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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM 8-K
_________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2026
_________________________________
Alpha and Omega Semiconductor Limited
(Exact name of registrant as specified in its charter)
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| Bermuda | | 001-34717 | | 77-0553536 |
(State or other jurisdiction
of incorporation) | | (Commission
File Number) | | (I.R.S. Employer
Identification No.) |
Richmond House
12 Par-la-Ville Road
Hamilton HM 08
Bermuda
(Address of principal registered offices)
(408) 830-9742
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
| Trading Symbol(s)
| Name of each exchange on which registered
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| Common Shares | AOSL | The NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
The information in Item 2.02 of this Current Report, including the accompanying exhibit, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of Section 18. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.
On November 5, 2026, Alpha and Omega Semiconductor Limited (the “Company”) issued a press release regarding its financial results for the fiscal first quarter of 2027 ended September 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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| 99.1 | Press Release dated November 5, 2026 |
| 99.2 | Script of Prepared Remarks for Earnings Call |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: November 5, 2026
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| Alpha and Omega Semiconductor Limited |
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| By: | | /s/ Yifan Liang |
| Name: | | Yifan Liang |
| Title: | | Chief Financial Officer and Corporate Secretary |
Exhibit 99.1
Alpha and Omega Semiconductor Reports Financial Results for the Fiscal First Quarter of 2027 Ended September 30, 2026
SUNNYVALE, California, November 5, 2026 - Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL) today reported financial results for the fiscal first quarter of 2027 ended September 30, 2026.
The results for the fiscal first quarter of 2027 ended September 30, 2026 were as follows:
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| GAAP Financial Comparison |
| Quarterly |
| (in millions, except percentage and per share data) |
| (unaudited) |
| | Three Months Ended |
| | | | | | |
| | September 30,
2026 | | June 30,
2026 | | September 30,
2025 |
| Revenue | | $ | 177.8 | | | $ | 170.4 | | | $ | 182.5 | |
| Gross Margin | | 24.5 | % | | 23.1 | % | | 23.5 | % |
Operating Loss | | $ | (9.0) | | | $ | (11.0) | | | $ | (4.6) | |
Net Loss | | $ | (6.1) | | | $ | (13.1) | | | $ | (2.1) | |
Net Loss Per Share - Diluted | | $ | (0.20) | | | $ | (0.43) | | | $ | (0.07) | |
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| Non-GAAP Financial Comparison |
| Quarterly |
| (in millions, except percentage and per share data) |
| (unaudited) |
| | | | | | |
| | Three Months Ended |
| | September 30, 2026 | | June 30, 2026 | | September 30, 2025 |
| Revenue | | $ | 177.8 | | | $ | 170.4 | | | $ | 182.5 | |
| Non-GAAP Gross Margin | | 25.2 | % | | 23.7 | % | | 24.1 | % |
| Non-GAAP Operating Income (Loss) | | $ | (1.0) | | | $ | (4.8) | | | $ | 2.5 | |
| Non-GAAP Net Income (Loss) | | $ | (2.1) | | | $ | (4.0) | | | $ | 4.2 | |
| Non-GAAP Net Income (Loss) Per Share - Diluted | | $ | (0.07) | | | $ | (0.13) | | | $ | 0.13 | |
The non-GAAP financial measures in the schedule above and under the section “Financial Results for Fiscal Q1 Ended September 30, 2026” below exclude the effect of share-based compensation expense, equity method investment loss (income), and income tax effect of non-GAAP adjustments in each of the periods presented, as well as typhoon-related loss and impairment of long-lived assets for the three months ended September 30, 2026, and China withholding taxes related to investment in CQJV for the three months ended June 30, 2026.
Financial Results for Fiscal Q1 Ended September 30, 2026
•Revenue was $177.8 million, an increase of 4.3% from the prior quarter and a decrease of 2.6% from the same quarter last year.
•GAAP gross margin was 24.5%, up from 23.1% in the prior quarter and up from 23.5% in the same quarter last year.
•Non-GAAP gross margin was 25.2%, up from 23.7% in the prior quarter and up from 24.1% in the same quarter last year.
•GAAP operating expenses were $52.5 million, up from $50.3 million in the prior quarter and up from $47.4 million in the same quarter last year.
•Non-GAAP operating expenses were $45.9 million, up from $45.3 million from last quarter and up from $41.4 million in the same quarter last year.
•GAAP operating loss was $9.0 million, down from $11.0 million from the prior quarter and up from $4.6 million in the same quarter last year.
