Magnachip Semiconductor (MX) investor relations material

Executive summary

• Q2 2026 consolidated revenue was $44.7 million, within guidance but down 6.1% year-over-year and 3.3% sequentially, with gross margin at 19.3%, and a net loss from continuing operations of $7.6 million.

• CEO Chae Lee appointed, bringing power semiconductor expertise and a vision to reposition the company; strategic partnership with Navitas Semiconductor to license advanced silicon carbide technology.

• New 6th-generation 600V SJ MOSFETs launched for AI servers and EV charging.

• Focus on transitioning from legacy, commoditized products to differentiated, higher-margin solutions.

• Discontinued Display business contributed $2.8 million in net income, improving from a $8.9 million loss in Q2 2025.

Financial highlights

• Adjusted operating loss was $7 million; adjusted EBITDA was negative $4.2 million; adjusted loss per share was $0.13.

• Cash and cash equivalents at quarter-end were $87.9 million, down from $103.8 million at year-end 2025.

• Gross profit was $8.65 million, down from $9.71 million a year ago; gross profit margin improved sequentially to 19.3%, but declined year-over-year from 20.4%.

• Net loss from continuing operations was $7.6 million, compared to net income of $9.2 million in Q2 2025.

• Non-GAAP diluted loss per share was $0.13, compared to $0.05 in Q2 2025 and $0.11 in Q1 2026.

Outlook and guidance

• Q3 2026 revenue expected between $41.5 million and $45.5 million, down 2.7% sequentially and 5.2% year-over-year at midpoint.

• Gross profit margin guidance for Q3 is 17%-19%, with a slight decline expected in Q4 due to lower fab utilization.

• New generation products expected to contribute at least 10% of revenue in full year 2026, up from 2% in 2025.

• Management expects sufficient liquidity for the next 12 months and the foreseeable future.

• Sequential revenue decline attributed to packaging constraints, lower customer volumes in consumer applications, and unfavorable product mix.