Magnachip Semiconductor (MX) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue from continuing operations was $47.6 million, up 8.1% year-over-year and 6.5% sequentially, marking the fifth consecutive quarter of growth and exceeding guidance midpoint.

• The company completed its transition to a pure-play Power business, shutting down the Display segment and classifying it as discontinued operations from Q1 2025.

• 71 design wins in Q2, up 61% year-over-year, with strong traction in automotive, industrial, and AI applications, and 28 new PAS products launched in H1 2025.

• CEO anticipates a softer second half of 2025 due to tariffs and pricing pressures, especially in China.

• Voluntary resignation program announced, targeting $2–$3 million annual OpEx savings.

Financial highlights

• Q2 2025 gross margin was 20.4%, within guidance but down 2.1 percentage points year-over-year due to pricing pressure and unfavorable product mix in China.

• Q2 operating loss was $7.4 million; adjusted operating loss was $5.6 million; adjusted EBITDA was -$2.1 million.

• Q2 GAAP diluted EPS was $0.23, driven by a $10.8 million non-cash FX gain; non-GAAP diluted loss per share was $0.08.

• Net income for Q2 2025 was $0.3 million, a $13.3 million improvement from Q2 2024, mainly due to foreign currency gains.

• Cash and cash equivalents at quarter-end were $113.3 million, down from $132.7 million in Q1, mainly due to CapEx and display business liquidation costs.

Outlook and guidance

• Q3 2025 revenue expected at $44–$48 million, down 3.5% sequentially and 13.2% year-over-year at midpoint, with gross margin guidance of 18.5%–20.5%.

• Full-year 2025 revenue now expected to be flat year-over-year, revised from prior mid-to-high single-digit growth forecast, due to tariff uncertainty and pricing pressure.

• Full-year gross margin expected at 19%–20%, below previous guidance.

• Targeting adjusted EBITDA breakeven by Q4 2025 through cost reductions, including a voluntary resignation program.

• Sufficient cash reserves and expected cash from operations projected to fund operations and capex for the next 12 months.