Executive Summary

Q2 2024 reflected a deliberate transition toward 5G with net revenues of $1.5M (down from $4.3M YoY and from $3.3M in Q1), 63% gross margin, and a modest net loss of $1.0M; management reiterated 5G sampling in Q4’24 and volume shipments in H1’25 .
Management highlighted new partnerships (Kyocera co-developing a 5G mmWave CPE reference platform; Samsung MOU) and announced initial alpha deliveries for 5G chipsets expected to begin in Q4’24, framing the pipeline for 2025 commercialization .
Liquidity at quarter-end was $4.0M cash with $5.2M net A/R; the company activated its $50M ELOC and restructured term loans to align maturities with anticipated 2025 5G proceeds, improving runway into the 5G ramp .
No S&P Global consensus estimates were available for this period; focus for the stock likely hinges on execution milestones (Q4’24 sampling, customer engagements) and validation of a 4G revenue rebound alongside 5G commercialization .

What Went Well and What Went Wrong

What Went Well

5G program on track: management reiterated Q4’24 sampling and H1’25 volume shipments and expects initial deliveries to alpha customers in Q4’24; “I couldn’t be more excited about the progress we are making,” CEO John Schlaefer noted .
Strategic partnerships: Kyocera collaboration to co-develop a 5G mmWave CPE reference platform with Kyocera providing financial support; GCT also signed an MOU with Samsung to accelerate 4G/5G development .
Balance sheet actions: deleveraging and recapitalization including term-loan maturity extensions aligned with expected 2025 5G proceeds; management also began using the $50M ELOC to fund operations .

What Went Wrong

Revenue softness: total net revenues fell to $1.5M (product $0.02M; service $1.45M), reflecting a steep decline in 4G product sales as customers transition and as Q2 represented an “anomaly” for 4G demand .
Sequential pressure vs Q1: revenues declined from $3.3M in Q1 to $1.5M in Q2, with operating loss expanding to $(7.1)M (from +$7.2M in Q1, which included a $14.6M one-time gain on extinguishment of liability) .
Liquidity tighter q/q: cash and cash equivalents decreased from $16.1M (3/31/24) to $4.0M (6/30/24), increasing reliance on external capital sources (ELOC) during the transition to 5G .

Financial Results

Headline Metrics (YoY and Seq)

Metric	Q2 2023	Q1 2024	Q2 2024
Total Net Revenues ($M)	$4.30	$3.27	$1.47
Product Revenues ($M)	$4.04	$2.38	$0.02
Service Revenues ($M)	$0.26	$0.89	$1.45
Gross Margin (%)	66%	60%	63%
Income (Loss) from Operations ($M)	$(4.54)	$7.24 (incl. $14.64M gain)	$(7.08)
Net Income (Loss) ($M)	$(6.57)	$0.76	$(1.04)
Diluted EPS ($)	$(0.27)	$0.03	$(0.02)

Notes: Q1’24 operating income includes a $14.64M gain on extinguishment of liability; without this one-time item, underlying profitability remains loss-making during the transition .

Revenue Mix

Metric	Q2 2023	Q1 2024	Q2 2024
Product Revenue ($M)	$4.04	$2.38	$0.02
Service Revenue ($M)	$0.26	$0.89	$1.45
Total Net Revenues ($M)	$4.30	$3.27	$1.47

Operating Expenses and Other

Metric	Q2 2023	Q1 2024	Q2 2024
R&D ($M)	$3.99	$5.52	$4.16
Sales & Marketing ($M)	$0.76	$1.00	$0.98
G&A ($M)	$2.63	$2.84	$2.86
Interest Expense ($M)	$(2.72)	$(2.08)	$(0.76)
Other Income (Expense), net ($M)	$0.73	$(4.34)	$6.86

Liquidity KPIs

Metric	Dec 31, 2023	Mar 31, 2024	Jun 30, 2024
Cash & Cash Equivalents ($M)	$0.26	$16.12	$4.04
Net A/R ($M)	$4.92	$5.10	$5.17
Inventory ($M)	$1.49	$1.78	$2.00

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
5G chipset sampling	Q4 2024	Broad sampling in Q4’24	Reiterated broad sampling in Q4’24; alpha deliveries expected to commence in Q4’24	Maintained (added alpha delivery timing)
5G volume shipments	H1 2025	Volume shipments in H1’25	Reiterated volume shipments in H1’25	Maintained
4G product outlook	2H 2024+	—	CEO expects positive rebound of 4G chipset sales even as 5G launches	New qualitative color
Capital access (ELOC)	2024-2026	$50M ELOC signed 4/23/24	Began utilizing ELOC to fund operations	Activated/Utilizing
Debt maturities	2025	—	Several term loan maturities extended to align with expected 2025 5G proceeds	Improved alignment

No numerical revenue/EPS/GM guidance was provided for Q2’24 or beyond; guidance focused on program milestones and capital access .

