Financial Data and Key Metrics Changes - Net revenues decreased from $2.6 million for Q3 2024 to $0.4 million for Q3 2025, primarily due to a $1.6 million decline in product sales [9] - Cost of net revenue increased by 50% from $1 million in Q3 2024 to $1.5 million in Q3 2025, attributed to additional production overhead and a $0.5 million write-down of slow-moving 4G LTE inventory [10] - Gross margin for Q3 2025 was negative, reflecting insufficient product revenue to cover production overhead costs [10] - Research and development expenses decreased by 23% from $4.2 million in Q3 2024 to $3.3 million in Q3 2025 [11] - General and administrative expenses increased by 64% from $2.4 million in Q3 2024 to $3.9 million in Q3 2025, mainly due to higher stock-based compensation and personnel costs [12] Business Line Data and Key Metrics Changes - The company recognized its first 5G product revenue this quarter, marking a significant milestone in its commercialization path [3][9] - The initial demand for the 5G chipset has exceeded 2,500 units, indicating strong engagement from lead customers [5] Market Data and Key Metrics Changes - Gogo, the first 5G network operator, is set to activate full service before year-end 2025, representing a significant commercial deployment using GCT's 5G chipset [4] - The company is preparing for increased production and shipment volumes in late Q4 2025, aligning with customer launches [6] Company Strategy and Development Direction - The focus remains on scaling production efficiently and ensuring alignment with supply chain partners to support the transition to volume production and sustained 5G sales [8] - The company has secured $10.7 million in debt financing to accelerate production readiness and support working capital requirements [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving break-even adjusted EBITDA by Q3 2026, with positive cash flow expected in Q4 2026 [18] - The company anticipates substantial margin improvements as 5G product sales increase significantly starting in Q1 2026 [11] Other Important Information - The company ended the quarter with cash and cash equivalents of $8.3 million, net accounts receivable of $3.7 million, and net inventory of $1.9 million [12] Q&A Session Summary Question: What volumes are expected to ship later this year? - The company expects to ship around 2,500 units, which includes both shipped and backlogged orders for Q4 [15] Question: How will customer shipments evolve in Q1? - The company is adding more wafers to significantly increase supply in Q1, supporting ongoing demand from Airspan and other customers [17] Question: What is the confidence level for reaching break-even adjusted EBITDA? - The company has been tracking adjusted EBITDA trends and anticipates reaching break-even by Q3 2026, with positive cash flow in Q4 2026 [18] Question: How is pricing holding up for the 5G products? - The company is seeing prices both above and below the expected average selling price, which remains a good benchmark [19] Question: What are the key focus areas for preparing the supply chain for higher volume production? - Key areas include ensuring wafer production starts early, having proper testing in place, and preparing assembly houses for increased demand [21]

Financial Performance - GCT Semiconductor reported initial 5G product revenue of $0.4 million in Q3 2025, an 84.0% decrease from $2.6 million in Q3 2024[11] - Total operating expenses increased by 9.0% to $8.2 million in Q3 2025, compared to $7.5 million in Q3 2024[11] - GCT's gross margin for Q3 2025 is negative, as current product revenue is insufficient to cover production overhead costs[11] - The company reported a net loss of $13.8 million for Q3 2025, compared to a net loss of $7.1 million in Q3 2024[11] 5G Product Development - The company has received over 2,500 initial 5G chipset orders, indicating strong early demand as it prepares for commercialization[5] - GCT expects to commence commercial shipments of 5G chipsets in late Q4 2025 or early Q1 2026[7] - The company secured $10.7 million in debt financing in September 2025 to accelerate production readiness for 5G chipsets[5] Financial Position - As of September 30, 2025, GCT had cash and cash equivalents of $8.3 million, net accounts receivable of $3.7 million, and inventory of $1.9 million[6] - Total assets increased to $24.3 million as of September 30, 2025, up from $19.9 million at the end of 2024[15] - GCT's total liabilities rose to $104.4 million as of September 30, 2025, compared to $79.2 million at the end of 2024[15]

