Magnachip (NYSE: MX) margins compress as 2025 loss widens, Q1 outlook improves

Rhea-AI Filing Summary

Magnachip Semiconductor reported weaker results for Q4 and full-year 2025 as demand and margins softened in its Power Solutions business. Q4 2025 revenue from continuing operations was $40.6 million, down 11.7% sequentially and 20.7% year-over-year, with consolidated gross margin falling to 9.3% from 21.7% a year earlier.

The company posted a Q4 operating loss of $12.4 million and a loss from continuing operations of $8.8 million, or $0.24 per share. For 2025, revenue declined to $178.9 million, while operating loss widened to $35.9 million. Management highlighted 55 new products launched, cost reduction actions, and a strategic IGBT agreement, and guided Q1 2026 revenue to $44–48 million with gross margin of 14–16%.

Positive

• None.

Negative

• Profitability deteriorated significantly in 2025, with gross margin from continuing operations dropping to 17.6% from 19.7% and operating loss widening to $35.9 million, while Q4 2025 gross margin fell to 9.3% and quarterly operating loss reached $12.4 million.

Insights

Semiconductor equity analyst

Magnachip’s 2025 results show sharp margin compression but modestly improving 2026 outlook.

Magnachip saw 2025 revenue from continuing operations fall to $178.86M, down 8.9%, while gross margin slipped to 17.6%. Q4 2025 was particularly weak, with revenue of $40.57M and gross margin of 9.3%, reflecting softer Power Solutions performance and underutilized manufacturing costs.

Operating loss widened to $35.86M for 2025, and adjusted EBITDA from continuing operations deteriorated to -$15.57M, underscoring profitability pressure despite restructuring. However, loss from continuing operations improved to -$14.25M from -$27.31M, aided by a higher income tax benefit.

Management emphasized restructuring, including programs expected to deliver over $2M in annualized savings and $21.4M invested in the Gumi fab upgrade. For Q1 2026, guidance calls for revenue of $44–48M and gross margin of 14–16%, implying sequential improvement but still below prior-year margin levels.

false000132570200013257022026-03-042026-03-04

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): March 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 fourth quarter and full year ended December 31, 2025, as presented in a press release dated March 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 March 4, 2026, announcing the results for the fourth quarter and full year ended December 31, 2025.
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: March 4, 2026		By:		/s/ Shin Young Park
				Shin Young Park
				Chief Financial Officer

Exhibit 99.1

Magnachip Reports Results for Fourth Quarter and Full-Year 2025

Q4 Results Summary

•Consolidated revenue from continuing operations (which includes Power Analog Solutions (“PAS”) and Power IC (“PIC”) businesses) was $40.6 million, approximately at the mid-point of our guidance range of $38.5 to $42.5 million.

•Consolidated gross profit margin from continuing operations was 9.3%, slightly above the mid-point of our guidance range of 8.0% to 10.0%.

•Product revenue from our Communications business grew 24% sequentially and 68% year-over-year.

Q4 Highlights

•Launched 24 new-generation products in the fourth quarter.

2025 Highlights

•Launched 55 new-generation products in 2025, compared with four for the full year 2024.

•Signed a strategic agreement to expand our industrial business based on a jointly developed IGBT technology with Hyundai Mobis.

•Executed multiple operating expense cost reduction programs, including a headcount reduction program, expected to generate more than $2 million in annualized savings beginning in Q4 2025.

•$21.4 million was spent in 2025 for the Gumi fab upgrade, of which $17.0 million was funded through equipment financing loans.

SEOUL, South Korea, Mar. 4, 2026 – Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the fourth quarter and full year 2025.

Camillo Martino, Magnachip’s CEO said, “Magnachip has a strong foundation in power semiconductors, built on decades of engineering expertise, trusted customer relationships, and a reputation for quality and reliability. Over the past year, we have taken deliberate actions to simplify the business, significantly reduce our cost structure, and sharpen our focus on power, while increasing investment in new-generation products where we can compete and win.”

