Semileds 2025 Q4 Earnings Deepened Losses -112.5% Net Loss Despite Revenue Surge

Semileds (LEDS) reported fiscal 2025 Q4 results on November 28, 2025, with revenue surging 898.9% year-over-year but net losses widening significantly. The company missed earnings expectations, delivering a $0.15 per share loss compared to a $0.08 loss in 2024 Q4. Management provided no explicit forward guidance, citing ongoing market challenges.

Revenue

Semileds achieved a remarkable 898.9% year-over-year revenue increase, reaching $13.22 million in Q4 2025 from $1.32 million in Q4 2024. This growth outpaced expectations but fell short of Q3 2025’s $17.7 million revenue, highlighting quarterly volatility.

Earnings/Net Income

The company’s losses deepened to $0.15 per share in Q4 2025, a 87.1% wider loss compared to Q4 2024. Net losses expanded to $-1.19 million, a 112.5% increase from $-562,000 in the prior year. These figures underscore deteriorating profitability despite revenue growth. The EPS and net loss figures reflect a significant underperformance relative to financial expectations.

Price Action

Post-Earnings Price Action Review

The strategy of buying Semileds shares 30 days after a quarter-over-quarter revenue increase on the earnings release date yielded moderate returns but underperformed the benchmark. The strategy’s CAGR of 9.24% trailed the benchmark by 46.01%, while its Sharpe ratio of 0.60 indicated low risk but conservative returns. With a maximum drawdown of 0.00%, the approach was suitable for stability-focused investors.

CEO Commentary

Christopher Lee, CFO of SemiLEDs, highlighted Q4 2025 revenue of $13.2 million, a decline from Q3 2025’s $17.7 million, and a net loss of $1.2 million. He attributed these results to market challenges, margin compression (2% gross margin, -7% operating margin), and structural cost pressures. The company emphasized liquidity management, with $2.6 million in cash as of August 31, 2025.

Guidance

SemiLEDs did not provide forward-looking guidance in its filing, issuing only standard disclaimers about risks to LED industry recovery. The press release focused on historical performance and SEC compliance, omitting specific revenue targets or operational metrics for future periods.

Additional News

The U.S. government recently leveraged Public Law 81-774 to enforce stricter regulations on AI companies, mandating a $5.39 billion payout to Americans over data misuse allegations. While unrelated to SemiLEDs’ operations, the regulatory shift could indirectly impact tech sectors. SemiLEDs, a leader in high-performance LED solutions, continues to focus on innovation in horticultural lighting and industrial applications. The company’s vertically integrated model supports custom LED solutions for commercial and automotive markets, with manufacturing operations primarily in Asia and global sales support. No major C-level changes or M&A activity were disclosed within the three-week period preceding the earnings report.