5G Product Development and Market Outlook - The company anticipates first production shipments of its 5G products starting late in Q4 2025 or early Q1 2026, with expected average sales prices for 5G chipsets being approximately four times that of 4G chipsets [161]. - The company has successfully developed and supplied communication semiconductor chipsets and modules to leading wireless operators and OEMs, focusing on high-speed wireless communication technologies including 5G [158]. - The company plans to expand its product lineup to support future applications such as vehicle-to-everything standards and 5G-based satellite communication [161]. - The company expects continued demand for its existing 4G LTE product lineup, as 4G products are projected to coexist with 5G products at lower price points for some time [161]. - The company’s current product portfolio includes RF and modem chipsets differentiated by speed and functionality, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro [160]. Financial Performance - Net revenues decreased by $2.2 million, or 84%, from $2.6 million for the three months ended September 30, 2024 to $0.4 million for the three months ended September 30, 2025 [189]. - Product sales decreased by $1.6 million, or 91%, from $1.7 million for the three months ended September 30, 2024 to $0.1 million for the three months ended September 30, 2025 [190]. - Service revenues decreased by $0.6 million, or 68%, from $0.9 million for the three months ended September 30, 2024 to $0.3 million for the three months ended September 30, 2025 [191]. - For the nine months ended September 30, 2025, net revenues decreased by $5.2 million, or 71%, from $7.3 million for the nine months ended September 30, 2024 to $2.1 million [203]. - The company reported a net loss of $34.4 million for the nine months ended September 30, 2025, compared to a net loss of $12.4 million for the year ended December 31, 2024 [221]. Operating Expenses - Total operating expenses increased by $0.7 million, or 9%, from $7.5 million for the three months ended September 30, 2024 to $8.2 million for the three months ended September 30, 2025 [198]. - General and administrative expenses increased by $1.5 million, or 64%, from $2.4 million for the three months ended September 30, 2024 to $3.9 million for the three months ended September 30, 2025 [198]. - Research and development expenses decreased by $1.0 million, or 23%, from $4.2 million for the three months ended September 30, 2024 to $3.3 million for the three months ended September 30, 2025 [196]. - General and administrative expenses increased by $1.9 million, or 23%, from $8.1 million for the nine months ended September 30, 2024, to $9.9 million for the nine months ended September 30, 2025 [212]. Cash Flow and Financing Activities - Cash used in operating activities decreased from $28.7 million for the nine months ended September 30, 2024, to $23.5 million for the nine months ended September 30, 2025 [234]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $31.1 million, consisting of $21.8 million from borrowings and $11.0 million from the issuance of common stock [239]. - The company sold an aggregate of 2,438,737 shares of common stock for $9.9 million under an equity line of credit facility with B. Riley through September 30, 2025 [222]. - The company raised approximately $11.0 million from a registered direct offering, selling 7,006,370 shares of common stock and warrants [224]. - Cash used in operating activities for the nine months ended September 30, 2024, was $28.7 million, primarily due to a net loss of $7.4 million and non-cash adjustments of $12.2 million [237]. Risks and Industry Trends - The company relies on third-party foundries for manufacturing, with no formal agreements guaranteeing minimum manufacturing capacity, which poses risks during periods of high demand [171]. - The semiconductor industry has historically experienced cyclicality, with downturns potentially leading to declines in demand, production overcapacity, and price erosion [167]. - The provision for credit losses increased to $2.6 million as of September 30, 2025, compared to $1.2 million as of December 31, 2024 [252]. Other Financial Metrics - Interest expense increased by $1.1 million, or 167%, from $0.7 million for the three months ended September 30, 2024 to $1.8 million for the three months ended September 30, 2025 [199]. - Gross margin for the nine months ended September 30, 2025 is negative and not meaningful, compared to a gross margin of 61% for the same period in 2024 [209]. - Interest expense rose by $0.9 million, or 25%, from $3.5 million for the nine months ended September 30, 2024, to $4.4 million for the nine months ended September 30, 2025, primarily due to increased outstanding debt [214]. - Cash used in investing activities during the nine months ended September 30, 2025, and 2024, was solely related to the purchases of property and equipment [238]. Company Structure and Compliance - The company has material commitments and contractual obligations, including leases and research and development agreements, with various operating leases expiring through 2028 [242]. - The company is classified as a "smaller reporting company" and has elected to take advantage of scaled disclosures available to such companies [260].

