Monitor Q4 results for gross margin trajectory given the 10-12% guidance and the impact of the fab substation upgrade. The Navitas investment signals strategic partnership value but does not offset near-term fundamental deterioration. Watch for further cash burn and any restructuring or cost-cutting actions.
How the stock moved after the report
BEARISH VIEWSTOCK ABOVE ENTRY AT T+1- T+0 · Nov 5 $2.05entry
- T+1 · 6d ago +15.12%α +14.81% · $2.36
- T+4 · todayOpen
- T+5 · in 9h Pending
- T+20 · in 22d Pending
- T+60 · in 3mo Pending
Price Chart
How similar events traded
Executive Summary
Magnachip reported Q3 2026 revenue of $44.0M, down 4.3% YoY and within guidance, but gross margin of 14.0% missed the 17-19% guidance range due to unfavorable FX. GAAP loss per share widened to -$0.36 from -$0.29 a year ago, and Q4 guidance for revenue of $41-45M (midpoint +6% YoY) with gross margin falling to 10-12% signals continued pressure from FX, a fab substation upgrade, and legacy product headwinds.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $44.0M, down 4.3% YoY from $45.9M
- GAAP gross margin 14.0%, below guidance of 17-19%
- GAAP operating loss -$12.9M vs -$11.5M YoY, loss widened 11.6%
- GAAP diluted loss per share -$0.36 vs -$0.29 YoY
- Q4 2026 revenue guidance $41-45M (midpoint +6% YoY but -2.2% sequentially)
- Q4 gross margin guidance 10-12%, down from 14.0% in Q3
- Cash and equivalents $86.9M, down from $103.8M at Dec 2025
- Operating cash flow -$18.2M in Q3 vs -$4.7M in Q1 2026
- Navitas Semiconductor made a $5M strategic equity investment
Financial Impact
Revenue declined 4.3% YoY; gross margin compressed 4.6pp YoY to 14.0%; operating loss expanded to -$12.9M; cash burn accelerated with -$18.2M operating cash flow in Q3
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Power Analog Solutions | $39.6M | -4.6% |
| Power IC | $4.3M | -1.3% |
Risk Factors
- Gross margin guidance of 10-12% for Q4 implies further compression from 14.0%
- Operating cash flow deeply negative at -$18.2M in Q3, cash declining
- Foreign exchange volatility and legacy product headwinds persist
- Fab substation upgrade causing lower utilization and added costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-447409 |
| Document: mx-20261104.htm | 0001193125-26-447409 |
| Document: 0001193125-26-447409-index-headers.html | 0001193125-26-447409 |
| Document: 0001193125-26-447409-index.html | 0001193125-26-447409 |
| Document: 0001193125-26-447409.txt | 0001193125-26-447409 |
| 8-K Data (Synthetic) | 0001193125-26-447409 |
Track record
11 reports on MX
6 of 6 bullish or bearish reports moved the stock their way by T+5. Best: +51.35% at T+60 after the Jun 17, 2026 report. 6 of 6 went positive at some point.
Filters
- Nov 10, 20261d ago Insider Cluster Neutral 4/10 Entry $2.65 Now $2.53 −4.53% settles Nov 18
- Nov 4, 20267d ago 8-K Bearish 5/10 Viewing Entry $2.05 Now $2.53 −23.41% settles Nov 12
- Oct 14, 202628d ago EFFECT Bearish 5/10 Entry $2.67 to $2.59 Now $2.53 +5.24% ▲ +3.00% +3.45% vs SPY
- Oct 5, 20265w ago S-3 Neutral 4/10 Entry $3.43 to $2.84 Now $2.53 −26.24% ▼ −17.20% −17.06% vs SPY
- Sep 21, 20267w ago 8-K Bullish 5/10 Entry $3.20 to $3.79 Now $2.53 −20.94% ▲ +18.44% +19.46% vs SPY
- Jun 30, 202619w ago 8-K Neutral 2/10 Entry $4.73 to $4.13 Now $2.53 −46.51% ▼ −12.69% −13.29% vs SPY
- Jun 17, 202621w ago 8-K Bearish 5/10 Entry $5.92 to $4.91 Now $2.53 +57.26% ▲ +17.06% +15.39% vs SPY
- Jun 17, 202621w ago 424B5 Bearish 5/10 Entry $5.92 to $4.91 Now $2.53 +57.26% ▲ +17.06% +15.39% vs SPY
- Jun 17, 202621w ago 8-K Neutral 3/10 Entry $5.28 to $4.86 Now $2.53 −52.08% ▼ −7.95% −6.91% vs SPY
- Jun 17, 202621w ago EFFECT Bearish 5/10 Entry $5.28 to $4.86 Now $2.53 +52.08% ▲ +7.95% +6.91% vs SPY
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers