Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2026 Ended December 31, 2025
SUNNYVALE, Calif.--( BUSINESS WIRE)--Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL) today reported financial results for the fiscal second quarter of 2026 ended December 31, 2025.
The results for the fiscal second quarter of 2026 ended December 31, 2025 were as follows:
GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
Three Months Ended
December 31,
2025
September 30,
2025
December 31,
2024
Revenue
$
162.3
$
182.5
$
173.2
Gross Margin
21.5
%
23.5
%
23.1
%
Operating Loss
$
(13.6
)
$
(4.6
)
$
(5.9
)
Net Loss
$
(13.3
)
$
(2.1
)
$
(6.6
)
Net Loss Per Share - Diluted
$
(0.45
)
$
(0.07
)
$
(0.23
)
Non-GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
Three Months Ended
December 31,
2025
September 30,
2025
December 31,
2024
Revenue
$
162.3
$
182.5
$
173.2
Non-GAAP Gross Margin
22.2
%
24.1
%
24.2
%
Non-GAAP Operating Income (Loss)
$
(5.2
)
$
2.5
$
3.0
Non-GAAP Net Income (Loss)
$
(4.7
)
$
4.2
$
2.7
Non-GAAP Net Income (Loss) Per Share - Diluted
$
(0.16
)
$
0.13
$
0.09
The non-GAAP financial measures in the schedule above and under the section “Financial Results for Fiscal Q2 Ended December 31, 2025” below exclude the effect of share-based compensation expense, equity method investment loss (income), and income tax effect of non-GAAP adjustments in each of the periods presented, and amortization of purchased intangible and legal costs related to government investigation for the three months ended December 31, 2024, as well as impairment of long-lived assets for the three months ended December 31, 2025.
Financial Results for Fiscal Q2 Ended December 31, 2025
AOS Chief Executive Officer Stephen Chang commented, “Our December quarter revenue was slightly above the midpoint of our guidance, driven by strength in Communications, and in particular sales to our Tier One U.S. smartphone customer, reflecting continued market share gains and increased BOM content on premium platforms. As we move through calendar 2026, we expect improving product mix and increasing contributions from higher-performance applications to drive sequential improvement beginning in the June quarter. We believe this sets the foundation for accelerating growth as new products and programs ramp into 2027 and beyond.”
Mr. Chang concluded, “We are making focused R&D investments in performance-driven applications where we already have strong positions and deep customer relationships. In Computing, while overall PC demand in calendar 2026 is expected to be impacted by tightening memory supply, we are seeing growth in advanced computing driven by a broader array of applications for AI data centers across an expanding customer base. In Smartphones, we also anticipate growth in calendar 2026 as a rapid transition to higher charging currents is expected to generate increased BOM content for battery protection.”
Business Outlook for Fiscal Q3 Ending March 31, 2026
The following statements are based on management’s current expectations. These statements are forward-looking, and actual results may differ materially. AOS undertakes no obligation to update these statements.
Our expectations for the fiscal third quarter of year 2026 are as follows:
Conference Call and Webcast
AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal second quarter ended December 31, 2025 today, February 5, 2026 at 2:00 p.m. PT / 5:00 p.m. ET. To listen to the live conference call, please dial +1 (833) 470-1428 or +1 (404) 975-4839 if dialing from outside the United States and Canada. The access code is 033075. A live webcast of the call will also be available in the "Events & Presentations" section of the company’s investor relations website, http://investor.aosmd.com. The webcast replay will be available for seven days after the live call on the same website. In addition, a copy of the script of management’s prepared remarks and a live webcast of the call will also be available in the "Events & Presentations" section of the company’s investor relations website, http://investor.aosmd.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, market trends in the semiconductor industry and growth in calendar year 2026, our ability to outperform market, anticipated growth in our market segments in 2026 and 2027, seasonality of our business, our ability to sustain growth and expand our end markets, the success of our investment strategy, macro and geopolitical uncertainties, our projected amount of revenue, gross margin, operating income (loss), income tax expenses, net income (loss), and share-based compensation expenses, non-GAAP gross margin, non-GAAP operating expenses, income tax expenses, our ability to grow our sales and market share, and other information under the section entitled “Business Outlook for Fiscal Q3 Ending March 31, 2026.” Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the state of semiconductor industry and seasonality of our markets; decline of PC markets; our lack of control over the joint venture in China; difficulties and challenges in executing our diversification strategy into different market segments; ordering pattern from distributors and seasonality; changes in regulatory environment, including tariff and trade policies; our ability to introduce or develop new and enhanced products that achieve market acceptance; government policies on our business operations in China; the actual product performance in volume production; the quality and reliability of our product, our ability to achieve design wins; the general business and economic conditions; our ability to maintain factory utilization at a desirable level; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 filed by AOS with the SEC and other periodic reports we filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including non-GAAP gross profit, gross margin, operating expenses, operating income (loss), net income (loss), diluted earnings per share (“EPS”) and EBITDAS. These supplemental measures exclude, among other items, share-based compensation expenses, legal and professional fees related to government investigation, amortization of purchased intangible, impairment of long-lived assets, income tax effect of non-GAAP adjustments and equity method investment income (loss) from equity investee. We also disclose certain non-GAAP financial measures in our financial guidance for the next quarter, including non-GAAP gross margin and non-GAAP operating expenses. We believe that these historical and forward-looking non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP net income (loss) or non-GAAP operating expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. In addition, we included the amount of income tax effect of non-GAAP adjustments in the non-GAAP net income (loss) reconciliation table for all periods presented as management believes that such non-GAAP presentation provides useful information to investors, even though the amounts are not significant. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures both in the text in this press release and in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures.