Company Overview - GCT Semiconductor Holding, Inc. is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions [6] - The company's solutions enable fast and reliable 4G LTE connectivity for various commercial devices, including CPEs, mobile hotspots, routers, M2M applications, and smartphones [6] - GCT's system-on-chip solutions integrate radio frequency, baseband modem, and digital signal processing functions, providing complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness [6] Upcoming Events - GCT's management team will present at the 2025 Annual Gateway Conference on September 3rd at 9:00 a.m. Pacific Time at the Four Seasons Hotel in San Francisco, CA [2] - The presentation will be available as a webcast and GCT executives will be available for one-on-one meetings on September 3-4 [2] - GCT will also participate in the H.C. Wainwright 27th Annual Global Investment Conference on September 8th at the Lotte New York Palace Hotel, NY, with executives available for one-on-one meetings throughout the day [4]

Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a significant negative outlook for these companies [1][2][3] Company Summaries - **SoundThinking, Inc. (SSTI)**: A public safety technology company that provides solutions and advisory services for law enforcement. The Zacks Consensus Estimate for its current year earnings has been revised downward by 80.8% over the last 60 days [1] - **INPLAY OIL CP (IPOOF)**: Engaged in exploring, developing, and producing oil and natural gas, primarily in western Canada. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 78.3% over the last 60 days [2] - **GCT Semiconductor Holding, Inc. (GCTS)**: A fabless designer and supplier of advanced semiconductor solutions for LTE, IoT, and 5G technologies. The Zacks Consensus Estimate for its current year earnings has been revised downward by almost 62.5% over the last 60 days [3]

Financial Performance - GCT Semiconductor Holding, Inc. reported a quarterly loss of $0.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and compared to a loss of $0.02 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $1.18 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 47.7%, and down from $1.47 million in the same quarter last year [2] - Over the last four quarters, GCT Semiconductor has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - GCT Semiconductor shares have lost approximately 41.6% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $6.97 million, and for the current fiscal year, it is -$0.48 on revenues of $20.92 million [7] Industry Outlook - The Electronics - Semiconductors industry, to which GCT Semiconductor belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GCT Semiconductor's stock performance [5]

Financial Data and Key Metrics Changes - Net revenues decreased by $300,000 or 19% from $1,500,000 for the three months ended June 30, 2024, to $1,200,000 for the three months ended June 30, 2025 [7] - Cost of net revenues increased by $300,000 or 47% from $500,000 for the three months ended June 30, 2024, to $2,800,000 for the three months ended June 30, 2025 [8] - Gross margin decreased to 32% for the three months ended June 30, 2025, from 63% for the three months ended June 30, 2024 [8] Business Line Data and Key Metrics Changes - Service revenue decreased by $700,000, partially offset by an increase of $400,000 in product sales driven by four GS chipset sales [7] - Research and development expenses decreased by $700,000 or 16% from $4,200,000 for the three months ended June 30, 2024, to $3,500,000 for the three months ended June 30, 2025 [9] - General and administrative expenses increased by $600,000 or 20% from $2,900,000 for the three months ended June 30, 2024, to $3,400,000 for the three months ended June 30, 2025 [9] Market Data and Key Metrics Changes - The average selling price of the five GS chipset is expected to be roughly four times that of traditional four GS products [6] Company Strategy and Development Direction - The company is focused on the commercialization of its five GS chipset, with initial samples delivered to lead customers and production expected to commence in the third quarter [4][5] - Collaboration with Iridium Communications and G plus D aims to enhance the five G platform and expand into non-terrestrial network space [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a stronger end of the year as five GS chipset sales are expected to commence soon [6] - The company anticipates operational efficiencies to improve as revenue increases with the transition to five GS product sales [8] Other Important Information - The company ended the quarter with cash and cash equivalents of $1,300,000, net accounts receivable of $3,800,000, and net inventory of $3,000,000 [10] - The company received $11,000,000 in gross proceeds from a registered direct offering, primarily used for