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GCT Semiconductor Holding (GCTS)
NYSE:GCTS
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GCT Semiconductor Holding
(NYSE:GCTS)
Rating:42Neutral
Price Target:
$1.00
▼(-2.91%Downside)
GCT Semiconductor Holding (GCTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.48M
Dividend YieldN/A
Average Volume (3M)520.11K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth94.76%
EPS Growth-146.39%
CountryUS
Employees121
SectorFinancial
Sector Strength85
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.15
Shares Outstanding52,896,534
10 Day Avg. Volume612,163
30 Day Avg. Volume520,106
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)-1.37
Price to Sales (P/S)0.00
P/FCF Ratio-2.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
GCT Semiconductor Holding Business Overview & Revenue Model
Company DescriptionGCT Semiconductor Holding (GCTS) is a prominent player in the semiconductor industry, specializing in the design and development of advanced 4G LTE and 5G wireless communication solutions. The company provides highly integrated system-on-chip (SoC) solutions that enable wireless connectivity for a variety of devices including smartphones, tablets, and IoT devices. GCT Semiconductor's technology is pivotal in powering the next-generation connectivity needs of its clients around the globe.
How the Company Makes MoneyGCT Semiconductor Holding makes money primarily through the sale of its semiconductor products to device manufacturers and network operators. Its revenue streams are largely driven by the demand for its 4G and 5G SoC solutions, which are integral to the operation of a wide array of wireless communication devices. The company benefits from long-term supply agreements with leading technology firms and network operators, ensuring a steady revenue flow. Additionally, GCT may also generate income through licensing its proprietary technology and intellectual property to other companies in the telecommunications sector. Strategic partnerships and collaborations with industry leaders further bolster its market presence and revenue potential.
GCT Semiconductor Holding Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -53.18%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the company is making significant strides with its 5G chipset launch and strategic partnerships, the financial results show a significant decline in revenues and gross margins due to the transitional phase from 4G to 5G. The company is optimistic about future growth and financial flexibility, but the current financial metrics reflect challenges during this transition.Q1-2025 Updates
Positive Updates
5G Chipset Launch and Milestones
GCT Semiconductor has successfully launched its 5G chipset as part of the 2025GCT-Year of 5G program, marking a significant milestone with customer sampling beginning in May and volume shipments expected in Q3 2025.
Strategic Partnerships
GCT announced a letter of intent with Orbic North America to develop and supply a Verizon-certified 5G module, indicating strong partnerships with major players like Globalstar, Samsung, and Kyocera.
Increased Market Opportunities
The average selling price for the 5G chipset is anticipated to be four times higher than current 4G offerings, with expectations of higher global market demand and prices for the 5G chip market.
Financial Flexibility
GCT has filed a shelf registration to provide up to $200 million in capacity, including a $75 million at-the-market facility, enhancing financial flexibility and funding options.
Negative Updates
Significant Revenue Decline
Net revenues decreased by $2.8 million or 85% year-over-year, from $3.3 million to $0.5 million, due to no 5G platform shipments in Q1 2025.
Decreased Gross Margin
Gross margin decreased from 60% to 18% due to low volume of product sales, resulting in a negative 120% gross margin for product sales.
Cash Position
The company closed the quarter with cash and cash equivalents of $1 million, indicating a need for careful financial management moving forward.