Mr. Martino added, “While near-term market conditions remain challenging, the changes we have made are deliberate and structural. With a more focused strategy, a stronger product pipeline, and disciplined execution, we believe Magnachip is better positioned to improve competitiveness, strengthen margins over time, and drive a more consistent recovery.”

Q4 and 2025 Financial Highlights

		In thousands of U.S. dollars, except share data
		GAAP(1)
		Q4 2025			Q3 2025				Q/Q change						Q4 2024(1)				Y/Y change
Consolidated Revenues		40,570				45,946				down		11.7	%			51,153				down		20.7	%
Power Solutions business		40,570				45,946				down		11.7	%			48,858				down		17.0	%
Power Analog Solutions		36,811				41,548				down		11.4	%			43,455				down		15.3	%
Power IC		3,759				4,398				down		14.5	%			5,403				down		30.4	%
Transitional Fab 3 foundry services(2)		—				—				n/a		—				2,295				n/a		—
Consolidated Gross Profit Margin		9.3	%			18.6	%			down		9.3	%pts			21.7	%			down		12.4	%pts
Power Solutions business		9.3	%			18.6	%			down		9.3	%pts			23.2	%			down		13.9	%pts
Power Analog Solutions		6.5	%			16.0	%			down		9.5	%pts			20.5	%			down		14.0	%pts
Power IC		36.7	%			43.2	%			down		6.5	%pts			44.9	%			down		8.2	%pts
Transitional Fab 3 foundry services(2)		—				—				n/a		—				(11.0	)%			n/a		—
Operating Loss		(12,446	)			(11,538	)			down		n/a				(6,828	)			down		n/a
Loss from continuing operations		(8,792	)			(10,609	)			up		n/a				(7,702	)			down		n/a
Basic Loss per Common Share		(0.24	)			(0.29	)			up		n/a				(0.21	)			down		n/a
Diluted Loss per Common Share		(0.24	)			(0.29	)			up		n/a				(0.21	)			down		n/a
		In thousands of U.S. dollars, except share data
		Non-GAAP(1)(3)
		Q4 2025			Q3 2025				Q/Q change						Q4 2024(1)				Y/Y change
Adjusted Operating Loss		(11,881	)			(7,421	)			down		n/a				(3,459	)			down		n/a
Adjusted EBITDA		(8,856	)			(3,964	)			down		n/a				337				down		n/a
Adjusted Income (Loss)		(2,714	)			(390	)			down		n/a				5,751				down		n/a
Adjusted Income (Loss) per Common Share—Diluted		(0.08	)			(0.01	)			down		n/a				0.15				down		n/a

		In thousands of U.S dollars, except share data
		GAAP(1)
		2025				2024(1)			Y/Y Change
Consolidated Revenues			178,860			196,425			down		8.9	%
Power Solutions business			178,860			185,828			down		3.7	%
Power Analog Solutions			160,477			166,804			down		3.8	%
Power IC			18,383			19,024			down		3.4	%
Transitional Fab 3 foundry services(2)			—			10,597			n/a		—
Consolidated Gross Profit Margin			17.6	%		19.7	%		down		2.1	%pts
Power Solutions business			17.6	%		21.5	%		down		3.9	%pts
Power Analog Solutions			14.9	%		18.9	%		down		4.0	%pts
Power IC			41.0	%		44.4	%		down		3.4	%pts
Transitional Fab 3 foundry services(2)						(11.5)	%		n/a		—
Operating Loss			(35,860	)		(25,973	)		down		n/a
Loss from continuing operations			(14,249	)		(27,310	)		up		n/a
Basic Loss per Common Share			(0.39	)		(0.72	)		up		n/a
Diluted Loss per Common Share			(0.39	)		(0.72	)		up		n/a

		In thousands of U.S dollars, except share data
		Non-GAAP(1)(3)
		2025				2024(1)			Y/Y Change
Adjusted Operating Loss			(28,488	)		(19,087	)		down		n/a
Adjusted EBITDA			(15,567	)		(4,241	)		down		n/a
Adjusted Loss			(7,866	)		(8,321	)		up		n/a
Adjusted Loss per Common Share—Diluted			(0.22	)		(0.22	)		up		n/a

(1)GAAP and non-GAAP metrics summarized herein do not include any amounts relating to the Display business, which has been classified as discontinued operations from Q1 2025, and we have reclassified certain prior year amounts to conform to the current year’s presentation.

