EX-99.1

Q4 and 2025 Financial Highlights


	In thousands of U.S. dollars, except share data
	GAAP(1)
	Q4 2025		Q3 2025			Q/Q change				Q4 2024(1)			Y/Y change
Consolidated Revenues	40,570			45,946			down	11.7	%		51,153			down	20.7	%
Power Solutions business	40,570			45,946			down	11.7	%		48,858			down	17.0	%
Power Analog Solutions	36,811			41,548			down	11.4	%		43,455			down	15.3	%
Power IC	3,759			4,398			down	14.5	%		5,403			down	30.4	%
Transitional Fab 3 foundry services(2)	—			—			n/a	—			2,295			n/a	—
Consolidated Gross Profit Margin	9.3	%		18.6	%		down	9.3	%pts		21.7	%		down	12.4	%pts
Power Solutions business	9.3	%		18.6	%		down	9.3	%pts		23.2	%		down	13.9	%pts
Power Analog Solutions	6.5	%		16.0	%		down	9.5	%pts		20.5	%		down	14.0	%pts
Power IC	36.7	%		43.2	%		down	6.5	%pts		44.9	%		down	8.2	%pts
Transitional Fab 3 foundry services(2)	—			—			n/a	—			(11.0	)%		n/a	—
Operating Loss	(12,446	)		(11,538	)		down	n/a			(6,828	)		down	n/a
Loss from continuing operations	(8,792	)		(10,609	)		up	n/a			(7,702	)		down	n/a
Basic Loss per Common Share	(0.24	)		(0.29	)		up	n/a			(0.21	)		down	n/a
Diluted Loss per Common Share	(0.24	)		(0.29	)		up	n/a			(0.21	)		down	n/a

	In thousands of U.S. dollars, except share data
	Non-GAAP(1)(3)
	Q4 2025		Q3 2025			Q/Q change				Q4 2024(1)			Y/Y change
Adjusted Operating Loss	(11,881	)		(7,421	)		down	n/a			(3,459	)		down	n/a
Adjusted EBITDA	(8,856	)		(3,964	)		down	n/a			337			down	n/a
Adjusted Income (Loss)	(2,714	)		(390	)		down	n/a			5,751			down	n/a
Adjusted Income (Loss) per Common Share—Diluted	(0.08	)		(0.01	)		down	n/a			0.15			down	n/a


	In thousands of U.S dollars, except share data
	GAAP(1)
	2025			2024(1)		Y/Y Change
Consolidated Revenues		178,860		196,425		down	8.9	%
Power Solutions business		178,860		185,828		down	3.7	%
Power Analog Solutions		160,477		166,804		down	3.8	%
Power IC		18,383		19,024		down	3.4	%
Transitional Fab 3 foundry services(2)		—		10,597		n/a	—
Consolidated Gross Profit Margin		17.6	%	19.7	%	down	2.1	%pts
Power Solutions business		17.6	%	21.5	%	down	3.9	%pts
Power Analog Solutions		14.9	%	18.9	%	down	4.0	%pts
Power IC		41.0	%	44.4	%	down	3.4	%pts
Transitional Fab 3 foundry services(2)				(11.5)	%	n/a	—
Operating Loss		(35,860	)	(25,973	)	down	n/a
Loss from continuing operations		(14,249	)	(27,310	)	up	n/a
Basic Loss per Common Share		(0.39	)	(0.72	)	up	n/a
Diluted Loss per Common Share		(0.39	)	(0.72	)	up	n/a


	In thousands of U.S dollars, except share data
	Non-GAAP(1)(3)
	2025			2024(1)		Y/Y Change
Adjusted Operating Loss		(28,488	)	(19,087	)	down	n/a
Adjusted EBITDA		(15,567	)	(4,241	)	down	n/a
Adjusted Loss		(7,866	)	(8,321	)	up	n/a
Adjusted Loss per Common Share—Diluted		(0.22	)	(0.22	)	up	n/a

(1)

GAAP and non-GAAP metrics summarized herein do not include any amounts relating to the Display business, which has been classified as discontinued operations from Q1 2025, and we have reclassified certain prior year amounts to conform to the current year’s presentation.

