Magnachip Semiconductor Corporation (NYSE: MX) (“Magnachip” or the “Company”) today announced financial results for the second quarter 2026.
Chae Lee, Magnachip’s CEO said, “Our second quarter results underscore both the challenges and the opportunity ahead. Our strategic relationship with Navitas marks an important milestone toward our plan to rebuild Magnachip. As I have met with our employees and customers over the past month, I have become increasingly confident in the strength of Magnachip’s technology, engineering talent and manufacturing capabilities. Building on the strategic transformation already underway, we are focused on developing more differentiated power semiconductor solutions, improving our execution, and positioning Magnachip to compete through advanced innovation. While this transformation will take time, I believe it will strengthen our competitive position and create greater long-term shareholder value.”
|
Q2 2026 Financial Highlights |
|||||||||||||||||||
|
In thousands of U.S. dollars, except share data |
|||||||||||||||||||
|
|
GAAP |
|
|||||||||||||||||
|
|
Q2 2026 |
|
Q1 2026 |
|
Q/Q change |
|
Q2 2025 |
|
Y/Y change |
|
|||||||||
|
Net Sales |
44,704 |
|
46,208 |
|
down |
3.3 |
% |
47,622 |
|
down |
6.1 |
% |
|||||||
|
Power Analog Solutions |
40,574 |
|
41,647 |
|
down |
2.6 |
% |
42,261 |
|
down |
4.0 |
% |
|||||||
|
Power IC |
4,130 |
|
4,561 |
|
down |
9.4 |
% |
5,361 |
|
down |
23.0 |
% |
|||||||
|
Gross Profit Margin |
19.3 |
% |
15.6 |
% |
up |
3.7 |
%pts |
20.4 |
% |
down |
1.1 |
%pts |
|||||||
|
Power Analog Solutions |
17.2 |
% |
12.8 |
% |
up |
4.4 |
%pts |
18.2 |
% |
down |
1.0 |
%pts |
|||||||
|
Power IC |
40.9 |
% |
40.4 |
% |
up |
0.5 |
%pts |
37.4 |
% |
up |
3.5 |
%pts |
|||||||
|
Operating Loss |
(9,976 |
) |
(7,170 |
) |
down |
39.1 |
% |
(6,598 |
) |
down |
51.2 |
% |
|||||||
|
Income (Loss) from continuing operations |
(7,601 |
) |
(4,697 |
) |
down |
61.8 |
% |
9,203 |
|
down |
182.6 |
% |
|||||||
|
Basic Earnings (Loss) per Common Share |
(0.21 |
) |
(0.13 |
) |
down |
61.5 |
% |
0.26 |
|
down |
180.8 |
% |
|||||||
|
Diluted Earnings (Loss) per Common Share |
(0.21 |
) |
(0.13 |
) |
down |
61.5 |
% |
0.25 |
|
down |
184.0 |
% |
|||||||
|
|
In thousands of U.S. dollars, except share data |
|
|||||||||||||||||
|
|
Non-GAAP(1) |
|
|||||||||||||||||
|
|
Q2 2026 |
|
Q1 2026 |
|
Q/Q change |
|
Q2 2025 |
|
Y/Y change |
|
|||||||||
|
Adjusted Operating Loss |
(6,976 |
) |
(6,527 |
) |
down |
6.9 |
% |
(4,776 |
) |
down |
46.1 |
% |
|||||||
|
Adjusted EBITDA |
(4,219 |
) |
(3,640 |
) |
down |
15.9 |
% |
(1,542 |
) |
down |
173.6 |
% |
|||||||
|
Adjusted Loss |
(4,901 |
) |
(4,073 |
) |
down |
20.3 |
% |
(1,978 |
) |
down |
147.8 |
% |
|||||||
|
Adjusted Loss per Common Share—Diluted |
(0.13 |
) |
(0.11 |
) |
down |
18.2 |
% |
(0.05 |
) |
down |
160.0 |
% |
|||||||
|
(1) |
Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release. |
Q3 2026 Financial Guidance
While actual results may vary, Magnachip currently expects the following:
- Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $41.5 million to $45.5 million, a decrease of 2.7% sequentially and a decrease of 5.2% year-over-year at the mid-point. This compares with $44.7 million in Q2 2026 and $45.9 million in Q3 2025.
- Consolidated gross profit margin from continuing operations to be in the range of 17% to 19%, compared with 19.3% in Q2 2026 and 18.6% in Q3 2025. The sequential decline is primarily due to an unfavorable product mix.
