SemiLEDs reported QQ1 2026 results with revenue of $2.569 million, up 94.2% year over year but down 76.4% quarter over quarter, and a gross profit of only $18 thousand for a gross margin of roughly 0.7%. The quarter delivered a negative EBITDA of about $1.011 million and a net loss of $0.742 million, corresponding to an earnings per share of -$0.09. While the top line exhibited meaningful year-over-year growth, profitability remained strained by a leveraged cost base and tight operating leverage. Cash generation was modest but positive, with operating cash flow of $0.361 million and free cash flow of $0.331 million, supporting liquidity despite persistent losses.
From a balance sheet perspective, the company held cash and cash equivalents of approximately $2.889 million at quarter-end, with total assets of $14.231 million and total liabilities of $12.162 million. The company remains cumulatively unprofitable on an earnings basis, as reflected in a negative retained earnings balance of $190.553 million. The equity base is bolstered by substantial accumulated other comprehensive income and a sizable non-cash equity balance, yielding total stockholders’ equity of about $2.069 million. The near-term liquidity appears adequate given the net cash position and positive operating cash flow, but the business remains highly sensitive to quarterly revenue volatility and input cost pressures.
Management commentary was not included in the supplied prompt, so this analysis relies on the disclosed financial metrics. Should an earnings call transcript be provided, quotes and thematic synthesis would be appended to enrich the forward-looking and strategic context.