onsemi (ON) Q4 2025 Financial Results Summary
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onsemi (ON) Q4 2025 Financial Results Summary
onsemi (Nasdaq: ON) announced its fourth quarter and fiscal year 2025 results on February 9, 2026. Below is a summary of the key financial metrics and operational highlights for the quarter.
Financial Highlights
- Fourth Quarter Revenue:
- $1,530 million
- Decreased by 11% from $1,722.5 million in Q4 2024.
- Gross Margin:
- GAAP: 36.0% (compared to 45.2% in Q4 2024, a decrease of 9.2 percentage points)
- Non-GAAP: 38.2% (down from 45.3% in Q4 2024, a decrease of 7.1 percentage points)
- Operating Margin:
- GAAP: 13.1% (down from 23.7% in Q4 2024, decrease of 10.6 percentage points)
- Non-GAAP: 19.8% (compared to 26.7% in Q4 2024, down 6.9 percentage points)
- Net Income Attributable to ON Semiconductor:
- GAAP: $181.8 million (down 52% from $379.9 million in Q4 2024)
- Non-GAAP: $257.2 million (down 36.4% from $404.2 million in Q4 2024)
- Diluted Earnings Per Share:
- GAAP: $0.45 (down from $0.88 in Q4 2024, a 49.4% decrease)
- Non-GAAP: $0.64 (compared to $0.95 in Q4 2024, a decrease of 32.6%)
Full Year Results
- 2025 Revenue:
- $5,995.4 million (down 15% from $7,082.3 million in 2024)
- Gross Margin:
- GAAP: 33.1% (down from 45.4% in 2024)
- Non-GAAP: 38.4% (down from 45.5% in 2024)
- Operating Margin:
- GAAP: 1.4% (down from 25.0% in 2024)
- Non-GAAP: 18.6% (down from 27.9% in 2024)
- Net Income Attributable to ON Semiconductor:
- GAAP: $121.0 million (down 92.3% from $1,572.8 million in 2024)
- Non-GAAP: $966.4 million (down 43.2% from $1,704.6 million in 2024)
- Diluted Earnings Per Share:
- GAAP: $0.29 (down from $3.63 in 2024)
- Non-GAAP: $2.35 (down from $3.98 in 2024)
Cash Flow and Shareholder Returns
- Cash from Operations:
- $1.8 billion for the year, which contributed to $1.4 billion in free cash flow.
- Free Cash Flow Margin:
- Achieved a record high of 24%.
- Share Repurchases:
- The company returned 100% of its annual free cash flow ($1.4 billion) to shareholders through share repurchases.
- New Share Repurchase Program Authorized:
- Up to $6 billion authorized for the next three years.
Business Developments
- Investments in Technology:
- Onsemi continues to focus on intelligent power and sensing technologies to take advantage of market conditions improving.
- New Product Introduced:
- Vertical Gallium Nitride (vGaN) power semiconductors launched, aiming to set new benchmarks for power density.
- Collaborations:
- Announced a memorandum of understanding with Innoscience to explore expanding the production of GaN power devices.
- Established a collaboration agreement with GlobalFoundries to develop next-generation GaN power devices, starting with 650V.
Quarter Specific Revenue Details
- Revenue by Business Segment for Q4 2025:
- PSG: $724.2 million (down 11% YoY)
- AMG: $556.3 million (down 9% YoY)
- ISG: $249.6 million (down 17% YoY)
Overall, onsemi’s Q4 2025 financial results reflected a challenging market environment with decreases across key performance metrics compared to the previous year. The company remains committed to its strategic investments and shareholder returns amid ongoing fluctuations in market conditions.
Note: All amounts are in millions.
| Quarter | Ended | Year Ended | ||
|---|---|---|---|---|
| December 31, 2025 | October 3, 2025 | December 31, 2025 | December 31, 2024 | |
| Revenue | $ 1,530.1 | $ 1,550.9 | $ 5,995.4 | $ 7,082.3 |
| Cost of revenue | 979.1 | 963.7 | 4,011.5 | 3,866.2 |
| Gross profit | 551.0 | 587.2 | 1,983.9 | 3,216.1 |
| Gross margin | 36.0 % | 37.9 % | 33.1 % | 45.4 % |
| Operating expenses: | ||||
| Research and development | 133.8 | 141.9 | 583.6 | 612.7 |
| Selling and marketing | 61.5 | 62.8 | 255.9 | 273.5 |
| General and administrative | 86.0 | 87.3 | 348.9 | 376.3 |
| Amortization of intangible assets | 10.8 | 11.2 | 44.4 | 52.0 |
| Restructuring, asset impairments and other charges, net | 58.8 | 19.6 | 666.9 | 133.9 |
| Total operating expenses | 350.9 | 322.8 | 1,899.7 | 1,448.4 |
| Operating income | 200.1 | 264.4 | 84.2 | 1,767.7 |
| Other income (expense), net: | ||||
| Interest expense | (17.3) | (17.7) | (70.9) | (62.3) |
| Interest income | 20.6 | 22.7 | 95.1 | 111.4 |
| Other income | 13.7 | 3.6 | 22.9 | 20.6 |
| Other income (expense), net | 17.0 | 8.6 | 47.1 | 69.7 |
| Income before income taxes | 217.1 | 273.0 | 131.3 | 1,837.4 |
| Income tax provision | (35.3) | (17.7) | (7.7) | (262.8) |
| Net income | 181.8 | 255.3 | 123.6 | 1,574.6 |
| Less: Net (income) loss attributable to non-controlling interest | — | (0.3) | (2.6) | (1.8) |
| Net income attributable to ON Semiconductor Corporation | $ 181.8 | $ 255.0 | $ 121.0 | $ 1,572.8 |
| Net income for diluted earnings per share | $ 181.8 | $ 255.0 | $ 121.0 | $ 1,572.8 |
| Net income per share of common stock attributable to ON Semiconductor Corporation | Basic $ 0.45 | $ 0.63 | $ 0.29 | $ 3.68 |
| Diluted $ 0.45 | $ 0.63 | $ 0.29 | $ 3.63 | |
| Weighted average common shares outstanding | ||||
| Basic | 400.8 | 406.9 | 411.0 | 427.4 |
| Diluted | 402.3 | 408.0 | 411.8 | 432.7 |
Note: All amounts are in millions.
| Assets | December 31, 2025 | October 3, 2025 | December 31, 2024 |
|---|---|---|---|
| Cash and cash equivalents | $ 2,147.6 | $ 2,472.5 | $ 2,691.3 |
| Short-term investments |