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what it is
SemiLEDs makes LED chips and packaged light components for street lights, factories, homes, and niche uses like UV curing.
how it gets paid
Last year Semileds made $43M in revenue. led chips was the main engine at $14M, or 33% of sales.
why it's growing
Revenue grew 729.8% last year. Gross margin at 0.0% matters most because gross margin → money left after making the product → the base for every other profit line.
what just happened
Latest quarter EPS came in at -$0.09, and gross margin was 0.0%, which is the real problem.
At a glance
C+ balance sheet — struggling to keep the lights on
40/100 earnings predictability — expect surprises
-$0.15 fy2025 eps est
$43M fy2025 rev est
3.7% operating margin
xvary composite: 29/100 — weak
What they do
SemiLEDs makes LED chips and packaged light components for street lights, factories, homes, and niche uses like UV curing.
This is a tiny supplier in a big, boring market, which is the point. With 118 employees and products sold into Taiwan, the U.S., and China, it can chase niche LED jobs larger players may ignore. Enhanced Vertical LED is jargon → a chip design stack → so what: if your customer needs blue, white, green, or UV output, SemiLEDs has a specialized product instead of a generic bulb part.
How they make money
$43M
annual revenue · their business grew +729.8% last year
led chips
$14M
led components
$12M
enhanced vertical led series
$9M
contract-manufactured led products
$5M
specialty industrial applications
$3M
The products that matter
manufactures LED chip wafers
LED Chips
$26M · 60% of revenue
this segment generated about $26M of the $43M revenue base. it is the core product, but the latest quarter's 0% gross margin tells you volume alone is not enough.
core product
packaged LED devices
LED Components
$17M · 40% of revenue
components contributed roughly $17M, or 40% of revenue. sold alongside chips, they still fed into a quarter where $1.2M of sales produced no gross profit.
40% of revenue
Key numbers
-$0.15
fy2025 eps est
EPS → profit per share → what you actually own. Even after the revenue rebound, fiscal 2025 is still expected to end in a per-share loss.
$43M
annual revenue
Revenue → total sales → proof customers are buying. Sales jumped 729.8% vs. prior year, which is huge for a $12M company.
3.7%
operating margin
Operating margin → profit after running the business → whether growth is real. Negative means bigger sales still did not produce operating earnings.
$1M
long-term debt
Debt → borrowed money → balance-sheet pressure. $1M is only 9% of capital, which helps, but small companies can still get cornered fast.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $1M (9% of capital)
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for LEDS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarter EPS came in at -$0.09, and gross margin was 0.0%, which is the real problem.
The quarterly loss improved 12% vs. prior year from about -$0.10 to -$0.09 per share. But 0.0% gross margin means the company generated no gross profit cushion.
$43M
revenue
-$0.09
eps
0.0%
gross margin
the number that mattered
Gross margin at 0.0% matters most because gross margin → money left after making the product → the base for every other profit line.
source: company earnings report, 2026
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What could go wrong
the #1 risk is selling LED chips and components at no gross profit. if Semileds cannot price product above production cost, the rest of the turnaround case does not matter.
med
unit economics are broken
Q1 FY26 gross margin was 0%, which means the full $1.2M of revenue was consumed by cost of revenue.
If gross margin stays at or near zero, revenue growth still fails to create operating leverage. You get activity without economics.
med
the revenue base may not be real yet
Estimated full-year revenue is $43M, but the latest quarter was only $1.2M after a prior quarter at $13.2M.
That gap makes the stock look cheap on paper in ways that may vanish if the higher quarter was temporary.
med
capital is being consumed, not compounded
Return on equity is -42.61% and return on assets is -6.96%.
Those numbers tell you the current business is not turning its asset base into shareholder returns. It is doing the opposite.
med
management depth looks thin
Chairman Trung Doan taking another senior role may speed decisions, but it also concentrates execution risk.
At a $12M market cap, one bad operating stretch tends to hit cash burn, credibility, and liquidity at the same time.
A business with 0% gross margin, a $742K quarterly net loss, and a quarter-to-quarter revenue swing from $13.2M to $1.2M does not have much room for error. The margin line matters more than the headline revenue estimate from here.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
gross margin has to move above zero
This is the make-or-break metric. Positive gross margin would show the company can sell product above cost. Until then, you are funding motion, not proof.
revenue
which quarter was real: $13.2M or $1.2M
The gap between those two quarters is the whole forecasting problem. You want evidence of a steadier run-rate before treating $43M as dependable.
next filing
the next report carries more weight than usual
For a microcap this small, one filing can reset the entire story. You are looking for revenue stabilization and any sign that gross profit exists again.
leadership
concentrated control needs visible operating progress
If expanded control under Trung Doan improves execution, fine. If not, leadership concentration stops looking efficient and starts looking like a warning.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not view these earnings as stable. when revenue swings from $13.2M to $1.2M in back-to-back quarters, that rating makes sense.
risk profile
5 / 100 stability
price stability is very low. translation: this trades like a microcap speculation, not a company that has earned investor trust yet.
source: institutional data
Institutional activity
institutional ownership data for LEDS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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