IQE PLC reported its FY 2025 financial results, highlighting improved trading momentum in H2 2025, a successful strategic review and fundraise, and positioning for long-term sustainable growth. Key takeaways include
Revenue decreased by 17.6% to £97.3m, with photonics revenue increasing 15% to £57.1m and wireless revenue decreasing 40% to £40.1m.
Adjusted EBITDA decreased by 60.1% to £3.2m, resulting in a margin of 3%.
Reported net cashflow from operations increased to £8.1m, up from £1.3m in FY 2024.
A £81m fundraise was completed, including a £45m strategic investment from MACOM Technology Solutions Inc.
The company expects revenue growth of over 20% in FY 2026, driven by accelerated demand for its InP solutions in data center and AI markets.
IQE is focused on operational excellence, yield improvements, and manufacturing efficiencies, with a global site optimization program underway.
In summary, IQE PLCs FY 2025 results reflect a challenging year, but the company has taken significant steps to strengthen its financial position and is well-positioned for growth in 2026 and beyond, driven by increasing demand for its advanced semiconductor solutions in key markets such as data centers, AI, and aerospace and defense.
| Financial Metric | 2024 (£'m) | 2025 (£'m) | Change (%) |
|---|---|---|---|
| Revenue | 118.0 | 97.3 | (17.6) |
| Adjusted EBITDA | 8.1 | 3.2 | (60.1) |
| Adjusted Loss Before Tax | (22.3) | (27.9) | N/A |
| Reported Loss Before Tax | (36.9) | (37.0) | N/A |
| Adjusted Net Cashflow from Operations | 6.1 | 11.2 | N/A |
| Reported Net Cashflow from Operations | 1.3 | 8.1 | N/A |
| Cash Capital Expenditure | (11.4) | (5.1) | N/A |
| Adjusted Net Debt | (18.8) | (31.5) | N/A |
| Cash and Cash Equivalents | 4.7 | 15.7 | N/A |