onsemi officially released its financial results for the fourth quarter and full year of 2025. Its overall operating data recorded a year-on-year decline affected by the global semiconductor market environment, yet the differentiated performance of core business segments has become a key highlight. Among them, the Intelligent Sensing Group (ISG), which is highly related to the supply of core components for camera modules, achieved a 9% quarter-on-quarter growth in the fourth quarter, serving as an important support for the company's performance to rebound against the trend.
The company's revenue in the fourth quarter was recorded at $1.5301 billion, with an annual revenue of $5.9954 billion. In 2025, the company's operating cash flow reached $1.8 billion and free cash flow hit $1.4 billion, with the free cash flow rate hitting a record high of 24%. 100% of the annual free cash flow was returned to shareholders through share repurchases, and a new three-year $6 billion share repurchase plan was officially authorized. The consolidated financial fundamentals are not a simple optimization of financial indicators, but also provide a stable financial guarantee for onsemi's continuous R&D investment in intelligent sensing technologies, including core image sensors for camera modules, enabling it to maintain industrial competitiveness in technological iteration.
In terms of business segment performance, the Power Solutions Group (PSG) and Advanced Mobility Group (AMG) saw their quarterly revenues drop by 2% and 5% quarter-on-quarter respectively. In contrast, the ISG achieved a fourth-quarter revenue of $2.496 billion and a 9% quarter-on-quarter growth by virtue of the demand resilience of image sensors and other intelligent sensing devices in the market of automotive on-board and industrial inspection camera modules. Although the annual revenue of ISG fell by 17% year-on-year, the growth momentum in the fourth quarter confirmed the potential demand of the downstream high-end camera module market. As a core global supplier of image sensors, the product matrix of onsemi's ISG segment is deeply adapted to the design requirements of high reliability and high perception capability for camera modules in automotive and industrial scenarios, and this technical adaptability has become the core driver of the segment's growth.
The continuous advancement of technological R&D and industrial chain cooperation has further empowered the camera module supply chain. In the fourth quarter, onsemi launched vertical Gallium Nitride (vGaN) power semiconductors, setting a new industrial benchmark in terms of power density and energy efficiency. At the same time, it reached cooperation agreements with Innoscience and GlobalFoundries on GaN device capacity expansion and next-generation R&D respectively. These technological layouts and industrial chain moves are not isolated technological innovations; the high-power and low-power consumption semiconductor technologies developed will reversely optimize the power consumption control and stability design of camera modules, meeting the high-end technical requirements of automotive and industrial camera modules, and providing overseas camera module customers with more valuable integrated solutions.
The company also released its performance outlook for the first quarter of 2026, with expected revenue in the range of $1.435 billion to $1.535 billion, expected GAAP gross margin of 37.4% to 39.4%, and expected non-GAAP gross margin of 37.5% to 39.5%. The upward revision of the gross margin expectation range reflects the company's judgment on the gradual stabilization of the global semiconductor market, and the continuous iteration of intelligent sensing technologies will become an important guarantee for the supply chain stability of overseas camera module customers.
Overall, amid the market challenges in 2025, onsemi consolidated its financial fundamentals through the optimization of cost structure across the company, and the counter-trend growth of the ISG segment highlighted the core value of intelligent sensing devices in the camera module industry chain. The company's R&D strategy centered on intelligent power and sensing technologies, as well as in-depth cooperation with industrial chain partners, will further consolidate its industry position in the supply of core components for camera modules, providing continuous and stable supply chain support for the development of high-end camera module markets such as automotive and industry.
