The numbers aren’t exactly sparkling
IQE came out with a trading update that reads like a company trying to be honest before the market does it for them. Full-year 2025 revenue is now expected to land between £90 million and £100 million, with adjusted EBITDA forecast at minus £5 million to plus £2 million.
That’s not a catastrophe, but it’s not the kind of guidance that makes investors reach for the confetti cannon either. And if you’re looking for a softer landing, H1 2025 doesn’t exactly offer one: revenue is expected to be at least £44 million, with adjusted LBITDA of £0.4 million.
The strategic review just got more dramatic
The bigger plot twist is that IQE is expanding its strategic review to include a potential sale of the company. So this is no longer just the corporate version of “let’s explore our options.” It’s more like: “we may be putting the whole house on the market.”
At the same time, the company says it’s in negotiations to sell its Taiwan operations. If that deal gets done, the proceeds would go toward repaying its HSBC revolving credit facility and convertible loan notes issued in March 2025. Translation: less debt, more breathing room.
Why investors should care
This matters for two reasons:
- The guidance cut suggests the business is still dealing with some real operating pressure.
- The broadened strategic review means a transaction — whether a partial asset sale or a full company sale — is now firmly on the table.
That combination can move a stock fast, because suddenly the story isn’t just about margins and revenue. It’s about whether IQE is a turnaround, a breakup candidate, or an acquisition target. Big picture: when a company starts shopping itself while also lowering expectations, the market tends to pay very close attention.