SemiLEDs Revenue Plunges 90% to $1.06M in Q2 FY2026 as LED Maker Swings to Loss

SemiLEDs Corp, an LED chip and component manufacturer, reported revenue of $1.06 million for the three months ending February 28, 2026, down 90% from $10.87 million in the same quarter last year. The sharp decline pushed the company to an operating loss of $845,000, reversing the $110,000 operating profit it posted in the quarter ending February 28, 2025. Read more earnings reports.

For the six months ending February 28, 2026, total revenue fell to $3.63 million from $12.13 million in the comparable period of fiscal 2025, a decline of 70%. The company reported a six-month operating loss of $1.86 million, compared to a $547,000 operating loss in the prior-year period.

Cost of revenue for the three-month period was $1.06 million, leaving gross profit of just $6,000 compared to $1.00 million in gross profit a year earlier. Gross margin collapsed to 0.6% from 9.2% in the prior-year quarter.

Operating expenses totaled $851,000 for the three months ending February 28, 2026, down slightly from $893,000 a year earlier. Research and development expenses held steady at $276,000 compared to $279,000 in the prior year, while selling, general and administrative expenses declined to $575,000 from $614,000.

The company reported a net loss of $595,000, or $0.07 per share, for the three-month period, compared to net income of $390,000, or $0.05 per share, in the quarter ending February 28, 2025. For the six-month period, the net loss was $1.35 million, or $0.16 per share, compared to a net loss of $172,000, or $0.02 per share, in the prior-year period.

Cash and cash equivalents stood at $3.98 million as of February 28, 2026, up from $2.59 million at the end of the fiscal year on August 31, 2025. Cash from operations for the six months was $1.56 million compared to $1.25 million in the prior-year period.

Accounts receivable dropped sharply to $1.65 million from $3.59 million at fiscal year-end, while accounts payable declined to $2.16 million from $5.03 million. Inventory rose modestly to $4.89 million from $4.78 million.

Total assets increased to $16.26 million as of February 28, 2026, from $15.59 million at the end of fiscal 2025. Total liabilities climbed to $14.76 million from $12.81 million, while stockholders' equity fell to $1.50 million from $2.78 million. The accumulated deficit widened to $191.16 million from $189.81 million.

The company had 8.26 million common shares outstanding as of February 28, 2026, unchanged from the end of the prior fiscal year.

Financial Summary

*As of August 31, 2025