Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2026 Ended December 31, 2025

2/5/26 4:01:00 PM ET

Semiconductors

Technology

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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

Revenue was $162.3 million, a decrease of 11.1% from the prior quarter and a decrease of 6.3% from the same quarter last year.
GAAP gross margin was 21.5%, down from 23.5% in the prior quarter and down from 23.1% in the same quarter last year.
Non-GAAP gross margin was 22.2%, down from 24.1% in the prior quarter and down from 24.2% in the same quarter last year.
GAAP operating expenses were $48.4 million, up from $47.4 million in the prior quarter and up from $45.9 million in the same quarter last year.
Non-GAAP operating expenses were $41.3 million, down from $41.4 million from last quarter and up from $39.0 million in the same quarter last year.
GAAP operating loss was $13.6 million, up from $4.6 million from the prior quarter and up from $5.9 million in the same quarter last year.
Non-GAAP operating loss was $5.2 million as compared to $2.5 million of operating income for the prior quarter and $3.0 million of operating income for the same quarter last year.
GAAP net loss per diluted share was $0.45, compared to $0.07 net loss per share for the prior quarter, and $0.23 net loss per share for the same quarter a year ago.
Non-GAAP net loss per share was $0.16, compared to $0.13 net income per share for the prior quarter and $0.09 net income per share for the same quarter a year ago.
Consolidated cash flows used in operating activities was $8.1 million, as compared to $10.2 million of cash flows provided by operating activities in the prior quarter.
The Company closed the quarter with $196.3 million of cash and cash equivalents.

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:

Revenue to be approximately $160 million, plus or minus $10 million.
GAAP gross margin to be 20.2%, plus or minus 1%. We anticipate non-GAAP gross margin to be 21.0%, plus or minus 1%.
GAAP operating expenses to be in the range of $52.0 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $45.0 million, plus or minus $1 million. The sequential growth in operating expenses is mostly the result of increased spending for R&D.
Interest income is expected to be $1.0 million higher than interest expense, and
Income tax expense to be in the range of $1.1 million to $1.3 million.

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	$	2,062		$	25,126
Net cash provided by (used in) investing activities		74,512			(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

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Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2026 Ended December 31, 2025

2/5/26 4:01:00 PM ET

$AOSL

Semiconductors

Technology

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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

Financial Results for Fiscal Q2 Ended December 31, 2025

Revenue was $162.3 million, a decrease of 11.1% from the prior quarter and a decrease of 6.3% from the same quarter last year.
GAAP gross margin was 21.5%, down from 23.5% in the prior quarter and down from 23.1% in the same quarter last year.
Non-GAAP gross margin was 22.2%, down from 24.1% in the prior quarter and down from 24.2% in the same quarter last year.
GAAP operating expenses were $48.4 million, up from $47.4 million in the prior quarter and up from $45.9 million in the same quarter last year.
Non-GAAP operating expenses were $41.3 million, down from $41.4 million from last quarter and up from $39.0 million in the same quarter last year.
GAAP operating loss was $13.6 million, up from $4.6 million from the prior quarter and up from $5.9 million in the same quarter last year.
Non-GAAP operating loss was $5.2 million as compared to $2.5 million of operating income for the prior quarter and $3.0 million of operating income for the same quarter last year.
GAAP net loss per diluted share was $0.45, compared to $0.07 net loss per share for the prior quarter, and $0.23 net loss per share for the same quarter a year ago.
Non-GAAP net loss per share was $0.16, compared to $0.13 net income per share for the prior quarter and $0.09 net income per share for the same quarter a year ago.
Consolidated cash flows used in operating activities was $8.1 million, as compared to $10.2 million of cash flows provided by operating activities in the prior quarter.
The Company closed the quarter with $196.3 million of cash and cash equivalents.

Business Outlook for Fiscal Q3 Ending March 31, 2026

Our expectations for the fiscal third quarter of year 2026 are as follows:

Revenue to be approximately $160 million, plus or minus $10 million.
GAAP gross margin to be 20.2%, plus or minus 1%. We anticipate non-GAAP gross margin to be 21.0%, plus or minus 1%.
GAAP operating expenses to be in the range of $52.0 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $45.0 million, plus or minus $1 million. The sequential growth in operating expenses is mostly the result of increased spending for R&D.
Interest income is expected to be $1.0 million higher than interest expense, and
Income tax expense to be in the range of $1.1 million to $1.3 million.

Conference Call and Webcast

Forward-Looking Statements

Use of Non-GAAP Financial Measures

About Alpha and Omega Semiconductor

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	$	2,062		$	25,126
Net cash provided by (used in) investing activities		74,512			(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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260202551778/en/

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