Earnings release
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News Release Details Magnachip Reports Results for Third Quarter 2026 Nov 04, 2026 Q3 Results Summary Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) was $44.0 million, within the guidance range of $41.5 million to $45.5 million. Consolidated gross profit margin from continuing operations of 14.0% was below the guidance range of 17.0% to 19.0%, primarily due to unfavorable foreign exchange movements. Recent Highlights Announced a $5 million strategic equity investment by Navitas Semiconductor, further strengthening the companies' partnership to develop differentiated next-generation power semiconductor solutions. Launched 15 new sixth-generation E6 Super-Junction MOSFETs targeting TVs, notebook adapters, PC power supplies and other consumer and industrial power applications. Continued execution of its new-generation power semiconductor roadmap, expanding its portfolio of products to strengthen competitiveness, increase profitability, and address new market opportunities. SEOUL, South Korea--(BUSINESS WIRE)--Nov. 4, 2026-- Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the third quarter 2026. “While headwinds to our near-term financial performance remain, I am encouraged by the progress we are making in transforming Magnachip,” said Chae Lee, Chief Executive Officer of Magnachip. “We have significantly accelerated new- generation product development, established a clear roadmap for differentiated solutions, and strengthened our strategic partnership with Navitas Semiconductor. Our objective is to move beyond competing primarily on price to delivering innovative power semiconductor solutions that address increasingly complex customer requirements. Although this transformation will take time, I believe we are building the foundation for stronger competitive positioning, sustainable growth and improved profitability.” Q3 2026 Financial Highlights In thousands of U.S. dollars, except per-share data GAAP Q3 2026 Q2 2026 Q/Q change Q3 2025 Y/Y change Net Sales 43,978 44,704 −1.6% 45,946 −4.3% Power Analog Solutions 39,636 40,574 −2.3% 41,548 −4.6% Power IC 4,342 4,130 +5.1% 4,398 −1.3% Gross Profit Margin 14.0% 19.3% −5.3 pp 18.6% −4.6 pp Power Analog Solutions 10.7% 17.2% −6.5 pp 16.0% −5.3 pp Power IC 45.0% 40.9% +4.1 pp 43.2% +1.8 pp Operating Loss (12,880) (9,976) −29.1% (11,538) −11.6% Loss from Continuing Operations (13,286) (7,601) −74.8% (10,609) −25.2% Basic Loss per Common Share (0.36) (0.21) −71.4% (0.29) −24.1% Diluted Loss per Common Share (0.36) (0.21) −71.4% (0.29) −24.1% In thousands of U.S. dollars, except per-share data Non-GAAP (1) (1) (2)
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Q3 2026 Q2 2026 Q/Q change Q3 2025 Y/Y change Adjusted Operating Loss (8,593) (6,976) −23.2% (7,421) −15.8% Adjusted EBITDA (3,496) (4,219) +17.1% (3,964) +11.8% Adjusted Loss (10,732) (4,901) −119.0% (390) NM Adjusted Loss per Common Share—Diluted (0.29) (0.13) −123.1% (0.01) NM (1)For financial metrics presented as negative amounts, negative percentage changes indicate a deterioration in financial performance, while positive percentage changes indicate an improvement. (2)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. Reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures are included in this press release. Q4 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 $41.0 million to $45.0 million reflecting the typical seasonal softness in the fourth quarter. At the midpoint, this represents a decrease of 2.2% sequentially and an increase of 6.0% year-over-year, compared with $44.0 million in Q3 2026 and $40.6 million in Q4 2025. Consolidated gross profit margin from continuing operations to be in the range of 10% to 12%, compared with 14.0% in Q3 2026 and 9.3% in Q4 2025. The sequential decline is primarily due to lower utilization resulting from a power shutdown in the fab due to a substation upgrade and appreciation of Korean Won. “Third quarter revenue was within our guidance range, although gross profit margin was below our expectations, primarily due to unfavorable foreign exchange movements,” said Shinyoung Park, Chief Financial Officer of Magnachip. “Looking at next quarter, despite headwinds on legacy products, foreign exchange volatility and the impact of the recently completed electrical substation upgrade, we remain focused on managing costs and maintaining the financial flexibility necessary to support our strategic transformation. With approximately $87 million in cash at quarter-end, we believe we are well-positioned to continue investing selectively in the technologies and products that will drive our long-term competitiveness.” Q3 2026 Earnings Conference Call Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, Nov. 4, 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 https://www.magnachip.com/. Online registration: https://register-conf.media-server.com/register/BIb7bc88dc0e614425b5ba968a42e2ba5c 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 regarding our financial performance and business outlook, including fourth quarter 2026 revenue and gross profit margin, future growth and revenue opportunities, strategic relationships, product development and commercialization, and other future events. