Alpha and Omega Semiconductor (AOSL) investor relations material

Executive summary

• Fiscal Q2 2026 revenue was $162.3 million, down 6.3% year-over-year and 11.1% sequentially, slightly above guidance midpoint, mainly due to lower power discrete sales and license agreement completion, partially offset by power IC and packaging growth.

• Net loss for the quarter was $13.3 million, or $0.45 per share, compared to $6.6 million loss a year ago, reflecting lower gross margin and higher operating expenses.

• Non-GAAP gross margin was 22.2%, with non-GAAP EPS loss of $0.16 per share.

• Monetized 20% equity in Chongqing JV for $150 million, with most proceeds received and $15 million pending, supporting R&D and growth investments.

• Share repurchases totaled $13.9 million in the quarter, with $16 million remaining under the program.

Financial highlights

• Non-GAAP gross margin was 22.2%, down from 24.1% last quarter and 24.2% a year ago.

• GAAP operating loss was $13.6 million, up from $5.9 million a year ago; non-GAAP operating loss was $5.2 million.

• Cash and cash equivalents at quarter-end were $196.3 million, up from $153.5 million at June 30, 2025.

• Operating cash flow was negative $8.1 million, impacted by deposit repayments and JV sale tax.

• EBITDA excluding equity method investment loss was $9.7 million, down from $19.4 million last quarter.

Outlook and guidance

• Next quarter revenue expected at $160 million ± $10 million.

• GAAP gross margin guidance is 20.2% ± 1%; non-GAAP gross margin 21% ± 1%.

• Non-GAAP operating expenses expected to rise to $45 million, mainly due to increased R&D.

• March quarter expected to be a near-term low for revenue and margin, with growth resuming in June quarter.

• Midterm target remains $1 billion revenue and 30% non-GAAP gross margin.