Deep 2025 loss at GCT Semiconductor (NYSE: GCTS) as revenue falls
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
GCT Semiconductor Holding, Inc. reported weak 2025 results with early 5G traction. For the year ended December 31, 2025, total net revenues were $2.9 million, down from $9.1 million in 2024, while net loss widened to $43.4 million from $12.4 million, reflecting higher operating expenses and negative gross profit.
Management highlighted commercial progress in 5G, including more than 1,900 5G chipsets shipped in the fourth quarter of 2025 and a 76% sequential revenue increase in that quarter. As of December 31, 2025, the company had $0.6 million in cash and cash equivalents, total assets of $15.6 million, total liabilities of $98.9 million, and a stockholders’ deficit of $83.3 million, though cash rose to $9.4 million as of February 28, 2026.
The company expects sequential quarterly growth in revenue and 5G chipset shipments throughout 2026 and retains access to an at-the-market equity program of up to $75 million and remaining capacity of $125 million under a $200 million shelf registration.
Positive
- None.
Negative
- Sharp deterioration in 2025 results: full-year net revenues declined to $2.9 million from $9.1 million while net loss widened to $43.4 million from $12.4 million, and gross profit turned negative, showing significantly weaker operating performance.
- Highly leveraged balance sheet and deficit: as of December 31, 2025, total liabilities of $98.9 million versus $15.6 million in assets resulted in a stockholders’ deficit of $83.3 million, indicating substantial financial strain despite later cash improvements.
Insights
2025 showed sharp revenue contraction and losses, with 5G still early.
GCT Semiconductor saw full-year net revenues fall to $2.9 million from $9.1 million, while net loss deepened to $43.4 million. Gross profit turned to a loss, indicating that the current revenue base cannot cover production and service costs.
The balance sheet is highly leveraged: total liabilities of $98.9 million sit against assets of $15.6 million, producing a stockholders’ deficit of $83.3 million as of December 31, 2025. Year-end cash was only $0.6 million, though cash increased to $9.4 million by February 28, 2026, helped by earlier capital-raising capacity.
Operationally, management points to 5G commercialization progress, with over 1,900 5G chipsets shipped in Q4 2025 and a 76% sequential revenue increase that quarter. They expect sequential revenue and 5G shipment growth throughout 2026, but actual outcomes will depend on customer deployments, successful production ramps, and access to additional funding via the ATM and shelf programs.
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): March 25, 2026
(Exact Name of Registrant as Specified in Its Charter)
(Commission File Number)
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(State or Other Jurisdiction of Incorporation)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices, including zip code)
(408 ) 434-6040
(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:
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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))
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Securities registered pursuant to Section 12(g) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act
of 1934 (§240.12b-2 of this chapter):
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.
On March 25, 2026, GCT Semiconductor Holding, Inc. (the “Company”) issued a press release announcing financial results as of and for the
quarter and full year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Current Report, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Index
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Exhibit
Number
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Description
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99.1
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Press Release, dated March 25, 2026, of GCT Semiconductor Holding, Inc.
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
| GCT SEMICONDUCTOR HOLDING, INC. | ||
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March 25, 2026
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By:
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/s/ Edmond Cheng
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Name:
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Edmond Cheng
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Title:
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Chief Financial Officer
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Exhibit 99.1
GCT Semiconductor Holding, Inc. Provides Business Update and Reports Fourth Quarter and Full Year 2025 Financial Results
Commercial Shipments of 5G Chipsets Exceeded 1,900 Units in Q4, Reflecting Continued Progress Toward Volume Production
Ramp
Company Expects Sequential Quarterly Growth in Revenue and 5G Chipset Shipments Throughout 2026
SAN JOSE, CA – March 25, 2026 – GCT Semiconductor Holding, Inc. (“GCT” or the
“Company”) (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, today provided an update on business developments and reported financial results for the fourth quarter and full year ended December 31, 2025.
Recent Operational Highlights
| • |
5G chipset shipments exceeded 1,900 in Q4 of 2025. Production volumes are increasing as the Company prepares for additional production orders from development partners which are expected
to ramp significantly throughout 2026.
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| • |
Secured a licensing agreement with one of the world’s largest satellite communications providers to integrate GCT’s 5G and 4G chipsets into their user equipment,
enabling new capabilities for global, resilient, and high-bandwidth connectivity both via satellite and terrestrial networks and clearing the pathway for future chipset sales with 5G product shipments expected to begin as early as the
second half of 2026.
