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GCT Semiconductor Holding (GCTS)
NYSE:GCTS
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GCT Semiconductor Holding
(NYSE:GCTS)
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Rating:43Neutral
Price Target:
$1.00
▼(-22.48% Downside)
GCT Semiconductor's overall stock score reflects significant financial challenges, with declining revenues and negative margins being the most impactful factors. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to negative profitability. Although the earnings call and recent corporate events show some positive developments in 5G technology and financing flexibility, these are not sufficient to offset the broader financial concerns.
Positive Factors
5G Technology Commercialization
The recognition of 5G product revenue marks a significant milestone, indicating early adoption and potential for future growth in the 5G market.
Strengthened Financial Position
The additional financing enhances the company's ability to scale production and meet demand, supporting long-term growth and operational stability.
Convertible Note Agreement
The agreement provides financial flexibility, allowing strategic capital raising while minimizing shareholder dilution, supporting growth initiatives.
Negative Factors
Revenue Decline
The sharp decline in revenue highlights challenges in maintaining sales momentum, impacting the company's ability to sustain operations and growth.
Negative Gross Margin
Negative gross margins indicate inefficiencies in cost management, hindering profitability and requiring strategic adjustments to improve financial health.
High Leverage and Negative Equity
High leverage and negative equity pose risks to financial stability, limiting the company's ability to invest in growth and weather economic downturns.
GCT Semiconductor Holding (GCTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.66M
Dividend YieldN/A
Average Volume (3M)310.15K
Price to Earnings (P/E)―
Beta (1Y)1.91
Revenue Growth-46.98%
EPS Growth-186.82%
CountryUS
Employees121
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.25
Shares Outstanding57,099,560
10 Day Avg. Volume224,357
30 Day Avg. Volume310,150
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)-1.79
Price to Sales (P/S)11.65
P/FCF Ratio-3.38
Enterprise Value/Market Cap1.74
Enterprise Value/Revenue32.93
Enterprise Value/Gross Profit-16.02K
Enterprise Value/Ebitda-3.93
Forecast
1Y Price Target
$3.50Price Target Upside171.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GCT Semiconductor Holding Business Overview & Revenue Model
Company DescriptionGCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.
How the Company Makes MoneyGCT Semiconductor generates revenue through the sale of its semiconductor products, which are primarily sold to original equipment manufacturers (OEMs) and distributors in various industries. The company's revenue model is driven by direct sales of its high-performance RF components and integrated circuits, which are essential for enhancing telecommunications and electronic devices. Key revenue streams include bulk orders from large contracts with major tech companies, ongoing supply agreements, and licensing of proprietary technologies. Additionally, GCTS may benefit from strategic partnerships with other technology firms that enhance its market reach and product offerings, further contributing to its earnings through collaborative projects and joint ventures.
GCT Semiconductor Holding Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
The earnings call reflects GCT Semiconductor's positive strides in 5G technology commercialization and customer engagement, highlighted by significant milestones like the first 5G product revenue and engagement with major customers like Gogo. However, these advancements are overshadowed by significant financial challenges, including a sharp decline in revenue, negative gross margins, and increased expenses, which paint a more concerning picture of the company's current financial health.Q3-2025 Updates
Positive Updates
First 5G Product Revenue Recognition
GCT Semiconductor recognized its first 5G product revenue this quarter, marking an important milestone in its commercialization path and indicating early adoption of its next-generation technology.
Successful 5G Chipset Sampling and Customer Engagement
Successfully completed sampling of 5G chipsets and modules to lead customers, including Airspan Networks and Orbit, with positive feedback received, reflecting growing confidence in the commercial readiness of the solution.
Gogo's 5G Deployment Plan
Gogo, the first 5G network operator, is set to activate full service before year-end 2025 using GCT's 5G chipset, marking the first planned commercial deployment and showcasing the chipset's performance in a demanding airborne environment.
Strengthened Financial Position
Secured $10.7 million in debt financing to support production readiness and volume shipments, strengthening the company's balance sheet for future growth phases.
Negative Updates
Significant Revenue Decline
Net revenues decreased significantly from $2.6 million in Q3 2024 to $400,000 in Q3 2025, largely due to a $1.6 million decrease in product sales and a $600,000 decline in service revenues.
Negative Gross Margin
The gross margin was negative in Q3 2025 due to lower product revenue that was insufficient to absorb production overhead costs, reflecting challenges in achieving profitability.
Increased Costs Associated with 4Gs LTE Inventory
Incurred a $500,000 incremental write-down related to slow-moving 4Gs LTE inventory, which contributed to increased cost of net revenue.
Increase in General and Administrative Expenses
General and administrative expenses increased by 64% from $2.4 million in Q3 2024 to $3.9 million in Q3 2025, driven by rising stock-based compensation and personnel-related costs.
