Cardiff, UK
28 May 2026
- Improved H2 trading momentum carrying into 2026
- Successful conclusion of Strategic Review and fundraise transforms Group’s capital structure
- IQE positioned for long-term sustainable growth
IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, today announces its results for the full year ended 31 December 2025.
Jutta Meier, Chief Executive Officer of IQE, commented:
“We were encouraged to see market conditions improve in the second half of the year. This reflected a positive trajectory in key sectors including photonics for AI and data centres, aerospace and defence, and wireless products for consumer electronics.
“The £81m fundraise from key partners is a transformational investment for IQE, giving us the balance sheet strength to invest in our future growth, while maintaining our global asset base.
“IQE is uniquely positioned as a critical enabler of the world’s fastest-growing technology ecosystems. In particular, accelerating demand for our Indium Phosphide (InP) solutions supporting data centre and AI markets is expected to be a material growth driver throughout 2026 and beyond.
“Taken together, a stronger IQE, coupled with favourable market conditions directly benefitting the business, gives me great confidence for the future.”
FY 2025 Financial Summary:
| FY 2025 £’m | FY 2024 £’m | Change (%) | |
| Revenue | 97.3 | 118.0 | (17.6) |
| Adjusted EBITDA1 | 3.2 | 8.1 | (60.1) |
| Adjusted loss before tax | (27.9) | (22.3) | |
| Reported loss before tax | (37.0) | (36.9) | |
| Adjusted net cashflow from operations | 11.2 | 6.1 | |
| Reported net cashflow from operations | 8.1 | 1.3 | |
| Cash capital expenditure2 | (5.1) | (11.4) | |
| Adjusted net debt3 | (31.5) | (18.8) | |
| Cash and cash equivalents | 15.7 | 4.7 | |
| Reported Diluted EPS | (3.77p) | (3.96p) | |
| Adjusted Diluted EPS | (2.82p) | (2.46p) |
1. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and certain non-cash charges, non-operational items and significant infrequent items set out in Note 4 in the financial statements section.
2. Cash capital expenditure stated is Property, Plant and Equipment cash capex.
3. Adjusted net debt is calculated as cash less borrowings but excluding lease liabilities and fair value gains/losses on derivative instruments.
FY 2025 Financial Highlights:
- Revenue for FY 2025 decreased at £97.3m (FY 2024: £118.0m).
- Photonics revenue of £57.1m (FY 2024: £49.9m) increased 15% year-on-year driven by funding releases for certain US military and defence programmes in H2 2025 and continued growth in AI and data centre-related markets.
- Wireless revenue of £40.1m (FY 2024: £67.3m) decreased 40% year-on-year reflecting uncertain macroeconomic conditions in the first half of the year and softness in mobile handset demand with some end customer requirements met from existing inventory.
- Adjusted EBITDA of £3.2m (FY 2024: £8.1m), decreased 60% year-on-year, resulting in an adjusted EBITDA margin of 3% (FY 2024: 7%). This reduction reflects a lower revenue base and the underutilisation of manufacturing assets and capacity.
- Reported net cashflow from operations of £8.1m (FY 2024: £1.3m) increased in the year, reflecting the impact of working capital movements.
- Cash capital expenditure (PP&E) of £5.1m (FY 2024: £11.4m) to support the Group’s strategic GaN-related capacity investment into the power electronics and advanced display (microLED) markets and other high growth sectors.
- Cash and cash equivalents of £15.7m as at 31 December 2025, with adjusted net debt of £31.5m (FY 2024: £18.8m).
2026 fundraise:
Following the conclusion of the Strategic Review, IQE announced a fundraise of £81m, with the net proceeds to be used to repay the Group’s existing Revolving Credit Facility with HSBC Bank, support the Group’s working capital requirements and ongoing strategic investment. This significantly strengthens the Group’s overall financial position.
The fundraise included a £45m strategic investment from MACOM Technology Solutions Inc. (“MACOM”) in the form of £30m of equity and £15m in new non-interest bearing convertible loan notes. Concurrently, IQE and MACOM also entered into long-term supply agreements.
The remainder of the fundraise comprised a £23m redemption and reinvestment of convertible loan notes by existing noteholders, as well as a £13m Placing and Retail Offer.
Following the completion of the fundraise and the repayment of the Group’s Revolving Credit Facility with HSBC Bank, IQE will receive net cash inflows of £27.9m.
Current trading and outlook:
Trading in Q1 2026 was in line with management expectations, with strong demand across all core segments. In particular, IQE is seeing accelerated demand for the Group’s InP solutions, which support optical photonics products for data centre and AI infrastructure, and expects this to be a material growth driver throughout FY 2026 and beyond.
Alongside this, IQE is seeing ongoing strength in aerospace and defence markets, as well as VCSEL and wireless products supporting the consumer smartphone industry.
Revenue for FY 2026 is expected to exceed 20% growth year-on-year, with strong order book visibility into H2. This is expected to result in a high-single digit to low double-digit adjusted EBITDA position.
