GCTS

This article first appeared on GuruFocus. Net Revenue: $1.0 million for Q2 2026, down 18% from $1.2 million in Q2 2025, due to a $2.2 million decrease in service revenues. Cost of Net Revenues: $1.2 million for Q2 2026, up 49% from $0.8 million in Q2 2025, driven by increased unit volume. Gross Margin: Negative for Q2 2026, compared to 32% in Q2 2025; expected to improve as 5G product sales increase. R&D Expenses: $3.3 million for Q2 2026, down from $3.5 million in Q2 2025, due to completion of the 5G chip design project. Sales and Marketing Expenses: $1.0 million for Q2 2026, consistent with $1.1 million in Q2 2025. General and Administrative Expenses: $2.8 million for Q2 2026, down from $3.4 million in Q2 2025. Net Loss: $20.4 million for Q2 2026, compared to $13.5 million in Q2 2025, including $12.3 million in losses from changes in fair value of warrant liabilities. Adjusted EBITDA Loss: $6.6 million for Q2 2026, slightly improved from $6.7 million in Q2 2025. 5G Chipset Shipments: More than 5,100 units in Q2 2026, representing approximately 71% sequential growth. Cash and Cash Equivalents: $30.2 million at quarter end. Net Accounts Receivable: $1.1 million. Net Inventory: $1.5 million. Warning! GuruFocus has detected 8 Warning Signs with GCTS. Is GCTS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 5G chipset shipments grew 71% sequentially to over 5,100 units in Q2 2026, reflecting strong customer engagement. Pipeline diversification across three strategic pillars (terrestrial broadband, satellite/NTN, and IoT/specialized networking) reduces dependence on any single customer. New customer signed post-quarter for UAV and defense-related connectivity, validating platform flexibility and expanding market reach. Secured production capacity through Q1 2027, ensuring readiness for anticipated ramp and mitigating supply chain risks. Adjusted EBITDA loss stabilized at $6.6 million in Q2 2026, indicating improved cost management despite early-stage commercialization. Net revenues decreased 18% year-over-year to $1.0 million in Q2 2026, with a shift to 5G services impacting service revenue. Gross margin turned negative in Q2 2026, reflecting early-stage product mix and increased costs from higher unit volume. Net loss widened to $20.4 million in Q2 2026, driven by $12.3 million in non-cash fair value losses on warrant liabilities. Customer deployment schedules shifted modestly, causing meaningful revenue shortfalls in the quarter and uncertainty in timing. Cash burn is expected to increase to $9-$9.5 million per quarter due to tight supply chain prepayments, pressuring liquidity. Q: Can you provide more color on the customer deployment shifts that impacted Q2 results, and how significant were they from a unit or revenue standpoint? A: John Schlaefer (CEO): The shifts were meaningful in the quarter, and we had expected significantly higher revenue. However, these programs remain very much alive and viable, and we believe we will see the impact in the later part of the year. The delays are primarily due to customers pushing out launch schedules by one to two quarters, often due to their own corporate restructuring or factors outside their control, rather than a change in product strategy. Q: How many customers did the 5,100 chipsets ship to in Q2, and what applications were they for? A: John Schlaefer (CEO): The shipments went to primarily four customers across four different applications: FWA, aviation, mobile hotspot, and a push-to-talk phone application. This demonstrates the broadening interest in our 5G solutions beyond any single customer or market. Q: Can you elaborate on the production capacity you've secured through Q1 2027 and the associated financial exposure if customer launches slip further? A: John Schlaefer (CEO) and Edmond Cheng (CFO): We secured wafer capacity through Q1 2027, which is critical given the tight fab environment. If launches slip, we can slow down future purchases, and the wafers are not perishable. CFO Edmond Cheng added that Q2 cash burn was impacted by $7 million to $7.5 million due to prepaying for supply chain capacity. Going forward, we anticipate quarterly cash burn of $9 million to $9.5 million per quarter due to the tight supply chain, up from a normalized $8 million to $8.5 million, but we can rebalance based on inventory and demand. Q: Where do you see the greatest near-term volume interest across your three strategic pillars (terrestrial broadband, satellite/NT, and IoT/specialized networking)? A: John Schlaefer (CEO): The most significant near-term revenue uptake will come from terrestrial broadband and satellite/non-terrestrial connectivity, as these are more mature applications we've been working on for a while. The IoT and specialized networking space has the most breadth of applications, but ASPs are lower than in FWA and satellite. We expect the highest volume between now and Q1 2027 to be roughly equally split between the first two pillars. Q: Can you describe the new customer signed after quarter-end in the UAV and defense space, and what applications it covers? A: John Schlaefer (CEO): The new customer is in the UAV space with applications across consumer and defense. Our device is flexible and useful for control telemetry. Due to confidentiality provisions, we cannot name the customer today, but they have not yet announced the product. This relationship validates the flexibility of our platform and extends our reach into another attractive vertical. Q: When will you be able to disclose the name of the satellite communications provider you're working with? A: John Schlaefer (CEO): We will disclose the name once we receive their green light, as we have NDAs to honor. We expect they will be less sensitive about disclosure once they launch, which could be as soon as Q4 2026 or Q1 2027. Q: How should we think about quarterly cash burn over the next four to six quarters, and will you need to spend more to hit the commercialization inflection point? A: Edmond Cheng (CFO): We anticipate quarterly cash burn of $9 million to $9.5 million per quarter due to the tight supply chain environment, up from a normalized $8 million to $8.5 million. We have already paid for production through the end of the year, which increased Q2 cash burn. We can adjust future wafer payments based on inventory and demand to manage cash flow effectively. Q: Can you provide more detail on the customer restructuring and evolving deployment schedules that shifted timing? A: John Schlaefer (CEO) and Edmond Cheng (CFO): The shifts were due to customers pushing out launch schedules by one to two quarters, often due to their own corporate restructuring and refocus, even though their product strategy is unchanged. Edmond clarified it's more about deployment plan changes than restructuring. These are not related to their supply chain problems, though they face their own challenges in that area. Q: How many customer programs do you have line of sight to through Q1 2027, and can you provide unit guidance for the second half? A: John Schlaefer (CEO): We're hesitant to provide specific guidance at this point due to front-end variability in customer programs. However, we have secured wafer supply through Q1 2027 in anticipation of what we believe is a relatively large ramp. We continue to expect second-half shipments to exceed first-half levels as commercialization progresses. Q: Can you quantify the number of customers you're seeing across all three strategic pillars compared to the 50+ potential customers at Mobile World Congress? A: John Schlaefer (CEO): While we didn't provide a specific number, the breadth of customer engagement continues to expand across all three pillars. The terrestrial broadband and satellite/NT spaces have the most mature activity with high expectations, while IoT and specialized networking has the most breadth of applications, though with lower ASPs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes the second quarter as a critical transition phase from development to commercialization, focusing on building a diversified pipeline to mitigate dependence on individual customer ramps. The company has organized its growth strategy around three pillars: terrestrial broadband (FWA/CPE), satellite and non-terrestrial connectivity, and industrial IoT/specialized networking. Performance in Q2 was impacted by macro-driven shifts in customer deployment schedules and corporate restructurings, which delayed anticipated revenue despite sustained engagement levels. Diversification efforts are yielding results, with the 5G pipeline now spanning carrier OEM/ODM partners, direct-to-device satellite solutions, and defense-related UAV applications. Operational focus has shifted toward manufacturing readiness and supply chain stabilization to ensure the company can scale as commercial production accelerates. Management notes that while timing remains the primary variable, the underlying demand environment for their 5G technology remains healthy across all targeted verticals. The recent signing of a new customer in the UAV and defense sector validates the flexibility and scalability of the core 5G platform beyond traditional mobile markets. Management expects 5G chipset shipments in the second half of 2026 to exceed first-half levels in terms of both unit volume and the number of active customers. The company has secured wafer production capacity through the first quarter of 2027 to support an anticipated 'relatively large' production ramp. Financial priorities for the remainder of the year include disciplined capital allocation and converting the commercial pipeline into sustainable long-term revenue growth. Gross margins are expected to improve and normalize as 5G product sales increase and become a more significant contributor to the overall revenue mix. Cash burn is projected to be between $9 million and $9.5 million per quarter in the near term, reflecting a tight supply chain environment and the need for capacity prepayments. Introduced Adjusted EBITDA as a supplemental metric to provide a clearer view of operating performance by excluding non-cash fair value adjustments from warrant liabilities. Reported a $12.3 million loss from the change in fair value of common stock warrant liabilities, driven by increases in the company's stock and warrant market prices. Amended the at-the-market (ATM) equity program to increase maximum aggregate gross proceeds from $75 million to $120 million to enhance financial flexibility. Q2 cash burn was impacted by approximately $7 million to $7.5 million due to prepayments required to secure supply chain capacity in a tight foundry environment. Management confirmed that delays were 'meaningful' and resulted in significantly lower revenue than originally anticipated for the quarter. The programs remain viable and active, with the expectation that the delayed volume will materialize in the latter part of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Shipments of 5.1 thousand units were distributed across four primary customers, up from two in the prior quarter. Applications for these units included Fixed Wireless Access (FWA), aviation, mobile hotspots, and push-to-talk phone applications. Capacity is secured specifically for wafers, which is critical as fabs are currently full due to high demand for memory and other components. Management stated there are no 'perishable' risks if launches slip further, as they can adjust future purchases and the wafers can be used for all required product SKUs. Terrestrial broadband and satellite connectivity are expected to drive the most significant near-term revenue due to market maturity. The IoT and specialized networking pillar offers the greatest breadth of applications, though average selling prices (ASPs) are expected to be lower than in the FWA and satellite segments. Management is currently restricted by non-disclosure agreements but expects to reveal the partner's name once they launch their service. The disclosure could potentially occur as early as Q4 2026 or Q1 2027.

