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, at the high end of guidance, driven by strong demand in computing (AI, graphics, PCs), gaming, and wearables, with notable tariff-related PC pull-ins.

• Product revenue (excluding licensing/other) 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.

• Announced sale of 20.3% equity in Chongqing JV for $150 million, reducing ownership to 18.9%, to fund technology, capacity, and potential M&A.

• 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; non-GAAP net income: $0.7M; GAAP net loss: $77.1M (includes $76.8M impairment).

• Operating cash flow: -$2.8 million for Q4, including $2.7 million in customer deposit repayments; full-year operating cash flow: $29.7 million.

• Cash balance: $153.1 million at quarter end, 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.

• Computing to grow low single digits sequentially and mid-teens year-over-year; Consumer to decline mid-single digits sequentially; Communication to grow over 10% sequentially; Power Supply & Industrial to grow mid-single digits sequentially.