Magnachip Reports Results for First Quarter 2026 | MX Stock News

Q1 Results SummaryConsolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) was $46.2 million, approximately at the mid-point of our guidance range of $44.0 to $48.0 million.Revenue grew by 3.3% year over year and 13.9% quarter over quarter.Consolidated gross profit margin from continuing operations of 15.6% was above the mid-point of our guidance range of 14.0% to 16.0%.Recent HighlightsLaunched 8th-generation ultra low-Rss(on) 12V BatteryFET designed for smartphone battery power efficiencyLaunched 8th-generation 40V and 60V MV MOSFETs for servers and high-performance PCsOn track to launch 55 new-generation products in 2026 SEOUL, South Korea--(BUSINESS WIRE)--Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the first quarter 2026.Camillo Martino, Magnachip’s CEO said, “We delivered better-than-seasonal revenue growth in the quarter, reflecting both solid execution and also the impact of the previously communicated inventory and channel actions. We are comfortable with our progress toward our multi-year transformation, and we are showing some good early signs, particularly with the 55 new-generation products launched in 2025. Our focus remains on improving product competitiveness through an accelerated pace of new-generation product launches, which we believe will drive sustainable revenue growth, margin expansion, and improved utilization over time. We believe disciplined execution of our six-pillar strategy will deliver long-term shareholder value.”Shinyoung Park, Magnachip’s CFO, commented, “We remain committed to financial discipline to significantly improve our financial performance during this multi-year transformation.”Q1 2026 Financial HighlightsIn thousands of U.S. dollars, except share dataGAAPQ1 2026Q4 2025Q/Q changeQ1 2025Y/Y changeNet Sales46,20840,570up13.9%44,722up3.3%Power Analog Solutions41,64736,811up13.1%39,857up4.5%Power IC4,5613,759up21.3%4,865down6.2%Gross Profit Margin15.6%9.3%up6.3%pts20.9%down5.3%ptsPower Analog Solutions12.8%6.5%up6.3%pts17.8%down5.0%ptsPower IC40.4%36.7%up3.7%pts46.5%down6.1%ptsOperating Loss(7,170)(12,446)up42.4%(5,278)down35.8%Loss from continuing operations(4,697)(8,792)up46.6%(4,051)down15.9%Basic Loss per Common Share(0.13)(0.24)up45.8%(0.11)down18.2%Diluted Loss per Common Share(0.13)(0.24)up45.8%(0.11)down18.2%In thousands of U.S. dollars, except share dataNon-GAAP(1)Q1 2026Q4 2025Q/Q changeQ1 2025Y/Y changeAdjusted Operating Loss(6,527)(11,881)up45.1%(4,410)down48.0%Adjusted EBITDA(3,640)(8,856)up58.9%(1,205)down202.1%Adjusted Loss(4,073)(2,714)down50.1%(2,784)down46.3%Adjusted Loss per Common Share—Diluted(0.11)(0.08)down37.5%(0.08)down37.5%(1)Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release.Q2 2026 Financial GuidanceWhile actual results may vary, Magnachip currently expects the following:Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $44.5 million to $48.5 million, roughly flat sequentially and a decrease of 2.3% year-over-year at the mid-point. This compares with $46.2 million in Q1 2026 and $47.6 million in Q2 2025.Consolidated gross profit margin from continuing operations to be in the range of 17% to 19%, up from 15.6% in Q1 2026 but down from 20.4% in Q2 2025.Q1 2026 Earnings Conference CallMagnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Tuesday, April 28, 2026, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.Online registration: https://register-conf.media-server.com/register/BId9ff896cba6d4bf6bc5204e0fd2d7a6bSafe Harbor for Forward-Looking StatementsInformation in this press release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including second quarter 2026 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, and the timing and extent of future revenue contributions by our products and businesses. