Alpha and Omega Semiconductor (AOSL) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 revenue was $173.2 million, up 4.8% year-over-year and down 4.8% sequentially, with non-GAAP EPS of $0.09 and gross margin at 24.2%, in line with guidance.

• GAAP net loss was $6.6 million, or $0.23 per share, reflecting margin pressure and higher costs; non-GAAP net income was $2.7 million.

• Strategic shift from component supplier to total solutions provider is driving market share gains and increased BOM content.

• Inventory correction is complete, and seasonality has returned across segments.

• The company continues to diversify its product portfolio, introducing 55 new products in the six months ended December 31, 2024.

Financial highlights

• Revenue was $173.2 million, up 4.8% year-over-year and down 4.8% sequentially.

• Non-GAAP gross margin was 24.2%, down from 25.5% last quarter and 28.0% a year ago; GAAP gross margin was 23.1%.

• Non-GAAP EPS was $0.09, compared to $0.21 last quarter and $0.24 a year ago.

• Operating cash flow was $14.1 million, up from $11.0 million last quarter.

• EBITDA was $16.8 million, down from $20.6 million last quarter.

Outlook and guidance

• March quarter revenue expected at $158 million plus or minus $10 million.

• Non-GAAP gross margin guidance is 22.5% plus or minus 1%, with margin expected to recover after March quarter.

• Non-GAAP operating expenses expected at $39.5 million plus or minus $1 million.

• CapEx for March quarter projected at $7–9 million.

• Sequential declines in all segments anticipated due to seasonality, with recovery expected later in the year.