Alpha and Omega Semiconductor (AOSL) Q4 2025 earnings summary

Executive summary

• Fiscal Q4 revenue reached $176.5 million, up 9.4% year-over-year and 7.2% sequentially, driven by strong demand in AI, graphics, computing, gaming, and wearables, with notable PC pull-ins due to tariff concerns.

• Product revenue (excluding licensing) grew 13.7% year-over-year and 9% sequentially.

• Power IC revenue hit a record high, now nearly 40% of product revenue, benefiting gross margins.

• Full-year 2025 revenue was $696.2 million, up 5.9% from 2024, despite macroeconomic and geopolitical uncertainties.

• Management remains focused on transforming from a component supplier to a total solution provider amid macro and geopolitical uncertainties.

Financial highlights

• Total revenue: $176.5 million, up 9.4% year-over-year and 7.2% sequentially.

• Non-GAAP gross margin: 24.4%, up from 22.5% last quarter but down from 26.4% a year ago; GAAP gross margin: 23.4%.

• Non-GAAP EPS: $0.02; GAAP net loss: $77.1 million ($2.58/share), including a $76.8 million impairment.

• Operating cash flow: -$2.8 million for Q4; full-year operating cash flow: $29.7 million.

• Cash balance at year-end: $153.1 million, down from $169.4 million last quarter and $175.1 million prior year.

Outlook and guidance

• Next quarter revenue expected at $183 million ±$10 million.

• Non-GAAP gross margin guidance: 24.4% ±1%; GAAP gross margin: 23.8% ±1%.

• Non-GAAP operating expenses: $41 million ±$1 million; GAAP operating expenses: $47.5 million ±$1 million.

• CapEx for next quarter projected at $11–$13 million.

• Management anticipates growth led by Communications, steady PC/wearables demand, but notes ongoing macro and geopolitical risks.