(2)

Following the consummation of the sale of the Foundry Services Group business and Fab 4 in Q3 2020, we provided transitional foundry services to the buyer for foundry products manufactured in our fabrication facility located in Gumi, Korea, known as “Fab 3” (“Transitional Fab 3 Foundry Services”). The contractual obligation to provide the Transitional Fab 3 Foundry Services ended August 31, 2023, and we had wound down these foundry services by the end of 2024. Because these foundry services during the wind-down period had still been provided to the same buyer by us using our Fab 3 based on mutually agreed terms and conditions, we continued to report our revenue from providing these foundry services and related cost of sales within the Transitional Fab 3 Foundry Services line in our consolidated statement of operations until such wind down was completed. Management believes that disclosing revenue of Transitional Fab 3 Foundry Services separately from the Power Solutions business allows investors to better understand the results of our core PAS and Power IC businesses.

(3)

Management believes that non-GAAP financial measures, when viewed in conjunction with GAAP results, can provide a meaningful understanding of the factors and trends affecting our business and operations and assist in evaluating our core operating performance. However, such non-GAAP financial measures have limitations and should not be considered as a substitute for net loss or as a better indicator of our operating performance than measures that are presented in accordance with GAAP. A reconciliation of historical GAAP results to non-GAAP results is included in this press release.

Q1 2026 Financial Guidance

While actual results may vary, Magnachip currently expects the following:

•

Consolidated revenue from continuing operations (which includes Power Analog Solutions and Power IC businesses) to be in the range of $44.0 to $48.0 million, up 13.4% sequentially and up 2.9% year-over-year at the mid-point. This compares with $40.6 million in Q4 2025 and $44.7 million in Q1 2025.

•

Consolidated gross profit margin from continuing operations to be in the range of 14% to 16%, up from 9.3% in Q4 2025 but down from 20.9% in Q1 2025.

Q4 and Full Year 2025 Earnings Conference Call

Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET today, Wednesday, March 4, 2026, to discuss its financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this event including the dial-in numbers, a PIN number, and an e-mail with detailed instructions to join the conference call. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the ‘Investors’ section of the Company’s website at www.magnachip.com.

Online registration: https://register-conf.media-server.com/register/BI9d3aea74bb7c44d78d19c946518cef3c

Safe Harbor for Forward-Looking Statements

Information in this press release regarding Magnachip’s forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including first quarter 2026 revenue and gross profit margin expectations, future growth and revenue opportunities from new and existing products and customers, the timing and extent of future revenue contributions by our products and businesses, and the impact of market conditions associated with inflation and higher interest rates, geopolitical conflicts including between Russia-Ukraine and between Israel, the United States and Iran, sustained military action and conflict in the Red Sea, global macroeconomic conditions resulting from trade and tariff actions instituted between the U.S. and other countries on Magnachip’s future operating results and financial performance, and the potential impacts of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic conditions, including those caused by or related to recent trade and tariff actions announced by the U.S. globally and the related retaliatory tariffs and disruptions in supply chains and global trade as a result thereof, inflation, potential recessions or other deteriorations, economic instability or civil unrest; geopolitical conflicts, including between Russia-Ukraine and between Israel, the United States and Iran and sustained military action and conflict in the Red Sea; disruptions or economic impact resulting from the United States government shutdown, including disruptions at U.S. government agencies caused by reduction in staffing, operations, funding shortages or other concerns that

may prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our customer’s businesses may rely; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs and impact demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely acceptance of our designs by customers; timely introduction of new products and technologies; the potential impact of emerging technologies such as artificial intelligence on industry dynamics, customer demand, supply chain operations, and regulatory environments; our ability to ramp new products into volume production; industry-wide shifts in supply and demand for semiconductor products; overcapacity within the industry or at Magnachip; effective and cost-efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses that can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors; change to or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip’s products; and other risks detailed from time to time in Magnachip’s filings with the SEC, including our Form 10-K filed on March 14, 2025, and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.

About Magnachip Semiconductor

Magnachip is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing. The Company provides a broad range of standard products to customers worldwide. Magnachip, with about 45 years of operating history, owns a substantial number of registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com.

