $22.4M | $42.6M |
| Cash from Investing | $36.3M | $-181.1M | $-328.3M |
| Share Buybacks | $32.6M | $14.2M | $43.1M |
| Cash from Financing | $-149.0M | $-9.1M | $58.1M |
| FX Effect | $-238.0K | $411.0K | $132.0K |
| Net Change in Cash | $54.0M | $-27.1M | $-34.7M |
| Beginning Cash | $120.0M | $174.0M | $146.8M |
| Ending Cash | $174.0M | $146.8M | $112.1M |
Defense & Space Systems providing radar and electronic warfare components; Communications & Networking delivering 5G base station and backhaul solutions; Industrial & Medical offering precision sensing and imaging technologies; Custom Integrated Solutions tailoring specific RF/optical designs for strategic customers.
Volatility in government defense spending budgets which can significantly impact order intake for strategic customers. Exposure to global supply chain disruptions affecting the availability of specialized semiconductor manufacturing capacity. Potential erosion of gross margins due to intense competition from larger semiconductor players entering high-frequency markets.
Proprietary high-frequency process technology enabling superior performance at millimeter-wave frequencies not easily replicated by competitors. Strong customer loyalty within the defense sector driven by rigorous qualification processes and long-term contracts ensuring stable revenue visibility. A vertically integrated supply chain that reduces lead times and cost structures compared to pure-play fabless designs.
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