(2)Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we had wound down these foundry services by the end of 2024. Because these foundry services during the wind-down period had still been provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we continued to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down was completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the Power Solutions business allows investors to better understand the results of our core PAS and Power IC businesses.

(3)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. A reconciliation of historical GAAP results to non-GAAP results is included in this press release.

Q1 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 $44.0 to $48.0 million, up 13.4% sequentially and up 2.9% year-over-year at the mid-point. This compares with $40.6 million in Q4 2025 and $44.7 million in Q1 2025.

•Consolidated gross profit margin from continuing operations to be in the range of 14% to 16%, up from 9.3% in Q4 2025 but down from 20.9% in Q1 2025.

Q4 and Full Year 2025 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET today, Wednesday, March 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 earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register-conf.media-server.com/register/BI9d3aea74bb7c44d78d19c946518cef3c

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 about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter 2026 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts including between Russia-Ukraine and between Israel, the United States and Iran, sustained military action and conflict in the Red Sea, global macroeconomic conditions resulting from trade and tariff actions instituted between the U.S. and other countries on Magnachip’s future operating results and financial performance, and the potential impacts of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. 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: the impact of changes in macroeconomic conditions, including those caused by or related to recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia-Ukraine and between Israel, the United States and Iran and sustained military action and conflict in the Red Sea; disruptions or economic impact resulting from the United States government shutdown, including disruptions at U.S. government agencies caused by reduction in staffing, operations, funding shortages or other concerns that

may prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our customer’s businesses may rely; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; the potential impact of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the SEC, including our Form 10-K filed on March 14, 2025, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. 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												Year Ended
		December 31, 2025				September 30, 2025				December 31, 2024(1)				December 31, 2025				December 31, 2024(1)
Revenues:
Net sales – Power Solutions business		$	40,570			$	45,946			$	48,858			$	178,860			$	185,828
Net sales – Transitional Fab 3 foundry    services			—				—				2,295				—				10,597
Total revenues			40,570				45,946				51,153				178,860				196,425
Cost of sales:
Cost of sales – Power Solutions business			36,792				37,405				37,530				147,467				145,884
Cost of sales – Transitional Fab 3 foundry    services			—				—				2,547				—				11,814
Total cost of sales			36,792				37,405				40,077				147,467				157,698
Gross profit			3,778				8,541				11,076				31,393				38,727
Gross profit as a percentage of Power Solutions    business net sales			9.3	%			18.6	%			23.2	%			17.6	%			21.5	%
Gross profit as a percentage of total revenues			9.3	%			18.6	%			21.7	%			17.6	%			19.7	%
Operating expenses:
Selling, general and administrative expenses			8,625				8,312				9,758				35,116				38,099
Research and development expenses			7,599				7,773				6,557				27,297				25,012
Early termination and other charges			—				3,994				1,589				4,840				1,589
Total operating expenses			16,224				20,079				17,904				67,253				64,700
Operating loss			(12,446	)			(11,538	)			(6,828	)			(35,860	)			(25,973	)
Interest income			1,246				1,255				2,106				5,363				8,320
Interest expense			(393	)			(469	)			(458	)			(1,658	)			(1,601	)
Foreign currency loss, net			(6,393	)			(4,280	)			(13,352	)			(281	)			(16,740	)
Other income, net			14				253				364				298				485
Loss from continuing operations before income    tax benefit, net			(17,972	)			(14,779	)			(18,168	)			(32,138	)			(35,509	)
Income tax benefit, net			(9,180	)			(4,170	)			(10,466	)			(17,889	)			(8,199	)
Loss from continuing operations			(8,792	)			(10,609	)			(7,702	)			(14,249	)			(27,310	)
Income (Loss) from discontinued operations,    net of tax			713				(2,481	)			(8,575	)			(15,475	)			(26,998	)
Net loss		$	(8,079	)		$	(13,090	)		$	(16,277	)		$	(29,724	)		$	(54,308	)
Basic earnings (loss) per common share—
Continuing operations		$	(0.24	)		$	(0.29	)		$	(0.21	)		$	(0.39	)		$	(0.72	)
Discontinuing operations			0.02				(0.07	)			(0.23	)			(0.43	)			(0.72	)
Total		$	(0.22	)		$	(0.36	)		$	(0.44	)		$	(0.82	)		$	(1.44	)
Diluted earnings (loss) per common share—
Continuing operations		$	(0.24	)		$	(0.29	)		$	(0.21	)		$	(0.39	)		$	(0.72	)
Discontinuing operations			0.02				(0.07	)			(0.23	)			(0.43	)			(0.72	)
Total		$	(0.22	)		$	(0.36	)		$	(0.44	)		$	(0.82	)		$	(1.44	)
Weighted average number of shares—
Basic			35,979,697				35,934,406				36,921,300				36,218,138				37,774,280
Diluted			35,979,697				35,934,406				36,921,300				36,218,138				37,774,280

