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Jun 30, 2025
MagnaChip Q2 2025 Earnings Report
Magnachip reported its financial results for the second quarter of 2025, showing continued year-over-year revenue growth from continuing operations, primarily driven by strong performances in its Power Analog Solutions and Power IC businesses.
Key Takeaways
Magnachip delivered its fifth consecutive quarter of year-over-year revenue growth from continuing operations, with consolidated revenue increasing 8.1% to $47.6 million, exceeding guidance. This growth was primarily fueled by strong demand in Power Analog Solutions for communications and computing applications, and Power IC products. Despite the positive quarter, the company anticipates a softer second half of the year due to tariffs and pricing pressures, leading to a revised full-year revenue forecast of flattish growth.
Consolidated revenue from continuing operations increased 8.1% year-over-year to $47.6 million, surpassing the mid-point of guidance.
Power Analog Solutions (PAS) revenue from communication applications grew 46.7% year-over-year, and computing applications revenue grew 45.1% year-over-year.
Power IC (PIC) business revenue increased 11.1% year-over-year, driven by strength in TV-LED and OLED power ICs.
The company secured 71 design-wins in Q2, a 61% increase from the prior year, including new generation Super Junction products and low-voltage MOSFETs.
Revenue by Segment
Forward Guidance
Magnachip expects Q3 2025 consolidated revenue from continuing operations to be in the range of $44 million to $48 million, and consolidated gross profit margin to be between 18.5% and 20.5%. For the full-year 2025, consolidated revenue from continuing operations is now expected to be flattish, with a gross profit margin between 19% and 20%.
Positive Outlook
- Continued focus on developing new generation, feature-rich power products expected to command higher prices and margins.
- Commitment to the '3-3-3 strategy' aiming for $300 million in revenue with 30% gross margin.
- Proactive structural actions being taken to optimize operational efficiency.
- Strong design-win momentum, indicating future product adoption.
Challenges Ahead
- Anticipated softer second half of the year compared to prior expectations.
- Revised full-year 2025 revenue forecast to be flattish, down from previous mid-to-high single-digit growth outlook.
- Uncertain environment due to tariffs, particularly impacting China.
Revenue & Expenses
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