GCT Semiconductor (NYSE:GCTS) Q4 2025 Earnings call March 25, 2026 04:30 PM ET Company ParticipantsEdmond Cheng - CFOJohn Schlaefer - CEOConference Call ParticipantsCraig Ellis - Director of Research and Senior Semiconductor AnalystLisa Thompson - Senior Technology AnalystOperatorGood afternoon. Thank you for attending GCT Semiconductor Holding, Inc.'s fourth quarter and full year 2025 financial results call. All lines will be muted during the presentation portion of the call with an opportunity for questio ...

GCT Semiconductor (NYSE:GCTS) Q4 2025 Earnings call March 25, 2026 04:30 PM ET Company ParticipantsEdmond Cheng - CFOJohn Schlaefer - CEOConference Call ParticipantsCraig Ellis - Director of Research and Senior Semiconductor AnalystLisa Thompson - Senior Technology AnalystOperatorGood afternoon. Thank you for attending GCT Semiconductor Holding, Inc.'s Q4 and full year 2025 financial results call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answe ...

GCT Semiconductor (NYSE:GCTS) Q4 2025 Earnings call March 25, 2026 04:30 PM ET Speaker4Good afternoon. Thank you for attending GCT Semiconductor Holding, Inc.'s fourth quarter and full year 2025 financial results call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Joining the call today are John Schlaefer, GCT's Chief Executive Officer, and Edmond Cheng, CFO, to discuss our fourth quarter and full year 2025 results. During this ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-41013 GCT Semiconductor Holding, Inc. (Exact name of Registrant as specified in its Charter) | Delaware | 86-217169 ...

SAN JOSE, CA – March 25, 2026 – GCT Semiconductor Holding, Inc. ("GCT" or the "Company") (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, today provided an update on business developments and reported financial results for the fourth quarter and full year ended December 31, 2025. Recent Operational Highlights "2025 was a defining year for GCT as we achieved key milestones toward commercialization and full-scale 5G deployment," said John Schlaefer, Chief Executive ...

Core Insights - GCT Semiconductor is showcasing its latest 5G and IoT capabilities at the Mobile World Congress (MWC) 2026 in Barcelona, emphasizing advancements in 5G, NTN, eMMB, and IoT for both terrestrial and satellite networks [1] - The company aims to deliver high performance, lower power consumption, and superior connectivity through its new 5G platform, which is designed for a wide range of devices [1] - GCT is collaborating with partners such as Skylo, Movandi, Smawave, Gemtek, TMY Technology, and Unitac to display an expanding portfolio of 5G modules and IoT solutions [1] Company Overview - GCT Semiconductor is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions, providing connectivity for various commercial devices [1] - The company's system-on-chip solutions integrate radio frequency, baseband modem, and digital signal processing functions, offering complete 4G and 5G platform solutions characterized by small form factors, low power consumption, high performance, high reliability, and cost-effectiveness [1] Industry Context - The Mobile World Congress serves as a premier global stage for wireless innovation, where GCT aims to demonstrate how its latest chipsets and modules are enabling the next wave of connected devices [1] - The partnership with Skylo Technologies aims to enhance global satellite connectivity, covering 36 countries and 70 million square kilometers, indicating a significant push towards next-generation satellite communication [2]

Group 1 - GCT Semiconductor Holding, Inc. (NYSE:GCTS) is recognized as one of the best semiconductor penny stocks to buy, with a Buy rating and a price target of $3 from H.C. Wainwright [1] - The company reported its first commercial shipment of a 5G chipset to lead customers, marking a significant milestone in its revenue growth trajectory for 5G [2] - The launch of GoGo's 5G air-to-ground network is expected to enhance demand for GCT Semiconductor's 5G technology, positioning the company for expanded commercialization and market penetration in 2026 and beyond [3] Group 2 - CEO John Schlaefer noted positive customer feedback and strong interest in various 5G applications, indicating a robust market response to the company's offerings [4]

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].