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET Chief Executive Officer - John Brian Schlaefer CFO - Fong Ting Cheng Operator: Good afternoon. Thank you for attending. GCT Semiconductor Holdings Inc. Second Quarter 2020 Financial Results Call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Joining the call today are John Brian Schlaefer, GCT's chief executive officer and Fong Ting Cheng, CFO, to discuss our second quarter 2020 results. During the call, certain statements we make will be forward looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward looking statements that can be found at the end of our earnings press release and also in our Form 10 Q that will be filed today. Which provide further detail about the risks related to our business. Additionally, we additionally-- accepted as by law, we undertake no obligation to update any forward looking statements. Our call and earnings release include presentation of non GAAP financial measures We use non GAAP measures because we believe they provide useful information about our operating performance that should be considered with investors in conjunction with the GAAP measures, a reconciliation of these non GAAP measures to comparable GAAP measures is included in our earnings release. I would now like to turn the conference over to John Brian Schlaefer, Please sir, go ahead. John Brian Schlaefer: Thank you, and thanks to everyone for joining us today for our second quarter 2020 earnings call. I will begin by discussing the operational progress we have made during the second quarter and provide an update on where we stand in the commercialization of our 5G platform. Following my remarks, our chief financial officer, Fong Ting Cheng, will review our second quarter financial results in more detail. When we spoke with you last quarter, we highlighted that 2026 would be a year of continued commercialization as our customers progress from development and integration into early deployments of our 5G chipset. Progression has continued, and the second quarter demonstrates the importance of working closely with customers as they advance through their respective commercialization milestones. While the broader macro environment of several of our customers has influenced the timing of certain deployment schedules, we have not seen any change in the level of customer engagement or the long term demand of our technology. So rather than viewing the second quarter through the lens of financial performance, we believe it is more meaningful to view it as another important step forward in building a diversified pipeline for the anticipated 5G commercialization ramp. 1 of our priorities entering 2026 was to broaden the opportunity at hand beyond any single customer application or end market. Today, we believe we have made meaningful progress toward that objective. Our 5G pipeline now spans 3 strategic growth pillars. Terrestrial broadband, satellite, and nontarrestrial connectivity, and industrial IoT and specialized networking applications. We believe this diversification strengthens the long term opportunity for GCT, while reducing our dependence on any individual customer deployment. Beginning with terrestrial broadband, the year, we have advanced multiple FWA and CPE programs with carrier OEM and ODM partners. Engineering activities, product integration, and certification efforts progressed across these programs. While several customer deployment schedules shifted modestly, these initiatives are moving forward. And we are encouraged by the progress across our partner ecosystem. As operators invest in next generation broadband infrastructure, we believe our technology is well positioned to support these deployments and participate in the long term growth of this market. Next, within satellite and non terrestrial connectivity, we continue expanding our engagement with partners developing direct to device and hybrid satellite cellular solutions. We believe this is 1 of the most compelling long term opportunities for our technology as terrestrial and satellite networks increasingly converge. Throughout the quarter, we advanced development and certification activities with several partners and remain confident in the role our modem technology can play in enabling seamless connectivity across multiple network environments. Our third strategic growth pillar is IoT and specialized networking applications, where we are expanding our presence across industrial positioning, aviation, and defense related markets. Subsequent to the quarter end, we signed a new customer supporting UAV and defense related connectivity. While confidentiality provisions prevent us from naming that customer today, we believe this relationship further validates the flexibility and scalability of our while extending our reach into another attractive vertical. These efforts are translating into measurable progress as customers advance through their respective commercialization phases. During the second quarter, we shipped more than 5.1 thousand 5G chipsets, representing approximately 71% sequential growth compared to the first quarter This growth reflects increasing customer engagement across our targeted markets, as programs progress through development, certification, and early deployment phases. While the timing of our individual customer ramps can vary, we believe the momentum behind our platform and growing adoption of our technology provides a strong foundation as we continue scaling 5G chipset commercialization. Across each of these markets, the common theme remains the same. Customer engagement continues to increase, our pipeline continues to broaden, and the underlying demand environment remains healthy. The primary variable today is deployment timing. Rather than customer interest. As customers complete certification activities and finalize deployment schedules, the timing of commercial production may shift modestly from quarter to quarter but we remain confident in the long term opportunity ahead. Our focus continues to be on execution. We are investing in our manufacturing readiness, strengthening our supply chain, supporting customer deployments, and ensuring we are to scale production as commercialization accelerates. While there will inevitably be quarter to quarter variability as customers complete their deployment plans, we believe the work we are doing today positions GCT for sustained long term growth. Overall, we believe the second quarter represents another meaningful in our transition from development to commercialization. The foundations we have built across our technology, customer relationships, and strategic partnerships continues to strengthen, and we are excited about the opportunity ahead. With that, I will turn the call over to Fong Ting Cheng to discuss our second quarter results. Fong Ting Cheng? Fong Ting Cheng: Thank you, John Brian Schlaefer. As John discussed, we view the second quarter as another important step in our commercialization journey. While our reported financial results continue to reflect a business in the early stages of transitioning from development into commercialization The progress we are making with customers continues to reinforce our confidence in the significant long term opportunity ahead. 1 measure of that progress was the continued run-in of 5G chipset shipments. With more than 5.1 thousand units shipped during the second quarter. Representing approximately 71% sequential growth. This growth reflects ongoing advancement of customer programs, through integration, certification, and early deployment activities. Before reviewing our financial results, I would like to note that starting from this quarter, we are introducing adjusted EBITDA. As an additional supplemental performance metric. Because our reported GAAP results include significant noncash fair value adjustments associated with our warrant liability, we believe adjusted EBITDA provides investors with a more meaningful view of the underlying operating performance of the business as we continue investing in commercialization. With that, I will now review our second quarter 2026 financial results. Further details can be found in the 10 Q that will be on file with the SEC. Net revenues decreased by $200 thousand or 8% from $1.2 million for the 3 months ended 06/30/2025. To $1 million for the 3 months ended 06/30/2026. The change was due to a decrease of $200 thousand in service revenues reflecting the shift to 5G service offerings. Product sales were consistent year over year with growth in 5G product sales. Also, our revenue for the first half of this year slightly exceeds the revenue for the full year of 2020. Cost of net revenues increased by $400 thousand or 49% from $800 thousand for the 3 months ended 06/30/2025 to $1.2 million for the 3 months ended June 2026. Largely driven by increased cost from increased unit volume. Our gross margin was 32% for the 3 months ended 06/30/2025, Our gross margin for the 3 months ended 06/30/2026 was negative. And not representative of our expectations regarding profitability of our products, and services in future reporting periods. We expect gross margins to improve as 5G product sales increases and contribute more significantly to the overall revenue. Research and development expenses decreased by $200 thousand from $3.5 million for the 3 months ended 06/30/2025 to $3.3 million for the 3 months ended 06/30/2026. Primarily due to the completion of our 5G chip design project, which results in a $500 thousand reduction in professional services from Alpha as well as a $100 thousand decrease in stock based compensation expense. This reduction was partially offset by a $400 thousand increase in payroll related costs. Sales