CONTACT:

Mike Bishop

Bishop IR, LLC

Tel. +1 (415) 891-9633

mike@bishopir.com

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share data)

(Unaudited)


	Three Months Ended									Year Ended
	December 31, 2025			September 30, 2025			December 31, 2024(1)			December 31, 2025			December 31, 2024(1)
Revenues:
Net sales – Power Solutions business	$	40,570		$	45,946		$	48,858		$	178,860		$	185,828
Net sales – Transitional Fab 3 foundry services		—			—			2,295			—			10,597
Total revenues		40,570			45,946			51,153			178,860			196,425
Cost of sales:
Cost of sales – Power Solutions business		36,792			37,405			37,530			147,467			145,884
Cost of sales – Transitional Fab 3 foundry services		—			—			2,547			—			11,814
Total cost of sales		36,792			37,405			40,077			147,467			157,698
Gross profit		3,778			8,541			11,076			31,393			38,727
Gross profit as a percentage of Power Solutions business net sales		9.3	%		18.6	%		23.2	%		17.6	%		21.5	%
Gross profit as a percentage of total revenues		9.3	%		18.6	%		21.7	%		17.6	%		19.7	%
Operating expenses:
Selling, general and administrative expenses		8,625			8,312			9,758			35,116			38,099
Research and development expenses		7,599			7,773			6,557			27,297			25,012
Early termination and other charges		—			3,994			1,589			4,840			1,589
Total operating expenses		16,224			20,079			17,904			67,253			64,700
Operating loss		(12,446	)		(11,538	)		(6,828	)		(35,860	)		(25,973	)
Interest income		1,246			1,255			2,106			5,363			8,320
Interest expense		(393	)		(469	)		(458	)		(1,658	)		(1,601	)
Foreign currency loss, net		(6,393	)		(4,280	)		(13,352	)		(281	)		(16,740	)
Other income, net		14			253			364			298			485
Loss from continuing operations before income tax benefit, net		(17,972	)		(14,779	)		(18,168	)		(32,138	)		(35,509	)
Income tax benefit, net		(9,180	)		(4,170	)		(10,466	)		(17,889	)		(8,199	)
Loss from continuing operations		(8,792	)		(10,609	)		(7,702	)		(14,249	)		(27,310	)
Income (Loss) from discontinued operations, net of tax		713			(2,481	)		(8,575	)		(15,475	)		(26,998	)
Net loss	$	(8,079	)	$	(13,090	)	$	(16,277	)	$	(29,724	)	$	(54,308	)
Basic earnings (loss) per common share—
Continuing operations	$	(0.24	)	$	(0.29	)	$	(0.21	)	$	(0.39	)	$	(0.72	)
Discontinuing operations		0.02			(0.07	)		(0.23	)		(0.43	)		(0.72	)
Total	$	(0.22	)	$	(0.36	)	$	(0.44	)	$	(0.82	)	$	(1.44	)
Diluted earnings (loss) per common share—
Continuing operations	$	(0.24	)	$	(0.29	)	$	(0.21	)	$	(0.39	)	$	(0.72	)
Discontinuing operations		0.02			(0.07	)		(0.23	)		(0.43	)		(0.72	)
Total	$	(0.22	)	$	(0.36	)	$	(0.44	)	$	(0.82	)	$	(1.44	)
Weighted average number of shares—
Basic		35,979,697			35,934,406			36,921,300			36,218,138			37,774,280
Diluted		35,979,697			35,934,406			36,921,300			36,218,138			37,774,280

(1)

We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

(Unaudited)


	December 31, 2025			December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	103,756		$	138,610
Accounts receivable, net		26,022			28,402
Inventories, net		34,151			30,535
Other receivables		2,882			4,444
Prepaid expenses		5,062			10,379
Hedge collateral		1,200			2,080
Other current assets		3,782			4,779
Total current assets		176,855			219,229
Property, plant and equipment, net		100,204			81,463
Operating lease right-of-use assets		2,070			3,107
Intangible assets, net		454			507
Long-term prepaid expenses, net		584			165
Deferred income taxes		64,248			52,889
Other non-current assets		7,114			21,956
Total assets	$	351,529		$	379,316
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	20,848		$	21,642
Other accounts payable		11,444			10,764
Accrued expenses		6,929			8,648
Accrued income taxes		81			56
Operating lease liabilities		1,427			1,393
Other current liabilities		2,681			3,765
Total current liabilities		43,410			46,268
Long-term borrowings		44,599			27,211
Accrued severance benefits, net		11,502			17,094
Non-current operating lease liabilities		690			1,823
Other non-current liabilities		3,078			10,123
Total liabilities		103,279			102,519
Commitments and contingencies
Stockholders’ equity
Common stock, $0.01 par value, 150,000,000 shares authorized, 58,027,696 shares issued and 36,219,100 outstanding at December 31, 2025 and 57,498,507 shares issued and 36,912,118 outstanding at December 31, 2024		579			574
Additional paid-in capital		281,537			279,423
Retained earnings		214,852			244,576
Treasury stock, 21,808,596 shares at December 31, 2025 and 20,586,389 shares at December 31, 2024, respectively		(229,910	)		(225,883	)
Accumulated other comprehensive loss		(18,808	)		(21,893	)
Total stockholders’ equity		248,250			276,797
Total liabilities and stockholders’ equity	$	351,529		$	379,316