Earnings Call Themes & Trends

Note: A Q2’24 earnings call was announced, but no transcript was available in the filings corpus; themes below reflect management’s prepared remarks/press releases for Q1’24 and Q2’24 .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2024)	Trend
5G program milestones	Q1’24: sampling planned Q4’24; H1’25 volume shipments; Alpha Holdings and IP vendors engaged for 5G development	Reiterated Q4’24 sampling; initial alpha deliveries expected Q4’24; H1’25 volume shipments	On track
Partnerships/ecosystem	Q1’24: MOU with Aramco; transition of Samsung-related development to Alpha Holdings; public listing completed	Kyocera 5G mmWave CPE reference platform with financial support; MOU with Samsung; Ligado Band 54 LTE modules	Expanding
Revenue mix/4G	Q1’24: Slight YoY increase; higher GM due to platform mix; R&D up for 5G	Q2 anomaly in 4G product sales; service revenue up; expectation of 4G rebound	Temporary dip in 4G; rebound expected
R&D execution	Q1’24: R&D +512% YoY with 5G IP/service costs	Q2’24: R&D $4.16M; continued 5G development	Sustained investment
Liquidity/capital	Q1’24: $16.1M cash; $50M ELOC signed	Q2’24: $4.0M cash; began ELOC utilization; loan maturities extended	Managing runway through transition

Management Commentary

CEO framing the 5G ramp and partnerships: “The announcements we have made…showcase the momentum we are gaining… initial deliveries to alpha customers expected to commence during the fourth quarter of 2024… added significant partnerships with… Kyocera and Samsung.”
4G positioning despite transition: “While Q2 marked an anomaly regarding 4G product sales… We anticipate continuous demand for both existing and new 4G products… GDM7243SL… has received a lot of attention. We expect strong demand for this product even as the market evolves toward 5G.”
CFO on balance sheet actions: “We have successfully restructured the terms of some of our outstanding debt… maturities… now in line with expected proceeds from our 5G chipset sales in 2025… started to make use of our… ELOC facility.”
Kyocera collaboration scope: “The 5G reference platform incorporates GCT’s 5G chipset and Kyocera’s 5G mmWave antenna module… Kyocera will provide financial support… expected to be available in the first quarter of 2025.”

Q&A Highlights

No Q2’24 earnings call transcript was available; the company announced a call and webcast on Aug 14, 2024, but a transcript was not found in the filings corpus .

Estimates Context

Wall Street consensus (S&P Global) for Q2’24 revenue and EPS was unavailable in our dataset; therefore, beat/miss analysis vs consensus cannot be determined for this quarter. Values would normally be retrieved from S&P Global; in this case, estimates were not available for CNDB/GCTS in our mapping or request window [GetEstimates errors].

Key Takeaways for Investors

Near-term setup is milestone-driven: confirmation of Q4’24 sampling/alpha deliveries and customer traction (e.g., Kyocera platform progress) are key catalysts into the 2025 volume-ramp narrative .
Revenue mix volatility likely persists until 5G ramps: Q2 showed a sharp dip in 4G product sales; management expects a rebound, but 5G commercialization remains the primary inflection for scale and margin normalization .
Liquidity is being actively managed via ELOC utilization and extended debt maturities aligned to 2025 proceeds; monitoring cash burn and capital actions remains critical through the transition .
Partnership breadth improves line-of-sight: Kyocera’s financially supported platform and Samsung MOU expand ecosystem validation and could accelerate customer adoption across CPE/FWA and other endpoints .
Non-GAAP/one-time items can mask trends: Q1’s $14.6M gain skewed sequential comparisons; underlying OPEX and gross margin trajectory should be assessed excluding one-time items .
Without numeric guidance or published consensus, models should emphasize program milestones, 4G run-rate stabilization, and 5G unit economics/capacity plans into H1’25 shipments .

Appendices

Additional Relevant Press Releases (Q2 2024)

Kyocera collaboration press release (8-K Exhibit 99.1, July 10, 2024): 5G mmWave CPE reference platform, Kyocera financial support, availability expected Q1 2025 .

Prior Two Quarters’ Earnings Sources

Q1 2024 earnings (8-K with Exhibit 99.1, May 14, 2024): $3.3M revenue; 60% gross margin; $14.6M gain on extinguishment supporting operating income; reiterated 5G sampling Q4’24 and H1’25 shipments .
Q2 2023 comparison figures embedded within Q2 2024 press release tables (for YoY context) .

Source Citations

Q2 2024 8-K earnings press release and financials:
Q1 2024 8-K earnings press release and financials:
Kyocera collaboration press release (8-K Exhibit 99.1):

GCT Semiconductor Holding, Inc. (CNDB)·Q2 2024 Earnings Summary