About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer, and global supplier of a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules, including a wide portfolio of Power MOSFET, SiC, IGBT, IPM, TVS, HV Gate Drivers, Power IC, and Digital Power products. AOS has developed extensive intellectual property and technical knowledge that encompasses the latest advancements in the power semiconductor industry, which enables us to introduce innovative products to address the increasingly complex power requirements of advanced electronics. AOS differentiates itself by integrating its Discrete and IC semiconductor process technology, product design, and advanced packaging know-how to develop high-performance power management solutions. AOS’ portfolio of products targets high-volume applications, including personal computers, graphics cards, datacenters, AI servers, smartphones, consumer and industrial motor controls, TVs, lightings, automotive electronics, and power supply units for various equipment. For more information, please visit www.aosmd.com.
The following unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP.
Alpha and Omega Semiconductor Limited
Condensed Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Revenue
$
162,263
$
182,501
$
173,156
$
344,764
$
355,043
Cost of goods sold
127,439
139,656
133,145
267,095
270,506
Gross profit
34,824
42,845
40,011
77,669
84,537
Gross margin
21.5
%
23.5
%
23.1
%
22.5
%
23.8
%
Operating expenses:
Research and development
25,205
24,145
23,968
49,350
46,446
Selling, general and administrative
23,184
23,284
21,951
46,468
44,251
Total operating expenses
48,389
47,429
45,919
95,818
90,697
Operating loss
(13,565
)
(4,584
)
(5,908
)
(18,149
)
(6,160
)
Other income, net
894
2,468
663
3,362
13
Interest income
1,124
892
1,135
2,016
2,400
Interest expenses
(154
)
(360
)
(701
)
(514
)
(1,513
)
Net loss before income taxes and equity method investment income (loss)
(11,701
)
(1,584
)
(4,811
)
(13,285
)
(5,260
)
Income tax expense
1,490
1,927
1,242
3,417
2,282
Net loss before equity method investment income (loss)
(13,191
)
(3,511
)
(6,053
)
(16,702
)
(7,542
)
Equity method investment income (loss)
(102
)
1,389
(561
)
1,287
(1,568
)
Net loss
$
(13,293
)
$
(2,122
)
$
(6,614
)
$
(15,415
)
$
(9,110
)
Net loss per common share
Basic
$
(0.45
)
$
(0.07
)
$
(0.23
)
$
(0.52
)
$
(0.31
)
Diluted
$
(0.45
)
$
(0.07
)
$
(0.23
)
$
(0.52
)
$
(0.31
)
Weighted average number of common shares used to compute net loss per share
Basic
29,816
30,036
29,163
29,926
29,083
Diluted
29,816
30,036
29,163
29,926
29,083
Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)
December 31,
2025
June 30,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
196,340
$
153,079
Restricted cash
425
419
Accounts receivable, net
29,017
34,772
Receivable from sale of equity interest in the JV Company
46,118
—
Inventories
200,102
189,677
Other current assets
10,372
18,215
Total current assets
482,374
396,162
Property, plant and equipment, net
310,961
314,097
Operating lease right-of-use assets
23,661
21,288
Intangible assets, net
1,288
269
Equity method investment
141,439
279,122
Deferred income tax assets
8,172
599
Other long-term assets
34,398
22,766
Total assets
$
1,002,293
$
1,034,303
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
49,137
$
60,044
Accrued liabilities
57,825
59,027
Payable related to equity investee, net
16,920
15,809
Income taxes payable
4,370
1,790
Short-term debt
2,980
11,852
Deferred revenue
2,047
—
Finance lease liabilities
1,046
1,007
Operating lease liabilities
5,916
4,978
Total current liabilities
140,241
154,507
Long-term debt
2,113
14,872
Income taxes payable - long-term
4,351
4,201
Deferred income tax liabilities
12,423
13,192
Finance lease liabilities - long-term
742
1,274
Operating lease liabilities - long-term
18,461
16,925
Other long-term liabilities
5,194
7,000
Total liabilities
183,525
211,971
Shareholders' Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at December 31, 2025 and June 30, 2025
—
—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 37,426 shares and 29,582 shares, respectively at December 31, 2025 and 37,127 shares and 30,009 shares, respectively at June 30, 2025
75
74
Treasury shares at cost: 7,844 shares at December 31, 2025 and 7,118 shares at June 30, 2025
