MACOM Technology Solutions Holdings reported GAAP revenue of $271.6 million for the quarter ended January 2, 2026, representing a 24.5% increase from $218.1 million in the same period last year and a 4.0% sequential rise from $261.2 million. Gross margin expanded to 55.9%, up from 53.7% a year ago and 54.5% in the prior quarter. Operating income climbed to $43.3 million, or 15.9% of revenue, compared with $17.5 million, or 8.0% of revenue, in the prior-year quarter. Most notably, net income swung to a profit of $48.8 million, or $0.64 per diluted share, versus a net loss of $167.5 million, or $2.30 per diluted share, in the year-ago period, which had included a one-time $193.1 million loss on extinguishment of debt.

On an adjusted basis, the company posted gross margin of 57.6%, essentially flat year-over-year from 57.5% and up from 57.1% in the prior quarter. Adjusted operating income increased to $74.0 million, or 27.2% of revenue, compared with $55.4 million, or 25.4% of revenue, in the first quarter of fiscal 2025. Adjusted net income rose to $78.2 million, or $1.02 per diluted share, versus $59.5 million, or $0.79 per diluted share, a year ago and $71.4 million, or $0.94 per diluted share, in the prior quarter.

For the fiscal second quarter ending April 3, 2026, management projects revenue between $281 million and $289 million, adjusted gross margin of 57.0% to 59.0%, and adjusted earnings per diluted share of $1.05 to $1.09, based on a non-GAAP tax rate of 3% and 77.7 million fully diluted shares. President and CEO Stephen G. Daly emphasized continued execution of strategic initiatives in data center, telecommunications and defense markets, underscoring the company’s ability to convert strong top-line growth into expanding profitability. Investors should note the significant net income turnaround this quarter and the maintained margin profile despite higher revenue, signaling robust operational leverage heading into the second quarter.