Magnachip Semiconductor (MX) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $40.6 million, down 17–20.7% year-over-year and 11.7% sequentially, at the mid-point of guidance.

• Gross margin for Q4 was 9.3%, impacted by a one-time $2.7 million sales incentive and unfavorable product mix, especially in China.

• The company exited the display business, restructured to focus on power semiconductors, and launched 55 new-generation products in 2025.

• Strategic agreement signed with Hyundai Mobis for IGBT technology to expand industrial business.

• Cost reduction programs, including headcount reduction, are expected to save $2–2.5 million annually starting Q4 2025.

Financial highlights

• Q4 2025 revenue: $40.6 million; gross margin: 9.3%; adjusted operating loss: $11.9 million; adjusted EBITDA: -$8.9 million.

• Full-year 2025 revenue: $178.9 million; gross margin: 17.6%; adjusted operating loss: $28.5 million; adjusted EBITDA: -$15.6 million.

• Q4 2025 non-GAAP diluted loss per share: $0.08; GAAP diluted loss per share: $0.24.

• Ended Q4 2025 with $103.8 million in cash, down from $138.6 million in Q4 2024.

• Total CapEx for 2025: $30 million; $21.4 million invested in Gumi fab upgrade, with $17 million funded by equipment loans.

Outlook and guidance

• Q1 2026 revenue expected between $44 million and $48 million, up 13.4% sequentially and 2.9% year-over-year at midpoint.

• Q1 2026 gross margin guidance: 14%–16%, up from Q4 2025 but down from Q1 2025.

• New generation products expected to comprise 10% of revenue in Q4 2026, up from 2% in 2025.

• 2026 expected to remain challenging for gross margin as portfolio transitions.