(93,138
)
(79,058
)
Additional paid-in capital
398,072
379,779
Accumulated other comprehensive loss
(4,737
)
(12,390
)
Retained earnings
518,496
533,927
Total shareholders' equity
818,768
822,332
Total liabilities and shareholders' equity
$
1,002,293
$
1,034,303
Alpha and Omega Semiconductor Limited
Selected Cash Flow Information
(in thousands, unaudited)
Six Months Ended December 31,
2025
2024
Net cash provided by operating activities
$
$
25,126
Net cash provided by (used in) investing activities
(14,100
)
Net cash used in financing activities
(33,216
)
(3,732
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(91
)
(36
)
Net increase in cash, cash equivalents and restricted cash
43,267
7,258
Cash, cash equivalents and restricted cash at beginning of period
153,498
175,540
Cash, cash equivalents and restricted cash at end of period
$
196,765
$
182,798
Alpha and Omega Semiconductor Limited
Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended
Six Months Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
GAAP gross profit
$
34,824
$
42,845
$
40,011
$
77,669
$
84,537
Share-based compensation
1,232
1,065
1,123
2,297
2,138
Amortization of purchased intangible
—
—
811
—
1,623
Non-GAAP gross profit
$
36,056
$
43,910
$
41,945
$
79,966
$
88,298
Non-GAAP gross margin as a % of revenue
22.2
%
24.1
%
24.2
%
23.2
%
24.9
%
GAAP operating expense
$
48,389
$
47,429
$
45,919
$
95,818
$
90,697
Share-based compensation
7,041
6,067
6,827
13,108
12,714
Legal costs related to government investigation
—
—
114
—
461
Impairment of long-lived assets
70
—
—
70
—
Non-GAAP operating expense
$
41,278
$
41,362
$
38,978
$
82,640
$
77,522
GAAP operating loss
$
(13,565
)
$
(4,584
)
$
(5,908
)
$
(18,149
)
$
(6,160
)
Share-based compensation
8,273
7,132
7,950
15,405
14,852
Amortization of purchased intangible
—
—
811
—
1,623
Legal costs related to government investigation
—
—
114
—
461
Impairment of long-lived assets
70
—
—
70
—
Non-GAAP operating income (loss)
$
(5,222
)
$
2,548
$
2,967
$
(2,674
)
$
10,776
Non-GAAP operating margin as a % of revenue
(3.2
)%
1.4
%
1.7
%
(0.8
)%
3.0
%
GAAP net loss
$
(13,293
)
$
(2,122
)
$
(6,614
)
$
(15,415
)
$
(9,110
)
Share-based compensation
8,273
7,132
7,950
15,405
14,852
Amortization of purchased intangible
—
—
811
—
1,623
Equity method investment (income) loss
102
(1,389
)
561
(1,287
)
1,568
Legal costs related to government investigation
—
—
114
—
461
Impairment of long-lived assets
70
—
—
70
—
Income tax effect of non-GAAP adjustments
119
555
(83
)
674
(234
)
Non-GAAP net income (loss)
$
(4,729
)
$
4,176
$
2,739
$
(553
)
$
9,160
Non-GAAP net margin as a % of revenue
(2.9
)%
2.3
%
1.6
%
(0.2
)%
2.6
%
GAAP net loss
$
(13,293
)
$
(2,122
)
$
(6,614
)
$
(15,415
)
$
(9,110
)
Share-based compensation
8,273
7,132
7,950
15,405
14,852
Amortization and depreciation
14,131
14,341
14,128
28,472
28,690
Equity method investment (income) loss
102
(1,389
)
561
(1,287
)
1,568
Interest income
(1,124
)
(892
)
(1,135
)
(2,016
)
(2,400
)
Interest expenses
154
360
701
514
1,513
Income tax expense
1,490
1,927
1,242
3,417
2,282
EBITDAS
$
9,733
$
19,357
$
16,833
$
29,090
$
37,395
GAAP diluted net loss per share
$
(0.45
)
$
(0.07
)
$
(0.21
)
$
(0.52
)
$
(0.29
)
Share-based compensation
0.28
0.23
0.25
0.52
0.47
Amortization of purchased intangible
—
—
0.03
—
0.05
Equity method investment (income) loss
0.00
(0.04
)
0.02
(0.04
)
0.05
Legal costs related to government investigation
—
0.00
0.00
0.00
0.02
Impairment of long-lived assets
0.00
—
—
0.00
—
Income tax effect of non-GAAP adjustments
0.01
0.01
(0.00
)
0.02
(0.01
)
Non-GAAP diluted net income (loss) per share
$
(0.16
)
$
0.13
$
0.09
$
(0.02
)
$
0.29
Weighted average number of common shares used to compute GAAP diluted net loss per share
29,816
30,036
29,163
29,926
29,083
Weighted average number of common shares used to compute Non-GAAP diluted net income per share
29,816
31,487
31,411
29,926
31,290
Alpha and Omega Semiconductor Limited
Reconciliation of GAAP to Non-GAAP Outlook
For Fiscal Q3 Ending March 31, 2026
(in millions, except percentages)
(unaudited)
GAAP gross margin
20.2
%
Estimated share-based compensation expense
0.8
%
Non-GAAP gross margin
21.0
%
GAAP operating expenses
$
52
Estimated stock-based compensation expense
(7
)
Non-GAAP operating expenses
$
45