five GS chipset sampling and debt retirement [10] Q&A Session Summary - No questions were raised during the Q&A session, and the meeting concluded without any inquiries [14]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides GCT Semiconductor's unaudited condensed consolidated financial statements and detailed notes for Q2 2025 and prior periods [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details GCT Semiconductor's assets, liabilities, and stockholders' deficit for the reported periods Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | **Assets** | | | | Total current assets | $15,746 | $17,591 | | Total assets | $17,619 | $19,897 | | **Liabilities** | | | | Total current liabilities | $74,044 | $60,922 | | Total liabilities | $87,595 | $79,212 | | **Stockholders' Deficit** | | | | Total stockholders' deficit | $(69,976) | $(59,315) | - Total assets decreased by **$2,278 thousand** from December 31, 2024, to June 30, 2025, primarily due to a decrease in current assets[15](index=15&type=chunk) - Total liabilities increased by **$8,383 thousand**, driven by a significant increase in current liabilities, particularly borrowings and current convertible promissory notes[15](index=15&type=chunk) - Stockholders' deficit worsened by **$10,661 thousand**, reflecting accumulated losses[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents GCT Semiconductor's revenues, expenses, and net loss for the reported periods Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net revenues | $1,182 | $1,468 | $1,678 | $4,733 | | Gross profit | $378 | $921 | $466 | $2,874 | | Total operating expenses | $7,970 | $8,000 | $15,798 | $2,717 | | Loss from operations | $(7,592) | $(7,079) | $(15,332) | $157 | | Net loss | $(13,538) | $(1,043) | $(20,506) | $(286) | | Basic and diluted net loss per common share | $(0.26) | $(0.02) | $(0.41) | $(0.01) | - Net revenues decreased by **19%** for the three months ended June 30, 2025, and by **65%** for the six months ended June 30, 2025, compared to the respective prior-year periods[17](index=17&type=chunk) - Net loss significantly increased to **$(13,538) thousand** for Q2 2025 from **$(1,043) thousand** for Q2 2024, and to **$(20,506) thousand** for YTD 2025 from **$(286) thousand** for YTD 2024[17](index=17&type=chunk) - Operating expenses for the six months ended June 30, 2025, increased by **481%** to **$15,798 thousand**, largely due to the absence of a significant gain on extinguishment of liability recognized in the prior year[17](index=17&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents GCT Semiconductor's comprehensive income or loss, including foreign currency adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(13,538) | $(1,043) | $(20,506) | $(286) | | Foreign currency translation adjustment | $(1,692) | $708 | $(1,743) | $1,772 | | Comprehensive income (loss) | $(15,230) | $(335) | $(22,249) | $1,486 | - Comprehensive loss significantly increased for both the three and six months ended June 30, 2025, primarily driven by the increased net loss and negative foreign currency translation adjustments[20](index=20&type=chunk) [Condensed Consolidated Statements of Stockholders' Deficit](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit) This section details changes in GCT Semiconductor's stockholders' deficit for the reported periods Condensed Consolidated Statements of Stockholders' Deficit (in thousands) | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Common Stock (shares) | 47,987 | 55,784 | | Common Stock (amount) | $5 | $6 | | Additional Paid-In Capital | $501,195 | $512,782 | | Accumulated Other Comprehensive Income (Loss) | $1,518 | $(225) | | Accumulated Deficit | $(562,033) | $(582,539) | | Total Stockholders' Deficit | $(59,315) | $(69,976) | - The total stockholders' deficit increased from **$(59,315) thousand** at December 31, 2024, to **$(69,976) thousand** at June 30, 2025, primarily due to net losses incurred[23](index=23&type=chunk) - Additional paid-in capital increased by **$11,587 thousand**, reflecting proceeds from common stock issuances, including a registered direct offering and at-market agreement[23](index=23&type=chunk) - Common stock shares outstanding increased from **47,987 thousand** to **55,784 thousand**, driven by various equity issuances[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents GCT Semiconductor's cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(16,589) | $(24,062) | | Net cash used in investing activities | $(209) | $(131) | | Net cash provided by financing activities | $16,128 | $27,860 | | Net increase (decrease) in cash and cash equivalents | $(169) | $3,777 | | Cash and cash equivalents at end of period | $1,266 | $4,035 | - Net cash used in operating activities decreased from **$(24,062) thousand** in H1 2024 to **$(16,589) thousand** in H1 2025[26](index=26&type=chunk) - Net cash provided by financing activities decreased from **$27,860 thousand** in H1 2024 to **$16,128 thousand** in H1 2025, reflecting lower proceeds from reverse recapitalization and convertible notes compared to the prior year[26](index=26&type=chunk) - Cash and cash equivalents at the end of the period decreased to **$1,266 thousand** as of June 30, 2025, from **$4,035 thousand** as of June 30, 2024[26](index=26&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of GCT Semiconductor's accounting policies and financial components [1. Organization and Liquidity](index=11&type=section&id=1.