Business update:
Connect
Accelerated demand across customer base due to rapid growth in AI-driven hyperscale data centres, alongside mobile handsets, infrastructure and defence
- Multiple Tier 1 InP photonics design wins position the Group for future volume production in next-generation optical interconnect markets for data centres.
- Secured multiple development orders with leading global technology customers developing ultra-fast GaN-on-Si microLED solutions to address critical data centre network bottlenecks.
- Continued strong demand for GaN RF products across terrestrial, satellite and defence radar platforms, driving further orders for mission-critical sensing applications.
- Additionally, GaN RF infrastructure qualifications for use in high-power space communications networks, including satellite internet constellation platforms (Low Earth Orbit Satellites - LEOS), are progressing simultaneously.
- Secured new design wins for 5G mobile handset power amplifier applications, with potential for adoption across multiple future device generations and platforms.
Sense
Strengthened position in advanced sensing platforms, with strong commercial and strategic momentum across mobile, automotive safety, infrared imaging and defence applications
- Successfully qualified and commenced production ramp of second-generation 3D sensing VCSEL products for a leading global smartphone platform, reinforcing position in premium consumer devices.
- Secured volume production orders for automotive-qualified VCSEL products with a leading global optical sensing solutions provider, supporting in-cabin driver safety monitoring systems.
- Long-wavelength infrared (LWIR) products qualified for production at a Tier 1 customer, supporting demand ramp across autonomous vehicle, defence and advanced imaging applications.
- Increasing demand for large-diameter (6 and 8-inch) GaSb-based epiwafers from defence customers enabling more cost-effective production of ultra-high resolution infrared sensors.
Display
Progressed technological capabilities and customer engagement in next-generation microLED display ecosystems targeting future consumer devices
- Expanded partnership and renewed development supply agreement with a leading multinational consumer in advanced microLED AR/VR displays, with programmes progressing towards early-stage production.
- Delivered 8-inch RGB (red, green and blue) epitaxy for silicon integration, expanding customer qualifications and supporting new consumer microLED display opportunities.
- Launched advanced epitaxy capabilities through functional wafer-surface coatings, providing customers with a single step to integrate GaN microLEDs into silicon foundry manufacturing flows.
Power
- Establishment of long-term strategic foundations and strengthening global supply chains in next-generation GaN power to meet rising demand across data centres, space and aerospace
- Progressing qualification of GaN-on-Si power epitaxy for next-generation AI and hyperscale data centre power supply applications.
- Development of GaN power devices for space and aerospace applications, including lighter, more efficient and radiation-resistant power management circuits.
- Expanding foundry partner ecosystem to broaden geographic reach and strengthen supply chain flexibility.
Operational updates:
- Continued focus on fiscal discipline and tight controls over discretionary spending.
- Ongoing portfolio optimisation to ensure existing asset base is fully focused on value creation across core customers and technologies.
- Operational excellence driving yield improvements and manufacturing efficiencies.
- Global site optimisation programme continuing with exit from Silicon site in South Wales completed in H2 2025, following cessation of manufacturing operations in Q1 2025.
Board update:
- As expected following completion of the Strategic Review, Mark Cubitt returned to the role of Non-executive Chair and Harmesh Suniara stepped down from the Board as representative of Lombard Odier, which does not intend to nominate an alternate representative.
- IQE’s Board has approved the appointment nominations of Robert Dennehy, MACOM Chief Operating Officer, and David O’Carroll, MACOM Vice President, as Non-executive Directors, subject to completion of customary Nomad due diligence.
- IQE intends to appoint a permanent Chief Financial Officer in due course.
- Results presentation:
- IQE will present its FY 2025 Results via webcast at 9:00am today, 28 May 2026. If you would like to view this webcast, please register by using the below link and following the instructions:
https://brrmedia.news/IQE_FY25
Contacts:
IQE plc
+44 (0) 29 2083 9400
Jutta Meier
Mark Cubitt
Amy Barlow
Peel Hunt (Nomad and Joint Broker)
+44 (0) 20 7418 8900
Ben Cryer
Kate Bannatyne
Adam Telling
Deutsche Numis (Joint Broker)
+44 (0) 20 7260 1000
Simon Willis
Iqra Amin
Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822
Andy Rivett-Carnac: +44 (0) 7968 997 365
Chloe Francklin: +44 (0)78 3497 4624
GLOSSARY
GaN – Gallium Nitride
GaSb – Gallium Antimonide
InP – Indium Phosphide
ABOUT IQE
IQE is the leading global supplier of advanced compound semiconductor wafers and materials solutions that enable a diverse range of applications across:
- Smart Connected Devices
- Communications Infrastructure
- Automotive and Industrial
- Aerospace and Security
As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned in this market which has high barriers to entry. IQE supplies the global market and is enabling customers to innovate at chip and OEM level. By leveraging the Group’s intellectual property portfolio including know-how and patents, it produces epitaxy wafers of superior quality, yield and unit economics.
IQE is headquartered in Cardiff UK, with employees across manufacturing locations in the UK, US and Taiwan, and is listed on the AIM Stock Exchange in London.