Alpha and Omega Semiconductor (AOSL) Q3 2025 earnings summary

Executive summary

• Fiscal Q3 revenue was $164.6 million, up 9.7% year-over-year but down 4.9% sequentially, reaching the high end of guidance and driven by strong Computing and Industrial demand.

• Non-GAAP EPS was a loss of $0.10; GAAP net loss was $10.8 million (diluted EPS: -$0.37); non-GAAP gross margin was 22.5%.

• Product revenue (excluding licensing) rose 11.6% year-over-year; licensing revenue began to wind down in the March quarter.

• The company is advancing its transformation from a component supplier to a total solutions provider, focusing on expanding market share and BOM content.

• The company reduced its JV Company equity stake to 39.2% after a $68.5 million investment by a new investor, recognizing a $0.5 million gain.

Financial highlights

• DMOS revenue was $106.8 million (up 13.9% YoY), Power IC revenue $54.6 million (up 9.2% YoY), and license/engineering service revenue $2.8 million.

• Non-GAAP operating expenses were $39.7 million; GAAP operating loss was $10.7 million; EBITDAS was $11.2 million.

• Operating cash flow was $7.4 million for the quarter; net cash provided by operating activities for nine months was $32.5 million.

• Cash and equivalents at quarter-end were $169.4 million, down from $182.6 million prior quarter.

• CapEx for the quarter was $8.1 million, expected to rise to $12–14 million in June; full-year CapEx targeted at $40–50 million.

Outlook and guidance

• June quarter revenue expected at approximately $170 million, plus or minus $10 million.

• Non-GAAP gross margin guidance is 24% plus or minus 1%; GAAP gross margin projected at 22.9% (±1%).

• Non-GAAP operating expenses projected at $40.2 million (±$1 million); CapEx for June quarter projected at $12–14 million.

• Excluding discontinued licensing, mid- to upper-single-digit revenue growth is expected.

• Management expects continued gross margin pressure from pricing and mix but aims to offset with new products and cost controls.