GCT Semiconductor Holding (GCTS) investor relations material

Executive summary

• Initial 5G chipset samples delivered to lead customers, with successful testing and mass production preparations underway; commercial launch and volume shipments planned for the second half of 2025.

• Strategic partnerships announced with Iridium Communications for satellite integration and G+D for eSIM solutions, expanding technology reach and market opportunities.

• Net revenues for Q2 2025 decreased 19% year-over-year to $1.2 million, driven by lower service revenue and only a partial offset from increased product sales.

• Net loss widened to $13.5 million for Q2 2025, compared to a $1.0 million loss in Q2 2024, reflecting lower revenues, higher costs, and increased interest and foreign currency losses.

• Gross margin declined to 32% in Q2 2025 from 63% in Q2 2024, primarily due to reduced product revenue and under-absorption of overhead.

Financial highlights

• Q2 2025 net revenues: $1.2 million (down 19% year-over-year); six-month revenues: $1.7 million (down 65%).

• Q2 2025 net loss: $13.5 million; six-month net loss: $20.5 million.

• Q2 2025 gross margin: 32% (down from 63% in Q2 2024); six-month gross margin: 28% (down from 61%).

• Cash and cash equivalents at June 30, 2025: $1.3 million; net accounts receivable: $3.8 million; net inventory: $3 million.

• Accumulated deficit as of June 30, 2025: $582.5 million; short-term debt: $51.8 million.

Outlook and guidance

• Production of finalized 5G chipsets expected to begin in Q3 2025, with volume shipments in Q4 2025 and higher average selling prices than 4G products.

• Management anticipates growth momentum in 5G markets and improved gross margins as 5G product sales scale.

• The company will require additional capital to fund operations and meet debt obligations; substantial doubt exists about its ability to continue as a going concern without new financing.