Magnachip Reports Results for First Quarter 2026
Apr 28, 2026
Q1 Results Summary
- Consolidated 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 Highlights
- Launched 8th-generation ultra low-Rss(on) 12V BatteryFET designed for smartphone battery power efficiency
- Launched 8th-generation 40V and 60V MV MOSFETs for servers and high-performance PCs
- On track to launch 55 new-generation products in 2026
SEOUL, South Korea–(BUSINESS WIRE)–Apr. 28, 2026– 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 Highlights
| Q1 2026 | Q4 2025 | Q/Q Change | Q1 2025 | Y/Y Change | |
|---|---|---|---|---|---|
| Net Sales | 46,208 | 40,570 | up 13.9% | 44,722 | up 3.3% |
| Power Analog Solutions | 41,647 | 36,811 | up 13.1% | 39,857 | up 4.5% |
| Power IC | 4,561 | 3,759 | up 21.3% | 4,865 | down 6.2% |
| Gross Profit Margin | 15.6% | 9.3% | up 6.3%pts | 20.9% | down 5.3%pts |
| Power Analog Solutions | 12.8% | 6.5% | up 6.3%pts | 17.8% | down 5.0%pts |
| Power IC | 40.4% | 36.7% | up 3.7%pts | 46.5% | down 6.1%pts |
| Operating Loss | (7,170) | (12,446) | up 42.4% | (5,278) | down 35.8% |
| Loss from Continuing Operations | (4,697) | (8,792) | up 46.6% | (4,051) | down 15.9% |
| Basic Loss per Common Share | (0.13) | (0.24) | up 45.8% | (0.11) | down 18.2% |
| Diluted Loss per Common Share | (0.13) | (0.24) | up 45.8% | (0.11) | down 18.2% |
| Q1 2026 | Q4 2025 | Q/Q Change | Q1 2025 | Y/Y Change | |
|---|---|---|---|---|---|
| Adjusted Operating Loss | (6,527) | (11,881) | up 45.1% | (4,410) | down 48.0% |
| Adjusted EBITDA | (3,640) | (8,856) | up 58.9% | (1,205) | down 202.1% |
| Adjusted Loss | (4,073) | (2,714) | down 50.1% | (2,784) | down 46.3% |
| Adjusted Loss per Common Share—Diluted | (0.11) | (0.08) | down 37.5% | (0.08) | down 37.5% |
(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 Guidance
While 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 Call
Magnachip 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/BId9ff896cba6d4bf6bc5204e0fd2d7a6b
| Three Months Ended March 31, 2026 |
Three Months Ended December 31, 2025 |
Three Months Ended March 31, 2025 |
|
|---|---|---|---|
| Net sales | $46,208 | $40,570 | $44,722 |
| Cost of sales | 39,014 | 36,792 | 35,360 |
| Gross profit | 7,194 | 3,778 | 9,362 |
| Gross profit as a % of net sales | 15.6% | 9.3% | 20.9% |
| Operating expenses: | |||
| Selling, general and administrative expenses | 7,666 | 8,625 | 9,203 |
| Research and development expenses | 6,698 | 7,599 | 5,437 |
| Total operating expenses | 14,364 | 16,224 | 14,640 |
| Operating loss | (7,170) | (12,446) | (5,278) |
| Interest income | 1,063 | 1,246 | 1,540 |
| Interest expense | (373) | (393) | (423) |
| Foreign currency loss, net | (115) | (6,393) | (405) |
| Other income (loss), net | (10) | 14 | 114 |
| Loss 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 tax | 50 | 713 | (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 operations | 0.00 | 0.02 | (0.13) |
| Total | $(0.13) | $(0.22) | $(0.24) |
| Diluted earnings (loss) per common share: | |||
| Continuing operations | $(0.13) | $(0.24) | $(0.11) |
| Discontinuing operations | 0.00 | 0.02 | (0.13) |
| Total | $(0.13) | $(0.22) | $(0.24) |
| Weighted average number of shares: | |||
| Basic | 36,407,581 | 35,979,697 | 36,887,841 |
| Diluted | 36,407,581 | 35,979,697 | 36,887,841 |
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $94,554 | $103,756 |
| Accounts receivable, net | 24,176 | 26,022 |
| Inventories, net | 32,848 | 34,151 |
| Other receivables | 4,203 | 2,882 |
| Prepaid expenses | 5,591 | 5,062 |
| Hedge collateral | 4,970 | 1,200 |
| Other current assets | 3,681 | 3,782 |
| Total current assets | 170,023 | 176,855 |
| Property, plant and equipment, net | 95,072 | 100,204 |
| Operating lease right-of-use assets | 1,797 | 2,070 |
| Intangible assets, net | 404 | 454 |
| Long-term prepaid expenses | 531 | 584 |
| Deferred income taxes | 61,222 | 64,248 |
| Other non-current assets | 6,416 | 7,114 |
| Total assets | $335,465 | $351,529 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | ||
| Accounts payable | $21,330 | $20,848 |
| Other accounts payable | 10,813 | 11,444 |
| Accrued expenses | 5,490 | 6,929 |
| Accrued income taxes | 45 | 81 |
| Operating lease liabilities | 1,344 | 1,427 |
| Current portion of long-term borrowings | 26,431 | — |
| Other current liabilities | 6,264 | 2,681 |
| Total current liabilities | 71,717 | 43,410 |
| Long-term borrowings | 15,855 | 44,599 |
