GCT Semiconductor Holding, Inc.

Good afternoon. Thank you for attending GCT Semiconductor Holding, Inc.' 's first quarter 2026 financial results call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Joining the call today are John Schroepfer, GCT's chief executive officer, and Edmund Chang, CFO, to discuss our first quarter 2026 results. During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Form 10Q that will be filed today, which provide further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. I will now turn the call over to John Schlafer.

Thank you and thanks everyone for joining us today for our first quarter of 2026 earnings call. I'll start by discussing the operational progress we've made during the first quarter as we drive commercial expansion of our 5G products. Following my remarks, our CFO, Edmund Cheng, will walk through the financial results for the first quarter in more detail. Building on the groundwork we laid at the end of 2025, Our first quarter results reflect the advancements we've made on our 5G acceleration, which is reflected by growing 5G chipset shipments, expanding engagement, and continued early adoption across leading customers. In the first quarter, we delivered 3,000 5G chipsets, a sequential increase of 58% versus Q4. This growth is an important indicator that customers are continuing to move through the final stages of testing and into initial deployments. While 5G product shipment volume today remains modest relative to the long-term opportunity ahead, we are in an early but critical step of the product cycle. Customer confidence in the performance, reliability, and integration of our 5G chipset is building, and we expect 5G chipset shipments to continue trending upward as customers advance their programs. We are also broadening the scope and depth of our customer relationships and chipset use cases We continue to support a growing number of programs across multiple verticals, FWA, IoT, and NPN, and we are working closely with our lead customers as they move through integration, certification, and deployment planning. These engagements often push beyond traditional licensing into deeper platform-level collaboration, where our technology serves as the foundation for next-generation systems and user equipment development. Early design wins and platform integrations remain critical in establishing the framework for future volume shipments and long-term adoption. Notably, we expanded our previously announced engagement with one of the world's largest satellite communication providers to fast-track global 5G deployment through a reference platform agreement. Under this framework, we will provide a reference design based on our 4G and 5G chipsets to help accelerate the development of our partner's next-generation user equipment, enabling high-bandwidth and high-speed communications across satellite and terrestrial networks. This agreement reinforces GCT's role in enabling seamless connectivity across both terrestrial and non-terrestrial networks and broadens the deployment scope of our technology. It also highlights the growing importance of GCT's technology in enabling converged connectivity solutions that span multiple network environments. We view this as a multi-phase opportunity that can drive incremental adoption of our solution over time as next generation user equipment platforms are introduced. As these platforms are developed and deployed, we expect our technology to play an increasingly important role in supporting global connectivity use cases. Initial 5G chipset shipments to this partner remain on track to begin in the second half of 2026. Our focus continues to revolve around driving 5G chipset commercial traction by strengthening our supply chain and operational infrastructure to support higher 5G chipset volumes as customer demand accelerates. Supported by increasing activity from our lead customers, we continue to expect sequential growth in 5G chipset shipments as commercialization continues to scale throughout the year. Further, the headway achieved thus far reinforces our expectation and aligns with our previous product launches, such as our 4G chipsets. We believe the work we are doing now will ensure that we are positioned to scale efficiently. At the same time, we remain mindful that the timing and pace of deployments can vary as customers finalize their rollout plans. As a result, we are maintaining a disciplined approach with a focus on execution and operational readiness moving through this next phase. Overall, we believe the first quarter represents meaningful progress in our transition from development to commercialization of our 5G chipset. We are encouraged by the momentum we are seeing and believe we are building a strong base for continued growth throughout 2026. And with that, I'll turn the call over to Edmund to discuss our first quarter results. Edmund?

Thank you, John. Over the past several quarters, we have noted that our path to 5G commercialization would not be defined by a single event, but rather consistent strides forward like customer sampling, inaugural commercial shipments, real-world customer deployments, and production scaling, all of which will ultimately culminate in significant revenue contributions. In the first quarter, we delivered meaningful improvements across both the top and bottom line results, driven by increased 5G chipset shipments and diligent capital deployment. As John mentioned, There is still work to be done, and these financial results are modest in comparison to the opportunity ahead. But we are progressing as expected, and we remain focused on discipline execution. Also, in supporting the expanding of the addressable plan to include MTNs, we are considering at the appropriate time to break down our product revenue into these three verticals, FWA, IoT, and MTN. With that context, I will now review our first quarter 2026 financial results. Further details can be found in the thank you that will be on file with the SEC. Net revenues increased by $1.4 million or 287% from $0.5 million for the three-month end March 31st, 2025 to $1.9 million for the three-month end March 31st, 2026. The change was due to an increase of $2.4 million in product sales and an increase of $1 million in service revenue. The growth in product sales was led by both 4G and 5G product sales, while the increase in service revenue was driven by 5G operations, partially offset by lower LTE service revenue as we shift our portfolio to 5G. Cost of net revenue increased by $3.6 million or 138% from $3.4 million for the three months end March 31st, 2025 to $1 million for the three months end March 31st, 2026. Primarily due to higher costs driven by increased unit volume. Our growth margin increased to 49% for the three-month end March 31st, 2026, from 18% for the three-month end March 31st, 2025, largely due to changes in the revenue mix, especially higher margins from our service offerings, an increased share of 5G and product sales during the quarter. Research and development expenses decreased by $0.9 million or 23% from $4.1 million for the three months end March 31st, 2025 to $3.2 million for the three months end March 31st, 2026. The decrease was largely driven by a $3.5 million reduction in project-specific intellectual property expenses and a $3.4 million reduction in professional services provided by Alpha for the completion of a 5G chipset design last year. Sales and marketing expenses remain consistent year over year, totaling $1.1 million for the three-month end March 31st, 2025, compared to $1.2 million for the three-month end March 31st, 2026. General and administrative expenses were relatively flat year over year, totaling 2.6 million for the three months end March 31st, 2025, comparing to 2.7 million for the three months end March 31st, 2026. Turning to liquidity, we finished the quarter with cash and cash equivalents of 7.2 million, We also had net receivables, accounting receivables of 2.4 million and net inventory of 1.6 million. We have access to our at the market equity program of up to 75 million and ample capacity on the remaining 125 million of our 200 million S3 self-registration statement which has been effective since April 1st, 2025. These resources equip us with financial flexibility to support working capital requirements, commercial readiness, and broader production efforts. Moving further into 2026, our priorities remain consistent. We are focused on maintaining financial flexibility and discipline capital allocation to support 5G chipset commercial traction and volume production readiness, ensuring that we are well-positioned to capitalize on the expanding 5G opportunity. With this, I will turn it back to John.