GCT Semiconductor Holding, Inc. Q3 FY2025 earnings call

• Achieved first 5G product revenue, marking the start of next-generation technology contributing to top line.
• Completed sampling 5G chipset and modules to lead customers like Airspan Networks, Orbit, etc., with positive feedback.
• Gogo, first 5G network operator, signaled full service activation by year-end 2025, using GCT's 5G chipset, with field testing near completion.
• 5G chipset orders exceeded 2,500 units, with early demand from lead customers.
• Secured $10.7 million in senior secured debt financing to accelerate production readiness and support volume shipments.

Net revenues decreased from $2.6 million for Q3 2024 to $400,000 for Q3 2025. The decline was driven by a $1.6 million decrease in product sales and a $600,000 decrease in service revenues. Cost of net revenue increased to $1.5 million from $1 million in Q3 2024, primarily due to additional production overhead costs and a write-down on slow-moving 4G LTE inventory. Gross margin was negative for Q3 2025. R&D expenses decreased by $1 million, sales and marketing expenses were flat, and G&A expenses increased by $1.5 million. The company recognized its first 5G product revenue, though small in dollar terms. Cash and cash equivalents were $8.3 million, net accounts receivable $3.7 million, and net inventory $1.9 million.

• Expect to support deliveries of 5G products in late Q4 2025.
• Anticipate adjusted EBITDA breakeven in Q3 2026 and positive cash flow from operations in Q4 2026.
• Preparing supply chain for hard volume production, including working on FAB, testing, and assembly house readiness.

Q: Craig Ellis from B. Riley Securities asked about volumes shipping later in 2025 and into 2026, including backlog and customer base broadening.

A: John Brian Schlaefer responded that total orders received so far are around 2,500, with shipments expected in the current quarter, and more backlog expected in Q1 2026 supporting continued demand from AirSpan and other sampled customers.

Q: Craig Ellis asked about adjusted EBITDA breakeven confidence and indicators.

A: Edmond Cheng replied that internally, adjusted EBITDA trend has been stable, and with scale production and sales ramp in the second half of 2026, they anticipate adjusted EBITDA breakeven in Q3 2026 and positive cash flow in Q4 2026.

Q: Craig Ellis asked about pricing and supply chain readiness for hard volume production.

A: John Brian Schlaefer said pricing varies but still serves as a good average, and top supply chain preparations include FAB, testing, and assembly house readiness to support increased demand.