SemiLEDs reports Q2 revenue of $1.1 million, anticipates second-half recovery

SemiLEDs (NASDAQ:LEDS), a developer and manufacturer of high-performance LED chips and components, announced its financial results for the second quarter of fiscal 2026 on Tuesday.

The report highlighted a sequential decline in revenue, which management attributed to the timing of specific equipment purchase orders.

Revenue for the second quarter, ended February 28, 2026, was $1.1 million.

This represents a decrease from the $2.6 million reported in the first quarter of fiscal 2026.

The company clarified that the lower revenue was primarily due to the absence of any "buy-sell" purchase orders for equipment during the three-month period—a variable revenue stream that had bolstered the previous quarter's results.

Despite the drop in sales, SemiLEDs saw a slight improvement in its bottom line.

The GAAP net loss attributable to stockholders was $603 thousand, or $(0.07) per diluted share, compared to a net loss of $742 thousand, or $(0.09) per diluted share, in the first quarter of fiscal 2026.

Operational metrics remained under pressure during the transition period.

GAAP gross margin stood at 1%, consistent with the first quarter.

However, the lower revenue base led to a significantly wider operating margin of negative 79%, compared to negative 39% in the prior quarter.

Meanwhile, the company’s liquidity position remains stable, with cash and cash equivalents of $4 million as of February 28, 2026, an increase from the $2.9 million held at the end of the first quarter.