and marketing expenses remain consistent year over year totaling $1.1 million for the 3 months ended 06/30/2025 compared to $1 million for the 3 months ended 06/30/2026. General and administrative expenses decreased by $600 thousand from $3.4 million for the 3 months ended 06/30/2025 compared to $2.8 thousand for the 3 months ended 06/30/2026. The decrease was primarily due to a lower loss resulting from changes in the allowance for credit losses on accounts receivable. Net loss increased by $8.1 million from $13.5 million for the 3 months ended 06/30/2025 to $20.4 million for the 3 months ended 06/30/2026. Net loss for Q2 2026 also included $12.3 million in losses from change in fair value of common stock warrant liabilities. Driven by increases in our common stock price and the market price of our publicly traded warrants during the quarter. Adjusted EBITDA loss decreased by $100 thousand from $6.7 million for the 3 months ended 06/30/2025. to $6.6 million for the 3 months ended 06/30/2026. While we have not previously reported adjusted EBITDA, we see our stabilized performance here as an important indicator. Shifting to liquidity. We finished the quarter with cash and cash equivalent of $30.2 million With this improved liquidity, we have the financial flexibility and resources to support the commercial ramp of our customer programs. And by now, we have already secured the required production capacity for the remainder of 2026, and through the first quarter of 2027. In anticipation of the expected chip demand, We also have access to our at the market equity program which we initiated in April 2025. During the quarter, we amended the agreement to increase the max aggregated growth proceeds available under the program from $75 million to $120 million while the total shelf registration maximum capacity remains unchanged at $200 million. These resources provide us with flexibility to support and execute our commercialization strategy as we scale production of our 5G chips. We also have net accounts receivable of $1.1 million and net inventory of $1.5 million. Entering the second half of the year, our financial priorities are unchanged. While customer deployment timelines can progress at various paces. We continue to expect second half shipments to exceed first half levels as commercialization progresses. Our focus is on disciplined capital allocation supporting customer production ramps, and converting our growing commercial pipeline into sustainable long term revenue growth. Although the timing of customer deployments may continue to fluctuate, in the near term, we believe the long term opportunity remains significant. Especially in the 3 strategic pillars which John has mentioned. The investment we have made over the past several years position GCT well for the next phase of growth. With this, I will turn it back to John Brian Schlaefer. John Brian Schlaefer: Thanks, Fong Ting Cheng. As we have discussed today, the second quarter was another important step in advancing our commercialization strategy. While the pace of customer deployments continues to evolve, the breadth of our customer engagements technology platform, and strategic partnerships continues to expand, reinforcing our confidence in the long term opportunity ahead. We continue to expect to ship more and more 5G chipsets with the second half of 2020 surpassing the first half in quantity of chips and customers we are shipping to. We remain focused on execution. We are supporting customer launch preparation, expanding manufacturing readiness, strengthening our strategic partnerships, and positioning the business to convert our growing pipeline into meaningful long term revenue growth. We believe the foundation we have built over the past several years places GCT in a strong position as 5G chipset commercialization continues to accelerate and we remain excited about the opportunities in front of us. I would like to thank our employees for their continued dedication, our customers and partners for their collaboration, and our shareholders for their continued support and confidence in GCT. I will now turn the call back over to the operator, who will assist us in taking your questions. Operator: Thank you. To ask a question, please press 1-1 on your telephone and wait for your name to be announced. Please standby while we compile our Q&A roster. Our first question is going to come from the line of Craig Ellis with B. Riley Securities. Your line is open. Please go ahead. Craig Ellis: Nice to see the broadening interest in the 5G solutions. I wanted to start just by understanding some of the dynamics that were at play. As we look back at Q2. You mentioned that there were program shifts and a few other headwinds. Is it possible to size how big those were either from a unit standpoint or a revenue standpoint? John Brian Schlaefer: Yeah. I would say that all we can really say right now is that they were meaningful in the quarter, and we thought that we would have significantly higher revenue in the quarter. Because of these things, they have pushed out. So they are still very much alive and very much viable. And we believe that we will we will see this in the later part of the year. Craig Ellis: Good for you. John Brian Schlaefer: And then under understanding the shipments in a little bit more detail, The company shipped 5.1 thousand units. John, how many customers were those shipments to? Was it up from the 2 that I think we had in the prior quarter? Craig Ellis: Yeah. John Brian Schlaefer: This was to primarily 4 customers. And these were across, I would say, 4 different applications. So almost equally across FWA, aviation, and mobile hotspot with an additional application added for, like, a push to talk phone application. Craig Ellis: Okay. So it sounds like some of the broadening interest that you talked about was already visible there inside of the second quarter. Alright. So I think 1 of the things that came up a couple of times in the comments was that the units underpinning customer programs or something you now have line of sight to through the first quarter of 2020. Can you provide some more color on how many customer programs we are seeing through Q1 2027. And I know you expect units to be up in the second half of this calendar year. Half on half. Can you help us with what the unit optics look like when we look out to 1Q 2027 as well? John Brian Schlaefer: Yeah. So we are hesitant to provide, you know, that sort of guidance at this point. And I think it is it is reflective of you know, what we have seen so far. So it is the-- you know, the front end and the, you know, the variability on these customer programs, but they are all working feverishly to get their ramps, started. We did say that, we had visibility, and we were planning the wafer supply so that we have secured that, you know, through Q1. And this is in anticipation of what we believe is a relatively large ramp. Okay. Craig Ellis: Okay. So relatively large. Okay. Good to hear. Alright. John Brian Schlaefer: Then lastly for me, John, we have identified terrestrial broadband satellite and nonterrestrial and IoT and specialized products as 3 vectors where there are degrees of customer interest in solution uptake. Can you talk more about where you see the greatest near term volume interest and maybe contrast that with or specify if it is there too with where you are seeing the greatest breadth of customer interest across those. And can you quantify how many customers you are seeing across all of those and maybe compare it to what you saw at Mobile World Congress where I think you met with over 50 different potential customers. Craig Ellis: Right. John Brian Schlaefer: So I would say that right now, the most significant from a revenue uptake is going to be in the terrestrial broadband and the satellite and non-terrestrial connectivity. And that is just because these are applications that we are very mature with in the FWA space and the satellite space that we have been working on for a while. I would say in these 2 spaces, there is a lot of you know, latent activity that has not ramped yet and these are the 2 areas that we have, you know, high expectations for. In the IoT and specialized network, that has probably the most breadth in it and actually breadth of applications As you can imagine for IoT, I mean, all those machine to machine applications that are very vast in quantity. And but also for IoT as well, you can imagine too that the that the ASPs are a little lower than they would be in the FWA and satellite space. Craig Ellis: Got it. And can you specify or maybe I have missed it, where you see the highest volume between here and Q1 2027 within those, 3 areas. Would it be terrestrial broadband and satellite non terrestrial? John Brian Schlaefer: I would say probably equally in the first 2 that I mentioned. The terrestrial broadband and the satellite and nontarrestrial connectivity. The IoT and specialized networks, like I said, there is a lot of breadth there. And a lot of activities that have just begun. And the ASPs there will be a little lower than we are seeing in the other areas. Got it. Craig Ellis: Okay. With that, I will hop back in the queue. Thank you, John Brian Schlaefer. John Brian Schlaefer: Thank you, Craig. Operator: Thank you. And 1 moment for our next question. Our next question is going to come from the line of Scott Buck with Titan Partners. Your line is open. Please go ahead. Analyst: Hi. Good afternoon, guys. Thanks for the time. So I think you said earlier that you have already secured required production capacity for the remainder of 20 sixth and through the first quarter of 27. What does that entail in terms of purchase or take- or