📊 LEDS Key Takeaways
Is LEDS a Good Investment? Thesis Analysis
SemiLEDs is fundamentally unprofitable with critically low gross margins (0.7%), operating losses of $1.0M on stalled $2.6M revenue, and deteriorating equity (-35.9% ROE). Despite positive free cash flow, the company is in structural decline with liquidity stress (0.94x current ratio) and no visible path to profitability.
Why Buy LEDS? Key Strengths
- Positive free cash flow of $331K despite operating losses indicates working capital management
- Low leverage at 0.15x debt-to-equity ratio reduces bankruptcy risk
- Cash position of $2.9M provides near-term operational runway
LEDS Investment Risks to Consider
- Gross margin of 0.7% reflects severe pricing pressure, manufacturing inefficiency, or product obsolescence
- Zero revenue growth and $1.0M operating loss unsustainable relative to $2.6M revenue base
- Current ratio below 1.0 (0.94x) and quick ratio of 0.58x signal imminent liquidity crisis
- Negative ROE (-35.9%) and ROA (-5.2%) destroying shareholder equity continuously
- Minimal cash runway given annual operating losses exceed $1M
Key Metrics to Watch
- Gross margin trajectory—any improvement signals recovery possibility
- Revenue stabilization or contraction acceleration
- Operating cash flow sustainability and cash depletion rate
- Quarterly trend in operating losses
- Customer concentration and contract renewal rates
LEDS Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LEDS Profitability Ratios
LEDS vs Technology Sector
How SemiLEDs Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LEDS Overvalued or Undervalued?
Based on fundamental analysis, SemiLEDs Corp has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LEDS Balance Sheet & Liquidity
LEDS 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: SemiLEDs Corp's revenue has grown significantly by 609% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.32 indicates the company is currently unprofitable.
LEDS Growth Metrics (YoY)
LEDS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.3M | N/A | $-0.08 |
| Q3 2025 | $1.3M | $64.0K | $0.01 |
| Q2 2025 | $886.0K | -$159.0K | $-0.02 |
| Q1 2025 | $1.3M | -$547.0K | $-0.08 |
| Q3 2024 | $1.3M | -$319.0K | $-0.04 |
| Q2 2024 | $886.0K | -$541.0K | $-0.11 |
| Q1 2024 | $1.7M | -$512.0K | $-0.11 |
| Q3 2023 | $1.7M | -$756.0K | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LEDS Capital Allocation
LEDS SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for SemiLEDs Corp (CIK: 0001333822)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LEDS
What is the AI rating for LEDS?
SemiLEDs Corp (LEDS) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LEDS's key strengths?
Claude: Positive free cash flow of $331K despite operating losses indicates working capital management. Low leverage at 0.15x debt-to-equity ratio reduces bankruptcy risk.
What are the risks of investing in LEDS?
Claude: Gross margin of 0.7% reflects severe pricing pressure, manufacturing inefficiency, or product obsolescence. Zero revenue growth and $1.0M operating loss unsustainable relative to $2.6M revenue base.
What is LEDS's revenue and growth?
SemiLEDs Corp reported revenue of $2.6M.
Does LEDS pay dividends?
SemiLEDs Corp does not currently pay dividends.
Where can I find LEDS SEC filings?
Official SEC filings for SemiLEDs Corp (CIK: 0001333822) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LEDS's EPS?
SemiLEDs Corp has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LEDS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, SemiLEDs Corp has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LEDS stock overvalued or undervalued?
Valuation metrics for LEDS: ROE of -35.9% (sector avg: 22%), net margin of -28.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy LEDS stock in 2026?
Our dual AI analysis gives SemiLEDs Corp a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LEDS's free cash flow?
SemiLEDs Corp's operating cash flow is $361.0K, with capital expenditures of $30.0K. FCF margin is 12.9%.
How does LEDS compare to other Technology stocks?
Vs Technology sector averages: Net margin -28.9% (avg: 18%), ROE -35.9% (avg: 22%), current ratio 0.94 (avg: 2.5).