Magnachip Q4 Revenue Drops 17% to $40.6M, Guides Q1 $44–48M
Magnachip’s Q4 Power Analog Solutions revenue dropped to $36.8M, down 15.3% y/y and 11.4% sequentially, driving total Q4 revenue of $40.6M with a 9.3% gross margin. The company ended the quarter with $103.8M cash, $44.6M debt and guided Q1 revenue of $44–48M at 14–16% margin.
1. Q4 Financial Performance
Magnachip’s Q4 revenue totaled $40.6M, down 17% y/y and 12% sequentially on an apple-to-apple basis. Power Analog Solutions revenue declined to $36.8M (-15.3% y/y, -11.4% q/q) while Power IC sales fell 30.4% y/y to $3.8M and gross margin contracted to 9.3%.
2. Balance Sheet and Guidance
The company closed Q4 with $103.8M in cash and $44.6M in long-term borrowings. For Q1 2026, Magnachip forecasts revenue of $44–48M and a gross margin of 14–16%, and expects annualized SG&A savings exceeding $2M.
3. Cost Actions and R&D Acceleration
In 2025, management executed cost reductions including exiting the display business and resizing the organization, achieving SG&A savings and launching 55 new generation products (44% in Q4). R&D spend rose to $7.6M in Q4 and $27.3M for the year.
4. Strategic Outlook
Magnachip outlined six foundational pillars—targeting automotive, industrial, solar, server applications, modules, and SiC evaluation—aiming to double TAM and triple SAM over five years. New products are projected to drive 10% of revenue by Q4 2026, with legacy product pricing pressure persisting.