Commenting on the third quarter guidance, Shinyoung Park, Chief Financial Officer, said, “We continue to see healthy demand for our Low Voltage BatteryFET product line for mobile products. Nevertheless, we expect third-quarter revenue to decline sequentially due to three near-term factors: packaging constraints in our supply chain that are limiting our ability to fully satisfy demand, lower-than-expected customer volumes in certain consumer applications, and an unfavorable product mix resulting from continued pricing pressure on our legacy products.”
Q2 2026 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, July 29, 2026, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of the earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.
Online registration: https://register-conf.media-server.com/register/BIb70b5b5cb65045238d2757182fd0d278
Safe Harbor for Forward-Looking Statements
Information in this press release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations regarding our financial performance and business outlook, including third quarter 2026 revenue and gross profit margin, future growth and revenue opportunities, strategic relationships, product development and commercialization, and other future events. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: changes in macroeconomic conditions, trade policies, geopolitical conditions and market conditions; manufacturing capacity constraints, supply chain disruptions and changes in customer demand; the impact of competitive products and pricing; our ability to establish, maintain and expand strategic relationships with customers and business partners, and to realize the anticipated benefits of those relationships; customer acceptance of our products and technologies; our ability to develop, introduce and ramp new products into volume production; changes in semiconductor industry supply and demand, including overcapacity and manufacturing utilization; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses; changes in, or compliance with, applicable trade, export and other laws and regulations; public health issues; other business interruptions; and other risks described in Magnachip’s filings with the SEC, including our Annual Report on Form 10-K filed on March 16, 2026. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a substantial number of registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||
|
(In thousands of U.S. dollars, except share data) |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||||||||
|
Net sales |
|
44,704 |
|
|
46,208 |
|
|
47,622 |
|
|
90,912 |
|
|
92,344 |
|
||||
|
Cost of sales |
|
36,056 |
|
|
39,014 |
|
|
37,910 |
|
|
75,070 |
|
|
73,270 |
|
||||
|
Gross profit |
|
8,648 |
|
|
7,194 |
|
|
9,712 |
|
|
15,842 |
|
|
19,074 |
|
||||
|
Gross profit as a percentage of net sales |
|
19.3 |
% |
|
15.6 |
% |
|
20.4 |
% |
|
17.4 |
% |
|
20.7 |
% |
||||
|
Operating expenses: |
|
|
|
|
|
||||||||||||||
|
Selling, general and administrative expenses |
|
8,747 |
|
|
7,666 |
|
|
8,976 |
|
|
16,413 |
|
|
18,179 |
|
||||
|
Research and development expenses |
|
7,896 |
|
|
6,698 |
|
|
6,488 |
|
|
14,594 |
|
|
11,925 |
|
||||
|
Other charges |
|
1,981 |
|
|
— |
|
|
846 |
|
|
1,981 |
|
|
846 |
|
||||
|
Total operating expenses |
|
18,624 |
|
|
14,364 |
|
|
16,310 |
|
|
32,988 |