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release. 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: changes in macroeconomic conditions, trade policies, geopolitical conditions and market conditions; manufacturing capacity constraints, supply chain disruptions and changes in customer demand; the impact of competitive products and pricing; our ability to establish, maintain and expand strategic relationships with customers and business partners, and to realize the anticipated benefits of those relationships; customer acceptance of our products and technologies; our ability to develop, introduce and ramp new products into volume production; changes in semiconductor industry supply and demand, including overcapacity and manufacturing utilization; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses; changes in, or compliance with, applicable trade, export and other laws and regulations; public health issues; the effects of the electrical substation upgrade at our Gumi (1) (1)
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fabrication facility, including on fab utilization and yields; other business interruptions; and other risks described in Magnachip's filings with the SEC, including our Annual Report on Form 10-K filed on March 16, 2026 and our subsequent Quarterly Reports on Form 10-Q. 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 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 . MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share data) (Unaudited) Three Months Ended Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Net sales 43,978 44,704 45,946 134,890 138,290 Cost of sales 37,801 36,056 37,405 112,871 110,675 Gross profit 6,177 8,648 8,541 22,019 27,615 Gross profit as a percentage of net sales 14.0% 19.3% 18.6% 16.3% 20.0% Operating expenses: Selling, general and administrative expenses 8,779 8,747 8,312 25,192 26,491 Research and development expenses 8,357 7,896 7,773 22,951 19,698 Early termination and other charges 1,921 1,981 3,994 3,902 4,840 Total operating expenses 19,057 18,624 20,079 52,045 51,029 Operating loss (12,880) (9,976) (11,538) (30,026) (23,414) Interest income 893 949 1,255 2,905 4,117 Interest expense (317) (320) (469) (1,010) (1,265) Foreign currency gain (loss), net 1,811 (526) (4,280) 1,170 6,112 Other income, net 2,078 286 253 2,354 284 Loss from continuing operations before income tax expense (benefit), net (8,415) (9,587) (14,779) (24,607) (14,166) Income tax expense (benefit), net 4,871 (1,986) (4,170) 977 (8,709) Loss from continuing operations (13,286) (7,601) (10,609) (25,584) (5,457) Income (Loss) from discontinued operations, net of tax 743 2,786 (2,481) 3,579 (16,188) Net loss $ (12,543)$ (4,815)$ (13,090)$ (22,005)$ (21,645) Basic earnings (loss) per common share— Continuing operations $ (0.36)$ (0.21)$ (0.29)$ (0.70)$ (0.15) Discontinued operations 0.02 0.08 (0.07) 0.10 (0.45) Total $ (0.34)$ (0.13)$ (0.36)$ (0.60)$ (0.60) Diluted earnings (loss) per common share— Continuing operations $ (0.36)$ (0.21)$ (0.29)$ (0.70)$ (0.15) Discontinued operations 0.02 0.08 (0.07) 0.10 (0.45) Total $ (0.34)$ (0.13)$ (0.36)$ (0.60)$ (0.60) Weighted average number of shares— Basic 36,649,278 36,454,812 35,934,406 36,504,776 36,298,491 Diluted 36,649,278 36,454,812 35,934,406 36,504,776 36,298,491 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) (Unaudited)