| Accrued severance benefits, net | 11,660 | 11,502 |
| Non-current operating lease liabilities | 509 | 690 |
| Other non-current liabilities | 2,921 | 3,078 |
| Total liabilities | 102,662 | 103,279 |
| Stockholders’ equity | ||
| Common stock ($0.01 par value; 150,000,000 shares authorized; 58,249,450 issued / 36,440,854 outstanding at Mar 31, 2026; 58,027,696 issued / 36,219,100 outstanding at Dec 31, 2025) | 581 | 579 |
| Additional paid-in capital | 282,178 | 281,537 |
| Retained earnings | 210,205 | 214,852 |
| Treasury stock (21,808,596 shares) | (229,910) | (229,910) |
| Accumulated other comprehensive loss | (30,251) | (18,808) |
| Total stockholders’ equity | 232,803 | 248,250 |
| Total liabilities and stockholders’ equity | $335,465 | $351,529 |
| Three Months Ended March 31, 2026 |
Three Months Ended March 31, 2025 |
|
|---|---|---|
| Cash flows from operating activities | ||
| Net loss | $(4,647) | $(8,878) |
| Depreciation and amortization | 2,882 | 3,273 |
| Provision for severance benefits | 1,212 | 1,514 |
| Loss (gain) on foreign currency, net | 4,262 | (35) |
| Provision (reversal) for inventory reserves | (321) | 1,208 |
| Stock-based compensation | 643 | 1,030 |
| Deferred income tax assets | 8 | (415) |
| Others, net | 74 | 225 |
| Accounts receivable, net | 1,611 | 635 |
| Inventories | (191) | (3,259) |
| Other receivables | (1,547) | (811) |
| Prepaid expenses | (152) | 1,233 |
| Other current assets | (1,725) | 970 |
| Accounts payable | 571 | 2,542 |
| Other accounts payable | (254) | (2,622) |
| Accrued expenses | (1,068) | (111) |
| Accrued income taxes | (33) | (6) |
| Other current liabilities | 593 | (901) |
| Other non-current liabilities | 53 | 354 |
| Payment of severance benefits | (228) | (325) |
| Others, net | (187) | (290) |
| Net cash provided by (used in) operating activities | 1,556 | (4,669) |
| Cash flows from investing activities | ||
| Payment of hedge collateral | (3,785) | — |
| Proceeds from disposal of plant, property and equipment | 49 | — |
| Purchase of property, plant and equipment | (3,915) | (208) |
| Payment for intellectual property registration | (24) | (63) |
| Collection of guarantee deposits | 1,891 | 21 |
| Payment of guarantee deposits | (158) | (139) |
| Net cash used in investing activities | (5,942) | (389) |
| Cash flows from financing activities | ||
| Acquisition 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) | 557 |
| Net decrease in cash and cash equivalents | (9,202) | (5,956) |
| Beginning of the period | 103,756 | 138,610 |
| End of the period | $94,554 | $132,654 |
| Q1 2026 | Q4 2025 | Q1 2025 | |
|---|---|---|---|
| Operating loss | $(7,170) | $(12,446) | $(5,278) |
| Equity-based compensation expense | 643 | 565 | 868 |
| Adjusted Operating Loss | $(6,527) | $(11,881) | $(4,410) |
| Q1 2026 | Q4 2025 | Q1 2025 | |
|---|---|---|---|
| Loss from continuing operations | $(4,697) | $(8,792) | $(4,051) |
| Interest income | (1,063) | (1,246) | (1,540) |
| Interest expense | 373 | 393 | 423 |
| Income tax benefit, net | (1,908) | (9,180) | (401) |
| Depreciation and amortization | 2,877 | 3,019 | 3,120 |
| EBITDA – continuing operations | (4,418) | (15,806) | (2,449) |
| Equity-based compensation expense | 643 | 565 | 868 |
| Foreign currency loss, net | 115 | 6,393 | 405 |
| Derivative valuation loss (gain), net | 20 | (8) | (29) |
| Adjusted EBITDA – continuing operations | $(3,640) | $(8,856) | $(1,205) |
| Loss from continuing operations | $(4,697) | $(8,792) | $(4,051) |
| Equity-based compensation expense | 643 | 565 | 868 |
| Foreign currency loss, net | 115 | 6,393 | 405 |
| Derivative valuation loss (gain), item net | 20 | (8) | (29) |
| Income tax effect on non-GAAP adjustments | (154) | (872) | 23 |
| Adjusted Loss – continuing operations | $(4,073) | $(2,714) | $(2,784) |
| Basic Adjusted Loss per share | $(0.11) | $(0.08) | $(0.08) |
| Diluted Adjusted Loss per share | $(0.11) | $(0.08) | $(0.08) |
| Weighted avg shares – basic | 36,407,581 | 35,979,697 | 36,887,841 |
| Weighted avg shares – diluted | 36,407,581 | 35,979,697 | 36,887,841 |
Safe Harbor for Forward-Looking Statements
Information 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.
About Magnachip Semiconductor
Magnachip 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.
Investor Contact:
Mike Bishop
Bishop IR, LLC
Tel. +1 (415) 891-9633
mike@bishopir.com
Source: Magnachip Semiconductor Corporation
