Magnachip’s Q3 Earnings Call: Our Top 5 Analyst Questions

6 days ago 5

Anthony Lee

Sun, November 9, 2025 astatine 11:33 PM CST 4 min read

Magnachip’s 3rd 4th was marked by a crisp diminution successful gross and a antagonistic marketplace reaction, arsenic persistent pricing unit connected bequest products—especially successful China—drove down income and margins. Management, led by interim CEO Camillo Martino, acknowledged operational challenges and described the 4th arsenic a reflection of the company’s ongoing modulation to a pure-play powerfulness products business. Martino was blunt successful his assessment, stating, “we person failed to execute connected our promises,” portion emphasizing contiguous efforts to reposition the merchandise portfolio, trim costs, and summation transparency. The communications conception provided a uncommon agleam spot, with important sequential and yearly growth.

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Revenue: $45.95 cardinal vs expert estimates of $46 cardinal (17.1% year-on-year decline, successful line)
Adjusted EPS: -$0.01 vs expert estimates of -$0.12 (91.7% beat)
Adjusted EBITDA: -$3.96 cardinal vs expert estimates of -$3 cardinal (-8.6% margin, comparatively successful line)
Revenue Guidance for Q4 CY2025 is $40.5 cardinal astatine the midpoint, beneath expert estimates of $47.6 million
Operating Margin: -25.1%, down from -8.1% successful the aforesaid 4th past year
Inventory Days Outstanding: 91, successful enactment with the erstwhile quarter
Market Capitalization: $81.55 million

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

Sujeeva De Silva (ROTH Capital): Asked if the $2.5 cardinal inventory inducement is simply a single-quarter event. CEO Camillo Martino confirmed it is intended to wide inventory wrong the quarter, with the extremity of normalizing transmission levels.
Sujeeva De Silva (ROTH Capital): Inquired whether Q4’s gross borderline should beryllium considered the trough for 2026. CFO Shin Young Park explained that borderline unit volition persist into 2026, with gradual betterment arsenic caller products marque up a larger stock of sales.
Sujeeva De Silva (ROTH Capital): Requested much details connected the Hyundai Mobis IGBT statement and its imaginable to grow beyond existent markets. Martino stated the agreement’s archetypal absorption is concern markets, with gross expected successful 2027 and much details to travel arsenic the concern develops.
Sujeeva De Silva (ROTH Capital): Questioned the sustainability of caller spot successful the communications segment. Martino described it arsenic a effect of palmy caller merchandise introductions and beardown lawsuit relationships, but emphasized the request to replicate this occurrence crossed the broader portfolio.
No further expert questions connected the call.