(1)We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

(Unaudited)

		December 31, 2025				December 31, 2024
Assets
Current assets
Cash and cash equivalents		$	103,756			$	138,610
Accounts receivable, net			26,022				28,402
Inventories, net			34,151				30,535
Other receivables			2,882				4,444
Prepaid expenses			5,062				10,379
Hedge collateral			1,200				2,080
Other current assets			3,782				4,779
Total current assets			176,855				219,229
Property, plant and equipment, net			100,204				81,463
Operating lease right-of-use assets			2,070				3,107
Intangible assets, net			454				507
Long-term prepaid expenses, net			584				165
Deferred income taxes			64,248				52,889
Other non-current assets			7,114				21,956
Total assets		$	351,529			$	379,316
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	20,848			$	21,642
Other accounts payable			11,444				10,764
Accrued expenses			6,929				8,648
Accrued income taxes			81				56
Operating lease liabilities			1,427				1,393
Other current liabilities			2,681				3,765
Total current liabilities			43,410				46,268
Long-term borrowings			44,599				27,211
Accrued severance benefits, net			11,502				17,094
Non-current operating lease liabilities			690				1,823
Other non-current liabilities			3,078				10,123
Total liabilities			103,279				102,519
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 58,027,696 shares issued and 36,219,100 outstanding at December 31, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024			579				574
Additional paid-in capital			281,537				279,423
Retained earnings			214,852				244,576
Treasury stock, 21,808,596 shares at December 31, 2025 and 20,586,389 shares at December 31, 2024, respectively			(229,910	)			(225,883	)
Accumulated other comprehensive loss			(18,808	)			(21,893	)
Total stockholders’ equity			248,250				276,797
Total liabilities and stockholders’ equity		$	351,529			$	379,316

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(Unaudited)