|
|
30,950 |
|
||||
|
Operating loss |
|
(9,976 |
) |
|
(7,170 |
) |
|
(6,598 |
) |
|
(17,146 |
) |
|
(11,876 |
) |
||||
|
Interest income |
|
949 |
|
|
1,063 |
|
|
1,322 |
|
|
2,012 |
|
|
2,862 |
|
||||
|
Interest expense |
|
(320 |
) |
|
(373 |
) |
|
(373 |
) |
|
(693 |
) |
|
(796 |
) |
||||
|
Foreign currency gain (loss), net |
|
(526 |
) |
|
(115 |
) |
|
10,797 |
|
|
(641 |
) |
|
10,392 |
|
||||
|
Other income (loss), net |
|
286 |
|
|
(10 |
) |
|
(83 |
) |
|
276 |
|
|
31 |
|
||||
|
Income (Loss) from continuing operations before income tax benefit, net |
|
(9,587 |
) |
|
(6,605 |
) |
|
5,065 |
|
|
(16,192 |
) |
|
613 |
|
||||
|
Income tax benefit, net |
|
(1,986 |
) |
|
(1,908 |
) |
|
(4,138 |
) |
|
(3,894 |
) |
|
(4,539 |
) |
||||
|
Income (Loss) from continuing operations |
|
(7,601 |
) |
|
(4,697 |
) |
|
9,203 |
|
|
(12,298 |
) |
|
5,152 |
|
||||
|
Income (Loss) from discontinued operations, net of tax |
|
2,786 |
|
|
50 |
|
|
(8,880 |
) |
|
2,836 |
|
|
(13,707 |
) |
||||
|
Net income (loss) |
$ |
(4,815 |
) |
$ |
(4,647 |
) |
$ |
323 |
|
$ |
(9,462 |
) |
$ |
(8,555 |
) |
||||
|
Basic earnings (loss) per common share— |
|
|
|
|
|
||||||||||||||
|
Continuing operations |
$ |
(0.21 |
) |
$ |
(0.13 |
) |
$ |
0.26 |
|
$ |
(0.34 |
) |
$ |
0.14 |
|
||||
|
Discontinuing operations |
|
0.08 |
|
|
0.00 |
|
|
(0.25 |
) |
|
0.08 |
|
|
(0.37 |
) |
||||
|
Total |
$ |
(0.13 |
) |
$ |
(0.13 |
) |
$ |
0.01 |
|
$ |
(0.26 |
) |
$ |
(0.23 |
) |
||||
|
Diluted earnings (loss) per common share— |
|
|
|
|
|
||||||||||||||
|
Continuing operations |
$ |
(0.21 |
) |
$ |
(0.13 |
) |
$ |
0.25 |
|
$ |
(0.34 |
) |
$ |
0.14 |
|
||||
|
Discontinuing operations |
|
0.08 |
|
|
0.00 |
|
|
(0.24 |
) |
|
0.08 |
|
|
(0.37 |
) |
||||
|
Total |
$ |
(0.13 |
) |
$ |
(0.13 |
) |
$ |
0.01 |
|
$ |
(0.26 |
) |
$ |
(0.23 |
) |
||||
|
Weighted average number of shares— |
|
|
|
|
|
||||||||||||||
|
Basic |
|
36,454,812 |
|
|
36,407,581 |
|
|
36,083,703 |
|
|
36,431,327 |
|
|
36,483,551 |
|
||||
|
Diluted |
|
36,454,812 |
|
|
36,407,581 |
|
|
36,768,647 |
|
|
36,431,327 |
|
|
37,209,622 |
|
||||
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
||||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||||
|
(In thousands of U.S. dollars, except share data) |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|||||||
|
June 30, |
|
December 31, |
||||||
|
Assets |
|
|
|
|
||||
|
Current assets |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
87,936 |
|
|
$ |
103,756 |
|
|
Accounts receivable, net |
|
|
23,788 |
|
|
|
26,022 |
|
|
Inventories, net |
|
|
34,136 |
|
|
|
34,151 |
|
|
Other receivables |
|
|
4,096 |
|
|
|
2,882 |
|
|
Prepaid expenses |
|
|
4,346 |
|
|
|
5,062 |
|
|
Hedge collateral |
|
|
4,540 |
|
|
|
1,200 |
|
|
Other current assets |
|
|
5,631 |
|
|
|
3,782 |
|
|
Total current assets |
|
|
164,473 |
|
|
|
176,855 |
|
|
Property, plant and equipment, net |
|
|
92,243 |
|
|
|
100,204 |
|
|
Operating lease right-of-use assets |
|
|
1,423 |
|
|
|
2,070 |
|
|
Intangible assets, net |
|
|
395 |
|
|
|
454 |
|
|
Long-term prepaid expenses |
|
|
498 |
|
|
|
584 |
|
|
Deferred income taxes |
|
|
60,217 |
|
|
|
64,248 |
|
|
Other non-current assets |
|
|
5,602 |
|
|
|
7,114 |
|
|
Total assets |
|
$ |
324,851 |
|
|
$ |
351,529 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
|
