GCT Semiconductor Holding, Inc. (NYSE:GCTS) Reports Q2 2025 Earnings Miss Amid 5G Transition Challenges

GCT Semiconductor Holding, Inc. (NYSE:GCTS) reported its second-quarter 2025 financial results, missing analyst expectations on both revenue and earnings per share (EPS). The company’s performance reflects ongoing challenges as it transitions toward commercialization of its 5G chipsets, while market reaction indicates investor skepticism about near-term growth prospects.

Key Financial Results vs. Estimates

• Revenue: Reported $1.18 million, down 19% year-over-year and significantly below the consensus estimate of $2.35 million.
• EPS: Posted a loss of $0.26 per share, worse than the estimated loss of $0.14.
• Gross Margin: Declined sharply to 32.0% from 62.7% in the prior-year quarter, reflecting higher costs and lower revenue.

The revenue shortfall was driven by weaker product sales, which came in at $408K compared to $18K in the year-ago quarter, while service revenue fell to $774K from $1.45 million. The company attributed the decline to lower demand and timing of customer orders.

Market Reaction

Following the earnings release, GCT Semiconductor’s stock declined 1.5% in after-hours trading, extending a 11.1% drop over the past two weeks. The negative reaction suggests investors remain cautious about the company’s ability to ramp up 5G chipset production and achieve profitability in the near term.

Business Highlights & Outlook

The company highlighted progress in its 5G initiatives, including:

• Initial 5G chipset deliveries to key customers, including Orbic North America and Airspan Networks.
• A partnership with Iridium Communications to integrate non-terrestrial network (NTN) services into its GDM7243SL chipset.
• Collaboration with Giesecke+Devrient on eSIM solutions for IoT devices.

Management expects volume production of its 5G chipsets to begin in Q3 2025, with shipments ramping up in Q4. However, the company did not provide specific financial guidance, leaving uncertainty around whether it can meet analyst expectations for full-year revenue of $21.3 million and an EPS loss of $0.49.

Liquidity & Capital Position

GCT Semiconductor ended the quarter with $1.3 million in cash and cash equivalents. The company recently completed an $11 million registered direct offering, with proceeds allocated toward 5G development and debt repayment. It retains access to an additional $75 million under an at-the-market (ATM) offering program.

Conclusion

While GCT Semiconductor is making strides in its 5G transition, its financial performance remains under pressure. The revenue and EPS misses, combined with a declining gross margin, signal ongoing execution risks. Investors will be watching for signs of commercial traction in the second half of 2025.

For more detailed earnings estimates and historical performance, visit GCTS Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.