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(Unaudited)


	Three Months Ended			Year Ended
	December 31, 2025			December 31, 2025			December 31, 2024
Cash flows from operating activities
Net loss	$	(8,079	)	$	(29,724	)	$	(54,308	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization		3,023			12,961			16,161
Provision for severance benefits		771			3,639			8,020
Loss (gain) on foreign currency, net		9,765			(847	)		32,851
Provision (reversal) for inventory reserves		952			2,871			(529	)
Stock-based compensation		565			2,180			6,214
Impairment charges		—			12,424			4,637
Deferred income tax assets		(9,551	)		(10,120	)		(7,034	)
Others, net		105			325			799
Changes in operating assets and liabilities
Accounts receivable, net		4,620			(2,990	)		2,719
Inventories		1,328			(5,803	)		(1,583	)
Other receivables		1,077			(210	)		(115	)
Prepaid expenses		1,656			6,981			8,877
Other current assets		6,162			2,915			1,753
Accounts payable		3,607			4,248			(1,971	)
Other accounts payable		(2,190	)		(8,993	)		(14,160	)
Accrued expenses		(4,587	)		(2,662	)		(607	)
Accrued income taxes		39			23			(1,432	)
Other current liabilities		(516	)		(839	)		(1,161	)
Other non-current liabilities		(137	)		(185	)		(335	)
Payment of severance benefits		(2,898	)		(13,567	)		(2,407	)
Others, net		(281	)		3,165			(2,522	)
Net cash provided by (used in) operating activities		5,431			(24,208	)		(6,133	)
Cash flows from investing activities
Proceeds from settlement of hedge collateral		1,922			4,159			627
Payment of hedge collateral		(3,159	)		(3,159	)		(1,706	)
Proceeds from disposal of plant, property and equipment		11			565			—
Purchase of property, plant and equipment		(10,253	)		(29,992	)		(11,600	)
Payment for intellectual property registration		(25	)		(207	)		(316	)
Collection of guarantee deposits		106			4,380			3,535
Payment of guarantee deposits		—			(355	)		(2,175	)
Collection of short-term financial instruments		—			—			30,000
Purchase of short-term financial instruments		—			—			(30,000	)
Others, net		—			180			(37	)
Net cash used in investing activities		(11,398	)		(24,429	)		(11,672	)
Cash flows from financing activities
Proceeds from long-term borrowings		6,405			17,016			30,059
Acquisition of treasury stock		(41	)		(4,381	)		(12,891	)
Repayment of financing related to water treatment facility arrangement		(111	)		(452	)		(472	)
Repayment of principal portion of finance lease liabilities		(40	)		(161	)		(139	)
Net cash provided by financing activities		6,213			12,022			16,557
Effect of exchange rates on cash and cash equivalents		(4,495	)		1,761			(18,234	)
Net decrease in cash and cash equivalents		(4,249	)		(34,854	)		(19,482	)
Cash and cash equivalents
Beginning of the period		108,005			138,610			158,092
End of the period	$	103,756		$	103,756		$	138,610

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF OPERATING LOSS FROM CONTINUING OPERATIONS TO ADJUSTED OPERATING LOSS FROM CONTINUING OPERATIONS

(In thousands of U.S. dollars)

(Unaudited)


	Three Months Ended									Year Ended
	December 31, 2025			September 30, 2025				December 31, 2024(1)			December 31, 2025		December 31, 2024(1)
Operating loss	$	(12,446	)	$	(11,538	)	$	(6,828	)	$	(35,860	)	$	(25,973	)
Adjustments:
Equity-based compensation expense		565			123			1,780			2,532			5,297
Early termination and other charges		—			3,994			1,589			4,840			1,589
Adjusted Operating Loss	$	(11,881	)	$	(7,421	)	$	(3,459	)	$	(28,488	)	$	(19,087	)

(1)

We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

We present Adjusted Operating Loss from continuing operations as a supplemental measure of our performance. We define Adjusted Operating Loss from continuing operations for the periods indicated as operating loss from continuing operations adjusted to exclude (i) Equity-based compensation expense and (ii) Early termination and other charges.