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| • |
Partnered with Skylo to expand seamless global satellite connectivity for next-generation cellular to IoT devices including joint efforts towards chip and module
certification.
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Entered into a $20 million convertible note financing facility with a $1 million initial advance, providing additional financing optionality to support working
capital, production readiness, and strategic growth initiatives while minimizing dilution for shareholders.
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Company’s first network operator, Gogo, successfully launched its new broadband air-to-ground service using GCT’s 5G chipset.
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“2025 was a defining year for GCT as we achieved key milestones toward commercialization and full-scale 5G deployment,” said John Schlaefer, Chief Executive Officer of GCT. “During the fourth quarter, we shipped more than 1,900 5G chipsets for commercial use, marking a key step toward a
broader volume production capability and increased 5G revenue contribution in 2026. Building on this momentum, we are continuing to work closely with customers to refine deployment schedules and align production with their launch plans. We also
expanded our 5G customer ecosystem and advanced lead programs through evaluation, certification, and integration phases, further building the foundation for production ramps and a stronger revenue trajectory. Public confirmation from our first
network operator, Gogo, regarding service activation of our chip marked an important milestone and represents the first step in what we expect to be a broader set of operators launching devices powered by GCT’s 5G platform.
“Despite the transitional nature impacting our 2025 financial performance, we believe the groundwork laid over the past year positions us
well for a pivotal shift in 2026. Our focus is on scaling operations to support
commercialization, supply chain readiness, and internal execution to meet rising 5G demand. We are working toward driving meaningful 5G revenue
contribution in the back half of 2026 as 5G deployments accelerate and production volumes ramp.”
“While our 2025 financial results reflect deliberate investments required to bring our 5G chipset to commercial readiness, these
investments are critical for generating sustainable long-term growth,” said Edmond Cheng, Chief Financial Officer of GCT. “Demonstrating early signs of that progress,
total revenue in the fourth quarter increased 76% sequentially, and we expect both sequential and year-over-year revenue growth to continue into Q1 of 2026 and beyond. We believe Q3 of 2025 marked the bottom of our revenue cycle caused by the major
product transition to 5G, and as we enter 2026, we are encouraged by continued progress across our 5G programs, including certification processes underway with at least two network operators advancing toward service launch. As we transition from
development to execution, our focus remains on preserving financial flexibility, carefully managing working capital, and supporting the operational discipline necessary to convert our growing 5G pipeline into tangible revenue.”
Fourth Quarter 2025 Financial Results
Results compare the 2025 fiscal fourth quarter ended December 31, 2025, to the 2024 fiscal fourth quarter ended
December 31, 2024.
| • |
Net revenues were $0.8
million, a 57.5% decrease from $1.8 million.
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Gross margin for the
three months ended December 31, 2024, was 32%. Our current gross margin for the three months ended December 31, 2025, is negative and not representative of our expectations regarding profitability of our products and services in future
reporting periods, as we continue to experience lower product revenue, which is currently not sufficient to fully absorb production overhead costs. This makes our current gross margins less indicative of the underlying profitability of
our products and services. We expect operational efficiencies to improve as 5G product sales start contributing more significantly to our overall revenue commencing later in 2026.
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Total operating expenses
were $10.7 million, a 35.0% increase from $7.9 million.
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Full Year 2025 Financial Results
Results compare the 2025 fiscal full year ended December 31, 2025 to the 2024 fiscal full year ended December 31,
2024.
| • |
Net revenues were $2.9
million, a 68.6% decrease from $9.1 million.
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| • |
Gross margin for the year
ended December 31, 2024, was 56%. Our gross margin for the year ended December 31, 2025 is negative and not representative of our expectations regarding profitability of our products and services in future reporting periods. In 2025, we
experienced lower product revenue, which was not sufficient to fully absorb production overheads. We expect operational efficiencies to improve when our 5G product sales start contributing more significantly to our overall revenue, which
is currently expected later in 2026, following the commercial launch of our 5G chipset in the fourth quarter of 2025.
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| • |
Total operating expenses
were $34.7 million, a 90.8% increase from $18.2 million. Fiscal full year 2024 included a one-time gain of $14.6 million from the extinguishment of liability.
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Liquidity
The Company’s existing sources of liquidity as of December 31, 2025, include cash and cash equivalents of $0.6 million, net accounts
receivable of $2.6 million, and inventory of $0.9 million. As a result of the completion of the registered direct offering in May 2025, the Company retains access to its effective ATM offering program of up to $75 million and has ample capacity on
the remaining $125 million of the $200 million shelf registration. Subsequent to the year-end and as of February 28, 2026, GCT had cash and cash equivalents of $9.4 million.
