GCT Semiconductor Holding, Inc. Q4 FY2025 earnings call

2025 was a defining year for GCT with key milestones in 5G chipset transition. Shipped over 1,900 5G chipsets in fourth quarter. GOGO launched broadband 5G air-to-ground service using GCT's 5G chipset. Signed licensing agreement with satellite communications provider, partnership with Skylo. Entered into $20 million convertible note facility. Focus on scaling operations to support 5G chipset commercialization, align supply chain, strengthen production readiness.

Net revenues decreased by $6.3 million, or 69%, from $9.1 million for the year ended December 31, 2024, to $2.9 million for the year ended December 31, 2025. Cost of net revenue increased by 0.6 million or 16% from 4.1 million for the year end of December 31st, 2024 to 4.7 million for the year end of December 31st, 2025. Research and development expenses decreased by 3.3 million or 19% from $17.3 million for the year ended December 31st, 2024 to $14 million for the year ended December 31st, 2025. Sales and marketing expenses were relatively flat year over year. General and administrative expenses increased by $5.7 million, or 53% from $10.8 million for the year ended December 31, 2024, to $16.5 million for the year ended December 31, 2025. Stock-based compensation expense increased by $3.2 million. Liquidity: closed the year with cash and cash equivalent of $0.6 million, subsequent to year end had cash and cash equivalent of $9.4 million, maintain access to at the market equity program and shelf registration statement.

Expect sequential growth in revenue and 5G chipset shipments throughout 2026. Gross margin expected to be in high 30s to low 40s as product matures and revenue ramps. G&A running expenses expected to go back to normal run rate level. OPEX has one-off situations with receivable cleanup and warrant issuance not continuing.

Q: Congratulations on 5G chips starting to ship, talk on fixed wireless access visibility and satellite revenue materialization.

A: MWA important, expect more shipping into market with backlog in Q2, satellite product shipping for NTN, new partner's shipments in second half of 2026.

Q: Nice to see gross margins, how to think about gross margins going forward and operating expense increase.

A: 2026 gross margin expected high 30s to low 40s, OPEX has one-off situations with receivable cleanup and warrant issuance not continuing.

Q: Interaction with customers on product, strengths, etc.

A: Customers happy with product, support for unique applications good.

Q: Quantify potential with satellite communications license, sole supplier.

A: Potential in million unit plus quantities, likely sole supplier for now with unique customization.

Q: Customers in Q4 and Q1, expenses.

A: 3 customers in Q4, 3 - 5 in Q1, normal G&A run rate around $8 - $8.5 million per quarter.

Q: Supply limited in Q4, still a thing.

A: Q4 due to wafer and testing, Q1 testing throughput increased.