ON Semiconductor Reports Q1 2025 GAAP Net Loss Amid Revenue Decline and Restructuring Charges

ON
November 01, 2025

ON Semiconductor announced its first quarter 2025 results on May 5, 2025, reporting revenue of $1,445.7 million. This represents a significant decrease of approximately 22% compared to $1.86 billion in the first quarter of 2024.

The company posted a GAAP net loss attributable to ON Semiconductor Corporation of $486.1 million, or $1.15 per diluted share. This loss was primarily driven by substantial restructuring, asset impairments, and other charges totaling $539.3 million, alongside $237.7 million in excess and obsolete inventory charges.

Despite the GAAP loss, non-GAAP diluted earnings per share was $0.55, exceeding guidance midpoints. ON Semiconductor generated strong free cash flow of $455 million, representing 31% of revenue, and increased its share repurchase target to 100% of free cash flow for 2025. However, the company's guidance for Q2 2025 anticipates revenue between $1.4 billion and $1.5 billion, with non-GAAP gross margin expected to decline sequentially to 36.5% to 38.5% due to increased non-cash under-absorption charges.

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