GCT Semiconductor Ships Over 5,100 5G Chipsets

The Tip Desk · August 10, 2026 · 3 min read

The fabless 5G designer shipped more than 5,100 chipsets in the second quarter, up about 71% from 3,000 in the first quarter, as it said it now expects second-half volumes to exceed the first half.

GCT Semiconductor Holding, Inc. (GCTS) shipped more than 5,100 5G chipsets in the second quarter ended June 30, 2026, up about 71% sequentially from 3,000 units in the first quarter, after a 58% sequential increase from more than 1,900 units in the fourth quarter of 2025.

The fabless designer of 5G, 4G LTE and satellite semiconductors said development, integration, certification and sales work continued across its customer pipeline. It said customer restructuring and shifting deployment schedules moved the timing of certain launches, but engagement and demand remained strong. Chief Executive John Schlaefer said the company advanced its 5G platform across terrestrial broadband, satellite and non-terrestrial connectivity, and IoT and specialized networks.

Partners named for terrestrial broadband included Airspan, MaxLinear, Orbic, a leading global telecom supplier and a major U.S. carrier. Satellite programs included Globalstar and one of the world’s largest satellite communications providers. IoT and specialized work included Gogo and Airspan. Schlaefer said a recent collaboration used GCT’s IoT technology and module capabilities for UAV control and communications in commercial and defense use cases.

Net revenues were $1.0 million in the three months ended June 30, 2026, a 17.9% decrease from $1.2 million a year earlier, reversing the 287.1% year-over-year increase to $1.9 million in the three months ended March 31, 2026. Product revenue was $0.40 million and service revenue was $0.57 million.

Gross margin turned negative. Gross loss was $0.23 million on $0.97 million of revenue, after a 49.3% gross margin in the three months ended March 31, 2026. The company said low product revenue was not sufficient to absorb production overhead and that the result was not representative of its expectations for future profitability. It said it expects gross margins to improve as 5G product sales ramp.

Total operating expenses were $7.2 million, a 9.8% decrease from $8.0 million a year earlier. Research and development was $3.3 million, sales and marketing $1.1 million, and general and administrative $2.8 million.

Net loss widened to $20.4 million, a 50.5% increase from $13.5 million a year earlier, including a $12.3 million non-cash loss on the change in fair value of common stock warrant liabilities. Chief Financial Officer Edmond Cheng said the reported net loss was significantly impacted by that item, driven by increases in the common stock price and the market price of publicly traded warrants, and was not reflective of underlying operating performance.

The company introduced Adjusted EBITDA for the first time this quarter. Adjusted EBITDA loss was $6.6 million, a 1.7% decrease from $6.7 million a year earlier. Cheng said the company has stabilized underlying performance while continuing to invest in customer programs and production readiness.

Cash and cash equivalents were $30.2 million as of June 30, 2026, versus $7.2 million as of March 31, 2026. Cheng said the company has secured production capacity for the remainder of 2026 and through the first quarter of 2027 in anticipation of expected chip demand. He said first-half 2026 revenue slightly exceeds full-year 2025 revenue and that the company is confident revenue will grow this year compared with previous years.

During the quarter, GCT amended its at-market agreement to increase the allowed maximum aggregate offering amount from $75.0 million to $120.0 million, leaving the $200.0 million shelf unchanged.

The company continues to expect aggregate 5G shipments in the second half of 2026 to exceed first-half levels, after previously expecting sequential growth in 5G chipset shipments as commercialization ramps throughout the year.