		Three Months Ended				Year Ended
		December 31, 2025				December 31, 2025				December 31, 2024
Cash flows from operating activities
Net loss		$	(8,079	)		$	(29,724	)		$	(54,308	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization			3,023				12,961				16,161
Provision for severance benefits			771				3,639				8,020
Loss (gain) on foreign currency, net			9,765				(847	)			32,851
Provision (reversal) for inventory reserves			952				2,871				(529	)
Stock-based compensation			565				2,180				6,214
Impairment charges			—				12,424				4,637
Deferred income tax assets			(9,551	)			(10,120	)			(7,034	)
Others, net			105				325				799
Changes in operating assets and liabilities
Accounts receivable, net			4,620				(2,990	)			2,719
Inventories			1,328				(5,803	)			(1,583	)
Other receivables			1,077				(210	)			(115	)
Prepaid expenses			1,656				6,981				8,877
Other current assets			6,162				2,915				1,753
Accounts payable			3,607				4,248				(1,971	)
Other accounts payable			(2,190	)			(8,993	)			(14,160	)
Accrued expenses			(4,587	)			(2,662	)			(607	)
Accrued income taxes			39				23				(1,432	)
Other current liabilities			(516	)			(839	)			(1,161	)
Other non-current liabilities			(137	)			(185	)			(335	)
Payment of severance benefits			(2,898	)			(13,567	)			(2,407	)
Others, net			(281	)			3,165				(2,522	)
Net cash provided by (used in) operating activities			5,431				(24,208	)			(6,133	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral			1,922				4,159				627
Payment of hedge collateral			(3,159	)			(3,159	)			(1,706	)
Proceeds from disposal of plant, property and equipment			11				565				—
Purchase of property, plant and equipment			(10,253	)			(29,992	)			(11,600	)
Payment for intellectual property registration			(25	)			(207	)			(316	)
Collection of guarantee deposits			106				4,380				3,535
Payment of guarantee deposits			—				(355	)			(2,175	)
Collection of short-term financial instruments			—				—				30,000
Purchase of short-term financial instruments			—				—				(30,000	)
Others, net			—				180				(37	)
Net cash used in investing activities			(11,398	)			(24,429	)			(11,672	)
Cash flows from financing activities
Proceeds from long-term borrowings			6,405				17,016				30,059
Acquisition of treasury stock			(41	)			(4,381	)			(12,891	)
Repayment of financing related to water treatment facility arrangement			(111	)			(452	)			(472	)
Repayment of principal portion of finance lease liabilities			(40	)			(161	)			(139	)
Net cash provided by financing activities			6,213				12,022				16,557
Effect of exchange rates on cash and cash equivalents			(4,495	)			1,761				(18,234	)
Net decrease in cash and cash equivalents			(4,249	)			(34,854	)			(19,482	)
Cash and cash equivalents
Beginning of the period			108,005				138,610				158,092
End of the period		$	103,756			$	103,756			$	138,610

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												Year Ended
		December 31, 2025				September 30, 2025					December 31, 2024(1)				December 31, 2025			December 31, 2024(1)
Operating loss		$	(12,446	)		$	(11,538	)		$	(6,828	)		$	(35,860	)		$	(25,973	)
Adjustments:
Equity-based compensation expense			565				123				1,780				2,532				5,297
Early termination and other charges			—				3,994				1,589				4,840				1,589
Adjusted Operating Loss		$	(11,881	)		$	(7,421	)		$	(3,459	)		$	(28,488	)		$	(19,087	)

(1)We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

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 year ended December 31, 2025, we recorded in our consolidated statement of operations $2,599 thousand of termination related charges in connection with the voluntary resignation program that we executed during the third quarter of 2025. For the same period, we also recorded $1,745 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives.

For the year ended December 31, 2024, we recorded $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS

(In thousands of U.S. dollars, except share data)

(Unaudited)

