Qnity Electronics Reports Q4 Revenue of $89.3 Million, Misses Analyst Estimates

Qnity Electronics delivered its fourth-quarter financial results, revealing a revenue figure of $89.3 million, down 6.4% year-over-year. The company attributed the decline primarily to reduced demand in mid-tier consumer electronics components, particularly in the Asia-Pacific region. Despite cost optimization efforts, Qnity reported a net loss of $4.7 million for the quarter, marking a reversal from the $2.3 million net profit recorded during Q4 2024. The company’s gross margin narrowed to 28.9% in Q4, down from 32.1% in the prior-year period, reflecting increased raw material costs and lower production volume. Qnity highlighted that inventory levels at key distribution partners were elevated, contributing to slower order fulfillment. Management emphasized ongoing investments in automated assembly lines, which are expected to improve throughput by 15% in the coming fiscal year. Qnity Electronics' adjusted EBITDA for the quarter came in at $10.2 million, a 12% decline from $11.6 million reported in Q4 2024. While the company reaffirmed its full-year 2025 guidance, it noted that macroeconomic headwinds in key markets could pressure margins in the first half of the year. The stock reacted negatively in after-hours trading, dropping 5.3% to $7.94 per share. Investors are closely monitoring Qnity’s ability to stabilize revenue and regain profitability amid a competitive landscape in electronics manufacturing. The company’s customer base includes several mid-sized tech firms in North America and Southeast Asia, with over 60% of Q4 revenue originating from non-U.S. markets.