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia and Ukraine and between Israel, the United States and Iran and sustained military action and conflict in the Red Sea, including fuel supply disruptions and rising energy costs related thereto; disruptions or economic impact resulting from United States government shutdowns; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components and impact demand for our products from customers; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; the potential impact of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the SEC, including our Form 10-K filed on March 16, 2026, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.About Magnachip SemiconductorMagnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a substantial number of registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands of U.S. dollars, except share data)(Unaudited) Three Months EndedMarch 31,December 31,March 31,202620252025Net sales$46,208$40,570$44,722Cost of sales39,01436,79235,360Gross profit7,1943,7789,362Gross profit as a percentage of net sales15.6%9.3%20.9%Operating expenses:Selling, general and administrative expenses7,6668,6259,203Research and development expenses6,6987,5995,437Total operating expenses14,36416,22414,640Operating loss(7,170)(12,446)(5,278)Interest income1,063)1,2461,540)Interest expense(373)(393)(423)Foreign currency loss, net(115)(6,393)(405)Other income (loss), net(10)14114Loss from continuing operations before income tax benefit, net(6,605)(17,972)(4,452)Income tax benefit, net(1,908)(9,180)(401)Loss from continuing operations(4,697)(8,792)(4,051)Income (Loss) from discontinued operations, net of tax50713(4,827)Net loss$(4,647)$(8,079)$(8,878)Basic earnings (loss) per common share—Continuing operations$(0.13)$(0.24)$(0.11)Discontinuing operations0.000.02(0.13)Total$(0.13)$(0.22)$(0.24)Diluted earnings (loss) per common share—Continuing operations$(0.13)$(0.24)$(0.11)Discontinuing operations0.000.02(0.13)Total$(0.13)$(0.22)$(0.24)Weighted average number of shares—Basic36,407,58135,979,69736,887,841Diluted36,407,58135,979,69736,887,841MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands of U.S. dollars, except share data)(Unaudited)March 31,2026December 31,2025AssetsCurrent assetsCash and cash equivalents$94,554$103,756Accounts receivable, net24,17626,022Inventories, net32,84834,151Other receivables4,2032,882Prepaid expenses5,5915,062Hedge collateral4,9701,200Other current assets3,6813,782Total current assets170,023176,855Property, plant and equipment, net95,072100,204Operating lease right-of-use assets1,7972,070Intangible assets, net404454Long-term prepaid expenses531584Deferred income taxes61,22264,248Other non-current assets6,4167,114Total assets$335,465$351,529Liabilities and Stockholders’ EquityCurrent liabilitiesAccounts payable$21,330$20,848Other accounts payable10,81311,444Accrued expenses5,4906,929Accrued income taxes4581Operating lease liabilities1,3441,427Current portion of long-term borrowings26,431—Other current liabilities6,2642,681Total current liabilities71,71743,410Long-term borrowings15,85544,599Accrued severance benefits, net11,66011,502Non-current operating lease liabilities509690Other non-current liabilities2,9213,078Total liabilities102,662103,279Commitments and contingenciesStockholders’ equityCommon stock, $0.01 par value, 150,000,000 shares authorized, 58,249,450 shares issued and 36,440,854 outstanding at March 31, 2026 and 58,027,696 shares issued and 36,219,100 outstanding at December 31, 2025581579Additional paid-in capital282,178281,537Retained earnings210,205214,852Treasury stock, 21,808,596 shares at March 31, 2026 and 21,808,596 shares at December 31, 2025, respectively(229,910)(229,910)Accumulated other comprehensive loss(30,251)(18,808)Total stockholders’ equity232,803248,250Total liabilities and stockholders’ equity$335,465$351,529 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands of U.S. dollars)(Unaudited) Three Months Ended March 31,2026March 31,2025Cash flows from operating activitiesNet loss$(4,647)$(8,878)Adjustments to reconcile net loss to net cash provided by (used in) operating activitiesDepreciation and amortization2,8823,273Provision for severance benefits1,2121,514Loss (gain) on foreign currency, net4,262(35)Provision (reversal) for inventory reserves(321)1,208Stock-based compensation6431,030Deferred income tax assets8(415)Others, net74225Changes in operating assets and liabilitiesAccounts receivable, net1,611635Inventories(191)(3,259)Other receivables(1,547)(811)Prepaid expenses(152)1,233Other current assets(1,725)970Accounts payable5712,542Other accounts payable(254)(2,622)Accrued