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September 30, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 86,911 $ 103,756 Accounts receivable, net 24,870 26,022 Inventories, net 40,444 34,151 Other receivables 4,830 2,882 Prepaid expenses 4,723 5,062 Hedge collateral — 1,200 Other current assets 7,500 3,782 Total current assets 169,278 176,855 Property, plant and equipment, net 103,381 100,204 Operating lease right-of-use assets 1,377 2,070 Intangible assets, net 460 454 Long-term prepaid expenses 564 584 Deferred income taxes 62,086 64,248 Other non-current assets 6,644 7,114 Total assets $ 343,790$ 351,529 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 19,513$ 20,848 Other accounts payable 4,402 11,444 Accrued expenses 7,066 6,929 Accrued income taxes 17 81 Operating lease liabilities 1,206 1,427 Current portion of long-term borrowings 29,998 — Other current liabilities 1,682 2,681 Total current liabilities 63,884 43,410 Long-term borrowings 17,112 44,599 Accrued severance benefits, net 14,429 11,502 Non-current operating lease liabilities 212 690 Other non-current liabilities 2,737 3,078 Total liabilities 98,374 103,279 Commitments and contingencies Stockholders’ equity Common stock, $0.01 par value, 150,000,000 shares authorized, 59,849,913 shares issued and 38,041,317 outstanding at September 30, 2026 and 58,027,696 shares issued and 36,219,100 outstanding at December 31, 2025 598 579 Additional paid-in capital 290,472 281,537 Retained earnings 192,847 214,852 Treasury stock, 21,808,596 shares at September 30, 2026 and 21,808,596 shares at December 31, 2025, respectively (229,910) (229,910) Accumulated other comprehensive loss (8,591) (18,808) Total stockholders’ equity 245,416 248,250 Total liabilities and stockholders’ equity $ 343,790$ 351,529 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited) Three Months Ended Nine Months Ended September 30, 2026 September 30, 2026 September 30, 2025
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Cash flows from operating activities Net loss $ (12,543)$ (22,005)$ (21,645) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 2,951 8,588 9,938 Provision for severance benefits 1,273 3,611 2,868 Gain on foreign currency, net (11,183) (5,305) (10,612) Provision (reversal) for inventory reserves 845 (379) 1,919 Stock-based compensation 2,366 4,028 1,615 Impairment charges — — 12,424 Gain from disposal of investment securities (2,146) (2,146) — Deferred income taxes 5,428 5,436 (569) Others, net 25 153 220 Changes in operating assets and liabilities Accounts receivable, net 1,018 2,036 (7,610) Inventories (2,289) (3,509) (7,131) Other receivables (731) (1,977) (1,287) Prepaid expenses 324 1,704 5,325 Other current assets (329) (3,211) (3,247) Accounts payable (1,684) (1,103) 641 Other accounts payable (530) (6,220) (6,803) Accrued expenses (1,464) (177) 1,925 Accrued income taxes (22) (63) (16) Other current liabilities 433 593 (323) Other non-current liabilities 23 423 (48) Payment of severance benefits (195) (884) (10,669) Others, net 224 (745) 3,446 Net cash used in operating activities (18,206) (21,152) (29,639) Cash flows from investing activities Proceeds from settlement of hedge collateral 5,335 9,669 2,237 Payment of hedge collateral (665) (8,493) — Proceeds from disposal of property, plant and equipment — 49 554 Purchase of property, plant and equipment (2,322) (7,566) (19,739) Payment for intellectual property registration (53) (120) (182) Proceeds from sale of investment securities 2,157 2,157 — Collection of guarantee deposits 4 2,030 4,274 Payment of guarantee deposits (284) (442) (355) Others, net — — 180 Net cash provided by (used in) investing activities 4,172 (2,716) (13,031) Cash flows from financing activities Proceeds from long-term borrowings — — 10,611 Proceeds from issuance of common stock 4,859 4,925 — Acquisition of treasury stock — (201) (4,340) Repayment of financing related to water treatment facility arrangement (113) (330) (341) Repayment of principal portion of finance lease liabilities (33) (99) (121) Net cash provided by financing activities 4,713 4,295 5,809 Effect of exchange rates on cash and cash equivalents 8,296 2,728 6,256 Net decrease in cash and cash equivalents (1,025) (16,845) (30,605) Cash and cash equivalents Beginning of the period 87,936 103,756 138,610 End of the period $ 86,911 $ 86,911 $ 108,005 MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION OF OPERATING LOSS FROM CONTINUING OPERATIONS TO ADJUSTED OPERATING LOSS FROM CONTINUING OPERATIONS (In thousands of U.S. dollars) (Unaudited) Three Months Ended Nine Months Ended
