Magnachip Reverses Sequential Sales Gain and Widens Loss

The Tip Desk · July 29, 2026 · 2 min read

Continuing-operations revenue was $44.7 million, and the company guided third-quarter sales to $41.5 million to $45.5 million.

Magnachip Semiconductor (MX), a designer and manufacturer of analog and mixed-signal power semiconductor platforms, reported second-quarter 2026 continuing-operations revenue of $44.7 million, down 3.3% from the first quarter after a 13.9% sequential increase in that prior period.

The result sat inside the company’s $44.5 million to $48.5 million outlook. Consolidated gross profit margin from continuing operations was 19.3%, above the high end of the 17.0% to 19.0% guidance range.

Power Analog Solutions, the larger of the two continuing businesses, generated $40.6 million of sales, down 2.6% sequentially after a 13.1% sequential rise in the first quarter. Power IC sales were $4.1 million.

Gross margin in Power Analog Solutions was 17.2%. Power IC gross margin was 40.9%.

GAAP operating loss from continuing operations widened to $10.0 million from $7.2 million in the first quarter, after the first-quarter loss had narrowed from $12.4 million in the fourth quarter of 2025. Loss from continuing operations was $7.6 million, or $0.21 a share.

Adjusted EBITDA from continuing operations was a $4.2 million loss. Adjusted loss from continuing operations was $4.9 million, or $0.13 a share.

The company recorded $1.98 million of other charges in the quarter, consisting of a $1.10 million customer goodwill payment related to a certain product and $0.89 million of one-time employee incentives, versus none in the first quarter.

Chief Executive Officer Chae Lee said the results “underscore both the challenges and the opportunity ahead.” The company also launched 6th-generation 600V SJ MOSFETs for AI servers and EV charging and formed a strategic partnership with Navitas Semiconductor to license SiC technology for high-voltage and ultra-high-voltage power markets.

Magnachip currently expects third-quarter 2026 continuing-operations revenue of $41.5 million to $45.5 million, a 2.7% sequential decrease at the midpoint, and gross profit margin of 17% to 19%. Chief Financial Officer Shinyoung Park said the sequential decline is primarily due to an unfavorable product mix, and that the company expects third-quarter revenue to decline because of packaging constraints in the supply chain, lower-than-expected customer volumes in certain consumer applications, and unfavorable product mix resulting from pricing pressure on legacy products.

Cash and cash equivalents were $87.9 million at June 30, 2026.