•Non-GAAP operating loss was $1.0 million as compared to $4.8 million of operating loss for the prior quarter and $2.5 million of operating income for the same quarter last year.
•GAAP net loss per diluted share was $0.20, compared to $0.43 net loss per share for the prior quarter, and $0.07 net loss per share for the same quarter a year ago.
•Non-GAAP net loss per share was $0.07, compared to $0.13 net loss per share for the prior quarter and $0.13 net income per share for the same quarter a year ago.
•Consolidated cash flows provided by operating activities was $5.6 million, as compared to $10.0 million of cash flows used in operating activities in the prior quarter.
•The Company closed the quarter with $175.2 million of cash and cash equivalents.
AOS Chief Executive Officer Stephen Chang commented, "Our September quarter results demonstrate the accelerating momentum in AI and Server, where revenue grew more than 65% sequentially and 250% year-over-year, reaching over 20% of total company revenue. This exceptional growth, driven by increasing demand for AI infrastructure, was complemented by strong performance in Communications and Power Supply and Industrial, including premium smartphone battery protection, Power Tools, and DC Fans. Despite continued weakness in traditional PCs and consumer electronics, our improving business mix contributed to higher gross margins and underscores the tangible progress we are making in transforming AOS into a higher-performance power semiconductor company.
Mr. Chang concluded, "Looking ahead, we are encouraged by the expanding opportunities for our differentiated power solutions as customers address increasingly complex power requirements. We continue to invest in technology, manufacturing capacity, and targeted R&D to support new design wins and broaden our participation across leading global customers. These investments, combined with our total solutions strategy, position AOS to capture a larger share of emerging opportunities and drive more sustainable growth and profitability into 2027 and beyond."
Business Outlook for Fiscal Q2 Ending December 31, 2026
The following statements are based on management’s current expectations. These statements are forward-looking, and actual results may differ materially. AOS undertakes no obligation to update these statements.
Our expectations for the fiscal second quarter of year 2027 are as follows:
•Revenue to be approximately $180 million, plus or minus $10 million.
•GAAP gross margin to be 25.1%, plus or minus 1%. We anticipate non-GAAP gross margin to be 25.7%, plus or minus 1%.
•GAAP operating expenses to be in the range of $52.0 million, plus or minus $1.0 million. Non-GAAP operating expenses are expected to be in the range of $46.0 million, plus or minus $1.0 million.
•Interest income is expected to be $0.4 million higher than interest expense, and
•Income tax expense to be in the range of $1.1 million to $1.3 million.
Conference Call and Webcast
AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal first quarter ended September 30, 2026 today, November 5, 2026 at 2:00 p.m. PT / 5:00 p.m. ET. To listen to the live conference call, please dial +1 (585) 542 9983 or +1 (833) 461 5787 if dialing from outside the United States and Canada. The access code is 796 790 198. A live webcast of the call will also be available in the "Events & Presentations" section of the company’s investor relations website, http://investor.aosmd.com. The webcast replay will be available for up to one year after the live call on the same website. In addition, a copy of the script of management’s prepared remarks and a live webcast of the call will also be available in the "Events & Presentations" section of the company’s investor relations website, http://investor.aosmd.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, opportunities in the Advance Computing market, market trends in the semiconductor industry, expectation on business and product mix and margin level, ability to gain market share and increased BOM content, seasonality of our business, our ability to sustain growth and expand our end markets, expectations regarding R&D investment and high performance application; the success of our investment strategy, expectation with respect to financial performance in 2027 and beyond, , our projected amount of revenue, gross margin, operating income (loss), income tax expenses, net income (loss), share-based compensation expenses, non-GAAP gross margin, non-GAAP operating expenses, and income tax expenses, our ability to grow our sales and market share, and other information under the section entitled “Business Outlook for Fiscal Q2 Ending December 31, 2026.” Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the state of semiconductor industry and seasonality of our markets; decline of PC markets; difficulties and challenges in executing our diversification strategy into different market segments; ordering pattern from distributors and seasonality; changes in regulatory environment, including tariff and trade policies; our ability to introduce or develop new and enhanced products that achieve market acceptance; government policies on our business operations in China; the actual product performance in volume production; the quality and reliability of our product, our lack of control over the joint venture in China; our ability to achieve design wins; the general business and economic conditions; our ability to maintain factory utilization at a desirable level; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and other periodic reports we filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including non-GAAP gross profit, gross margin, operating expenses, operating income (loss), net income (loss), diluted earnings per share (“EPS”) and EBITDAS. These supplemental measures exclude, among other items, share-based compensation expenses, typhoon-related loss, China withholding taxes related to investment in CQJV, impairment of long-lived assets, income tax effect of non-GAAP adjustments and equity method investment income (loss) from equity investee. We also disclose certain non-GAAP financial measures in our financial guidance for the next quarter, including non-GAAP gross margin and non-GAAP operating expenses. We believe that these historical and forward-looking non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP net income (loss) or non-GAAP operating expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. In addition, we included the amount of income tax effect of non-GAAP adjustments in the non-GAAP net income (loss) reconciliation table for all periods presented as management believes that such non-GAAP presentation provides useful information to investors, even though the amounts are not significant. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures both in the text in this press release and in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures.
