Alpha and Omega Semiconductor (AOSL) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue was $163.8 million, up 0.9% sequentially and down 0.5% year-over-year, slightly above guidance midpoint, with advanced computing strength offsetting PC market softness and memory shortages.

• GAAP net loss was $13.8 million ($0.46 per share), compared to $10.8 million last year; non-GAAP net loss was $8.3 million ($0.28 per share).

• Gross margin for the quarter was 21.1% GAAP and 21.7% non-GAAP, both down year-over-year.

• Advanced computing, including AI, servers, and graphics, more than doubled sequentially and grew over 40% year-over-year, now representing 25% of the computing segment.

• The company completed the sale of a 20.3% equity interest in its JV Company for $150 million, receiving $135.9 million in cash installments by March 31, 2026.

Financial highlights

• Revenue: $163.8 million, up 0.9% sequentially, down 0.5% year-over-year.

• DMOS/power discrete revenue: $115.1 million, up 13.9% sequentially and 7.7% year-over-year; Power IC revenue: $46.9 million, down 20.3% sequentially and 14.1% year-over-year.

• Non-GAAP gross margin: 21.7% (vs. 22.2% prior quarter, 22.5% prior year).

• Non-GAAP operating expenses: $44.3 million, up from $41.3 million prior quarter.

• EBITDA: $5.9 million, down from $9.7 million prior quarter.

• Operating cash flow: -$8.3 million for the quarter; -$6.3 million for nine months.

Outlook and guidance

• June quarter (Q4) revenue expected at $168 million ±$10 million.

• GAAP gross margin guidance: 22.3% ±1%; non-GAAP gross margin: 23% ±1%.

• GAAP operating expenses: $52 million ±$1 million; non-GAAP operating expenses: $45.5 million ±$1 million.

• CapEx for June quarter expected at $15–$17 million.

• Management anticipates modest revenue growth for 2026, with stronger growth as new programs ramp in 2027.