AOS(AOSL) - 2025 Q4 - Annual Results

Introduction This section introduces Alpha and Omega Semiconductor (AOS) and announces its financial results for fiscal Q4 and full year 2025 Report Announcement Alpha and Omega Semiconductor Limited (AOS) reported financial results for the fiscal fourth quarter and fiscal year ended June 30, 2025[1] About Alpha and Omega Semiconductor AOS is a global supplier of power semiconductor devices, including discrete power devices, wide bandgap power devices, power management ICs, and modules, leveraging integrated technology for high-performance solutions - AOS designs, develops, and supplies a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules[19] - The company's product portfolio includes Power MOSFET, SiC, IGBT, IPM, TVS, HV Gate Drivers, Power IC, and Digital Power products[19] - AOS differentiates itself by integrating its semiconductor process technology, product design, and advanced packaging know-how to develop high-performance power management solutions[19] - Target applications include personal computers, graphics cards, data centers, AI servers, smartphones, consumer and industrial motor controls, TVs, lighting, automotive electronics, and power supply units[19] Fiscal Fourth Quarter 2025 Financial Performance AOS's fiscal Q4 2025 saw revenue growth to $176.5 million, with improved sequential gross margins, a higher GAAP operating loss, but a positive non-GAAP operating income and EPS GAAP Quarterly Financial Comparison In Q4 Fiscal Year 2025, AOS reported revenue of $176.5 million, with a GAAP gross margin of 23.4%, recording a GAAP operating loss of $11.6 million and a net loss of $77.1 million, resulting in a diluted net loss per share of $2.58 GAAP Quarterly Financial Comparison | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Revenue | $176.5M | $164.6M | $161.3M | | Gross Margin | 23.4% | 21.4% | 25.7% | | Operating Loss | $(11.6)M | $(10.7)M | $(1.5)M | | Net Loss | $(77.1)M | $(10.8)M | $(2.7)M | | Net Loss Per Share - Diluted | $(2.58) | $(0.37) | $(0.09) | Non-GAAP Quarterly Financial Comparison For Q4 Fiscal Year 2025, AOS's non-GAAP results showed revenue of $176.5 million and a non-GAAP gross margin of 24.4%, achieving a non-GAAP operating income of $2.3 million and a non-GAAP net income of $0.7 million, leading to a diluted non-GAAP net income per share of $0.02 Non-GAAP Quarterly Financial Comparison | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Revenue | $176.5M | $164.6M | $161.3M | | Non-GAAP Gross Margin | 24.4% | 22.5% | 26.4% | | Non-GAAP Operating Income (Loss) | $2.3M | $(2.7)M | $3.2M | | Non-GAAP Net Income (Loss) | $0.7M | $(2.9)M | $2.6M | | Non-GAAP Net Income (Loss) Per Share - Diluted | $0.02 | $(0.10) | $0.09 | Key Financial Highlights (Q4 2025) AOS's fiscal Q4 2025 revenue reached $176.5 million, showing growth, with GAAP gross margin at 23.4% and non-GAAP at 24.4%, leading to a substantial GAAP net loss but positive non-GAAP EPS - Revenue was $176.5 million, an increase of 9.4% year-over-year and 7.2% quarter-over-quarter[11] - GAAP gross margin was 23.4%, down from 25.7% year-over-year but up from 21.4% quarter-over-quarter[11] - Non-GAAP gross margin was 24.4%, down from 26.4% year-over-year but up from 22.5% quarter-over-quarter[11] - GAAP operating loss was $11.6 million, increasing from $1.5 million year-over-year and $10.7 million quarter-over-quarter[11] - Non-GAAP operating income was $2.3 million, compared to $3.2 million year-over-year and an operating loss of $2.7 million quarter-over-quarter[11] - GAAP net loss per share was $2.58, compared to $0.37 in the prior quarter and $0.09 year-over-year[11] - Non-GAAP earnings per share was $0.02, compared to a $0.10 net loss per share in the prior quarter and $0.09 net earnings per share year-over-year[11] Management Commentary on Q4 Results CEO Stephen Chang highlighted that Q4 results met the high-end of guidance, driven by strong performance in Computing, with record A.I. and graphics revenue, and PC-related pull-ins due to tariff uncertainties, alongside continued momentum in wearables - Fiscal Q4 results were at the high-end of guidance, driven by strength in Computing, with