For the year ended December 31, 2025, we recorded in our consolidated statement of operations $2,599 thousand of termination related charges in connection with the voluntary resignation program that we executed during the third quarter of 2025. For the same period, we also recorded $1,745 thousand of certain executive separation benefits and $496 thousand of one-time employee incentives.

For the year ended December 31, 2024, we recorded $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits.

MAGNACHIP SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS

(In thousands of U.S. dollars, except share data)

(Unaudited)


	Three Months Ended									Year Ended
	December 31, 2025			September 30, 2025				December 31, 2024(1)			December 31, 2025		December 31, 2024(1)
Loss from continuing operations	$	(8,792	)	$	(10,609	)	$	(7,702	)	$	(14,249	)	$	(27,310	)
Adjustments:
Interest income		(1,246	)		(1,255	)		(2,106	)		(5,363	)		(8,320	)
Interest expense		393			469			458			1,658			1,601
Income tax benefit, net		(9,180	)		(4,170	)		(10,466	)		(17,889	)		(8,199	)
Depreciation and amortization		3,019			3,204			3,451			12,580			14,438
EBITDA – continuing operations		(15,806	)		(12,361	)		(16,365	)		(23,263	)		(27,790	)
Equity-based compensation expense		565			123			1,780			2,532			5,297
Foreign currency loss, net		6,393			4,280			13,352			281			16,740
Derivative valuation loss (gain), net		(8	)		—			(19	)		43			(77	)
Early termination and other charges		—			3,994			1,589			4,840			1,589
Adjusted EBITDA – continuing operations	$	(8,856	)	$	(3,964	)	$	337		$	(15,567	)	$	(4,241	)
Loss from continuing operations	$	(8,792	)	$	(10,609	)	$	(7,702	)	$	(14,249	)	$	(27,310	)
Adjustments:
Equity-based compensation expense		565			123			1,780			2,532			5,297
Foreign currency loss, net		6,393			4,280			13,352			281			16,740
Derivative valuation loss (gain), net		(8	)		—			(19	)		43			(77	)
Early termination and other charges		—			3,994			1,589			4,840			1,589
Income tax effect on non-GAAP adjustments		(872	)		1,822			(3,249	)		(1,313	)		(4,560	)
Adjusted Income (Loss) – continuing operations	$	(2,714	)	$	(390	)	$	5,751		$	(7,866	)	$	(8,321	)
Adjusted Income (Loss) – continuing operations per common share—
- Basic	$	(0.08	)	$	(0.01	)	$	0.16		$	(0.22	)	$	(0.22	)
- Diluted	$	(0.08	)	$	(0.01	)	$	0.15		$	(0.22	)	$	(0.22	)
Weighted average number of shares – basic		35,979,697			35,934,406			36,921,300			36,218,138			37,774,280
Weighted average number of shares – diluted		35,979,697			35,934,406			37,738,210			36,218,138			37,774,280

(1)

We have reclassified prior period financial information to conform to the current year presentation that reflects the classification of the Display business as discontinued operations from Q1 2025.

We present Adjusted EBITDA from continuing operations and Adjusted Income (Loss) from continuing operations as supplemental measures of our performance. We define Adjusted EBITDA from continuing operations for the periods indicated as EBITDA – continuing operations (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation loss (gain), net and (iv) Early termination and other charges. EBITDA – continuing operations for the periods indicated is defined as loss from continuing operations before interest income, interest expense, income tax benefit, net and depreciation and amortization.

We prepare Adjusted Income (Loss) from continuing operations by adjusting loss from continuing operations to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Income (Loss) from continuing operations is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Income (Loss) from continuing operations for the periods as loss from continuing operations, adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss, net, (iii) Derivative valuation loss (gain), net, (iv) Early termination and other charges, and (v) Income tax effect on non-GAAP adjustments.

For the year ended December 31, 2024, we recorded $1,589 thousand of one-time cumulative financial impact in connection with certain employee benefits.