Company Guidance
During the GCT Semiconductor Holding, Inc.'s First Quarter 2025 Financial Results Call, the company provided significant guidance and updates on its 5G initiatives. The company's CEO, John Schlaefer, announced the commencement of 5G chipset customer sampling, which is expected to lead to volume shipments in Q3 2025 and beyond. CFO Edmond Cheng highlighted that the average selling price of the 5G chipsets is projected to be approximately four times higher than current 4G offerings. Despite a current decline in net revenues by 85%, from $3.3 million in Q1 2024 to $0.5 million in Q1 2025, the transition to 5G is anticipated to positively impact future financial results. The company also reported a decrease in R&D expenses by 26% and an increase in sales and marketing expenses by 12%. GCT closed the quarter with cash and cash equivalents of $1 million and a recently filed shelf registration offering up to $200 million, providing financial flexibility for future growth. Overall, GCT is focused on driving sales for its 5G chipsets, with new partnerships and a strategic emphasis on capturing the expanding 5G market.GCT Semiconductor Holding Financial Statement Overview
Summary
GCT Semiconductor Holding is facing serious financial challenges. Revenue and profitability have declined sharply, while leverage remains high and equity is negative, indicating significant risk of insolvency. The cash flow situation is concerning, with heavy reliance on external financing to sustain operations.Income Statement
The company has faced significant challenges, with declining revenue and growing losses. Gross Profit Margin fell from 42% in 2022 to 56% in 2023, but Total Revenue declined by 43% in 2024. Net Profit Margin worsened significantly to -135% in 2024, indicating severe profitability issues.25
Negative
Balance Sheet
The balance sheet is highly leveraged with a negative Stockholders' Equity of -$59.3 million in 2024, indicating insolvency risks. The Debt-to-Equity ratio is not meaningful due to negative equity, and the Equity Ratio is negative, reflecting financial instability. The company needs to significantly reduce debt or improve its equity position.15
Very Negative
Cash Flow
Operating cash flow has deteriorated significantly, with a large negative cash flow and worsening Free Cash Flow to Net Income Ratio. The company is highly dependent on external financing, as shown by the substantial financing cash flow in recent years, suggesting liquidity concerns.20
Very Negative
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 9.13M | 16.03M | 16.67M | 25.52M | Gross Profit |
| 5.08M | 6.73M | 5.05M | 8.16M | EBIT |
| -13.12M | -14.56M | -1.17M | -361.57K | EBITDA |
| -6.74M | -13.89M | -21.97M | -17.28M | Net Income Common Stockholders |
| -12.38M | -22.47M | 24.26M | 9.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 1.44M | 258.00K | 521.15K | 1.21M | Total Assets |
| 19.90M | 16.43M | 357.04M | 353.86M | Total Debt |
| 43.45M | 80.07M | 1.00M | 5.49M | Net Debt |
| 42.01M | 79.81M | 478.85K | 4.28M | Total Liabilities |
| 79.21M | 131.87M | 15.46M | 36.53M | Stockholders Equity |
| -59.31M | -115.44M | 341.58M | 317.32M |
| Cash Flow | Free Cash Flow | ||
| -31.50M | -9.16M | -2.43M | -1.49M | Operating Cash Flow |
| -30.96M | -8.83M | -1.52M | -857.60K | Investing Cash Flow |
| -542.00K | -331.00K | 822.66K | -351.90M | Financing Cash Flow |
| 36.47M | 8.15M | 7.30K | 353.97M |
GCT Semiconductor Holding Technical Analysis
Negative
1.03
Price Trends
1.44
Negative
1.79
Negative
2.23
Negative
Market Momentum
-0.13
Positive
37.11
Neutral
15.90
Positive
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 1.03 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.44, and below the 200-day MA of 2.23, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 37.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.90 is Positive, 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 2 New Risks
1.
We have a history of losses, and we may not achieve or sustain profitability in the future, on a quarterly or annual basis. Q3, 2024
2.
Our indebtedness could adversely affect our operations, including our ability to perform our obligations and fund working capital. Q3, 2024
GCT Semiconductor Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $75.58M | 25.19 | -0.10% | ― | 5.19% | -101.31% | |
64 Neutral | $12.79B | 9.72 | 7.54% | 16971.00% | 12.07% | -7.53% | |
54 Neutral | $57.11M | 40.38 | -47.90% | ― | -16.52% | -46.13% | |
52 Neutral | $80.13M | ― | -33.15% | ― | -5.73% | 47.83% | |
52 Neutral | $68.86M | ― | -9.50% | ― | 21.44% | -8.49% | |
45 Neutral | $60.01M | ― | 1716.04% | ― | ― | ― | |
42 Neutral | $54.48M | ― | 17.45% | ― | 94.76% | -146.39% |
* Financial Sector Average
Performance Comparison
GCTS
GCT Semiconductor Holding
1.04
-2.94
-73.87%
ASYS
Amtech Systems
3.99
-2.11
-34.59%
AXTI
AXT
1.57
-1.75
-52.71%
GSIT
GSI Technology
3.14
0.54
20.77%
INTT
inTEST
6.31
-2.91
-31.56%
NA
Nano Labs Ltd. Sponsored ADR Class A
3.53
-0.95
-21.21%
GCT Semiconductor Holding Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
GCT Semiconductor Announces $11M Direct Offering
Positive
May 16, 2025
On May 15, 2025, GCT Semiconductor Holding, Inc. announced a registered direct offering of approximately $11 million through the sale of 7,006,370 shares of common stock and warrants to purchase up to 10,509,555 shares. The offering, which closed on May 16, 2025, aims to provide the company with working capital and support general corporate purposes. Roth Capital Partners acted as the exclusive placement agent, and the transaction includes lock-up agreements and restrictions on variable rate transactions for a specified period. This strategic move is expected to strengthen GCT’s financial position and support its operations in the competitive semiconductor industry.
The most recent analyst rating on (GCTS) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on GCT Semiconductor Holding stock, see the GCTS Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.