Magnachip Semiconductor (MX) investor relations material

Executive summary

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

• Gross profit margin was 19.3%, up sequentially but down 1.1 percentage points year-over-year, mainly due to unfavorable product mix and pricing pressure.

• CEO Chae Lee appointed, with a focus on accelerating innovation and execution.

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

• Launch of new 6th-generation 600V SJ MOSFETs for AI servers and EV charging.

Financial highlights

• Adjusted operating loss was $7 million; adjusted EBITDA was negative $4.2 million; net loss from continuing operations was $7.6 million.

• Non-GAAP diluted loss per share was $0.13; GAAP diluted loss per share was $0.21.

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

• Power Analog Solutions revenue was $40.6 million, down 4.0% year-over-year; Power IC revenue was $4.6 million, down 23.0%.

• Gross profit was $8.65 million, down from $9.71 million a year ago.

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.

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

• New generation products expected to contribute at least 10% of revenue in full quarter of 2026.