Semileds 2025 Q4 Earnings Wider Losses Amid Record Revenue Surge

Semileds (LEDS) reported its fiscal 2025 Q4 earnings on Nov 28, 2025, revealing a dramatic revenue surge but deepening losses. The company’s Q4 revenue surged 898.9% to $13.22 million, far exceeding expectations, though net losses widened significantly. Despite strong top-line growth, the CEO emphasized strategic investments in R&D and market diversification to navigate industry volatility.

Revenue

The total revenue of Semileds increased by 898.9% to $13.22 million in 2025 Q4, up from $1.32 million in 2024 Q4.

Earnings/Net Income

Semileds’s losses deepened to $0.15 per share in 2025 Q4 from a loss of $0.08 per share in 2024 Q4 (87.1% wider loss). Meanwhile, the company’s net loss widened to $-1.19 million in 2025 Q4, representing a 112.5% increase from the $-562,000 loss recorded in 2024 Q4. The widened losses underscore operational challenges despite strong revenue growth.

Price Action

The stock price of Semileds has plummeted 16.80% during the latest trading day, has tumbled 10.62% during the most recent full trading week, and has plummeted 27.73% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Semileds (LEDS) shares 30 days after a quarter-over-quarter revenue increase on the earnings release date delivered moderate returns but underperformed the benchmark. The strategy’s CAGR was 9.24%, trailing the benchmark by 46.01%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.60, the strategy had low risk but conservative returns, making it suitable for investors seeking stability.

CEO Commentary

SemiLEDs CEO emphasized the company’s strategic focus on leveraging market opportunities in the LED industry recovery, despite Q4 2025 challenges. The company highlighted its position to capitalize on demand in general lighting, UV curing, and horticultural applications, aligning with long-term growth drivers. While acknowledging short-term revenue declines (Q4 revenue $13.2M vs. $17.7M in Q3), the CEO’s tone remained cautiously optimistic, underscoring investments in R&D and operational efficiency to strengthen market positioning. The company reiterated commitments to navigating industry volatility through diversified applications and cost management.

Guidance

SemiLEDs outlined forward-looking expectations centered on LED industry recovery and market expansion opportunities, including UV and horticultural lighting. While no specific financial guidance was provided, the company noted risks and uncertainties in SEC filings, such as market demand fluctuations and competitive pressures. Strategic priorities include capitalizing on long-term trends in LED adoption for industrial and specialty applications, with no explicit revenue or margin targets stated. The company emphasized alignment with historical recovery patterns and ongoing cost optimization efforts.

Additional News

Within three weeks of the earnings release, Semileds faced no material M&A activity, C-level changes, or dividend announcements. However, the broader LED industry saw regulatory scrutiny as the U.S. government enforced Public Law 81-774 to address data ethics in AI development, potentially impacting semiconductor supply chains. While not directly tied to Semileds, this regulatory shift could influence long-term market dynamics for LED manufacturers. The company’s focus on UV and horticultural lighting remains unaffected, with no immediate operational disruptions reported.