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September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Operating loss– continuing operations $ (12,880)$ (9,976)$ (11,538)$ (30,026)$ (23,414) Adjustments: Equity-based compensation expense 2,366 1,019 123 4,028 1,967 Early termination and other charges 1,921 1,981 3,994 3,902 4,840 Adjusted Operating Loss– continuing operations $ (8,593)$ (6,976)$ (7,421)$ (22,096)$ (16,607) 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 and (ii) Early termination and other charges. For the three months ended September 30, 2026, we recorded $1,921 thousand of other charges in our consolidated statement of operations, consisting of $601 thousand in tax-related charges and $1,320 thousand of costs associated with the electrical substation upgrade in our Gumi fabrication facility. For the nine months ended September 30, 2026, we recorded $3,902 thousand of other charges, which also included a $1,095 thousand customer goodwill payment related to a certain product, and $886 thousand of one-time employee incentives recorded in the first half of 2026. For the three months ended September 30, 2025, we recorded $2,599 thousand of termination-related charges in connection with the voluntary resignation program and $1,395 thousand of certain executive separation benefits in our consolidated statement of operations. For the nine months ended September 30, 2025, we recorded $4,840 thousand of other charges, which also included $350 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives recorded in the first half of 2025. MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES RECONCILIATION 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 Ended Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Loss from continuing operations $ (13,286)$ (7,601)$ (10,609) $ (25,584)$ (5,457) Adjustments: Interest income (893) (949) (1,255) (2,905) (4,117) Interest expense 317 320 469 1,010 1,265 Income tax expense (benefit), net 4,871 (1,986) (4,170) 977 (8,709) Depreciation and amortization 2,943 2,750 3,204 8,570 9,561 EBITDA – continuing operations (6,048) (7,466) (12,361) (17,932) (7,457) Equity-based compensation expense 2,366 1,019 123 4,028 1,967 Foreign currency loss (gain), net (1,811) 526 4,280 (1,170) (6,112) Derivative valuation loss (gain), net 76 (279) — (183) 51 Early termination and other charges 1,921 1,981 3,994 3,902 4,840 Adjusted EBITDA – continuing operations $ (3,496)$ (4,219)$ (3,964) $ (11,355)$ (6,711) Loss from continuing operations $ (13,286)$ (7,601)$ (10,609) $ (25,584)$ (5,457) Adjustments: Equity-based compensation expense 2,366 1,019 123 4,028 1,967 Foreign currency loss (gain), net (1,811) 526 4,280 (1,170) (6,112) Derivative valuation loss (gain), net 76 (279) — (183) 51 Early termination and other charges 1,921 1,981 3,994 3,902 4,840 Income tax effect on non-GAAP adjustments 2 (547) 1,822 (699) (441) Adjusted Loss – continuing operations $ (10,732)$ (4,901)$ (390) $ (19,706)$ (5,152) Adjusted Loss – continuing operations per common share— - Basic $ (0.29)$ (0.13)$ (0.01) $ (0.54)$ (0.14) - Diluted $ (0.29)$ (0.13)$ (0.01) $ (0.54)$ (0.14) Weighted average number of shares – basic 36,649,278 36,454,812 35,934,406 36,504,776 36,298,491 Weighted average number of shares – diluted 36,649,278 36,454,812 35,934,406 36,504,776 36,298,491
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We 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 (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Early termination and other charges. EBITDA – continuing operations for the periods indicated is defined as loss from continuing operations before interest income, interest expense, income tax expense (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 loss from continuing operations, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Early termination and other charges and (v) Income tax effect on non-GAAP adjustments. For the three months ended September 30, 2026, we recorded $1,921 thousand of other charges in our consolidated statement of operations, consisting of $601 thousand in tax-related charges and $1,320 thousand of costs associated with the electrical substation upgrade in our Gumi fabrication facility. For the nine months ended September 30, 2026, we recorded $3,902 thousand of other charges, which also included a $1,095 thousand customer goodwill payment related to a certain product, and $886 thousand of one-time employee incentives recorded in the first half of 2026. For the three months ended September 30, 2025, we recorded $2,599 thousand of termination-related charges in connection with the voluntary resignation program and $1,395 thousand of certain executive separation benefits in our consolidated statement of operations. For the nine months ended September 30, 2025, we recorded $4,840 thousand of other charges, which also included $350 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives recorded in the first half of 2025. View source version on : https://www.businesswire.com/news/home/20261104770342/en/ Mike Bishop Bishop IR, LLC Tel. +1 (415) 891-9633 Source: Magnachip Semiconductor Corporation Annual & Proxy Statements Email Alerts Contact IR RSS Feeds