Current liabilities |
|
|
|
|||||
|
Accounts payable |
|
$ |
21,127 |
|
|
$ |
20,848 |
|
|
Other accounts payable |
|
|
5,690 |
|
|
|
11,444 |
|
|
Accrued expenses |
|
|
7,696 |
|
|
|
6,929 |
|
|
Accrued income taxes |
|
|
38 |
|
|
|
81 |
|
|
Operating lease liabilities |
|
|
1,144 |
|
|
|
1,427 |
|
|
Current portion of long-term borrowings |
|
|
25,949 |
|
|
|
— |
|
|
Other current liabilities |
|
|
6,044 |
|
|
|
2,681 |
|
|
Total current liabilities |
|
|
67,688 |
|
|
|
43,410 |
|
|
Long-term borrowings |
|
|
15,566 |
|
|
|
44,599 |
|
|
Accrued severance benefits, net |
|
|
11,908 |
|
|
|
11,502 |
|
|
Non-current operating lease liabilities |
|
|
324 |
|
|
|
690 |
|
|
Other non-current liabilities |
|
|
2,833 |
|
|
|
3,078 |
|
|
Total liabilities |
|
|
98,319 |
|
|
|
103,279 |
|
|
Commitments and contingencies |
|
|
|
|||||
|
Stockholders’ equity |
|
|
|
|||||
|
Common stock, $0.01 par value, 150,000,000 shares authorized, 58,318,707 shares issued and 36,510,111 outstanding at June 30, 2026 and 58,027,696 shares issued and 36,219,100 outstanding at December 31, 2025 |
|
|
581 |
|
|
|
579 |
|
|
Additional paid-in capital |
|
|
283,263 |
|
|
|
281,537 |
|
|
Retained earnings |
|
|
205,390 |
|
|
|
214,852 |
|
|
Treasury stock, 21,808,596 shares at June 30, 2026 and 21,808,596 shares at December 31, 2025, respectively |
|
|
(229,910 |
) |
|
|
(229,910 |
) |
|
Accumulated other comprehensive loss |
|
|
(32,792 |
) |
|
|
(18,808 |
) |
|
Total stockholders’ equity |
|
|
226,532 |
|
|
|
248,250 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
324,851 |
|
|
$ |
351,529 |
|
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited) |
|||||||||||
|
Three Months |
Six Months |
||||||||||
|
|
June 30, |
June 30, |
June 30, |
||||||||
|
Cash flows from operating activities |
|
|
|
||||||||
|
Net loss |
$ |
(4,815 |
) |
$ |
(9,462 |
) |
$ |
(8,555 |
) |
||
|
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
||||||||
|
Depreciation and amortization |
|
2,755 |
|
|
5,637 |
|
|
6,661 |
|
||
|
Provision for severance benefits |
|
1,126 |
|
|
2,338 |
|
|
2,175 |
|
||
|
Loss (gain) on foreign currency, net |
|
1,616 |
|
|
5,878 |
|
|
(18,085 |
) |
||
|
Provision (reversal) for inventory reserves |
|
(903 |
) |
|
(1,224 |
) |
|
845 |
|
||
|
Stock-based compensation |
|
1,019 |
|
|
1,662 |
|
|
1,492 |
|
||
|
Impairment charges |
|
— |
|
|
— |
|
|
7,362 |
|
||
|
Deferred income tax assets |
|
— |
|
|
8 |
|
|
(649 |
) |
||
|
Others, net |
|
54 |
|
|
128 |
|
|
476 |
|
||
|
Changes in operating assets and liabilities |
|
|
|
||||||||
|
Accounts receivable, net |
|
(593 |
) |
|
1,018 |
|
|
(4,600 |
) |
||
|
Inventories |
|
(1,029 |
) |
|
(1,220 |
) |
|
(4,979 |
) |
||
|
Other receivables |
|
301 |
|
|
(1,246 |
) |
|
(5,835 |
) |
||
|
Prepaid expenses |
|
1,532 |
|
|
1,380 |
|
|
4,621 |
|
||
|
Other current assets |
|
(1,157 |
) |
|
(2,882 |
) |
|
675 |
|
||
|
Accounts payable |
|
10 |
|
|
581 |
|
|
2,559 |
|
||
|
Other accounts payable |
|
(5,436 |
) |
|
(5,690 |
) |
|
(4,972 |
) |
||
|
Accrued expenses |
|
2,355 |
|
|
1,287 |
|
|
(2,022 |
) |
||
|
Accrued income taxes |
|
(8 |
) |
|
(41 |
) |
|
22 |
|
||
|
Other current liabilities |
|
(433 |
) |
|
160 |
|
|
(546 |
) |
||
|
Other non-current liabilities |
|
347 |
|
|
400 |
|
|
8 |
|
||
|
Payment of severance benefits |
|
(461 |
) |
|
(689 |