About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer, and global supplier of a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules, including a wide portfolio of Power MOSFET, SiC, IGBT, IPM, TVS, HV Gate Drivers, Power IC, and Digital Power products. AOS has developed extensive intellectual property and technical knowledge that encompasses the latest advancements in the power semiconductor industry, which enables us to introduce innovative products to address the increasingly complex power requirements of advanced electronics. AOS differentiates itself by integrating its Discrete and IC semiconductor process technology, product design, and advanced packaging know-how to develop
high-performance power management solutions. AOS’ portfolio of products targets high-volume applications, including personal computers, graphics cards, datacenters, AI servers, smartphones, consumer and industrial motor controls, TVs, lightings, automotive electronics, and power supply units for various equipment. For more information, please visit www.aosmd.com.
The following unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP.
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| Alpha and Omega Semiconductor Limited |
| Condensed Consolidated Statements of Operations |
| (in thousands, except percentages and per share amounts) |
| (unaudited) |
| | | | | | | | | |
| Three Months Ended | | |
| September 30,
2026 | | June 30,
2026 | | September 30,
2025 | | | | |
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| Revenue | $ | 177,756 | | | $ | 170,371 | | | $ | 182,501 | | | | | |
| Cost of goods sold | 134,258 | | | 131,026 | | | 139,656 | | | | | |
| Gross profit | 43,498 | | | 39,345 | | | 42,845 | | | | | |
| Gross margin | 24.5 | % | | 23.1 | % | | 23.5 | % | | | | |
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| Operating expenses: | | | | | | | | | |
| Research and development | 28,436 | | | 28,456 | | | 24,145 | | | | | |
| Selling, general and administrative | 24,070 | | | 21,876 | | | 23,284 | | | | | |
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| Total operating expenses | 52,506 | | | 50,332 | | | 47,429 | | | | | |
| Operating loss | (9,008) | | | (10,987) | | | (4,584) | | | | | |
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| Other income (loss), net | (548) | | | 431 | | | 2,468 | | | | | |
| Interest income | 899 | | | 952 | | | 892 | | | | | |
| Interest expenses | (101) | | | (122) | | | (360) | | | | | |
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| Net loss before income taxes and equity method investment income (loss) | (8,758) | | | (9,726) | | | (1,584) | | | | | |
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| Income tax expense | 1,536 | | | 3,036 | | | 1,927 | | | | | |
| Net loss before equity method investment income (loss) | (10,294) | | | (12,762) | | | (3,511) | | | | | |
| Equity method investment income (loss) | 4,150 | | | (301) | | | 1,389 | | | | | |
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| Net loss | $ | (6,144) | | | $ | (13,063) | | | $ | (2,122) | | | | | |
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| Net loss per common share | | | | | | | | | |
| Basic | $ | (0.20) | | | $ | (0.43) | | | $ | (0.07) | | | | | |
| Diluted | $ | (0.20) | | | $ | (0.43) | | | $ | (0.07) | | | | | |
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| Weighted average number of common shares used to compute net loss per share | | | | | | | | | |
| Basic | 30,286 | | | 30,143 | | | 30,036 | | | | | |
| Diluted | 30,286 | | | 30,143 | | | 30,036 | | | | | |
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| Alpha and Omega Semiconductor Limited |
| Condensed Consolidated Balance Sheets |
| (in thousands, except par value per share) |
| (unaudited) |
| September 30, 2026 | | June 30, 2026 |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 175,215 | | | $ | 180,771 | |
| Restricted cash | 437 | | | 654 | |
| Accounts receivable, net | 53,250 | | | 42,798 | |
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| Inventories | 196,265 | | | 201,384 | |
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| Other current assets | 12,679 | | | 12,311 | |
| Total current assets | 437,846 | | | 437,918 | |
| Property, plant and equipment, net | 307,237 | | | 314,671 | |
Operating lease right-of-use assets, net | 20,957 | | | 22,271 | |
| Intangible assets, net | 1,360 | | | 1,347 | |
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| Equity method investment | 148,496 | | | 142,658 | |
