Magnachip Semiconductor (MX) investor relations material

Executive summary

• Q2 2026 consolidated revenue was $44.7 million, down 6.1% year-over-year and 3.3% sequentially, within guidance.

• Gross profit margin was 19.3%, up sequentially but down from 20.4% year-over-year, mainly due to unfavorable product mix and ASP erosion.

• Operating loss widened to $9.98 million, with adjusted operating loss at $7.0 million and adjusted EBITDA at $(4.2) million.

• CEO Chae Lee appointed, bringing deep power semiconductor experience and a vision to reposition the company; new 6th-generation 600V SJ MOSFETs launched for AI servers and EV charging.

• Strategic partnership with Navitas Semiconductor to license advanced silicon carbide technology and expand into high-voltage markets.

Financial highlights

• Net loss from continuing operations was $7.6 million, with non-GAAP diluted loss per share at $0.13 and GAAP diluted loss per share at $(0.21).

• Cash and cash equivalents at quarter-end were $87.9 million, with total borrowings of $41.5 million.

• SG&A expense was $8.7 million; R&D expense increased to $7.9 million due to investment in new product development.

• $1.3 million in capital expenditures during the quarter.

• Adjusted net loss per share for Q2 2026 was $(0.13), compared to $(0.05) in Q2 2025.

Outlook and guidance

• Q3 2026 revenue expected between $41.5 million and $45.5 million, down 2.7% sequentially and 5.2% year-over-year at midpoint.

• Gross profit margin guidance for Q3 is 17%-19%, with a slight decline expected in Q4 due to lower fab utilization from a planned substation upgrade.

• New-generation products expected to contribute at least 10% of revenue in Q4 2026, up from 2% for full-year 2025.

• Revenue decline attributed to packaging constraints, lower customer volumes in consumer applications, and continued pricing pressure on legacy products.