IQE plc
IQE supplies compound semiconductor wafers used to make lasers, wireless chips and sensors.
Overview
Latest results
Jan–Jun 2026 · Reported in GBP
Latest financial publication
First-half 2026 results
Investment Thesis
Materials for optical connections and wireless chips
European Tech Equities analysis ·
The investment case
AI data centres need fast connections between machines, creating demand for optical components and the materials used to make them. IQE could benefit if that demand leads to larger repeat orders and better use of its factories.
Evidence of progress
H1 2026 revenue grew 43% to £64.6m, with both photonics and wireless sales recovering. Yet the company still reported a £12.9m net loss. Growth has improved the business, but it has not yet established sustained profitability.
What drives demand
Optical connections are one source of demand; wireless devices and sensing are others. New technologies move through customer testing before production, so agreements and samples should be kept separate from committed volume orders.
Profit and cash generation
June 2026 cash was £41.6m following new equity and convertible financing. Operating activities used £6.4m of cash after interest and tax. Borrowings and leases totalled £53.9m, so the stronger cash balance should be read alongside the financing that created it.
What the valuation assumes
Revenue growth needs to translate into durable margins and cash generation. The number of shares also matters because new equity and convertible financing can spread future earnings across more shares.
What would weaken the case
- Customer demand and factory utilisation can change quickly in semiconductor markets.
- Development agreements and sampling may not lead to large production orders.
- Continued losses or investment needs could require more financing and dilute shareholders.
Sources
Financials
The business in numbers
Latest
Income statement
Cash flow
Balance sheet
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
FY2025 · FY2025 audited results pp.8–11: consolidated income, balance sheet and cash flow.
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Amounts are in GBP million, even though the AIM share quote uses pence. Basic EPS is converted from reported pence to GBP per share. Net operating cash flow is after interest and tax; it is not the headline cash generated from operations. Debt includes bank and convertible borrowings plus leases. Adjusted EBITDA is excluded from the statutory EBITDA field.
Annual
Income statement
Cash flow
Balance sheet
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
FY2024 · FY2025 audited results pp.8–11: consolidated income, balance sheet and cash flow.
FY2025 · FY2025 audited results pp.8–11: consolidated income, balance sheet and cash flow.
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Amounts are in GBP million, even though the AIM share quote uses pence. Basic EPS is converted from reported pence to GBP per share. Net operating cash flow is after interest and tax; it is not the headline cash generated from operations. Debt includes bank and convertible borrowings plus leases. Adjusted EBITDA is excluded from the statutory EBITDA field.
Half-year
Income statement
Cash flow
Balance sheet
Sources and details
Each statement retains its reporting period. Charts use comparable periods and a shared accounting basis; a dash means the figure has not been verified on European Tech Equities.
Calculated: margins = profit ÷ revenue; free cash flow = operating cash flow less capital expenditure; net debt = debt less cash; liabilities = assets less equity. The company-specific notes explain what debt includes. Negative net debt represents net cash. Quarterly flows cover each individual quarter; balance sheet figures are at period end.
Amounts are in GBP million, even though the AIM share quote uses pence. Basic EPS is converted from reported pence to GBP per share. Net operating cash flow is after interest and tax; it is not the headline cash generated from operations. Debt includes bank and convertible borrowings plus leases. Adjusted EBITDA is excluded from the statutory EBITDA field.
Performance
About these figures
Dates link to the original reports. Bars compare the same period a year earlier, on a consistent accounting basis. Arrows show whether the number rose or fell, not whether it is good or bad for the business.
Research & updates
Interviews
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Sources
Sources & data dates
Financial figures link to the company’s publications and retain their reporting period. Share prices have their own closing dates.
H1 2025 · Published Sep 7, 2026 · Checked Oct 30, 2026
H1 2026 · Published Sep 7, 2026 · Checked Oct 30, 2026
FY2024 · Published May 28, 2026 · Checked Oct 30, 2026
FY2025 · Published May 28, 2026 · Checked Oct 30, 2026
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