| Deferred income tax assets | 8,824 | | | 8,630 | |
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| Other long-term assets | 36,056 | | | 36,060 | |
| Total assets | $ | 960,776 | | | $ | 963,555 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 41,670 | | | $ | 46,951 | |
| Accrued liabilities | 60,093 | | | 57,677 | |
| Payable related to equity investee, net | 9,322 | | | 8,694 | |
| Income taxes payable | 3,537 | | | 2,849 | |
| Short-term debt | 2,879 | | | 3,094 | |
| Deferred revenue | — | | | 726 | |
| Finance lease liabilities | 1,011 | | | 1,085 | |
| Operating lease liabilities | 6,351 | | | 6,290 | |
| Total current liabilities | 124,863 | | | 127,366 | |
| Long-term debt | — | | | 537 | |
| Income taxes payable - long-term | 4,861 | | | 4,776 | |
| Deferred income tax liabilities | 12,540 | | | 11,936 | |
| Finance lease liabilities - long-term | — | | | 189 | |
| Operating lease liabilities - long-term | 15,428 | | | 16,787 | |
| Other long-term liabilities | 2,744 | | | 4,063 | |
| Total liabilities | 160,436 | | | 165,654 | |
Shareholders' equity: | | | |
| Preferred shares, par value $0.002 per share: | | | |
Authorized: 10,000 shares; issued and outstanding: none at September 30, 2026 and June 30, 2026 | — | | | — | |
| Common shares, par value $0.002 per share: | | | |
Authorized: 100,000 shares; issued and outstanding:38,346 shares and 30,305 shares, respectively at September 30, 2026 and 38,294 shares and 30,253 shares, respectively at June 30, 2026 | 77 | | | 77 | |
Treasury shares at cost: 8,041 shares at September 30, 2026 and 8,041 shares at June 30, 2026 | (97,097) | | | (97,097) | |
| Additional paid-in capital | 413,586 | | | 406,933 | |
| Accumulated other comprehensive loss | (1,596) | | | (3,526) | |
| Retained earnings | 485,370 | | | 491,514 | |
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| Total shareholders' equity | 800,340 | | | 797,901 | |
| Total liabilities and shareholders' equity | $ | 960,776 | | | $ | 963,555 | |
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| Alpha and Omega Semiconductor Limited |
| Selected Cash Flow Information |
| ( in thousands, unaudited) |
| | | |
| Three Months Ended September 30, |
| 2026 | | 2025 |
| Net cash provided by operating activities | $ | 5,585 | | | $ | 10,187 | |
| Net cash provided by (used in) investing activities | (9,955) | | | 81,945 | |
| Net cash used in financing activities | (1,459) | | | (21,634) | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 56 | | | (66) | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | (5,773) | | | 70,432 | |
| Cash, cash equivalents and restricted cash at beginning of period | 181,425 | | | 153,498 | |
| Cash, cash equivalents and restricted cash at end of period | $ | 175,652 | | | $ | 223,930 | |
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| Alpha and Omega Semiconductor Limited | |
| Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures | |
| (in thousands, except percentages and per share data) | |
| (unaudited) | |
| | | | | | | | | | | | | | | |
| | Three Months Ended | | | | | |
| | September 30,
2026 | | June 30,
2026 | | September 30,
2025 | | | | | | | | | |
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| GAAP gross profit | | $ | 43,498 | | | $ | 39,345 | | | $ | 42,845 | | | | | | | | | | |
| Share-based compensation | | 1,034 | | | 1,101 | | | 1,065 | | | | | | | | | | |
| Typhoon-related loss | | 302 | | | — | | | — | | | | | | | | | | |
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| Non-GAAP gross profit | | $ | 44,834 | | | $ | 40,446 | | | $ | 43,910 | | | | | | | | | | |
| Non-GAAP gross margin as a % of revenue | | 25.2 | % | | 23.7 | % | | 24.1 | % | | | | | | | | | |
| | | | | | | | | | | | | | | |
| GAAP operating expense | | $ | 52,506 | | | $ | 50,332 | | | $ | 47,429 | | | | | | | | | | |
| Share-based compensation | | 6,062 | | | 5,071 | | | 6,067 | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Impairment of long-lived assets | | 581 | | | — | | | — | | | | | | | | | | |
| Non-GAAP operating expense | | $ | 45,863 | | | $ | 45,261 | | | $ | 41,362 | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| GAAP operating loss | | $ | (9,008) | | | $ | (10,987) | | | $ | (4,584) | | | | | | | | | | |
| Share-based compensation | | 7,096 | | | 6,172 | | | 7,132 | | | | | | | | | | |
| Typhoon-related loss | | 302 | | | — | | | — | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Impairment of long-lived assets | | 581 | | | — | | | — | | | | | | | | | | |
