Magnachip expects Q4 gross margin of 10%–12%

The 15 new sixth-generation E6 Super-Junction MOSFETs target TVs, notebook adapters, PC power supplies, and other consumer and industrial power applications.

Available on EDGAR 11/04/2026 - 04:31 PM EST Accepted by SEC EDGAR 11/04/2026 - 04:30 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Magnachip Semiconductor Corporation (MX) reported third-quarter 2026 revenue from continuing operations of $44.0 million, within its $41.5 million to $45.5 million guidance range. Gross profit margin was 14.0%, below its 17.0% to 19.0% guidance range, primarily due to unfavorable foreign-exchange movements. GAAP operating loss was $12.880 million, compared with $11.538 million a year earlier; loss from continuing operations was $13.286 million versus $10.609 million. Adjusted EBITDA loss was $3.496 million versus $3.964 million. Cash and cash equivalents were $86.911 million as of September 30, 2026.

For Q4 2026, Magnachip expects revenue from continuing operations of $41.0 million to $45.0 million and gross profit margin of 10% to 12%. At the revenue guidance midpoint, the company described a 2.2% sequential decrease and a 6.0% year-over-year increase. It attributed the expected margin decline to lower fab utilization from a power shutdown for a substation upgrade and appreciation of the Korean Won. Magnachip announced a $5 million strategic equity investment by Navitas Semiconductor and launched 15 new sixth-generation E6 Super-Junction MOSFETs for consumer and industrial power applications.

2 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance midpoint is 6.0% higher year over year.
• Moderate pointAdjusted EBITDA loss was 11.8% lower year over year.

Negative

• Major pointLoss from continuing operations rose 25.2% year over year to $13.286 million.

Filing Explained

The statements report operating cash use during the quarter and the cash balance at quarter-end.

The third-quarter statements show Magnachip had 38,041,317 common shares outstanding on September 30, 2026, versus 36,219,100 on December 31, 2025; the higher share count means holders whose share counts did not change owned a smaller percentage, absent offsetting changes.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revenue from continuing operations: $44.0 million Gross profit margin: 14.0% Operating loss: $12.880 million +5 more

8 metrics

Revenue from continuing operations $44.0 million Q3 2026

Gross profit margin 14.0% Q3 2026, continuing operations

Operating loss $12.880 million Q3 2026

Loss from continuing operations $13.286 million Q3 2026

Adjusted EBITDA loss $3.496 million Q3 2026, continuing operations

Cash and cash equivalents $86.911 million As of September 30, 2026

Revenue guidance $41.0 million to $45.0 million Q4 2026, continuing operations

Gross profit margin guidance 10% to 12% Q4 2026, continuing operations

Key Terms

Adjusted EBITDA, Super-Junction MOSFETs, continuing operations, fab utilization

4 terms

Adjusted EBITDA financial

"Adjusted EBITDA – continuing operations"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Super-Junction MOSFETs technical

"15 new sixth-generation E6 Super-Junction MOSFETs"

continuing operations financial

"revenue from continuing operations"

Continuing operations are the parts of a company's business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you've already sold.

fab utilization technical

"including on fab utilization and yields"

Earnings Snapshot

Revenue from continuing operations: $44.0 million · Guidance included

Q3 2026

Revenue from continuing operations $44.0 million −4.3% year over year

Gross profit margin 14.0% −4.6 percentage points year over year

Operating loss $12.880 million −11.6% year over year

Adjusted EBITDA loss $3.496 million +11.8% year over year

Guidance

For Q4 2026, revenue from continuing operations is expected to be $41.0 million to $45.0 million and gross profit margin from continuing operations is expected to be 10% to 12%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were MX's Q3 2026 revenue and gross margin?

Magnachip reported $44.0 million in revenue from continuing operations and a 14.0% gross profit margin for Q3 2026. Revenue was within its $41.5 million to $45.5 million guidance range, while margin was below its 17.0% to 19.0% range, primarily due to unfavorable foreign-exchange movements.

What is Magnachip's Q4 2026 revenue guidance?

Magnachip expects Q4 2026 revenue from continuing operations of $41.0 million to $45.0 million and gross profit margin of 10% to 12%. At the revenue guidance midpoint, the company described a 2.2% sequential decrease and a 6.0% year-over-year increase. It attributed the expected margin decline to lower utilization related to a fab power shutdown for a substation upgrade and appreciation of the Korean Won.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0001325702false00013257022026-11-042026-11-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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 4, 2026

Magnachip Semiconductor Corporation

(Exact name of Registrant as specified in its charter)

Delaware	001-34791	83-0406195
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
c/o Magnachip Semiconductor, Ltd. 15F, 76 Jikji-daero 436beon-gil, Heungdeok-gu Cheongju-si, Chungcheongbuk-do, 28581, Republic of Korea		Not Applicable
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: +82 (2) 6903-3000

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:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	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:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	MX	New York Stock Exchange

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.

Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for Magnachip Semiconductor Corporation and its consolidated subsidiaries for the third quarter ended September 30, 2026, as presented in a press release dated November 4, 2026.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit is furnished as part of this report:

Exhibit No.	Description
99.1	Press release for Magnachip Semiconductor Corporation dated November 4, 2026, announcing the results for the third quarter ended September 30, 2026.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		MAGNACHIP SEMICONDUCTOR CORPORATION
Dated: November 4, 2026		By:	/s/ Shinyoung Park
			Shinyoung Park
			Chief Financial Officer

Exhibit 99.1

Magnachip Reports Results for Third Quarter 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, 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(1)		Q3 2025		Y/Y change(1)
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(2)
		Q3 2026		Q2 2026		Q/Q change(1)		Q3 2025		Y/Y change(1)
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

NM = Not Meaningful.

(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 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 www.magnachip.com.

CONTACT:

Mike Bishop

Bishop IR, LLC

Tel. +1 (415) 891-9633

mike@bishopir.com

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)

		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
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
		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

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.

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