%20Organization%20and%20Liquidity) GCT Semiconductor, a fabless 5G/4G company, faces going concern doubts due to a **$582.5 million accumulated deficit** and **$1.3 million cash**, despite recent equity funding - GCT Semiconductor Holding, Inc. is a fabless semiconductor company focused on 5G/4G communication technologies[28](index=28&type=chunk) - The company completed a reverse recapitalization on March 26, 2024, and its common stock trades on the NYSE under 'GCTS'[29](index=29&type=chunk)[30](index=30&type=chunk) - As of June 30, 2025, the company had an accumulated deficit of **$582.5 million** and cash and cash equivalents of **$1.3 million**, indicating substantial doubt about its going concern ability[31](index=31&type=chunk) - Common Stock Purchase Agreement (B. Riley): Right

[Company Announcement & Overview](index=1&type=section&id=Company%20Announcement%20%26%20Overview) [Introduction & Key Highlights](index=1&type=section&id=Introduction%20%26%20Key%20Highlights) GCT Semiconductor announced Q2 2025 results, highlighting 5G chipset sample deliveries and an $11 million offering for 5G development - GCT Semiconductor has delivered initial **5G chipset samples** to key customers and is preparing for mass production and volume shipments in the second half of fiscal year 2025[1](index=1&type=chunk)[3](index=3&type=chunk) - The company completed an **$11 million** registered direct offering, with proceeds allocated for 5G chipset sampling and debt repayment[3](index=3&type=chunk)[5](index=5&type=chunk) [Second Quarter 2025 Financial Snapshot](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Snapshot) GCT Semiconductor's Q2 2025 saw a year-over-year decline in net revenue and a significant drop in gross margin Second Quarter 2025 Financial Snapshot | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :----- | :--------------------- | :--------------------- | :--------- | | Net Revenue | $1.2 | $1.5 | -19.0% | | Gross Margin | 32.0% | 62.7% | -30.7 percentage points | [Business Developments & Strategy](index=1&type=section&id=Business%20Developments%20%26%20Strategy) [2025GCT – Year of 5G Program Update and other Highlights](index=1&type=section&id=2025GCT%20%E2%80%93%20Year%20of%205G%20Program%20Update%20and%20other%20Highlights) GCT's 'Year of 5G' program advances with 5G chipset evaluations, sample deliveries, and supply chain coordination - Successfully completed initial **5G chipset evaluations** and initiated supply chain coordination for mass production[5](index=5&type=chunk) - Delivered initial **5G chipset samples** to key customers, including Orbic North America and Airspan Networks, with more samples to follow for initial demand[5](index=5&type=chunk) [Strategic Collaborations & Capital Activities](index=1&type=section&id=Strategic%20Collaborations%20%26%20Capital%20Activities) GCT expanded market reach through Iridium and Giesecke+Devrient partnerships, raising $11 million for 5G and debt - Partnered with Iridium Communications Inc. to integrate **Iridium NTN Direct℠ services** into GCT's GDM7243SL chipset, expanding into the non-terrestrial market[5](index=5&type=chunk) - Collaborated with Giesecke+Devrient to launch innovative **eSIM solutions** for IoT devices[5](index=5&type=chunk) - Completed an **$11 million** registered direct offering, with net proceeds partially used for 5G chipset sampling and debt repayment[5](index=5&type=chunk) [Financial Performance & Position](index=2&type=section&id=Financial%20Performance%20%26%20Position) [Detailed Second Quarter 2025 Financial Results](index=5&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Results) GCT Semiconductor reported a **$13.5 million** net loss in Q2 2025, due to revenue decline, foreign exchange losses, and higher interest expense Consolidated Statements of Operations (Three Months Ended June 30, Thousands USD) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total Net Revenue | $1,182 | $1,468 | -19.5% | | Product Revenue | $408 | $18 | +2166.7% | | Service Revenue | $774 | $1,450 | -46.6% | | Gross Profit | $378 | $921 | -59.0% | | Total Operating Expenses | $7,970 | $8,000 | -0.4% | | Operating (Loss) | $(7,592) | $(7,079) | -7.2% | | Interest Expense | $(1,532) | $(760) | +101.6% | | Foreign Exchange Transaction (Loss) Net | $(3,217) | $816 | N/A (from gain to loss) | | Net Loss | $(13,538) | $(1,043) | +1197.9% | | Basic and Diluted Loss Per Share | $(0.26) | $(0.02) | +1200.0% | [Liquidity and Capital Resources](index=2&type=section&id=Liquidity) GCT's June 30, 2025 liquidity included cash, receivables, and inventory, supplemented by ATM offering and S-3 registration capacity Liquidity Position (As of June 30, 2025) | Asset Category | Amount (Millions USD) | | :------------- | :-------------------- | | Cash and Cash Equivalents | $1.3 | | Net Accounts Receivable | $3.8 | | Inventory | $3.0 | - The company has access to an effective **ATM offering program of up to $75 million** and approximately **$114 million** remaining under its **$200 million S-3 registration statement**[6](index=6&type=chunk) [Outlook & Corporate Information](index=2&type=section&id=Outlook%20%26%20Corporate%20Information) [5G Outlook](index=2&type=section&id=5G%20Outlook) GCT Semiconductor expects to begin production of initial 5G chipsets in Q3 2025, with mass shipments planned for Q4 2025 - Production of finalized initial **5G chipsets** is anticipated to commence in Q3 2025[7](index=7&type=chunk) - Mass shipments of **5G chipsets** are projected to begin in Q4 2025[7](index=7&type=chunk) [About GCT Semiconductor Holding, Inc.](index=2&type=section&id=About%20GCT%20Semiconductor%20Holding%2C%20Inc.) GCT Semiconductor is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions for commercial devices - GCT is a leading fabless designer and supplier of advanced **5G and 4G LTE semiconductor solutions**[10](index=10&type=chunk) - Its system-on-chip solutions integrate RF, baseband modem, and digital signal processing functions, offering complete **4G and 5G platform solutions**[10](index=10&type=chunk) [Conference Call & Investor Relations](index=2&type=section&id=Conference%20Call) GCT Semiconductor will host an August 12, 2025 conference call and webcast to discuss business and financial results, with investor contacts provided - A conference call and webcast are scheduled for **Tuesday, August 12, 2025, at 4:30 PM ET**, to discuss business updates and financial results[8](index=8&type=chunk) - Investor Relations contact: Gateway Group, Ralf Esper, GCT@gateway-grp.com. Media contact: media@gctsemi.com[14](index=14&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section cautions on forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ - Forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from expected outcomes[13](index=13&type=chunk) - Factors include the company's ability to develop 5G products, fulfill partnership obligations, manage growth, raise sufficient capital, and meet market demand[13](index=13&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show a decrease in total assets and an increase in total liabilities from December 2024 to June 2025 Consolidated Balance Sheet Highlights (Thousands USD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Total Assets | $17,619 | $19,897 | $(2,278) | | Total Liabilities | $87,595 | $79,212 | $8,383 | | Total Stockholders' Deficit | $(69,976) | $(59,315) | $(10,661) | | Current Assets | $15,746 | $17,591 | $(1,845) | | Current Liabilities | $74,044 | $60,922 | $13,122 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations show a significant increase in net loss for both periods, driven by revenue decline and increased expenses Consolidated Statements of Operations (Six Months Ended June 30, Thousands USD) | Metric | 2025 | 2024 | YoY Change | | :-------------------- | :----- | :----- | :--------- | | Total Net Revenue | $1,678 | $4,733 | -64.6% | | Product Revenue | $499 | $2,396 | -79.2% | | Service Revenue | $1,179 | $2,337 | -49.6% | | Gross Profit | $466 | $2,874 | -83.8% | | Total Operating Expenses | $15,798 | $2,717 | +481.5% | | Operating (Loss) | $(15,332) | $157 | N/A (from gain to loss) | | Net Loss | $(20,506) | $(286) | +7069.9% | | Basic and Diluted Loss Per Share | $(0.41) | $(0.01) | +4000.0% |

Group 1: Earnings Performance - GCT Semiconductor Holding, Inc. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of -50% [1] - The company posted revenues of $0.5 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 73.48%, compared to revenues of $3.27 million a year ago [2] - Over the last four quarters, GCT Semiconductor has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - GCT Semiconductor shares have declined approximately 27.9% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.11 on revenues of $3.2 million, and -$0.25 on revenues of $37.18 million for the current fiscal year [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which GCT Semiconductor belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact GCT Semiconductor's stock performance [5] - The Zacks Rank for GCT Semiconductor is currently 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6]