ON Semiconductor(ON) - 2025 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2025 was $1,445.7 million, a decrease of 16% sequentially and 22% year-over-year[2]. - Operating loss was $573.7 million, with a GAAP operating margin of (39.7)% compared to 23.7% in Q4 2024[2]. - Net loss attributable to ON Semiconductor Corporation was $486.1 million, resulting in a diluted loss per share of $(1.15)[3]. - Net income for the quarter was a loss of $485.2 million, compared to a profit of $379.8 million in the same quarter last year[20]. - GAAP net income for the quarter ended April 4, 2025, was $(486.1) million, compared to $379.9 million for the previous quarter[25]. - Non-GAAP net income attributable to ON Semiconductor Corporation for the quarter ended April 4, 2025, was $231.6 million, a decrease from $404.2 million in the previous quarter[25]. Margins and Profitability - GAAP gross margin was 20.3%, down from 45.2% in Q4 2024 and 45.8% in Q1 2024; non-GAAP gross margin was 40.0%[3]. - Non-GAAP gross profit was $578.5 million, down from $780.7 million, reflecting a decrease of 26% year-over-year[22]. - Non-GAAP operating income was $264.0 million, down from $459.4 million, indicating a decline of approximately 42.5% year-over-year[22]. - Total special items impacting GAAP net income for the quarter included $717.7 million in restructuring-related charges[25]. Cash Flow and Shareholder Returns - Free cash flow increased by 72% year-over-year to $455 million, representing 31% of revenue[3]. - The company returned 66% of its first quarter free cash flow to stockholders through share repurchases[1]. - Free cash flow for the quarter ended April 4, 2025, was $454.7 million, up from $422.4 million in the previous quarter[29]. - Cash flows from operating activities generated $602.3 million, an increase from $579.7 million in the previous year[20]. - Net cash provided by operating activities for the quarter ended April 4, 2025, was $602.3 million, an increase from $579.7 million in the previous quarter[29]. Assets and Liabilities - Total assets decreased to $13,253.9 million from $14,089.8 million, a decline of approximately 5.9% year-over-year[18]. - Total liabilities decreased to $5,205.0 million from $5,275.3 million, a reduction of approximately 1.3% year-over-year[18]. - Ending cash, cash equivalents, and restricted cash increased to $2,765.2 million from $2,693.4 million, marking a rise of 2.7%[20]. Future Projections - Projected revenue for Q2 2025 is expected to be between $1,400 million and $1,500 million[6]. - Projected GAAP gross margin for Q2 2025 is estimated to be between 36.4% and 38.4%[6]. - The company expects to maintain a normalized non-GAAP effective tax rate of 16% through 2025[36]. Strategic Focus - The company continues to see strong design win momentum with major global customers across all end-markets[1]. - onsemi is focused on long-term value creation while investing in future growth opportunities[1]. Stock Repurchase and Compensation - The company repurchased common stock worth $300.1 million during the quarter, compared to $204.1 million in the same quarter last year[20]. - Share-based compensation totaled $33.9 million for the quarter ended April 4, 2025, compared to $38.1 million in the previous quarter[28].