| Non-GAAP operating income (loss) | | $ | (1,029) | | | $ | (4,815) | | | $ | 2,548 | | | | | | | | | | |
| Non-GAAP operating margin as a % of revenue | | (0.6) | % | | (2.8) | % | | 1.4 | % | | | | | | | | | |
| | | | | | | | | | | | | | | |
| GAAP net loss | | $ | (6,144) | | | $ | (13,063) | | | $ | (2,122) | | | | | | | | | | |
| Share-based compensation | | 7,096 | | | 6,172 | | | 7,132 | | | | | | | | | | |
| Typhoon-related loss | | 302 | | | — | | | — | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Equity method investment (income) loss | | (4,150) | | | 301 | | | (1,389) | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Impairment of long-lived assets | | 581 | | | — | | | — | | | | | | | | | | |
| China withholding taxes related to investment in CQJV | | — | | | 2,550 | | | — | | | | | | | | | | |
| Income tax effect of non-GAAP adjustments | | 247 | | | 7 | | | 555 | | | | | | | | | | |
| Non-GAAP net income (loss) | | $ | (2,068) | | | $ | (4,033) | | | $ | 4,176 | | | | | | | | | | |
| Non-GAAP net margin as a % of revenue | | (1.2) | % | | (2.4) | % | | 2.3 | % | | | | | | | | | |
| | | | | | | | | | | | | | | |
| GAAP net loss | | $ | (6,144) | | | $ | (13,063) | | | $ | (2,122) | | | | | | | | | | |
| Share-based compensation | | 7,096 | | | 6,172 | | | 7,132 | | | | | | | | | | |
| Amortization and depreciation | | 14,635 | | | 14,488 | | | 14,341 | | | | | | | | | | |
| Equity method investment (income) loss | | (4,150) | | | 301 | | | (1,389) | | | | | | | | | | |
| Interest income | | (899) | | | (952) | | | (892) | | | | | | | | | | |
| Interest expenses | | 101 | | | 122 | | | 360 | | | | | | | | | | |
| Income tax expense | | 1,536 | | | 3,036 | | | 1,927 | | | | | | | | | | |
| EBITDAS | | $ | 12,175 | | | $ | 10,104 | | | $ | 19,357 | | | | | | | | | | |
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| GAAP diluted net loss per share | | $ | (0.20) | | | $ | (0.43) | | | $ | (0.07) | | | | | | | | | | |
| Share-based compensation | | 0.23 | | | 0.20 | | | 0.23 | | | | | | | | | | |
| Typhoon-related loss | | 0.01 | | | — | | | — | | | | | | | | | | |
| Equity method investment (income) loss | | (0.14) | | | 0.01 | | | (0.04) | | | | | | | | | | |
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| China withholding taxes related to investment in CQJV | | — | | | 0.09 | | | — | | | | | | | | | | |
| Impairment of long-lived assets | | 0.02 | | | — | | | — | | | | | | | | | | |
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| Income tax effect of non-GAAP adjustments | | 0.01 | | | 0.00 | | | 0.01 | | | | | | | | | | |
| Non-GAAP diluted net income (loss) per share | | $ | (0.07) | | | $ | (0.13) | | | $ | 0.13 | | | | | | | | | | |
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| Weighted average number of common shares used to compute GAAP diluted net loss per share | | 30,286 | | | 30,143 | | | 30,036 | | | | | | | | | | |
| Weighted average number of common shares used to compute Non-GAAP diluted net income per share | | 30,286 | | | 30,143 | | | 31,487 | | | | | | | | | | |
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| Alpha and Omega Semiconductor Limited |
| Reconciliation of GAAP to Non-GAAP Outlook |
| For Fiscal Q2 Ending December 31, 2026 |
| (in millions, except percentages) |
| (unaudited) |
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| GAAP gross margin | | | | | | 25.1 | % |
| Estimated share-based compensation expense | | 0.6 | % |
| Non-GAAP gross margin | | | | | | 25.7 | % |
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| GAAP operating expenses | | | | | | $ | 52.0 | |
| Estimated stock-based compensation expense | | (6.0) | |
| Non-GAAP operating expenses | | | | | | $ | 46.0 | |
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Investor and media inquiries:
The Blueshirt Group
Gary Dvorchak, CFA
In US +1 323 240 5796
In China +86 (138) 1079-1480
gary@blueshirtgroup.co
The Blueshirt Group
Steven Pelayo
+1 (360) 808-5154
steven@blueshirtgroup.co
Exhibit 99.2
Alpha and Omega Semiconductor Limited
Prepared Remarks for the Investor Conference Call
for the Quarter Ended September 30, 2026
November 5, 2026
Steven Pelayo
Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor’s conference call to discuss fiscal 2027 first quarter financial results. I am Steven Pelayo, Investor Relations representative for AOS. With me today are Stephen Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the Web. A replay will be available for seven days following the call via the link in the Investor Relations section of our website.
