Magnachip Semiconduct | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 45.95 M

Revenue: As of FY2025 Q3, the actual value is USD 45.95 M, missing the estimate of USD 46 M.

EPS: As of FY2025 Q3, the actual value is USD -0.36.

EBIT: As of FY2025 Q3, the actual value is USD -12.32 M.

Segment Revenue

• Power Solutions Business: Net sales were $45.9 million for the three months ended September 30, 2025, a decrease from $53.0 million for the same period in 2024.
• Transitional Fab 3 Foundry Services: No revenue was reported for the three months ended September 30, 2025, compared to $2.4 million for the same period in 2024.

Operational Metrics

• Net Loss: The net loss for the three months ended September 30, 2025 was $13.1 million, compared to $9.6 million for the same period in 2024.
• Gross Profit: Total gross profit was $8.5 million for the three months ended September 30, 2025, compared to $11.5 million for the same period in 2024.
• Operating Loss: Operating loss was $11.5 million for the three months ended September 30, 2025, compared to $4.5 million for the same period in 2024.

Cash Flow

• Net Cash Used in Operating Activities: Cash outflow was $29.6 million for the nine months ended September 30, 2025, compared to $18.0 million for the same period in 2024.
• Net Cash Used in Investing Activities: Cash outflow was $13.0 million for the nine months ended September 30, 2025, compared to $35.4 million for the same period in 2024.
• Net Cash Provided by Financing Activities: Cash inflow was $5.8 million for the nine months ended September 30, 2025, compared to $20.1 million for the same period in 2024.

Unique Metrics

• Foreign Currency Gain (Loss), Net: Net foreign currency loss was $4.3 million for the three months ended September 30, 2025, compared to a gain of $5.2 million for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to transition into a pure-play Power company, focusing investments on Power Analog Solutions and Power IC businesses to enhance profitability and maximize shareholder value.
• Non-Core Business: The company has shut down its Display business, with expected cash inflow from the sale of ‘end of life’ Display products and monetization of intellectual property assets over approximately two years.