5G Outlook
Following the launch of commercial shipments in the fourth quarter of 2025, the Company continues to progress toward volume production of its 5G chipsets and
expects sequential quarterly growth in both revenue and 5G shipments throughout 2026.
Conference Call
The Company will hold a conference call and live webcast at 4:30 p.m. ET or 1:30 p.m. PT, which will be open to the public. During the
conference call, the Company will discuss business updates and review the financial results, followed by a Q&A period.
Date: Wednesday, March 25, 2026
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-in information: Please register in advance of the call here.
Webcast (listen-only): To listen to the webcast use the
following LINK.
A replay of the webcast will be available via the Investors
section of the GCT website at investors.gctsemi.com.
About GCT Semiconductor Holding, Inc.
GCT is a leading fabless designer and supplier of advanced 5G
and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world's
top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high
performance, high reliability, and cost-effectiveness. For more information, visit www.gctsemi.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, the Company’s expectations with respect to its business operations revenue growth in 2026; the expected timeline to commence shipment of 5G
chipsets; the 5G outlook and anticipated growth of 5G markets and customer demand; the benefits of development agreements with partners; the ability for the Company to improve financial performance; launch of 5G services by our customers; the
ability of the Company’s technology and products to address new markets and meet customer demands; the execution of go-to-market strategies; and the anticipated size of addressable markets by the Company’s products. Words such as “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-
looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on
current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control
and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the ability of the Company to develop its 5G products and generate revenue; the ability to
enter into and meet the obligations under partnership and collaboration agreements; the ability of the Company to grow and manage growth profitability and retain its key employees; the Company's financial and business performance, including the
Company's financial projections and business metrics; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans; the Company's inability to anticipate
the future market demands and future needs of its customers; the impact of component shortages, suppliers' lack of production capacity, natural disasters or pandemics on the Company's sourcing operations and supply chain; the Company's future
capital requirements and sources and uses of cash; the ability to implement business plans, forecasts, and other expectations, including the growth of the 5G market; the risk that the Company may not be able to repay its debt; the risk of economic
downturns that affects the Company's business operation and financial performance; the risk that the Company may not be able to develop and design its products acceptable to its customers; actual or potential conflicts of interest of the Company's
management with its public stockholders; macroeconomic conditions, including market conditions, global and economic conditions, labor disputes, inflationary impacts, and disruptions to the global supply chain; the imposition of duties and tariffs
and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments; and other risks and uncertainties indicated from time to time in Company’s filings with the Securities and Exchange Commission (“SEC”),
including the Annual Report on Form 10-K, and quarterly reports on Form 10-Q, and those disclosures under the "Risk Factors" section therein. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they
are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future
events, or otherwise.
Contacts:
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Investor relations website: investors.gctsemi.com
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| • |
Investor relations contact: Gateway Group,
Ralf Esper, GCT@gateway-grp.com
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| • |
Media contact: media@gctsemi.com
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GCT Semiconductor Holding, Inc.
Consolidated Balance Sheets
(unaudited, in thousands, except per share amounts)
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December 31, 2025
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December 31, 2024
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|||||||
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Assets
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||||||||
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Current assets:
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||||||||
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Cash and cash equivalents
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$
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590
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$
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1,435
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Accounts receivable, net
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2,597
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5,740
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Inventory
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947
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2,977
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Contract assets
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5,432
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5,107
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Prepaid expenses and other current assets
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2,318
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2,332
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Total current assets
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11,884
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17,591
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Property and equipment, net
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2,671
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869
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Operating lease right-of-use assets
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708
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849
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Intangibles, net
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—
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65
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Other assets
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381
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523
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Total assets
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$
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15,644
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$
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19,897
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Liabilities and Stockholders’ Deficit
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||||||||
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Current liabilities:
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Accounts payable
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$
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628
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$
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1,031
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Contract liabilities
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—
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48
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Accrued and other current liabilities
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21,680
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21,205
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Common stock forward liability
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3
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315
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Borrowings
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56,589
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37,626
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Operating lease liabilities, current
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686
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697
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||||||
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Total current liabilities
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79,586
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60,922
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||||||
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Convertible promissory notes, net of current
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6,046
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4,947
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Net defined benefit liabilities
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7,598
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7,055
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Long-term operating lease liabilities
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41
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177
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Other taxes payable
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2,265
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2,076
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Warrant liabilities
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2,870
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3,750
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Other liabilities
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531
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285
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||||||
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Total liabilities
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98,937
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79,212
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||||||
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Stockholders’ deficit:
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||||||||
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Preferred stock
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—
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—
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||||||
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Common stock
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6
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5
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||||||
