NEW YORK, July 14, 2026, 17:07 (EDT) SemiLEDs NASDAQ:LEDS surged 47% as equipment resale drove nearly all of its gross profit for the quarter.
- SemiLEDs closed at $2.24, jumping roughly 47%. Volume hit 45.3 million shares.
- About 82% of revenue for the quarter came from equipment resales, driving what looks like 94% of gross profit.
- LED product sales got better, but the business still faces major risks from customer concentration and its going-concern warning.
SemiLEDs Corporation NASDAQ:LEDS jumped 47% to close at $2.24 Tuesday. The LED supplier posted a quarterly profit, but a look at the filing shows equipment resales accounted for roughly 94% of gross profit, not LED sales. Next quarter will matter more.
Trading in SemiLEDs hit 45.3 million shares, about 5.5 times its 8.27 million shares outstanding. That’s possible since shares can change hands multiple times in a day. SemiLEDs closed with a market cap near $18.5 million. The Nasdaq Composite rose 0.9%. Volume was much bigger than the company’s small market value would imply.
Revenue jumped to $9.074 million for the fiscal third quarter ended May 31, up from $1.064 million in the prior quarter. Net income swung to $1.523 million, or 18 cents a diluted share, after losing $603,000, or 7 cents a share. Gross margin rose to 27% from 1%. The turnaround was sharp.
SemiLEDs got a lift from a run of buy-sell equipment deals—buying machinery and flipping it to a customer. Those transactions put up $7.4 million in revenue and cost $5.1 million, for a gross profit of $2.3 million. Buy-sell made up around 82% of revenue and 94% of the quarter’s $2.46 million gross profit. The product mix mattered more than the top-line spike.
Revenue from LED chips, components and lighting products totaled $1.106 million, a gain of around 153% from $437,000 last year. The bulk of the increase came from components, which jumped 177% to $998,000. The three lines combined made up just 12% of overall revenue. Demand for core products was better but didn’t drive the quarter.
Profit bounced back hard, outpacing the sales rebound. Numbers are in millions of dollars, with margins and EPS shown separately.
| Metric | Q3 FY2026 | Q2 FY2026 | Q3 FY2025 |
|---|---|---|---|
| Revenue | $9.074 | $1.064 | $17.651 |
| Gross margin | 27% | 1% | 5% |
| Operating income/(loss) | $1.415 | $(0.845) | $(0.062) |
| Net income/(loss) | $1.523 | $(0.603) | $0.223 |
| Diluted EPS | $0.18 | $(0.07) | $0.03 |
Revenue dropped 49% year on year, but gross profit jumped 162% to $2.46 million and net income rose from $223,000. SemiLEDs pointed to stronger margins on equipment resale, saying those margins made up for the lower revenue from those orders. The company’s sales story alone doesn’t capture what’s happening in the latest results.
Cash climbed to $5.978 million from $3.978 million at Q2’s close. But current assets were just $383,000 above current liabilities, $13.870 million against $13.487 million. Cash position looks up, but the balance sheet still has work to do.
Still, there’s heavy customer concentration. The top three customers brought in 95% of revenue last quarter, and the top 10 made up 99%. The filing still carries a going-concern warning, so there’s real risk the company can’t keep running. Liquidity could mean raising cash with stock sales, assets, or even more debt. A single major order can swing results each quarter.
The company said, “We anticipate more buy-sell purchase orders in the fourth quarter.” But it also flagged risks for shipments, noting they could drop, payments could be pushed back, and there’s a chance new orders don’t show up. Shares traded at more than five times their outstanding volume in the session. Investors are looking to see if equipment margins hold up and whether LED-component sales keep rising. Timing is key. SEC
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