Our call will proceed as follows today. Stephen will begin with business updates, including strategic highlights, and a detailed segment report. After that, Yifan will review the financial results and provide guidance for the December quarter. Finally, we will have the Q&A session.
The earnings release was distributed over the wire today, November 5, 2026, after the market close. The release is also posted on the company's website. Our earnings release and this presentation include non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release.
We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligations to update the information provided in today's call.
Now, I will turn the call over to our CEO, Stephen Chang. Stephen?
Stephen Chang (Chief Executive Officer)
Thank you, Steven. Welcome to Alpha and Omega’s fiscal 2027 first quarter earnings call. I will begin with a high-level overview of our results and then discuss performance across our end-market segments.
We delivered September quarter revenue of $177.8 million, up 4.3% sequentially and down 2.6% year-over-year, slightly above the midpoint of our guidance. Non-GAAP gross margin improved to 25.2%, compared with 23.7% in the June quarter, and our non-GAAP loss narrowed to $0.07 per share.
Our results reflect the accelerating momentum in AI infrastructure, even as traditional PC and consumer markets face increasing headwinds.
Advanced Computing revenue, which includes AI, servers, and graphics cards, increased more than 50% sequentially and 80% year-over-year, reaching nearly 23% of total company revenue, ahead of our expectations.
Importantly, AI and server applications accounted for nearly 90% of Advanced Computing revenue and approximately 20% of total company revenue, compared with just 5.5% a year ago. This rapid expansion underscores the tangible progress we are making in transforming AOS into a higher-performance power semiconductor company.
Meanwhile, elevated memory costs and growing component shortages continue to weigh on traditional PC demand, contributing to a sharper-than-expected decline in that market. Consumer electronics also remained weak.
Despite these headwinds, strong growth in AI and servers, along with increased shipments of premium smartphone battery protection solutions, power tools, DC fans, and power supplies, helped offset much of the weakness in our traditional markets and supported sequential revenue growth and improved gross margins.
With that, let me cover our September quarter segment results and preliminary outlook for December.
Starting with Computing. September quarter revenue was $83.2 million, down 2.0% sequentially and 14.3% year-over-year, representing 46.8% of total revenue. The headline result masks a significant shift in mix. Led by our strong AI and server business, Advanced Computing grew more than 50% sequentially, nicely ahead of our guidance for growth of more than 40%, while traditional PC-related revenue declined approximately 30% sequentially.
We are seeing growing adoption of our power solutions across AI infrastructure, including robust medium-voltage MOSFETs for intermediate bus converter applications. These opportunities broaden our BOM content and customer relationships as our portfolio evolves toward higher-performance solutions.
Within Advanced Computing, AI and server-related revenue grew more than 65% sequentially and more than 250% year-over-year. We continue to expand our presence across major cloud and hyperscale ecosystems, supported by targeted investments in manufacturing capacity, product development, and customer qualifications. These
efforts are broadening our opportunities across increasingly complex power conversion architectures and positioning us for sustained growth.
Looking ahead to the December quarter, we expect Advanced Computing to reach another quarterly revenue record, led by continued strength in AI and server applications. However, worsening demand for traditional PCs, compounded by elevated memory costs and broader component shortages, is expected to more than offset this growth. As a result, we anticipate total Computing revenue will decline mid-to-high single digits sequentially.
