MACOM Technology Solutions Holdings, Inc.MTSI
MACOM Technology Solutions Holdings, Inc. Segments Disclosure
SEGMENT REPORTING, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION
We have one reportable operating segment that designs, develops, manufactures and markets semiconductors and modules. The determination of reportable operating segments is based on the chief operating decision maker’s (“CODM”) use of financial information provided for the purposes of assessing performance and making operating decisions. The Company’s CODM is its President and Chief Executive Officer and Chair of the Board. In evaluating financial performance and making operating decisions, the CODM primarily uses consolidated metrics. The Company assesses its determination of operating segments at least annually. We continue to evaluate our reporting structure and the potential impact of any changes on our segment reporting. The accounting policies of the single operating segment are the same as those described in the summary of significant account policies.
The CODM uses consolidated gross profit and net (loss) income to assess financial performance against prior periods and our competitors, to decide how to allocate resources and to evaluate income generated from segment assets in deciding whether to reinvest profits into our operations or into other parts of the entity, such as for acquisitions or other investments. The measure of segment assets is reported on the balance sheet as total assets. Financial forecasts and budget to actual results used by the CODM to assess performance and allocate resources, as well as those used for strategic decisions related to headcount and capital expenditures are also reviewed on a consolidated basis.
The following table presents a summary of consolidated net (loss) income inclusive of significant segment expenses and other expense information provided to the CODM (in thousands):
| Fiscal Years | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenue | $ | 967,258 | $ | 729,578 | $ | 648,407 | |||||||||||
| Less: | |||||||||||||||||
| Cost of revenue (1) | 411,969 | 306,942 | 250,975 | ||||||||||||||
| Research and development (1) | 208,605 | 161,248 | 132,235 | ||||||||||||||
| Selling, general and administrative (1) | 100,952 | 86,355 | 75,763 | ||||||||||||||
| Share-based compensation including cash incentive stock units (2) | 86,139 | 50,191 | 43,589 | ||||||||||||||
| Amortization expense (3) | 22,365 | 32,392 | 28,104 | ||||||||||||||
| Acquisition and integration related costs | 7,576 | 18,784 | 10,341 | ||||||||||||||
| Income from operations | 129,652 | 73,666 | 107,400 | ||||||||||||||
| Interest income, net of interest expense | 24,337 | 17,850 | 8,423 | ||||||||||||||
| Loss on extinguishment of debt | (193,098) | — | — | ||||||||||||||
| Gain on acquired assets and other income (expense), net | 10,084 | 10 | (665) | ||||||||||||||
| Income tax expense | 25,185 | 14,667 | 23,581 | ||||||||||||||
| Net (loss) income | $ | (54,210) | $ | 76,859 | $ | 91,577 | |||||||||||
(1) Excludes share-based compensation including cash incentive stock units, amortization expense and acquisition and integration related costs.
(2) Includes share-based compensation expense for awards that are equity and liability classified on our balance sheet and the related employer tax expense at vesting.
(3) Relates to acquired intangible assets and excludes amortization for purchased software licenses.
This expense information is based on management’s internal view of expense classification when reviewing aspects of financial and operating performance of the business, and may not be representative of expense classification that is comparable to other peer companies’ internal management views. As a result, this expense information should not be considered in isolation or as substitute for analysis of MACOM’s results in conjunction with the accompanying consolidated financial statements and notes thereto.
For information regarding revenue by geographic regions, based upon customer locations, see Note 3 - Revenue. Information regarding net property and equipment in different geographic regions is presented below (in thousands):
| As of | |||||||||||
| October 3, 2025 | September 27, 2024 | ||||||||||
| Net Property and Equipment by Geographic Region | |||||||||||
| United States | $ | 172,583 | $ | 123,618 | |||||||
| France | 40,686 | 33,934 | |||||||||
Other Countries (1) | 17,022 | 18,465 | |||||||||
| Total | $ | 230,291 | $ | 176,017 | |||||||
(1) Other than the United States and France, no country or region represented greater than 10% of the total net property and equipment as of the dates presented.
The following is a summary of customer concentrations as a percentage of total sales and accounts receivable as of and for the periods presented:
| Fiscal Years | |||||||||||||||||
| Revenue | 2025 | 2024 | 2023 | ||||||||||||||
| Customer A | 12 | % | 11 | % | — | ||||||||||||
| Customer B | 11 | % | — | — | |||||||||||||
| October 3, 2025 | September 27, 2024 | ||||||||||
| Accounts Receivable | |||||||||||
| Customer A | 11 | % | — | ||||||||
| Customer B | 11 | % | — | ||||||||
| Customer C | 11 | % | — | ||||||||
Customer A did not represent more than 10% of revenue in fiscal year 2023. Customer B did not represent more than 10% of revenue in fiscal years 2024 and 2023. Customers A, B and C did not represent more than 10% of accounts receivable as of September 27, 2024. No other customer represented more than 10% of revenue or accounts receivable in the periods presented in the
accompanying Consolidated Financial Statements. In fiscal years 2025, 2024 and 2023, our top ten customers represented an aggregate of 57%, 56% and 48% of total revenue, respectively.About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.