Company Guidance
In the GCT Semiconductor Holding, Inc. third quarter 2025 earnings call, the company outlined several key metrics and guidance for the upcoming quarters. They reported a notable milestone with the recognition of their first 5G product revenue, although it remains small in scale. The company has shipped over 2,500 units of their 5G chipset and expects to support the first wave of aircraft installations, with plans to scale as additional operators and network partners begin deployments in 2026. Financially, GCT recorded a decrease in net revenue from $2.6 million in Q3 2024 to $400,000 in Q3 2025, attributed to a $1.6 million decline in product sales and a $600,000 drop in service revenues. They secured $10.7 million in debt financing to bolster production readiness and maintain a cash position of $8.3 million. The company anticipates improved margins and positive cash flow by late 2026, with pricing for their 5G chipset averaging around $40. Looking ahead, GCT is focused on ramping up production capacity to meet growing demand, ensuring supply chain readiness, and achieving adjusted EBITDA breakeven by Q3 2026.GCT Semiconductor Holding Financial Statement Overview
Summary
GCT Semiconductor Holding faces significant financial challenges across all verticals. The income statement highlights declining revenues and negative margins, while the balance sheet shows negative equity and high leverage. Cash flow remains a concern, with negative operating and free cash flows. The company needs to address these issues to stabilize its financial position and improve profitability.Income Statement
The income statement reflects significant challenges, with declining revenue and negative profit margins. The TTM data shows a severe revenue decline of 35.9% and negative net profit margins, indicating profitability issues. The company has struggled with negative EBIT and EBITDA margins, suggesting operational inefficiencies.25
Negative
Balance Sheet
The balance sheet reveals a precarious financial position, with negative stockholders' equity and a high debt-to-equity ratio. The negative equity ratio indicates financial instability. However, the return on equity has improved slightly, albeit still negative, reflecting ongoing challenges in generating returns for shareholders.30
Negative
Cash Flow
Cash flow analysis shows negative operating and free cash flows, although there is a slight improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. Despite these challenges, the free cash flow to net income ratio is above 1, suggesting some efficiency in converting income to cash.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.89M | 9.13M | 16.03M | 16.67M | 25.52M |
| Gross Profit | -8.00K | 5.08M | 6.73M | 5.05M | 8.16M |
| EBITDA | -32.64M | -6.74M | -13.89M | -21.38M | -20.63M |
| Net Income | -39.33M | -12.38M | -22.47M | -26.41M | -26.81M |
Balance Sheet | |||||
| Total Assets | 24.27M | 19.90M | 16.43M | 16.48M | 353.86M |
| Cash, Cash Equivalents and Short-Term Investments | 8.34M | 1.44M | 258.00K | 1.40M | 1.21M |
| Total Debt | 435.00K | 43.45M | 80.07M | 70.34M | 5.49M |
| Total Liabilities | 104.42M | 79.21M | 131.87M | 111.41M | 36.53M |
| Stockholders Equity | -80.15M | -59.31M | -115.44M | -94.93M | 317.32M |
Cash Flow | |||||
| Free Cash Flow | -27.22M | -31.50M | -9.16M | -18.99M | -18.38M |
| Operating Cash Flow | -25.72M | -30.96M | -8.83M | -18.09M | -17.74M |
| Investing Cash Flow | -1.50M | -542.00K | -331.00K | -903.00K | -637.00K |
| Financing Cash Flow | 35.94M | 36.47M | 8.15M | 19.27M | 10.57M |
GCT Semiconductor Holding Technical Analysis
Negative
1.29
Price Trends
1.40
Negative
1.41
Negative
1.44
Negative
Market Momentum
-0.02
Positive
36.76
Neutral
27.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCTS, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.40, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 27.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCTS.
GCT Semiconductor Holding Risk Analysis
GCT Semiconductor Holding disclosed 81 risk factors in its most recent earnings report. GCT Semiconductor Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GCT Semiconductor Holding Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $91.13M | -39.07 | -2.24% | ― | -2.20% | -204.45% | |
46 Neutral | $97.87M | -2.65 | -8.46% | ― | -7.79% | 10.04% | |
46 Neutral | $40.09M | -1.29 | ― | ― | -38.72% | 16.01% | |
43 Neutral | $73.66M | -1.63 | ― | ― | -46.98% | -186.82% | |
42 Neutral | $90.97M | -11.28 | -24.81% | ― | -42.77% | 83.21% | |
37 Underperform | $73.54M | -3.71 | -21.44% | ― | ― | ― |
* Technology Sector Average
GCTS
GCT Semiconductor Holding
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-45.37%
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GCT Semiconductor Holding Corporate Events
Private Placements and Financing
GCT Semiconductor Enters $20M Convertible Note Agreement
Positive
Dec 15, 2025
On December 15, 2025, GCT Semiconductor Holding, Inc. entered into a Convertible Promissory Note Purchase Agreement with Indigo Capital LP, allowing the company to issue and sell convertible promissory notes up to $20 million. This agreement provides GCT Semiconductor with significant flexibility in its financing plans, enabling the company to control the timing and amount of capital raised, while minimizing dilution to existing stockholders.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.