) |
|
(9,843 |
) |
||
|
Others, net |
|
(782 |
) |
|
(969 |
) |
|
3,389 |
|
||
|
Net cash used in operating activities |
|
(4,502 |
) |
|
(2,946 |
) |
|
(29,801 |
) |
||
|
Cash flows from investing activities |
|
|
|
||||||||
|
Proceeds from settlement of hedge collateral |
|
4,334 |
|
|
4,334 |
|
|
2,237 |
|
||
|
Payment of hedge collateral |
|
(4,043 |
) |
|
(7,828 |
) |
|
— |
|
||
|
Purchase of property, plant and equipment |
|
(1,329 |
) |
|
(5,244 |
) |
|
(12,083 |
) |
||
|
Payment for intellectual property registration |
|
(43 |
) |
|
(67 |
) |
|
(85 |
) |
||
|
Collection of guarantee deposits |
|
135 |
|
|
2,026 |
|
|
2,336 |
|
||
|
Payment of guarantee deposits |
|
— |
|
|
(158 |
) |
|
(297 |
) |
||
|
Others, net |
|
— |
|
|
49 |
|
|
180 |
|
||
|
Net cash used in investing activities |
|
(946 |
) |
|
(6,888 |
) |
|
(7,712 |
) |
||
|
Cash flows from financing activities |
|
|
|
||||||||
|
Proceeds from long-term borrowings |
|
— |
|
|
— |
|
|
6,964 |
|
||
|
Proceeds from issuance of common stock |
|
66 |
|
|
66 |
|
|
— |
|
||
|
Acquisition of treasury stock |
|
(25 |
) |
|
(201 |
) |
|
(4,020 |
) |
||
|
Repayment of financing related to water treatment facility arrangement |
|
(107 |
) |
|
(217 |
) |
|
(225 |
) |
||
|
Repayment of principal portion of finance lease liabilities |
|
(32 |
) |
|
(66 |
) |
|
(80 |
) |
||
|
Net cash provided by (used in) financing activities |
|
(98 |
) |
|
(418 |
) |
|
2,639 |
|
||
|
Effect of exchange rates on cash and cash equivalents |
|
(1,072 |
) |
|
(5,568 |
) |
|
9,590 |
|
||
|
Net decrease in cash and cash equivalents |
|
(6,618 |
) |
|
(15,820 |
) |
|
(25,284 |
) |
||
|
Cash and cash equivalents |
|
|
|
||||||||
|
Beginning of the period |
|
94,554 |
|
|
103,756 |
|
|
138,610 |
|
||
|
End of the period |
$ |
87,936 |
|
$ |
87,936 |
|
$ |
113,326 |
|
||
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
|
RECONCILIATION OF OPERATING LOSS FROM CONTINUING OPERATIONS TO ADJUSTED OPERATING LOSS FROM CONTINUING OPERATIONS |
|||||||||||||||||||
|
(In thousands of U.S. dollars) |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
|
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||
|
Operating loss– continuing operations |
$ |
(9,976 |
) |
|
$ |
(7,170 |
) |
|
$ |
(6,598 |
) |
|
$ |
(17,146 |
) |
|
$ |
(11,876 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity-based compensation expense |
|
1,019 |
|
|
|
643 |
|
|
|
976 |
|
|
|
1,662 |
|
|
|
1,844 |
|
|
Other charges |
|
1,981 |
|
|
|
— |
|
|
|
846 |
|
|
|
1,981 |
|
|
|
846 |
|
|
Adjusted Operating Loss– continuing operations |
$ |
(6,976 |
) |
|
$ |
(6,527 |
) |
|
$ |
(4,776 |
) |
|
$ |
(13,503 |
) |
|
$ |
(9,186 |
) |
We present Adjusted Operating Loss from continuing operations as a supplemental measure of our performance. We define Adjusted Operating Loss from continuing operations for the periods indicated as operating loss from continuing operations adjusted to exclude (i) Equity-based compensation expense and (ii) Other charges.
For the three and six months ended June 30, 2026, we recorded $1,981 thousand of other charges, consisting of a $1,095 thousand customer goodwill payment related to a certain product, and $886 thousand of one-time employee incentives. For the same period in 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefit related accruals.