		Three Months Ended												Year Ended
		December 31, 2025				September 30, 2025					December 31, 2024(1)				December 31, 2025			December 31, 2024(1)
Loss from continuing operations		$	(8,792	)		$	(10,609	)		$	(7,702	)		$	(14,249	)		$	(27,310	)
Adjustments:
Interest income			(1,246	)			(1,255	)			(2,106	)			(5,363	)			(8,320	)
Interest expense			393				469				458				1,658				1,601
Income tax benefit, net			(9,180	)			(4,170	)			(10,466	)			(17,889	)			(8,199	)
Depreciation and amortization			3,019				3,204				3,451				12,580				14,438
EBITDA – continuing operations			(15,806	)			(12,361	)			(16,365	)			(23,263	)			(27,790	)
Equity-based compensation expense			565				123				1,780				2,532				5,297
Foreign currency loss, net			6,393				4,280				13,352				281				16,740
Derivative valuation loss (gain), net			(8	)			—				(19	)			43				(77	)
Early termination and other charges			—				3,994				1,589				4,840				1,589
Adjusted EBITDA – continuing operations		$	(8,856	)		$	(3,964	)		$	337			$	(15,567	)		$	(4,241	)
Loss from continuing operations		$	(8,792	)		$	(10,609	)		$	(7,702	)		$	(14,249	)		$	(27,310	)
Adjustments:
Equity-based compensation expense			565				123				1,780				2,532				5,297
Foreign currency loss, net			6,393				4,280				13,352				281				16,740
Derivative valuation loss (gain), net			(8	)			—				(19	)			43				(77	)
Early termination and other charges			—				3,994				1,589				4,840				1,589
Income tax effect on non-GAAP adjustments			(872	)			1,822				(3,249	)			(1,313	)			(4,560	)
Adjusted Income (Loss) – continuing operations		$	(2,714	)		$	(390	)		$	5,751			$	(7,866	)		$	(8,321	)
Adjusted Income (Loss) – continuing    operations per common share—
- Basic		$	(0.08	)		$	(0.01	)		$	0.16			$	(0.22	)		$	(0.22	)
- Diluted		$	(0.08	)		$	(0.01	)		$	0.15			$	(0.22	)		$	(0.22	)
Weighted average number of shares – basic			35,979,697				35,934,406				36,921,300				36,218,138				37,774,280
Weighted average number of shares – diluted			35,979,697				35,934,406				37,738,210				36,218,138				37,774,280

(1)We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

We present Adjusted EBITDA from continuing operations and Adjusted Income (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, 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 benefit, net and depreciation and amortization.

We prepare Adjusted Income (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 Income (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 Income (Loss) from continuing operations for the periods as loss from continuing operations, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation loss (gain), net, (iv) Early termination and other charges, and (v) Income tax effect on non-GAAP adjustments.

For the year ended December 31, 2025, we recorded in our consolidated statement of operations $2,599 thousand of termination related charges in connection with the voluntary resignation program that we executed during the third quarter of 2025. For the same period, we also recorded $1,745 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives.

For the year ended December 31, 2024, we recorded $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits.

FAQ

How did Magnachip Semiconductor (MX) perform in Q4 2025?

Magnachip reported Q4 2025 revenue of $40.6 million, down 11.7% sequentially and 20.7% year-over-year. Gross margin from continuing operations declined to 9.3%, leading to an operating loss of $12.4 million and a loss from continuing operations of $8.8 million, or $0.24 per share.

What were Magnachip Semiconductor’s full-year 2025 results?

For 2025, Magnachip posted revenue from continuing operations of $178.9 million, down 8.9% from 2024. Gross margin was 17.6%, and operating loss widened to $35.9 million. Loss from continuing operations improved to $14.2 million, or $0.39 per share, compared with 2024.

What guidance did Magnachip Semiconductor (MX) provide for Q1 2026?

Magnachip expects Q1 2026 consolidated revenue from continuing operations of $44.0–48.0 million, which would be up 13.4% sequentially at the midpoint. The company guides gross margin from continuing operations to 14–16%, higher than Q4 2025’s 9.3% but below Q1 2025’s 20.9% level.

How is Magnachip’s cash position and balance sheet at year-end 2025?

At December 31, 2025, Magnachip held $103.8 million in cash and cash equivalents, down from $138.6 million a year earlier. Total assets were $351.5 million and total liabilities $103.3 million, resulting in stockholders’ equity of $248.3 million on the balance sheet.

What strategic and cost actions did Magnachip (MX) take in 2025?

In 2025, Magnachip launched 55 new-generation products, up from four in 2024, and signed a strategic IGBT technology agreement with Hyundai Mobis. The company executed cost reduction programs, including headcount reductions, targeting more than $2 million in annualized savings starting in Q4 2025.

How did Magnachip’s Communications product revenue trend in Q4 2025?

Magnachip’s Communications product revenue grew strongly, rising 24% sequentially and 68% year-over-year in Q4 2025. This growth came despite overall revenue declines and helped illustrate demand in targeted end markets, even as the broader Power Solutions business experienced margin and volume pressure.

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