IQE (IQE) Trading Update summary

Trading performance and financial highlights

• Achieved strong trading momentum in H2 2025, driven by early funding for US military and defence programs and higher photonics demand in AI and data centre markets.

• Wireless product sales increased due to new handset launches, boosting Taiwan operations.

• Revenue for FY 2025 expected at approximately £97m, with adjusted EBITDA of at least £2.0m, at the upper end of guidance.

• Cash position at year-end 2025 was £15.6m, reflecting improved liquidity and working capital.

• HSBC granted a waiver for Q4 2025 EBITDA covenant testing, indicating supportive banking relationships.

Order book and market outlook

• Entered 2026 with a strong Q1 order book and improved demand visibility across consumer mobile, data centre, and AI-related photonics.

• Wireless demand momentum from Q4 2025 expected to continue, supported by existing customers and new platform wins.

• Growth in data centre deployments and AI-enabled compute is supporting increased photonics demand.

Strategic review and shareholder value

• Board is negotiating non-binding offers for the group and certain assets to maximize shareholder value.

• Encouraging level of interest and recognition of the group's intrinsic value, but no certainty of deal completion.