Magnachip Q2 Revenue In-Line, Gross Margin Beats; Guides Q3 Revenue Down 2.7% Sequentially
MX sits 22% above its 52-week low of $2.18.
Summary
Magnachip reported Q2 2026 revenue of $44.7M, within guidance, and gross margin of 19.3%, above the high end. Q3 guidance calls for a sequential revenue decline to $41.5M-$45.5M, with gross margin of 17%-19%, as near-term headwinds weigh on results.
Key Events · Earnings and Guidance · MX
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Q2 Revenue In-Line, Margin Beats
Revenue of $44.7M was within the $44.5M-$48.5M guidance range. Gross margin of 19.3% exceeded the 17.0%-19.0% guidance, driven by improved product mix in Power IC.
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Q3 Guidance Misses on Revenue
Q3 revenue guidance of $41.5M-$45.5M implies a 2.7% sequential decline at the midpoint. Gross margin is expected to contract to 17%-19% due to unfavorable product mix and pricing pressure.
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Cash Burn Continues
Operating cash flow was negative $4.5M in Q2. Cash and equivalents fell to $87.9M from $103.8M at year-end 2025, while total borrowings stand at $41.5M.
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CEO Flags Transformation Challenges
New CEO Chae Lee acknowledged near-term headwinds including packaging constraints, lower customer volumes in consumer applications, and pricing pressure on legacy products, while emphasizing the strategic partnership with Navitas.
Analysis · MX · Manufacturing
Magnachip's Q2 revenue landed within guidance at $44.7M, but gross margin of 19.3% exceeded the high end of its forecast. However, the Q3 outlook points to a sequential revenue decline of 2.7% at the midpoint, driven by supply-chain packaging constraints, softer consumer demand, and pricing pressure on legacy products. The company is burning cash—operating cash flow was negative $4.5M in Q2—and holds $87.9M in cash against $41.5M in total borrowings. With a $50M ATM program already active, the weakening top-line trajectory and ongoing losses raise the stakes for the newly appointed CEO's turnaround plan.
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At the time of this filing, MX was trading at $2.67 on NYSE in the Manufacturing sector, with a market capitalization of approximately $109.9M. The 52-week trading range was $2.18 to $9.86. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.