GCT Semiconductor Reports 69% Revenue Decline and $43.4 Million Net Loss for Fiscal Year 2025

**GCT Semiconductor Holding, Inc. Reports Fiscal Year 2025 Results**

GCT Semiconductor Holding, Inc., a fabless semiconductor company specializing in communication semiconductors, reported its financial results for the fiscal year ended December 31, 2025. The company's net revenues totaled $2.9 million, a 69% decrease compared to the $9.1 million reported in the previous fiscal year. This decline was attributed to a decrease in product sales, which fell by 76% to $1.1 million, and a 60% decrease in service revenues, which amounted to $1.7 million. The company attributed the decrease in product sales to the lack of 5G platform sales during the year ended December 31, 2025, while the decrease in service revenues was attributed to the substantial completion of a significant service project during the year ended December 31, 2024.

The company's cost of net revenues increased by 16% to $4.7 million, compared to $4.1 million in the previous fiscal year. Product costs increased by 60% to $4.0 million, driven by additional production overhead costs, an increase in charges related to slow-moving inventory reserve, and an increase in depreciation charges. Service costs decreased by 57% to $0.7 million, commensurate with the level of service project activity. As a result, GCT Semiconductor reported a gross loss of $1.8 million for 2025, compared to a gross profit of $5.1 million for 2024.

Operating expenses increased by 91% to $34.7 million, compared to $18.2 million in the previous fiscal year. Research and development expenses decreased by 19% to $14.0 million, primarily due to the completion of a 5G chip design project. Sales and marketing expenses remained relatively consistent at approximately $4 million. General and administrative expenses increased by 53% to $16.5 million, driven by changes in expected credit loss estimates for receivables and an increase in stock-based compensation expense. The company reported a net loss of $43.4 million, or $0.82 per share, compared to a net loss of $12.4 million, or $0.30 per share, in the previous fiscal year.

Looking ahead, GCT Semiconductor is focused on the commercial deployment of its 5G technology and anticipates continued demand for its existing 4G LTE product lineup. The company expects the average sales prices for its 5G chipset to be approximately four times that of its 4G chipset, which it anticipates will result in a significant increase in revenue and gross margins. The company plans to continuously expand its product lineup to support 5G chipsets for future applications such as vehicle-to-everything standard, 5G-based satellite communication, and 5G-based IoT standard. However, the report of the company's independent registered accounting firm included in the filing contains a paragraph expressing substantial doubt as to the company's ability to continue as a going concern.