Alpha and Omega Semiconductor (AOSL) investor relations material

Executive summary

• Fiscal Q1 2026 revenue reached $182.5 million, up 3.4% sequentially and flat year over year, driven by computing and communications growth, offset by consumer and industrial softness.

• Power IC revenue hit a record high, up 37.3% year over year and now nearly 40% of product revenue, supporting margin improvement and business transformation.

• Net loss narrowed to $2.1 million GAAP, with non-GAAP net income at $4.2 million.

• Strategic investments are accelerating, funded by a $94 million installment from a China JV equity sale, focusing on technology, equipment, and engineering talent to expand in high-growth markets.

• The company is advancing 800-volt DC power architecture for next-gen AI data centers, opening new design opportunities and expanding its ecosystem in power conversion.

Financial highlights

• Non-GAAP gross margin was 24.1%, down from 25.5% a year ago, mainly due to higher operating costs.

• Non-GAAP EPS was $0.13, up from $0.02 last quarter but down from $0.21 a year ago.

• Operating cash flow was $10.2 million, with cash and cash equivalents rising to $223.5 million after the JV equity sale.

• EBITDA excluding equity method investment income was $19.4 million, up from $10.5 million last quarter.

• GAAP operating loss improved to $4.6 million from $11.6 million last quarter; non-GAAP operating income was $2.5 million.

Outlook and guidance

• December quarter revenue is expected to be $160 million ± $10 million, with non-GAAP gross margin at 23% ± 1%.

• Computing segment revenue is forecast to decline nearly 20% sequentially due to post-holiday seasonality and digestion in AI and graphics cards.

• Consumer segment to decline high-teens sequentially, mainly from gaming and wearables seasonality.

• Power supply and industrial segment expected to grow mid to high single digits sequentially, led by power tools recovery.

• CapEx for the December quarter projected at $14–16 million.