Oct 27, 2026 earnings call — Sales growth, margin expansion and design wins
Sales were $236 million, up 9%, and adjusted EPS increased 54% to $1.39.
Revenue $0.2B (est $0.2B) · EPS $1.39 (est $1.19) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"Within our core markets, we secured a number of new design awards in Q3."
"Adjusted EBITDA margin of 20.2% of sales expanded 300 basis points to its highest level since 2020."
"We have identified priority customers and applications and are developing solutions tailored to their requirements with initial customer sampling targeted for early 2027."
Analyst Q&A 5
missed sales pockets and new win timing
Q (Dan Moore · CJS): He asked whether some sales were pushed out and which areas were weaker. He also asked how large the new design wins are and when they will start generating revenue.
A: Management said a slight miss versus midpoint was due to balancing supply and demand and some supply constraints that pushed a few pockets of sales. They pointed to continued strong demand in the order book and stronger guidance for Q4. They said two new design opportunities are sizable and should begin revenue in Q2 and Q3 of 2027, with one starting a slow ramp in Q4 and reaching full volumes by Q2 next year.
"So they are sizable and we expect revenue from both of these I believe, in Q2 and Q3 of 2027." — Ali El-Haj (CEO)
margins and pace of new wins
Q (David Silver · Freedom): He asked if flat SG&A and R&D with rising revenue means the company will keep fixed costs flat and produce large incremental EBITDA. He also asked whether the pace of new business wins is enough to meet Investor Day targets.
A: Management said they are intentionally managing investments and OpEx, and the current OPEX levels are deliberate not a sign of underinvestment. They expect to grow investments in absolute terms as they capture significant opportunities, and margins benefit from scale and utilization as growth executes. They also said new wins are consistent with or ahead of schedule and that recent organic growth (9% in Q3 and Q4) should continue into 2027.
"The OPEX labels that we are currently posting are intentional." — Laura Russell (CFO)
progress on margin drivers
Q (Rebecca Zamorski · B. Riley): She asked for an update on the three gross-margin drivers: volume/absorption, differentiated pricing, and cost improvements.
A: Management said volume and design wins are moving to production, which improves factory utilization and helps margins. They said the $45 million restructuring to right-size factories is largely completed, though $13 million of that has not fully crystallized in 2026 results but will be achieved by year-end. They added that operational-excellence work and differentiated pricing initiatives are ongoing and progressing well.
"Absent $13 million of the $45 million is not fully crystallizing in the 2026 results." — Laura Russell (CFO)
buybacks, M&A, and opportunity mix
Q (Dan Moore · CJS): He asked if the company will stay aggressive with buybacks and about the M&A pipeline. He also asked how the three long-term opportunities rank and when they will ramp.
A: Management said they will be opportunistic on repurchases and evaluate actions that add shareholder value. They are active in M&A and have a couple of opportunities under review, expecting at least one to be actionable within the next few quarters. They said data centers are the largest of the three opportunities (with high-speed digital and cooling the biggest within data centers), automotive is likely second, EMI shielding spans product lines, and some products should launch in Q3–Q4 next year with ramps into 2028.
"We hopefully, you know, we anticipate some at least 1 maybe both of these opportunities are actionable within the next few quarters or so." — Ali El-Haj (CEO)
customer demand and activity level
Q (David Silver · Freedom): He asked whether customer engagement has softened given market volatility, or if customers remain committed to new platforms and investments.
A: Management said the opposite — momentum is increasing and customer activity is picking up. They are providing more samples, customers are building more product for testing and evaluation, and they are working on second- and third-generation designs and optimizations. They said they are expanding to more customers, see no macro-driven slowdown, and their forecasts remain unchanged.
"We are providing more samples Customers are building more product for testing and evaluation." — Ali El-Haj (CEO)