Turning to the Consumer segment, September quarter revenue was $16.1 million, down 22.9% sequentially and 31.4% year-over-year, representing 9.1% of total revenue. Results were slightly better than our guidance, with broad-based declines led by lower shipments in Home Appliances, Gaming, and Wearables. Gaming continued to reflect the maturity of the current console cycle, while wearable demand also remained soft.
For the December quarter, our planning assumptions suggest Consumer revenue will be flattish sequentially, although the outlook varies by application.
Next, let’s discuss the Communications segment, September quarter revenue was $37.8 million, up 15.0% sequentially and 15.8% year-over-year, representing 21.3% of total revenue. Results were above our guidance for growth of approximately 10%.
The sequential increase was primarily driven by a strong ramp in battery protection solutions for our Tier One U.S. smartphone customer. Battery PCM revenue increased more than 50% sequentially, benefiting from new flagship smartphone production ramps. Our differentiated battery protection technologies continue to address increasing charging currents and higher-performance platforms, driving higher BOM content per device.
Looking ahead, we see additional content expansion opportunities as smartphone designs evolve, particularly with the growing adoption of foldable and multi-screen devices that incorporate multiple batteries, each requiring dedicated protection circuitry. However, these gains were partially offset by softer demand in other regions, particularly China, where rising memory costs are pressuring smartphone affordability and prompting some manufacturers to reduce component specifications and overall BOM costs. For the December quarter, we expect Communications revenue to grow mid-teens sequentially, driven by continued momentum in our premium smartphone programs, particularly battery PCM.
Finally, Power Supply and Industrial revenue was $38.7 million, up 29.2% sequentially and 38.8% year-over-year, representing 21.8% of total revenue. Results were in line with our guidance for sequential growth of nearly 30%, driven by strength across power supplies, power tools, motor control, and DC fans.
We are particularly encouraged by the recovery in power tools, where improving end-market demand and increased business with a major customer are contributing to
growth. DC fans also achieved record quarterly revenue, reflecting a substantially higher underlying revenue run rate compared with last year. This growth is supported in part by increasing cooling requirements in AI servers and data centers, further expanding our participation in the AI infrastructure ecosystem beyond traditional computing power conversion.
In the December quarter, we expect Power Supply and Industrial revenue to grow high-single digits sequentially, primarily driven by strong E-Mobility demand for electric motorcycles and scooters in emerging markets. We also expect AC-DC power supplies and power tools to remain resilient, supported by continued demand across their respective end markets.
In closing, our September quarter results demonstrate meaningful progress in AOS's transformation toward higher-performance, higher-content applications. Advanced Computing now represents nearly half of our Computing segment, and growing demand for AI infrastructure is creating additional opportunities in adjacent applications such as server cooling and power supplies. This momentum helped offset continued weakness in traditional PCs and consumer electronics. More importantly, the richer product mix is showing up in our margins. Non-GAAP gross margin improved 150 basis points sequentially. Our expanding participation in high-performance AI power applications, particularly differentiated medium-voltage MOSFETs, is improving the quality of our revenue and contributing to a more attractive margin profile.
Turning to the December quarter, which is typically a seasonally softer quarter for us, we anticipate a more balanced and resilient demand profile to drive counter-seasonal growth. We expect total revenue to be up slightly sequentially, and up approximately 10% year-over-year, despite significant weakness in traditional PCs. Importantly, our growth story extends well beyond AI and Advanced Computing. We expect Communications revenue to increase at mid-teens sequentially and more than 20% year-over-year, reflecting continued strength with our Tier 1 U.S. smartphone customer. Similarly, Power Supply and Industrial revenue is expected to increase by high single digits sequentially and more than 50% year-over-year, supported by improving demand across applications including Power Tools and E-mobility. These trends demonstrate the increasing breadth of our growth drivers and the tangible progress of our business transformation, as we leverage our technology leadership, premier customer relationships, and total solutions strategy to capture opportunities across a more diversified portfolio of higher-value markets, while positioning us for further margin improvement as our business scales.
At the same time, we remain mindful that market conditions are uneven. Elevated memory costs and other component constraints continue to weigh on traditional PC demand, and we do not expect a near-term PC recovery. Notwithstanding this headwind, we believe our expanding relationships across hyperscalers, ODMs, power supply manufacturers, and other ecosystem partners, combined with our disciplined investment and growing BOM content, position us well to capitalize on the long-term opportunities ahead.
With that, I will turn the call over to Yifan for a discussion of our fiscal first quarter financial results and our outlook for December. Yifan?
Yifan Liang (Chief Financial Officer)
Thank you, Stephen. Good afternoon, everyone, and thank you for joining us.
