Magnachip Semiconductor (MX) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $40.6 million, down 17%–20.7% year-over-year and 11.7% sequentially; full-year revenue was $178.9 million, a 3.7%–8.9% decline from 2024.

• Q4 gross margin was 9.3%, impacted by a one-time $2.7 million sales incentive and unfavorable product mix; full-year gross margin was 17.6%.

• 55 new-generation products were launched in 2025, up from 4 in 2024, reflecting accelerated R&D investment and competitiveness.

• The company exited the display business, restructured to focus on power semiconductors, and implemented cost reduction programs, including headcount reduction, targeting over $2 million in annualized SG&A savings.

• Strategic partnerships and board changes, including a new director from a significant shareholder and an agreement with Hyundai Mobis for IGBT technology, support long-term value creation.

Financial highlights

• Q4 2025 revenue: $40.6 million; gross margin: 9.3%; adjusted operating loss: $11.9 million; adjusted EBITDA: -$8.9 million.

• Full-year 2025 revenue: $178.9 million; gross margin: 17.6%; adjusted operating loss: $28.5 million; adjusted EBITDA: -$15.6 million.

• Q4 non-GAAP diluted loss per share: $0.08; full-year non-GAAP diluted loss per share: $0.22.

• Ended Q4 2025 with $103.8 million in cash and $44.6 million in long-term borrowings.

• Q4 2025 operating loss: $12.4 million; full-year operating loss: $35.9 million.

Outlook and guidance

• Q1 2026 revenue expected between $44 million and $48 million, up 13.4% sequentially and 2.9% year-over-year at midpoint.

• Q1 2026 gross margin guidance: 14%–16%, up from Q4 but down from Q1 2025.

• New-generation products expected to comprise 10% of Q4 2026 revenue, up from 2% in 2025.

• Continued R&D investment and challenging gross margin expected during portfolio transition.