pay obligations? And I guess what-- well, I guess, I really want to know is what your exposure is if the delayed customer launches continue to slip. John Brian Schlaefer: Yeah. So it basically means we are talking about wafer capacity. Which is everybody is talking about right now because the fabs are full. You know, the fab capacity is being used for memory and so forth. So, you know, having wafer capacity committed to us is very important. So, you know, with regard to slip, I think we are actually right sized in our in our capacity, but if that were to happen, you know, we would-- we could slow down our purchases in the, you know, in the future. And there is nothing perishable here that is going to happen. And, you know, fortunately, you know, on the wafers that we have right now, we can produce all the SKUs that we need. For all of these applications. So there is nothing that is custom by application until you get to the very, very end. So I think on the front end and having, you know, wafer capacity secured and so forth, it really does not have any negative effects from a supply standpoint if things were to push out. Analyst: Okay. that is that is very helpful, John. And then my second question, just on liquidity but more so cash burn. I am curious, Do you how should we be thinking about quarterly cash burn over the next 4 to 6 quarters? And at some point, do you have to spend more here or burn more here in the near term to hit that inflection point, I guess, on the commercialization front or should we expect, you know, kind of steady burn trends from here until we start to see a real ramp in the top line? Fong Ting Cheng: Scott, that is a very good question. At the current moment, there is a supply chain very tight environment from that sense as John has alluded to from that perspective. The fundaries are basically full. They their production schedule has been all the way scheduled to first quarter of next year. We are actually in Q2, we have actually prepaid all the way to end of this year from that perspective. That actually in a way, normally, it increases our cash Burn for Q2. And if you take a look at it, it our Q2 cash burn is affected by $7 million to $7.5 million because of that portion of the supply chain situation there. But going forward, we have a 6-month rolling type of situation that we would normalize to from that perspective. And that would not have the as severe type of impact as in Q2 And what we are looking at it is in Q1, we anticipate our cash burn on a quarterly basis is between $8 million to $8.5 million per quarter. Now with this tight supply chain situation, we anticipate our cash burn to be between $9 to $9.5 million per quarter from that sense. And we are managing it from that perspective as you also have alluded to is we can adjust our future payment to for the waiver depending on our inventory and our demand situation we can either ramp up or ramp down depending on our inventory and demand situation. We can rebalance that also including our cash flow as well. Analyst: Okay. Perfect. that is very helpful, Fong Ting Cheng. I appreciate that. that is all I had, guys. I appreciate the extra time. John Brian Schlaefer: Thank you, Scott. Thank you, Scott. Operator: Thank you. And 1 moment for our next question. Our next question comes from the line of Thompson with Zacks Investment Research. Your line is open. Please go ahead. Analyst: Hi. Good afternoon. John Brian Schlaefer: Hi, Lisa. We covered a hi there. We covered a lot. But I still have a few more questions here. Sure. Okay. Can you just expand a little about on the sentence, you said customer restructuring and evolving deployment schedules. Shifted the timing. Can you kind of describe what happened there? Yeah. I would say that there is I do not know if you wanna call it, macro events, but when you have got, you know, customers that actually push out by 1 to 2 quarters, there is nothing that we can do about that. And so in some cases, it has to do with their own, you know, corporate restructuring. Refocus even though, you know, their product strategy is unchanged. And in some cases, it has to do with you know, things outside their control that actually push out their launch schedule. Is that having to do Yeah. Liz, I would characterize it as not as a restructuring, but more like the deployment plan. Okay. And does that have anything to do with their own supply chain? Problem? I would not say they are supply chain problems. No. Okay. Even though each 1 of them is actually challenged, and they have to manage that on their own. I mean, they are not immune to that, but that is not what this is related to. Okay. And could you just talk a little bit more about the new customer you signed after the quarter ended? Like what industry? What are you doing for them? Yeah. So I would say that is in the UAV space and has, you know, applications across the consumer and defense applications. So, you know, our device is, you know, very flexible and very useful for control telemetry, and so forth. Okay. And is that in products they already have announced? They have not announced. No. Okay. And speaking of that, Even though they may be announcing something, but, I mean, right now, they have not announced. Okay. Alright. And I guess my last question is, are we ever going to know the name of the satellite communications provider? We will. Yes. We will. Well, We have to-- what are we waiting for? We are waiting for their green light. So, I mean, we have we have NDAs with them that we have to honor. And I would say that as soon as they launch, that they will be less sensitive about that. Okay. Great. Thank you. that is all my questions. Oh, go ahead. Yeah. So what that means is it could be Q4. It could be Q1. You know, something like that. Okay. Good. Sooner than I thought. Thank you. Yep. Alright. Thank you, Lisa. Operator: Thank you. Thank you for joining us. This concludes our second quarter 2020 conference call. A replay will be available for a limited time on our website later today. Thank you for joining. You may now disconnect. Everyone, have a great day. Okay. Thank you. Before you buy stock in Gct Semiconductor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gct Semiconductor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. GCT Semiconductor (GCTS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in GCT Semiconductor Holding, Inc.? Here are five stocks we like better. Revenue fell 18% year over year to $1 million as customer deployment schedules shifted, although management said customer interest and affected programs remain intact. GCT shipped more than 5,100 5G chipsets in the second quarter, up about 71% sequentially, and expects second-half shipments to exceed first-half levels. Near-term opportunities are concentrated in terrestrial broadband, satellite connectivity, and industrial or specialized IoT applications. Net loss widened to $20.4 million, including a $12.3 million noncash warrant-liability revaluation loss. The company ended the quarter with $30.2 million in cash, but expects quarterly cash burn of roughly $9 million to $9.5 million amid elevated supply-chain costs. GCT Semiconductor (NYSE:GCTS) reported second-quarter 2026 revenue of $1 million, down 18% from $1.2 million a year earlier, as the company continued its transition from 5G chipset development to commercialization. Management said customer deployment schedules shifted during the quarter, but it maintained that engagement and long-term demand for its technology remain intact. Chief Executive Officer John Schlaefer said the company’s commercialization pipeline has broadened across three areas: terrestrial broadband, satellite and non-terrestrial connectivity, and industrial IoT and specialized networking applications. He said the company is seeking to reduce its dependence on any individual customer deployment by pursuing opportunities across multiple end markets. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “The primary variable today is deployment timing rather than customer interest,” Schlaefer said, adding that customer production schedules may shift as certification activities are completed and deployment plans are finalized. GCT shipped more than 5,100 5G chipsets during the second quarter, a sequential increase of about 71% from the first quarter. Schlaefer said the shipments went primarily to four customers across four applications: fixed wireless access, aviation, mobile hotspots and push-to-talk phones. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War During the question-and-answer session, Schlaefer said customer program delays were meaningful enough that the company had expected “significantly higher revenue” in the quarter. He attributed the timing changes to customers’ corporate restructuring and refocusing efforts in some cases, as well as external factors affecting launch schedules in others. He said the affected programs remain active and viable, with expected activity later in the year. For the second half of 2026, GCT expects chipset shipments to exceed first-half levels, both in the quantity of chips shipped and the number of customers receiving them. However, management declined to provide specific shipment forecasts through the first quarter of 2027, citing variability in customer ramp schedules. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Schlaefer said the company sees the largest near-term revenue potential in terrestrial broadband and satellite and non-terrestrial connectivity, where it has been working on fixed wireless access and satellite programs for some time. He said these segments have substantial activity that has not yet ramped. IoT and specialized networking represent the broadest set of potential applications, according to Schlaefer, including industrial, positioning, aviation and defense-related uses. He noted that average selling prices in IoT could be lower than in the fixed wireless and satellite markets. After the quarter ended, GCT signed a customer in the unmanned aerial vehicle market, with potential consumer and defense applications. Schlaefer said the company’s technology can support control and telemetry functions. The customer has not yet announced its product, and GCT did not disclose its name due to confidentiality provisions. Management also said it expects to disclose the identity of a satellite communications provider once that partner provides approval. Schlaefer said that could occur in the fourth quarter or the first quarter, depending on the customer’s launch plans. Second-quarter cost of net revenues rose 49% to $1.2 million from $800,000 a year earlier, largely due to higher unit volumes. The company reported a negative gross margin for the period, which Chief Financial Officer Edmond Cheng said was not representative of management’s expectations for future profitability. Cheng said margins are expected to improve as 5G product sales become a more significant portion of revenue. Research and development expense fell to $3.3 million from $3.5 million, reflecting completion of a 5G chip design project and lower professional-services and stock-based compensation costs, partly offset by higher payroll-related expenses. Sales and marketing expense was $1 million, compared with $1.1 million a year earlier. General and administrative expense declined to $2.8 million from $3.4 million, primarily due to a lower loss related to changes in the allowance for credit losses on accounts receivable. Net loss widened to $20.4 million from $13.5 million in the prior-year quarter. Cheng said the latest result included a $12.3 million loss from changes in the fair value of common-stock warrant liabilities, driven by increases in the company’s common stock price and the market price of its publicly traded warrants. Beginning this quarter, GCT is introducing adjusted EBITDA as a supplemental metric. Adjusted EBITDA loss improved slightly to $6.6 million from $6.7 million a year earlier. Cheng said the metric is intended to provide a view of operating performance excluding significant non-cash fair-value adjustments tied to warrant liabilities. GCT ended the quarter with $30.2 million in cash and cash equivalents, along with $1.1 million of net accounts receivable and $1.5 million of net inventory. The company said it has secured wafer-production capacity for the remainder of 2026 and through the first quarter of 2027 in anticipation of expected chip demand. Schlaefer said the wafer commitments are important in a tight foundry environment, but added that the company believes its capacity is appropriately sized. Because the wafers can support multiple product SKUs, he said a delay in customer ramps would not create a perishable inventory issue and the company could slow future purchases if needed. Cheng said second-quarter cash burn was elevated by roughly $7 million to $7.5 million because the company prepaid supply-chain costs through year-end. Looking ahead, he said GCT anticipates quarterly cash burn of approximately $9 million to $9.5 million amid tight supply conditions, compared with an estimated $8 million to $8.5 million per quarter absent those conditions. The company also amended its at-the-market equity program during the quarter, increasing maximum aggregate gross proceeds available under the program to $120 million from $75 million. The total share registration capacity remains $200 million. GCT Semiconductor Holding, Inc, operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "GCT Semiconductor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

5G Chipset Shipments in Q2 2026 Increased Approximately 71% Sequentially SAN JOSE, Calif., August 10, 2026--(BUSINESS WIRE)--GCT Semiconductor Holding, Inc. ("GCT" or the "Company") (NYSE: GCTS), a leading designer and supplier of 5G semiconductors powering the AI data pipeline with wireless connectivity, today provided an update on business developments and reported financial results for the second quarter ended June 30, 2026. Scaling the 5G Opportunity Toward Broad Commercial Ramp Development, integration, certification and sales activities continued progressing across GCT’s 5G customer pipeline. Although customer restructuring and evolving deployment schedules shifted the timing of certain launches, customer engagement and underlying demand remain strong, culminating in the shipment of over 5,100 5G chipsets during Q2, reinforcing the expected commercial ramp across GCT’s three strategic growth markets: Terrestrial Broadband: Advanced multiple FWA and CPE programs, and carrier certification activities supporting future device launches including for AI data applications. Satellite and Non-Terrestrial Connectivity: Progressed multiple direct-to-device and hybrid satellite-cellular programs, including ongoing development and certification activities supporting the next generation of ubiquitous 5G connectivity to support the AI data pipeline. IoT and Specialized Networks: Expanded GCT’s addressable market through programs spanning IoT including wearables, and defence applications, including UAV connectivity, positioning, navigation and timing (PNT), and aviation connectivity. "We made continued progress during the second quarter as we advanced our 5G semiconductor platform across three key growth areas: terrestrial broadband, satellite and non-terrestrial connectivity, and IoT and specialized networks," said John Schlaefer, CEO of GCT. "5G chipset shipments increased approximately 71% sequentially from last quarter as we continued supporting customer programs across a broad range of applications, including fixed wireless access, satellite connectivity, private networks, industrial IoT and other specialized connectivity solutions. We also expanded into new connectivity markets through a recent strategic collaboration, leveraging GCT’s IoT technology and module capabilities to support UAV control and communications applications across commercial and defense-related use cases. This collaboration highlights the versatility of our technology platform and our ability to address an expanding range of connectivity needs." Schlaefer added, "While broader market dynamics, including industry consolidation, restructuring activities and shifting customer deployment schedules, have impacted the timing of certain programs, we remain encouraged by the strength of our customer engagement and expanding opportunity pipeline. As we look ahead, we remain focused on advancing customer programs toward commercialization and believe the breadth of our 5G platform, growing ecosystem of partnerships and diversified market opportunities position GCT well to capitalize on the significant long-term growth opportunities across 5G connectivity markets. With these developments, we now have greater visibility and are building the demand for our 5G products across multiple fronts." Second Quarter 2026 Financial Results Results compare the 2026 fiscal second quarter ended June 30, 2026, to the 2025 fiscal second quarter ended June 30, 2025. Net revenues were $1.0 million, a 17.9% decrease from $1.2 million. Gross margin was negative as we continue to experience low product revenue, which is currently not sufficient to fully absorb production overhead costs and not representative of our expectations regarding profitability of our products and services in future reporting periods. We expect gross margins to improve as 5G product sales ramp up and contribute more significantly to revenue. Gross margin for the three months ended June 30, 2025 was 32%. Total operating expenses were $7.2 million, a 9.8% decrease from $8.0 million. Net Loss was $20.4 million, a 50.5% increase from $13.5 million. Net loss for the second quarter of 2026 included $12.3 million in losses from change in fair value of common stock warrant liabilities. Adjusted EBITDA loss was $6.6 million, a decrease of 1.7% from $6.7 million. Cash and Cash equivalents of $30.2 million as of June 30, 2026. "Our reported second-quarter net loss was significantly impacted by a $12.3 million non-cash loss related to the change in the fair value of common stock warrant liabilities, driven by increases in our common stock price and the market price of our publicly traded warrants during the quarter, and therefore, was not reflective of our underlying operating performance," said Edmond Cheng, CFO of GCT. "Hence, starting this quarter, we are introducing Adjusted EBITDA to provide greater visibility into our core operating performance, demonstrating that we have stabilized underlying performance while continuing to invest in customer programs and production readiness. With the commercialization of 5G chipsets, the revenue for the first half of this year slightly exceeds the full year of 2025, and we are confident that our revenue will grow this year compared to the previous years. Also, with $30.2 million of cash on our balance sheet at quarter-end, we have the financial flexibility and resources to support commercial ramp of our customer programs and by now have already secured the required production capacity for the remainder of 2026 and through the first quarter of 2027 in anticipation of the expected chip demand." Liquidity The Company's existing sources of liquidity as of June 30, 2026, include cash and cash equivalents of $30.2 million, net accounts receivable of $1.1 million, and inventory of $1.5 million. GCT currently has an effective universal shelf registration statement on Form S-3 that allows the Company to raise up to $200.0 million through the issuance of securities, including $75.0 million for an at-market ("ATM") agreement. During the quarter ended June 30, 2026, while the total shelf registration maximum remains unchanged at $200.0 million, GCT amended the ATM Agreement to increase the allowed maximum aggregate offering amount from $75.0 million to $120.0 million. 