Revenue for the September quarter was $177.8 million, up 4.3% sequentially and down 2.6% year-over-year.
In terms of product mix, DMOS revenue was $137.2 million, up 21.1% sequentially and 26.4% over last year. Power IC revenue was $38.7 million, down 30.2% from the prior quarter and 46.8% from a year ago. Assembly service and other revenue was $1.9 million, as compared to $1.7 million last quarter and $1.3 million for the same quarter last year.
Non-GAAP gross margin was 25.2%, compared to 23.7% last quarter and 24.1% a year ago. The quarter-over-quarter increase was mainly impacted by better product mix.
Non-GAAP operating expenses were $45.9 million, compared to $45.3 million for the prior quarter and $41.4 million last year. The slight quarter-over-quarter increase was primarily driven by higher personnel-related expenses.
Non-GAAP quarterly EPS was $0.07 loss, compared to $0.13 loss per share last quarter and $0.13 earnings per share a year ago.
During the quarter, the majority shareholder of the JV company injected approximately $344 million of capital into the JV company, and the JV company used a portion of the proceeds to completely retire the equity interests of all shareholders whose interests were smaller than ours. As a result, we recognized a $4.0 million gain and our equity interest in the JV company decreased from 18.9% to 15.1%. The $4.0 million gain from this transaction was excluded from our non-GAAP EPS for the quarter.
Moving on to cash flow. Operating cash flow was $5.6 million, compared to negative $10.0 million in the prior quarter and $10.2 million last year. EBITDAS was $12.2 million for the quarter, compared to $10.1 million last quarter and $19.4 million for the same quarter a year ago.
Now let me turn to our balance sheet.
We completed the September quarter with a cash balance of $175.2 million, compared to $180.8 million at the end of last quarter.
Net trade receivables increased by $10.5 million sequentially. Days Sales Outstanding were 26 days for the quarter, compared to 23 days for the prior quarter.
Net inventory decreased by $5.1 million quarter-over-quarter. Average days in inventory were 133 days for the quarter, compared to 138 days for the prior quarter.
CapEx for the quarter was $9.2 million, compared to $14.9 million for the prior quarter. We expect CapEx for the December quarter to range from $12 million to $14 million.
With that, now I would like to discuss December quarter guidance.
We expect:
•Revenue to be approximately $180 million, plus or minus $10.0 million.
•GAAP gross margin to be 25.1%, plus or minus 1%. We anticipate non-GAAP gross margin to be 25.7%, plus or minus 1%.
•GAAP operating expenses to be $52 million, plus or minus $1.0 million. Non-GAAP operating expenses are expected to be $46 million, plus or minus $1.0 million.
•Interest income to be $0.4 million higher than interest expense, and
•Income tax expense to be in the range of $1.1 million to $1.3 million.
With that, we will now open the call for questions. Operator, please start the Q&A session.
Closing:
Before we conclude, I’d like to highlight a few upcoming investor events. The management team will be participating in:
•30th Annual UBS Global Technology and AI Conference on December 2 in Scottsdale, AZ;
•Wolfe Research Virtual Small & Mid-Cap Conference on December 3; and
•The 15th Annual CEO Summit on December 15 in New York City.
If you wish to request a meeting, please contact the institutional sales representative at the sponsoring bank.
This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to speaking with you again next quarter.
Special Notes Regarding Forward Looking Statements
This script contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward looking statements include, without limitation, statements relating to projected amount of revenues, gross margin, operating expenses, operating income, tax expenses, net income, noncontrolling interest, share-based compensation expenses and other financial forecasts, expected financial performance of market segments; our ability to capture market shares and increase BOM content; our ability to achieve growth in calendar 2026 and 2027; expected seasonality and industry forecast; expected growth of Advanced Computing market; business opportunities in A.I. and data centers; our expectations with respect to the impact of memory shortage; our ability and strategy to develop new products; fluctuation in customer demand and market segments; relationship with key customers; and other information regarding the future development of our business. Forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the state of semiconductor industry and seasonality of our markets; decline of the PC industry and our ability to respond to such decline; difficulties and challenges in executing our diversification strategy into different market segments; ordering pattern and seasonality; our ability to introduce or develop new and enhanced products that achieve market acceptance; the actual product performance in volume production, the quality and reliability of our product, our ability to achieve design wins, the general business and economic conditions, our ability to maintain factory utilization at a desirable level; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and other periodic reports filed by AOS. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this prepared remarks is as of today's date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law.