expenses(1,068)(111)Accrued income taxes(33)(6)Other current liabilities593(901)Other non-current liabilities53354Payment of severance benefits(228)(325)Others, net(187)(290)Net cash provided by (used in) operating activities1,556(4,669)Cash flows from investing activitiesPayment of hedge collateral(3,785)—Proceeds from disposal of plant, property and equipment49—Purchase of property, plant and equipment(3,915)(208)Payment for intellectual property registration(24)(63)Collection of guarantee deposits1,89121Payment of guarantee deposits(158)(139)Net cash used in investing activities(5,942)(389)Cash flows from financing activitiesAcquisition of treasury stock(176)(1,306)Repayment of financing related to water treatment facility arrangement(110)(111)Repayment of principal portion of finance lease liabilities(34)(38)Net cash used in financing activities(320)(1,455)Effect of exchange rates on cash and cash equivalents(4,496)557Net decrease in cash and cash equivalents(9,202)(5,956)Cash and cash equivalentsBeginning of the period103,756138,610End of the period$94,554$132,654MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIESRECONCILIATION OF OPERATING LOSS FROM CONTINUING OPERATIONS TO ADJUSTED OPERATING LOSS FROM CONTINUING OPERATIONS(In thousands of U.S. dollars)(Unaudited) Three Months EndedMarch 31,December 31,March 31,202620252025Operating loss$(7,170)$(12,446)$(5,278)Adjustments:Equity-based compensation expense643565868Adjusted Operating Loss$(6,527)$(11,881)$(4,410)We present Adjusted Operating Loss from continuing operations as a supplemental measure of our performance. We define Adjusted Operating Loss from continuing operations for the periods indicated as operating loss from continuing operations adjusted to exclude (i) Equity-based compensation expense. MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIESRECONCILIATION OF LOSS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED LOSS FROM CONTINUING OPERATIONS(In thousands of U.S. dollars, except share data)(Unaudited) Three Months EndedMarch 31,December 31,March 31,202620252025Loss from continuing operations$(4,697)$(8,792)$(4,051)Adjustments:Interest income(1,063)(1,246)(1,540)Interest expense373393423Income tax benefit, net(1,908)(9,180)(401)Depreciation and amortization2,8773,0193,120EBITDA – continuing operations(4,418)(15,806)(2,449)Equity-based compensation expense643565868Foreign currency loss, net1156,393405Derivative valuation loss (gain), net20(8)(29)Adjusted EBITDA – continuing operations$(3,640)$(8,856)$(1,205)Loss from continuing operations$(4,697)$(8,792)$(4,051)Adjustments:Equity-based compensation expense643565868Foreign currency loss, net1156,393405Derivative valuation loss (gain), net20(8)(29)Income tax effect on non-GAAP adjustments(154)(872)23Adjusted Loss – continuing operations$(4,073)$(2,714)$(2,784)Adjusted Loss – continuing operations per common share—- Basic$(0.11)$(0.08)$(0.08)- Diluted$(0.11)$(0.08)$(0.08)Weighted average number of shares – basic36,407,58135,979,69736,887,841Weighted average number of shares – diluted36,407,58135,979,69736,887,841We present Adjusted EBITDA from continuing operations and Adjusted Loss from continuing operations as supplemental measures of our performance. We define Adjusted EBITDA from continuing operations for the periods indicated as EBITDA – continuing operations (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net and (iii) Derivative valuation loss (gain), net. EBITDA – continuing operations for the periods indicated is defined as loss from continuing operations before interest income, interest expense, income tax benefit, net and depreciation and amortization.We prepare Adjusted Loss from continuing operations by adjusting loss from continuing operations to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Loss from continuing operations is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Loss from continuing operations for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation loss (gain), net and (iv) Income tax effect on non-GAAP adjustments.View source version on businesswire.com: https://www.businesswire.com/news/home/20260428668185/en/Mike BishopBishop IR, LLCTel. +1 (415) 891-9633mike@bishopir.comSource: Magnachip Semiconductor Corporation