5G Outlook The Company continues to expect aggregate 5G shipments in the second half of 2026 to exceed first-half levels. Conference Call The Company will hold a conference call and live webcast at 4:30 p.m. ET or 1:30 p.m. PST, which will be open to the public. During the conference call, the Company will discuss business updates and review the financial results, followed by a Q&A period. Date: Monday, August 10, 2026Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)Dial-in information: Please register in advance of the call here.Webcast (listen-only): To listen to the webcast use the following LINK. A replay of the webcast will be available via the Investors section of the GCT website at investors.gctsemi.com. About GCT Semiconductor Holding, Inc. GCT is a leading fabless designer and supplier of 5G, 4G LTE and satellite semiconductor solutions powering the AI data pipeline and enabling advanced wireless connectivity. GCT's market-proven solutions are optimized to enable fast and reliable connectivity to devices such as CPEs, mobile hotspots, routers, M2M applications, smartphones, etc., including for edge computing and direct-to-device applications, for the world's top wireless carriers including satellite connectivity providers and terrestrial mobile operators. GCT is committed to delivering the high performance, low latency wireless technologies that form the backbone of the AI edge data pipeline. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit www.gctsemi.com. Note Regarding Use of Non-GAAP Financial Measures To supplement our financial statements presented in accordance with accounting principles generally accepted in the United States ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including earnings or losses before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA. We believe these financial measures provide useful information to investors with which to analyze our operating trends and performance. In computing, EBITDA, we start with net loss and exclude interest expense, interest income, income taxes and depreciation and amortization expenses. In computing Adjusted EBITDA, we start with EBITDA and exclude the following: stock-based compensation, gain/loss on foreign currency transactions, net, change in fair value of common stock forward liability, change in fair value of warrant liabilities and change in fair value of convertible promissory notes. Management uses EBITDA and Adjusted EBITDA for business planning purposes, including managing our business against internally projected results of operations and measuring our performance. GCT’s management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company’s ongoing operations by eliminating certain items that are not directly related to ongoing operations or impact the generation of current or future revenues, such as non-cash expenses. Additionally, because of varying available valuation methodologies and subjective assumptions that can impact a company’s non-cash operating expenses, we believe that providing non-GAAP financial measures that primarily excludes non-cash expense allows for meaningful comparisons of our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time. Management considers these types of expenses and adjustments, to a great extent, to be unpredictable and dependent on a considerable number of factors that are outside of our control and are not necessarily reflective of operational performance during a period. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may differ from similarly titled non-GAAP measures used by other companies. GCT has included these non-GAAP measures to give investors an opportunity to see the Company’s financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company’s unaudited consolidated financial statements presented below. Cautionary Statement Regarding Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, the Company’s expectations with respect to 5G chip shipment for the remainder of 206; expansion into connectivity market; the 5G outlook and anticipated growth of 5G markets and opportunities; collaboration with strategic partners; the ability for the Company to improve financial performance; the ability of the Company to raise sufficient capital to fund its operations; the ability of the Company’s technology and products to address new markets and meet customer demands; the execution of go-to-market strategies; and the anticipated size of addressable markets by the Company’s products. Words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the ability of the Company to develop its 5G products and generate revenue; the ability to enter into and meet the obligations under partnership and collaboration agreements; the ability of the Company to grow and manage growth profitability and retain its key employees; the Company's financial and business performance, including the Company's financial projections and business metrics; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans; the Company's inability to anticipate the future market demands and future needs of its customers; the impact of component shortages, suppliers' lack of production capacity, natural disasters or pandemics on the Company's sourcing operations and supply chain; the Company's future capital requirements and sources and uses of cash; the ability to implement business plans, forecasts, and other expectations, including the growth of the 5G market; the risk that the Company may not be able to repay its debt; the risk of economic downturns that affects the Company's business operation and financial performance; the risk that the Company may not be able to develop and design its products acceptable to its customers; actual or potential conflicts of interest of the Company's management with its public stockholders; macroeconomic conditions, including market conditions, global and economic conditions, labor disputes, inflationary impacts, and disruptions to the global supply chain; the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments; and other risks and uncertainties indicated from time to time in Company’s filings with the Securities and Exchange Commission ("SEC"), including the annual report on Form 10-K for the fiscal year ended December 31, 2025, and quarterly reports on Form 10-Q, and those disclosures under the "Risk Factors" section therein. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810826354/en/ Contacts Investor relations website: investors.gctsemi.com Investor relations contact: Gateway Group, Ralf Esper, [email protected] Media contact: [email protected]

Interested in GCT Semiconductor Holding, Inc.? Here are five stocks we like better. Revenue jumped to $1.9 million in Q1 from $0.5 million a year earlier, while gross margin improved sharply to 49% from 18% thanks to a better mix of higher-margin service and 5G product sales. GCT said 5G chipset commercialization is gaining traction, with first-quarter shipments of 3,000 units, up 58% sequentially, as customers move from testing into early deployments. The company highlighted a new satellite communications platform agreement that expands its 5G opportunity, with initial chipset shipments to that partner expected to begin in the second half of 2026. GCT Semiconductor (NYSE:GCTS) reported higher first-quarter revenue and said its 5G chipset commercialization efforts continued to gain traction, with management pointing to increased shipments, broader customer engagement and progress across fixed wireless access, Internet of Things and non-terrestrial network markets. Chief Executive Officer John Schlaefer said on the company’s earnings call that GCT delivered 3,000 5G chipsets in the first quarter of 2026, up 58% sequentially from the fourth quarter. He described the volume as still modest relative to the long-term opportunity but said it reflected customers moving through late-stage testing and into initial deployments. