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Mar 31
GCT Q1 2025 Earnings Report
GCT Semiconductor reported a sharp revenue decline and widened net loss in Q1 2025 as it ramped up investment in its 5G transition strategy.
Key Takeaways
GCT Semiconductor posted $0.5 million in revenue for Q1 2025, down 84.8% year-over-year, with a gross margin of 17.7%. The company reported a net loss of $7.0 million and continued to invest in R&D and operational alignment ahead of its 5G chipset launch, which is expected to begin sampling in late May 2025.
Revenue fell to $0.5 million, an 84.8% decline from Q1 2024.
Gross margin was 17.7%, down from 59.8% YoY.
Net loss widened to $7.0 million due to lower revenue and absence of one-time gain seen in Q1 2024.
Cash and cash equivalents stood at $1.0 million at quarter-end.
GCT
GCT
GCT Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
GCT anticipates 5G chipset sampling to begin at the end of May 2025, expecting revenue and gross margin to increase in H2 2025 as volume shipments commence.
Positive Outlook
- Finalized 5G chipsets completed and under internal evaluation
- Sampling to customers expected by end of May 2025
- Signed LOI with Orbic to co-develop 5G hotspot and FWA gateway
- 5G ASP projected to be 4x higher than 4G offerings
- Filed $200M shelf registration for financial flexibility
Challenges Ahead
- Revenue significantly declined YoY amid 4G-to-5G transition
- Gross margin dropped over 42 percentage points YoY
- Operating expenses exceeded revenue by over 15x
- Cash balance remains low at $1.0 million
- Net loss widened due to lack of one-time gains seen last year
Revenue & Expenses
Visualization of income flow from segment revenue to net income