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Additional paid-in capital
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520,925
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501,195
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||||||
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Accumulated other comprehensive income
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1,181
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1,518
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Accumulated deficit
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(605,405
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)
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(562,033
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)
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Total stockholders’ deficit
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(83,293
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)
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(59,315
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)
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Total liabilities and stockholders’ deficit
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$
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15,644
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$
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19,897
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||||
GCT Semiconductor Holding, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
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Year Ended
December 31, |
||||||||
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2025
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2024
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|||||||
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Net revenues:
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||||||||
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Product
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$
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1,131
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$
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4,771
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Service
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1,735
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4,357
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Total net revenues
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2,866
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9,128
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Cost of net revenues:
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||||||||
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Product
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4,026
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2,523
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Service
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657
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1,529
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Total cost of net revenues
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4,683
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4,052
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Gross profit (loss)
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(1,817
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)
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5,076
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Operating expenses:
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||||||||
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Research and development
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14,005
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17,329
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Sales and marketing
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4,243
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3,920
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General and administrative
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16,475
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10,798
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Gain on extinguishment of liability
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—
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(14,636
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)
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Loss on impairment of long-lived assets
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—
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787
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||||||
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Total operating expenses
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34,723
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18,198
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||||||
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Loss from operations
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(36,540
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)
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(13,122
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)
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||||
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Interest expense
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(6,026
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)
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(3,867
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)
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||||
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Gain (loss) on foreign currency transactions, net
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(784
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)
|
4,690
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|||||
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Change in fair value of common stock warrant liabilities
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880
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2,208
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||||||
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Change in fair value of convertible promissory notes
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(336
|
)
|
(1,470
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)
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||||
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Change in fair value of common stock forward liability
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312
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(586
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)
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|||||
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Other income, net
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24
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213
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||||||
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Loss before provision for income taxes
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(42,470
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)
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(11,934
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)
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||||
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Provision for income taxes
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902
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445
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||||||
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Net loss
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$
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(43,372
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)
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$
|
(12,379
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)
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||
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Net loss per common share:
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||||||||
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Basic and diluted
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$
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(0.82
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)
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$
|
(0.30
|
)
|
||
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Weighted average common shares outstanding:
|
||||||||
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Basic and diluted
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52,872
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40,630
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||||||
FAQ
How did GCT Semiconductor (GCTS) perform financially in full-year 2025?
GCT Semiconductor reported weak 2025 results, with net revenues of $2.9 million versus $9.1 million in 2024 and a net loss of $43.4 million versus $12.4 million. Higher operating expenses and negative gross profit drove the significantly larger loss.
What were GCT Semiconductor’s key 5G operational milestones in Q4 2025?
In Q4 2025, GCT Semiconductor shipped more than 1,900 5G chipsets for commercial use and reported a 76% sequential increase in total revenue. Management views these shipments as an early step toward volume production ramps and higher 5G-driven revenue in 2026.
What is GCT Semiconductor’s liquidity position as of December 31, 2025 and February 28, 2026?
As of December 31, 2025, GCT Semiconductor had $0.6 million in cash and cash equivalents, within total assets of $15.6 million. Cash and cash equivalents later increased to $9.4 million as of February 28, 2026, reflecting improved near-term liquidity after year-end.
How leveraged is GCT Semiconductor (GCTS) based on its 2025 balance sheet?
GCT Semiconductor reported total liabilities of $98.9 million and total assets of $15.6 million as of December 31, 2025, resulting in a stockholders’ deficit of $83.3 million. This structure indicates substantial leverage and a significant negative equity position at year-end.
What revenue outlook did GCT Semiconductor provide for 2026?
Management expects sequential quarterly growth in both revenue and 5G chipset shipments throughout 2026. They attribute this anticipated growth to continued 5G commercialization, customer deployments, and planned production ramps following initial commercial shipments in late 2025.
What capital-raising capacity does GCT Semiconductor currently have?
Following a registered direct offering completed in May 2025, GCT Semiconductor retains access to an effective at-the-market offering program of up to $75 million and has remaining capacity of $125 million under a $200 million shelf registration, supporting potential future funding.
Filing Exhibits & Attachments
5 documentsPress Releases
GCT Semiconductor Holding, Inc.