record A.I. and graphics revenue[12] - PC-related pull-ins, a result of tariff uncertainties, also contributed to Q4 performance[12] - Continued momentum in wearables further supported the strong results[12] - The CEO underscored the company's ability to execute in a dynamic environment and the growing impact of its total solutions strategy across high-performance applications[12] Fiscal Year 2025 Financial Performance AOS's fiscal year 2025 saw revenue growth to $696.2 million, but a significant increase in GAAP operating and net losses, while non-GAAP metrics remained positive but declined GAAP Annual Financial Comparison For the fiscal year ended June 30, 2025, AOS reported revenue of $696.2 million, an increase from the prior year, but GAAP gross margin declined to 23.1%, and the company experienced a significant increase in operating loss to $28.4 million and net loss to $97.0 million, resulting in a diluted net loss per share of $3.30 GAAP Annual Financial Comparison | Metric | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $696.2M | $657.3M | | Gross Margin | 23.1% | 26.2% | | Operating Loss | $(28.4)M | $(3.8)M | | Net Loss | $(97.0)M | $(11.1)M | | Net Loss Per Share - Diluted | $(3.30) | $(0.39) | Non-GAAP Annual Financial Comparison In fiscal year 2025, AOS's non-GAAP revenue was $696.2 million, with a non-GAAP gross margin of 24.2% and non-GAAP operating income of $10.4 million, leading to a non-GAAP net income of $7.0 million and diluted non-GAAP net income per share of $0.22 Non-GAAP Annual Financial Comparison | Metric | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $696.2M | $657.3M | | Non-GAAP Gross Margin | 24.2% | 27.2% | | Non-GAAP Operating Income | $10.4M | $21.7M | | Non-GAAP Net Income | $7.0M | $18.5M | | Non-GAAP Net Income Per Share - Diluted | $0.22 | $0.62 | Business Outlook for Fiscal Q1 2026 AOS projects continued revenue growth for Fiscal Q1 2026, driven by seasonal strength and stable demand, with specific financial guidance provided for key metrics Management Outlook Management anticipates continued growth in the September quarter, driven by seasonal strength in Communications and stable demand in PCs and wearables, positioning AOS for long-term growth despite macroeconomic uncertainties - Anticipates continued growth in the September quarter, led by seasonal strength in Communications and steady demand in PCs and wearables[12] - Despite macroeconomic and geopolitical uncertainties, AOS is positioned for long-term growth through differentiated technology, broadening product portfolio, and deepening customer relationships[12] Financial Guidance For Fiscal Q1 ending September 30, 2025, AOS projects revenue to be approximately $183 million, with GAAP gross margin around 23.8% and non-GAAP gross margin around 24.4%, alongside specific operating expense and tax expense ranges Financial Guidance for Fiscal Q1 Ending September 30, 2025 | Metric | Guidance for Fiscal Q1 Ending September 30, 2025 | | :--- | :--- | | Revenue | $183 million (plus or minus $10 million) | | GAAP Gross Margin | 23.8% (plus or minus 1%) | | Non-GAAP Gross Margin | 24.4% (plus or minus 1%) | | GAAP Operating Expenses | $47.5 million (plus or minus $1 million) | | Non-GAAP Operating Expenses | $41.0 million (plus or minus $1 million) | | Interest Income vs. Expense | Interest income expected to be $0.5 million higher than interest expense | | Tax Expense | $1.0 million to $1.3 million | Consolidated Financial Statements (GAAP) The GAAP consolidated financial statements provide detailed breakdowns of AOS's operations, balance sheet, and cash flows for fiscal year 2025, highlighting significant losses and asset changes Condensed Consolidated Statements of Operations The condensed consolidated statements of operations show a fiscal year 2025 revenue of $696.2 million, with a GAAP gross margin of 23.1%, and a significant operating loss of $28.4 million and net loss of $97.0 million for the year, largely impacted by an impairment of equity method investment Condensed Consolidated Statements of Operations (in thousands) | Metric | Q4 2025 (3 Months) | FY 2025 (Year) | FY 2024 (Year) | | :--- | :--- | :--- | :--- | | Revenue | $176,484 | $696,162 | $657,274 | | Cost of goods sold | $135,194 | $535,158 | $485,356 | | Gross profit | $41,290 | $161,004 | $171,918 | | Gross margin | 23.4% | 23.1% | 26.2% | | Total operating expenses | $52,908 | $189,440 | $175,674 | | Operating loss | $(11,618) | $(28,436) | $(3,756) | | Impairment of equity method investment | $(76,784) | $(76,784) | — | | Net loss | $(77,059) | $(96,976) | $(11,081) | | Diluted Net loss per common share | $(2.58) | $(3.30) | $(0.39) | Condensed Consolidated Balance Sheets As of June 30, 2025, AOS reported total assets of $1,032.7 million, a decrease from the prior year, primarily due to a reduction in cash and cash equivalents and equity method investment, with total liabilities also decreasing to $210.4 million and total shareholders' equity at $822.3 million Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $153,079 | $175,127 | | Accounts receivable, net | $34,772 | $12,546 | | Inventories | $189,677 | $195,750 | | Total current assets | $394,551 | $398,001 | | Property, plant and equipment, net | $314,097 | $336,619 | | Equity method investment | $279,122 | $356,039 | | Total assets | $1,032,692 | $1,145,013 | | Total current liabilities | $152,896 | $154,233 | | Total liabilities | $210,360 | $253,406 | | Total shareholders' equity | $822,332 | $891,607 | Selected Cash Flow Information For fiscal year 2025, AOS generated $29.7 million in net cash from operating activities, an increase from the prior year, but used $36.4 million in investing activities and $15.5 million in financing activities, resulting in a net decrease in cash, cash equivalents, and restricted cash of $22.0 million Selected Cash Flow Information (in thousands) | Metric | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,668 | $25,710 | | Net cash used in investing activities | $(36,441) | $(35,744) | | Net cash used in financing activities | $(15,496) | $(9,903) | | Net decrease in cash, cash equivalents and restricted cash | $(22,042) | $(20,063) | | Cash, cash equivalents and restricted cash at end of year | $153,498 | $175,540 | - Consolidated cash flow used in operating activities was $2.8 million in Q4 2025, compared to $7.4 million provided in the prior quarter[16] - The Company closed Q4 2025 with $153.1 million of cash and cash equivalents[16] Non-GAAP Financial Measures and Reconciliation This section details AOS's use of non-GAAP financial measures and provides comprehensive reconciliations to their GAAP equivalents for historical periods and future outlook Use of Non-GAAP Financial Measures AOS utilizes non-GAAP financial measures to supplement its GAAP consolidated financial statements, excluding specific items not indicative of core operating results to provide a clearer view for internal performance comparison and external benchmarking - Non-GAAP measures (gross profit, gross margin, operating expenses, operating income/loss, net income/loss, diluted EPS, EBITDAS) are used to supplement GAAP statements[18] - These measures exclude items such as share-based compensation, legal and professional fees related to government investigation, amortization of purchased intangibles, impairment of long-lived assets, and equity method investment loss/income[18] - The purpose is to provide useful information to management and investors by excluding items not indicative of core operating results or normal business operations, aiding in performance comparison and benchmarking[18] - A detailed reconciliation of GAAP and non-GAAP measures is provided to address limitations and ensure transparency[18] Reconciliation of GAAP to Non-GAAP Financial Measures (Historical) The reconciliation tables detail adjustments made to GAAP figures to arrive at non-GAAP results for both quarterly and annual periods, significantly impacting gross profit, operating income, and net income, providing a different perspective on the company's underlying operational performance Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP gross profit | $41,290 | $35,177 | $41,437 | $161,004 | $171,918 | | Share-based compensation | $1,039 | $1,047 | $294 | $4,224 | $3,434 | | Amortization of purchased intangible | $811 | $812 | $812 | $3,247 | $3,247 | | Non-GAAP gross profit | $43,140 | $37,036 | $42,543 | $168,475 | $178,599 | | Non-GAAP gross margin % | 24.4% | 22.5% | 26.4% | 24.2% | 27.2% | Non-GAAP Operating Income (Loss) Reconciliation (in thousands) | Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP operating loss | $(11,618) | $(10,658) | $(1,499) | $(28,436) | $(3,756) | | Share-based compensation | $7,581 | $7,136 | $3,567 | $29,569 | $21,641 | | Amortization of purchased intangible | $811 | $812 | $812 | $3,247 | $3,247 | | Settlement and legal costs | $4,461 | $54 | $352 | $4,977 | $524 | | Impairment of long-lived assets | $1,045 | — | — | $1,045 | — | | Non-GAAP operating income (loss) | $2,280 | $(2,656) | $3,232 | $10,402 | $21,656 | | Non-GAAP operating margin % | 1.3% | (1.6)% | 2.0% | 1.5% | 3.3% | Non-GAAP Net Income (Loss) Reconciliation (in thousands) | Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP net loss | $(77,059) | $(10,807) | $(2,732) | $(96,976) | $(11,081) | | Share-based compensation | $7,581 | $7,136 | $3,567 | $29,569 | $21,641 | | Amortization of purchased intangible | $811 | $812 | $812 | $3,247 | $3,247 | | Impairment of equity method investment | $76,784 | — | — | $76,784 | — | | Income tax effect of non-GAAP adjustments | $(12,584) | $148 | $(78) | $(12,670) | $(627) | | Non-GAAP net income (loss) | $737 | $(2,902) | $2,625 | $6,997 | $18,493 | | Non-GAAP diluted net income (loss) per share | $0.02 | $(0.10) | $0.09 | $0.22 | $0.62 | Reconciliation of GAAP to Non-GAAP Outlook (Q1 2026) For the fiscal Q1 2026 outlook, AOS provides a reconciliation for gross margin and operating expenses, where non-GAAP figures are derived by adjusting GAAP numbers for estimated share-based compensation expense Reconciliation of GAAP to Non-GAAP Outlook for Fiscal Q1 Ending September 30, 2025 (in millions, except percentages) | Metric | Value | | :--- | :--- | | GAAP gross margin | 23.8% | | Estimated impact of share-based compensation expense | 0.6% | | Non-GAAP gross margin | 24.4% | | GAAP operating expenses | $47.5 | | Estimated stock-based compensation expense | $(6.5) | | Non-GAAP operating expenses | $41.0 | Additional Information This section provides details on the investor conference call, forward-looking statement disclaimers, and contact information for inquiries Conference Call and Webcast AOS hosted an investor teleconference and live webcast on August 6, 2025, to discuss the financial results for the fiscal fourth quarter and full fiscal year ended June 30, 2025, with access details provided for the live call and webcast replay - AOS held an investor teleconference and live webcast on August 6, 2025, to discuss fiscal Q4 and full fiscal year 2025 financial results[14] - Access details for the live conference call (dial-in numbers and access code) and webcast (Company's investor relations website) were provided[14] - A webcast replay and management's prepared remarks were made available on the investor relations website[14] Forward-Looking Statements This press release contains forward-looking statements based on management's current expectations, estimates, forecasts, and projections, which involve risks and uncertainties that could cause actual results to differ materially, and AOS disclaims any obligation to update such information - The press release includes forward-looking statements based on management's current expectations, estimates, forecasts, and projections[15] - These statements involve risks and uncertainties that may cause actual results to differ materially, such as the state of the semiconductor industry, decline of PC markets, and geopolitical uncertainties[15] - Other risks include difficulties in executing diversification strategy, changes in regulatory environment (tariffs), and the ability to introduce new products[15] - AOS undertakes no duty to update such information, except as required by applicable law[15] Investor and Media Inquiries Contact information for investor and media inquiries is provided through The Blueshirt Group, with specific contacts Gary Dvorchak and Steven Pelayo - Investor and media inquiries can be directed to The Blueshirt Group, with contacts Gary Dvorchak and Steven Pelayo[21]