|
MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
|
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED LOSS FROM CONTINUING OPERATIONS |
|||||||||||||||||||
|
(In thousands of U.S. dollars, except share data) |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
|
|
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||||||||||
|
Income (Loss) from continuing operations |
$ |
(7,601 |
) |
$ |
(4,697 |
) |
$ |
9,203 |
|
$ |
(12,298 |
) |
$ |
5,152 |
|
||||
|
Adjustments: |
|
|
|
|
|
||||||||||||||
|
Interest income |
|
(949 |
) |
|
(1,063 |
) |
|
(1,322 |
) |
|
(2,012 |
) |
|
(2,862 |
) |
||||
|
Interest expense |
|
320 |
|
|
373 |
|
|
373 |
|
|
693 |
|
|
796 |
|
||||
|
Income tax benefit, net |
|
(1,986 |
) |
|
(1,908 |
) |
|
(4,138 |
) |
|
(3,894 |
) |
|
(4,539 |
) |
||||
|
Depreciation and amortization |
|
2,750 |
|
|
2,877 |
|
|
3,237 |
|
|
5,627 |
|
|
6,357 |
|
||||
|
EBITDA – continuing operations |
|
(7,466 |
) |
|
(4,418 |
) |
|
7,353 |
|
|
(11,884 |
) |
|
4,904 |
|
||||
|
Equity-based compensation expense |
|
1,019 |
|
|
643 |
|
|
976 |
|
|
1,662 |
|
|
1,844 |
|
||||
|
Foreign currency loss (gain), net |
|
526 |
|
|
115 |
|
|
(10,797 |
) |
|
641 |
|
|
(10,392 |
) |
||||
|
Derivative valuation loss (gain), net |
|
(279 |
) |
|
20 |
|
|
80 |
|
|
(259 |
) |
|
51 |
|
||||
|
Other charges |
|
1,981 |
|
|
— |
|
|
846 |
|
|
1,981 |
|
|
846 |
|
||||
|
Adjusted EBITDA – continuing operations |
$ |
(4,219 |
) |
$ |
(3,640 |
) |
$ |
(1,542 |
) |
$ |
(7,859 |
) |
$ |
(2,747 |
) |
||||
|
Income (Loss) from continuing operations |
$ |
(7,601 |
) |
$ |
(4,697 |
) |
$ |
9,203 |
|
$ |
(12,298 |
) |
$ |
5,152 |
|
||||
|
Adjustments: |
|
|
|
|
|
||||||||||||||
|
Equity-based compensation expense |
|
1,019 |
|
|
643 |
|
|
976 |
|
|
1,662 |
|
|
1,844 |
|
||||
|
Foreign currency loss (gain), net |
|
526 |
|
|
115 |
|
|
(10,797 |
) |
|
641 |
|
|
(10,392 |
) |
||||
|
Derivative valuation loss (gain), net |
|
(279 |
) |
|
20 |
|
|
80 |
|
|
(259 |
) |
|
51 |
|
||||
|
Other charges |
|
1,981 |
|
|
— |
|
|
846 |
|
|
1,981 |
|
|
846 |
|
||||
|
Income tax effect on non-GAAP adjustments |
|
(547 |
) |
|
(154 |
) |
|
(2,286 |
) |
|
(701 |
) |
|
(2,263 |
) |
||||
|
Adjusted Loss – continuing operations |
$ |
(4,901 |
) |
$ |
(4,073 |
) |
$ |
(1,978 |
) |
$ |
(8,974 |
) |
$ |
(4,762 |
) |
||||
|
Adjusted Loss – continuing operations per common share— |
|
|
|
|
|
||||||||||||||
|
– Basic |
$ |
(0.13 |
) |
$ |
(0.11 |
) |
$ |
(0.05 |
) |
$ |
(0.25 |
) |
$ |
(0.13 |
) |
||||
|
– Diluted |
$ |
(0.13 |
) |
$ |
(0.11 |
) |
$ |
(0.05 |
) |
$ |
(0.25 |
) |
$ |
(0.13 |
) |
||||
|
Weighted average number of shares – basic |
|
36,454,812 |
|
|
36,407,581 |
|
|
36,083,703 |
|
|
36,431,327 |
|
|
36,483,551 |
|
||||
|
Weighted average number of shares – diluted |
|
36,454,812 |
|
|
36,407,581 |
|
|
36,083,703 |
|
|
36,431,327 |
|
|
36,483,551 |
|
||||
We present Adjusted EBITDA from continuing operations and Adjusted Loss from continuing operations as supplemental measures of our performance. We define Adjusted EBITDA from continuing operations for the periods indicated as EBITDA – continuing operations (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net and (iv) Other charges. EBITDA – continuing operations for the periods indicated is defined as income (loss) from continuing operations before interest income, interest expense, income tax benefit, net and depreciation and amortization.
We prepare Adjusted Loss from continuing operations by adjusting income (loss) from continuing operations to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Loss from continuing operations is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Loss from continuing operations for the periods as net loss, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Other charges and (v) Income tax effect on non-GAAP adjustments.
For the three and six months ended June 30, 2026, we recorded $1,981 thousand of other charges, consisting of a $1,095 thousand customer goodwill payment related to a certain product, and $886 thousand of one-time employee incentives. For the same period in 2025, we recorded $496 thousand of one-time employee incentives and $350 thousand of certain executive separation benefit related accruals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260729493522/en/
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