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “Customer confidence in the performance, reliability, and integration of our 5G chipset is building, and we expect 5G chipset shipments to continue trending upward as customers advance their programs,” Schlaefer said. Chief Financial Officer Edmond Cheng said first-quarter net revenue rose to $1.9 million from $0.5 million in the same period a year earlier, an increase of $1.4 million, or 287%. The increase included $0.4 million of higher product sales and $1 million of higher service revenue. → MercadoLibre Boldly Invests in Growth: Discount Deepens Cheng said product sales growth was driven by both 4G and 5G products, while the increase in service revenue was tied to 5G operations. That was partially offset by lower LTE service revenue as GCT shifts its portfolio toward 5G. Cost of net revenue increased to $1 million from $0.4 million a year earlier, reflecting higher costs from increased unit volume. Gross margin improved to 49% from 18% in the prior-year period, which Cheng attributed largely to revenue mix, including higher-margin service offerings and a greater share of 5G and product sales. Net revenue: $1.9 million, up from $0.5 million a year earlier Gross margin: 49%, up from 18% a year earlier 5G chipset shipments: 3,000 units, up 58% sequentially Cash and cash equivalents: $7.2 million at quarter-end → MP Materials Is Quietly Building a Rare Earth Powerhouse During the question-and-answer session, Schlaefer said service revenue represented a larger portion of quarterly sales in the first quarter, but he emphasized that GCT’s growth strategy is centered on chipset sales rather than services. “As the chipset sales increase, the chipset sales and product revenue will far outpace that service revenue,” Schlaefer said. “That is our growth. We’re not in the service business.” Asked about the sustainability of the 49% gross margin, Schlaefer said the quarter’s margin was higher than the company would expect once product revenue dominates the mix. He said GCT continues to expect product-related gross margins to begin around 35% and grow into the low 40% range over time. The company also said gross margin could normalize to the high-30% to low-40% range as chipset sales become more significant. In response to a question from Lisa Thompson of Zacks Investment Research, management said the first quarter included licensing revenue that would be considered one-time recognition. Future service revenue will depend on contract milestones, and Schlaefer said it is difficult to predict timing in advance. Schlaefer highlighted an expanded engagement with what he described as one of the world’s largest satellite communication providers. Under a reference platform agreement, GCT will provide a reference design based on its 4G and 5G chipsets to help accelerate development of the partner’s next-generation user equipment. The platform is intended to support high-bandwidth and high-speed communications across satellite and terrestrial networks. Schlaefer said the agreement reinforces GCT’s role in enabling connectivity across terrestrial and non-terrestrial networks and creates a “multi-phase opportunity” for adoption as next-generation user equipment platforms are introduced. Initial 5G chipset shipments to that partner remain on track to begin in the second half of 2026, according to Schlaefer. Schlaefer said GCT is supporting programs across fixed wireless access, IoT and non-terrestrial network verticals, with customers moving through integration, certification and deployment planning. He said engagements are increasingly extending beyond traditional licensing into platform-level collaboration. In the Q&A session, Schlaefer said product revenue in the quarter came from at least five customers and potentially as many as seven, noting that some sales move through distribution and may involve multiple end customers. He said early product revenue can be “bursty,” with one customer contributing more in a given quarter before another customer picks up later, but he expects a broader spread of revenue across customers over time. Research and development expenses declined to $3.2 million from $4.1 million a year earlier, a decrease of $0.9 million, or 23%. Cheng said the decrease was driven by a $0.5 million reduction in project-specific intellectual property expenses and a $0.4 million reduction in professional services tied to completion of a 5G chipset design last year. Sales and marketing expenses were relatively steady at $1.2 million, compared with $1.1 million a year earlier. General and administrative expenses were also relatively flat, rising to $2.7 million from $2.6 million. GCT ended the quarter with $7.2 million in cash and cash equivalents, $2.4 million in net accounts receivable and $1.6 million in net inventory. Cheng said the company has access to an at-the-market equity program of up to $75 million and remaining capacity under its $200 million shelf registration statement. Management said operating expenses are expected to rise in the second half of the year as R&D spending increases to support the product roadmap. The company said quarterly operating expenses are expected to run at about $8 million beginning in the third quarter. Schlaefer said GCT remains focused on strengthening its supply chain and operational infrastructure to support higher 5G chipset volumes. He said the company expects sequential growth in 5G chipset shipments as commercialization scales through 2026, while noting that deployment timing can vary as customers finalize rollout plans. GCT Semiconductor Holding, Inc, operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "GCT Semiconductor Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Q1 2026 Total Revenue Increased Approximately 287% Year-Over-Year 5G Chipsets Shipments in Q1 2026 Increased Approximately 58% Sequentially SAN JOSE, Calif., May 12, 2026--(BUSINESS WIRE)--GCT Semiconductor Holding, Inc. ("GCT" or the "Company") (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, today provided an update on business developments and reported financial results for the first quarter ended March 31, 2026. Recent Operational Highlights 5G chipset shipments in Q1 of 2026 increased sequentially by approximately 58% to 3,000 units, signaling the anticipated commercial ramp, which is expected to continue throughout the year as additional orders from lead customers are received. Expanded licensing agreement with one of the world's largest satellite communications providers to include additional GCT 5G and 4G chipset integrations across next-generation user equipment, reinforcing the Company’s role in enabling seamless satellite-terrestrial connectivity, broadening deployment scope, and supporting a multi-phase pathway for increased chipset adoption. The initial 5G chipset shipments to this partner remain on track to begin in the second half of 2026. "Following the foundational progress of our commercial 5G operations at the end of 2025, our first quarter 2026 results demonstrate that we have now entered a new phase defined by increasing customer shipments," said John Schlaefer, Chief Executive Officer of GCT. "In the first quarter we delivered a substantial 58% sequential increase in 5G chipset shipments, a clear indicator that customers are continuing to transition from evaluation into early deployment. At the same time, we are expanding the scope and depth of our customer relationships and chipset use cases. Our broadened licensing agreement with one of the world’s largest global satellite communications providers highlights the growing importance of GCT technology in enabling converged connectivity across both terrestrial and non-terrestrial networks. We view this as a multi-phase opportunity that can drive incremental adoption of our solutions over time as next generation user equipment platforms are introduced. "Looking ahead, our focus remains on scaling 5G chipset production by strengthening our supply chain and operational infrastructure to support higher volumes. While we are still in the early stages of this ramp, we believe the progress achieved in the first quarter reinforces our expectation, and aligns with our previous experience in 4G. We expect sequential growth in 5G chipset shipments as commercialization ramps throughout the year." "Our first quarter results reflect a meaningful step from last quarter but remain modest in comparison to our mid-and-long-term expectations," said Edmond Cheng, Chief Financial Officer of GCT. "Our revenue increased 287% year-over-year, driven by increased 5G shipments and continued contribution from our service and new contracts win, as we support our lead customers in their transition to 5G. Moving further into 2026, our priorities remain consistent: maintaining financial flexibility and disciplined capital allocations to support 5G chipset commercialization and volume production readiness to ensure we are positioned to capitalize on the expanding 5G opportunity." First Quarter 2026 Financial Results Results compare the 2026 fiscal first quarter ended March 31, 2026, to the 2025 fiscal first quarter ended March 31, 2025. Net revenues were $1.9 million, a 287.1% increase from $0.5 million. Gross margin for the three months ended March 31, 2026 increased to 49.3% compared to 17.7% in the period ended March 31, 2025, primarily due to higher margins from the Company’s service offerings and increased share of 5G platform sales throughout the 2026 fiscal first quarter. Total operating expenses were $7.1 million, a 9.6% decrease from $7.8 million. Liquidity The Company's existing sources of liquidity as of March 31, 2026, include cash and cash equivalents of $7.2 million, net accounts receivable of $2.4 million, and inventory of $1.6 million. In the second fiscal quarter of 2025, GCT filed a universal shelf registration statement on Form S-3 that allows the Company to raise up to $200.0 million through the issuance of securities, including the $75.0 million for the ATM Offering. 5G Outlook The Company continues to expect sequential quarterly growth in 5G shipments throughout 2026. Conference Call The Company will hold a conference call and live webcast at 4:30 p.m. ET or 1:30 p.m. PST, which will be open to the public. During the conference call, the Company will discuss business updates and review the financial results, followed by a Q&A period. Date: Tuesday, May 12, 2026 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Dial-in information: Please register in advance of the call here. Webcast (listen-only): To listen to the webcast use the following LINK. A replay of the webcast will be available via the Investors section of the GCT website at investors.gctsemi.com. About GCT Semiconductor Holding, Inc. GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world's top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit www.gctsemi.com. Cautionary Statement Regarding Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, the Company’s expectations with respect to its business operations; the expected timeline to commence shipment of 5G chipsets; the 5G outlook and anticipated growth of 5G markets and opportunities; the benefits of development agreements with partners; the ability for the Company to improve financial performance; the ability of the Company to raise sufficient capital to fund its operations; the ability of the Company’s technology and products to address new markets and meet customer demands; the execution of go-to-market strategies; and the anticipated size of addressable markets by the Company’s products. Words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the ability of the Company to develop its 5G products and generate revenue; the ability to enter into and meet the obligations under partnership and collaboration agreements; the ability of the Company to grow and manage growth profitability and retain its key employees; the Company's financial and business performance, including the Company's financial projections and business metrics; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans; the Company's inability to anticipate the future market demands and future needs of its customers; the impact of component shortages, suppliers' lack of production capacity, natural disasters or pandemics on the Company's sourcing operations and supply chain; the Company's future capital requirements and sources and uses of cash; the ability to implement business plans, forecasts, and other expectations, including the growth of the 5G market; the risk that the Company may not be able to repay its debt; the risk of economic downturns that affects the Company's business operation and financial performance; the risk that the Company may not be able to develop and design its products acceptable to its customers; actual or potential conflicts of interest of the Company's management with its public stockholders; macroeconomic conditions, including market conditions, global and economic conditions, labor disputes, inflationary impacts, and disruptions to the global supply chain; the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments; and other risks and uncertainties indicated from time to time in Company’s filings with the Securities and Exchange Commission ("SEC"), including the annual report on Form 10-K, and quarterly reports on Form 10-Q, and those disclosures under the "Risk Factors" section therein. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512443937/en/ Contacts Investor relations website: investors.gctsemi.com Investor relations contact: Gateway Group, Ralf Esper, [email protected] Media contact: [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 58% sequential growth in 5G chipset shipments to customers moving through final testing into initial deployments. The company is pivoting from traditional licensing to deeper platform-level collaborations where their technology serves as the foundation for next-generation user equipment. A significant expansion with a global satellite provider involves a reference platform agreement to fast-track converged terrestrial and non-terrestrial network (NTN) solutions. Performance in the first quarter was characterized by a shift in revenue mix, with service revenue driven by 5G operations offsetting declining legacy LTE service revenue. Operational focus has shifted toward strengthening the supply chain and infrastructure to support anticipated higher volumes as customer demand accelerates. Management emphasized that current 5G volumes are modest but represent a critical early step in a long-term product cycle similar to their previous 4G launch trajectory. Management expects sequential growth in 5G chipset shipments to continue throughout 2026 as commercialization scales. Initial 5G chipset shipments for the major satellite communication partner's next-generation platforms are on track to begin in the second half of 2026. Operating expenses are expected to rise to approximately $8 million per quarter starting in Q3 2026 to support the product road map. The company plans to introduce segmented revenue reporting for FWA, IoT, and NTN verticals at an appropriate time to reflect the expanding addressable market. Future gross margins are expected to normalize in the 35% to low 40% range as product sales eventually outpace high-margin service revenue. Gross margin reached 49% in Q1, primarily due to a one-time recognition of licensing revenue and a higher mix of service offerings. R&D expenses decreased 23% year-over-year following the completion of a specific 5G chipset design project in the prior year. The company maintains financial flexibility via an at-the-market equity program of up to $75 million and a $125 million remaining shelf registration. Management noted that the timing and pace of deployments remain a risk as customers finalize their individual rollout plans. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while service revenue is currently a large portion of sales, product revenue is expected to far outpace it as growth continues. The company explicitly stated they are not in the service business and view product sales as the primary growth engine. The current high margin is considered non-structural and driven by the substantial weight of service revenue this quarter. Management expects margins to stabilize in the 35% range and grow into the low 40s as the product mix dominates. The customer base for products expanded to between 5 and 7 customers in Q1, up from approximately 3 in the prior quarter. Management expects revenue to be 'bursty' in the near term due to the small scale, with better distribution expected at steady state.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GCT Semiconductor Holding Inc (NYSE:GCTS) reported a 287% increase in net revenues, rising from $0.5 million in Q1 2025 to $1.9 million in Q1 2026, driven by increased 5G chipset shipments. The company achieved a significant improvement in gross margin, increasing from 18% in Q1 2025 to 49% in Q1 2026, largely due to a favorable revenue mix and higher-margin service offerings. GCT Semiconductor Holding Inc (NYSE:GCTS) expanded its customer base, with product sales to at least five to seven customers, indicating progress in market penetration. The company has strengthened its strategic partnerships, notably expanding its engagement with a major satellite communication provider to accelerate global 5G deployment. Research and development expenses decreased by 23%, reflecting cost efficiencies and completion of a major 5G chipset design project. Despite revenue growth, the overall financial results remain modest compared to the long-term opportunity, indicating that significant work is still needed to fully capitalize on the 5G market. The company's service revenue, which contributed to the high gross margin, is expected to be less substantial in future quarters, potentially impacting overall margins. Operating expenses are projected to increase in the second half of 2026, with expectations of quarterly expenses reaching approximately $8 million, which could pressure profitability. The timing and pace of 5G deployments remain uncertain, as customer rollout plans can vary, posing a risk to revenue forecasts. The company's liquidity position, with cash and cash equivalents of $7.2 million, may require careful management to support ongoing commercialization and production efforts. Warning! GuruFocus has detected 11 Warning Signs with GCTS. Is GCTS fairly valued? Test your thesis with our free DCF calculator. Q: Revenue of $1.9 million on increased 5G chipset shipments implies meaningful service and licensing revenue contribution alongside chipset sales. How should we think about that mix evolving as volume scales through the second half of the year? A: The service revenues are aligned with various contracts and recognized as progress is made. Currently, service revenue is a larger portion of sales, but as chipset sales increase, they will outpace service revenue, becoming a more substantial part of overall revenue. We are not primarily in the service business. Q: The 49.3% gross margin was well above prior quarters. How much of this is structural versus one-time in nature? How should we think about gross margins going into the second half of the year? A: The higher margins this quarter were due to substantial service revenue, which is not expected to be as significant in the future. As product sales grow, margins will stabilize in the high 30s to low 40s range. Q: On services, is there anything one-time in this quarter, or do we expect numbers over a million going forward per quarter? A: We recognized a one-time licensing revenue in Q1. Going forward, service contracts will be recognized as milestones are achieved, but these can be unpredictable in timing. Q: Could you talk about the product revenue and where it came from? Last quarter you had three customers for products; what did that look like this quarter? A: This quarter, we had between five and seven customers for products, some through distribution channels. This indicates progress and a broader customer base. Q: What should we expect for the next three quarters in terms of revenue ramp, and is there any one customer leading the charge? A: Revenue can be bursty with one customer dominating a quarter, but over time, we expect a good distribution of customers and revenue spread across them as we reach a steady state. Q: Operating expenses have come down. Do we expect this level to continue going forward? A: This is a good run rate, but we expect to ramp up R&D expenses in the second half of the year to match our product roadmap, with quarterly operating expenses running at about $8 million starting in Q3. For the complete transcript of the earnings call, please refer to the full earnings call transcript.