Latin America Energy Journal
SEE OTHER BRANDS

Keeping up with energy news from Latin America

FormFactor, Inc. Reports 2025 Second Quarter Results

Q2 Revenue Exceeds Outlook Range, Sees Similar Demand Level for Q3'25

LIVERMORE, Calif., July 30, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2025 ended June 28, 2025. Quarterly revenues were $195.8 million, an increase of 14.3% compared to $171.4 million in the first quarter of fiscal 2025, and a decrease of 0.8% from $197.5 million in the second quarter of fiscal 2024.

  • Anticipated strength in HBM and Foundry & Logic probe cards drove sequentially stronger second-quarter revenue
  • FormFactor is now shipping in volume to all three major HBM manufacturers
  • Closed acquisition of Farmers Branch manufacturing facility, providing significant operational flexibility in lower operating cost region

“FormFactor reported sequentially stronger second-quarter revenue that exceeded the high end of our outlook range, due to higher-than-anticipated growth in our probe-card business,” said Mike Slessor, CEO of FormFactor, Inc. “Despite this revenue strength, non-GAAP gross margin and overall profitability fell short of our outlook, mainly caused by an unfavorable shift in product mix and unforecasted ramp-up costs for a second HBM DRAM customer.”

Second Quarter Highlights

On a GAAP basis, net income for the second quarter of fiscal 2025 was $9.1 million, or $0.12 per fully-diluted share, compared to net income for the first quarter of fiscal 2025 of $6.4 million, or $0.08 per fully-diluted share, and net income for the second quarter of fiscal 2024 of $19.4 million, or $0.25 per fully-diluted share. Gross margin for the second quarter of 2025 was 37.3%, compared with 37.7% in the first quarter of 2025, and 44.0% in the second quarter of 2024.

On a non-GAAP basis, net income for the second quarter of fiscal 2025 was $21.2 million, or $0.27 per fully-diluted share, compared to net income for the first quarter of fiscal 2025 of $18.0 million, or $0.23 per fully-diluted share, and net income for the second quarter of fiscal 2024 of $27.3 million, or $0.35 per fully-diluted share. On a non-GAAP basis, gross margin for the second quarter of 2025 was 38.5%, compared with 39.2% in the first quarter of 2025, and 45.3% in the second quarter of 2024.

GAAP net cash provided by operating activities for the second quarter of fiscal 2025 was $18.9 million, compared to $23.5 million for the first quarter of fiscal 2025, and $21.9 million for the second quarter of fiscal 2024. Free cash flow for the second quarter of fiscal 2025 was negative $47.1 million, compared to free cash flow for the first quarter of fiscal 2025 of $6.3 million, and free cash flow for the second quarter of 2024 of $14.2 million.

A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

Outlook

Dr. Slessor added, “In the current third quarter, we expect to deliver revenue comparable to the second quarter, with slightly higher gross margin and operating profit.”

For the third quarter ending September 27, 2025, FormFactor is providing the following outlook*:

    GAAP   Reconciling Items**   Non-GAAP
Revenue   $200 million +/- $5 million     $200 million +/- $5 million
Gross Margin   38.5% +/- 1.5%   $3 million   40% +/- 1.5%
Net income per diluted share   $0.14 +/- $0.04   $0.11   $0.25 +/- $0.04
*This outlook assumes consistent foreign currency rates.
**Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.
 

We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

Use of Non-GAAP Financial Information:

To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and six months ended June 28, 2025, and for outlook provided before, as well as for the comparable periods of fiscal 2024, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management's reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

About FormFactor:

FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle - from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, and the Company's performance, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and "prospect," and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

FORMFACTOR, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
  Three Months Ended   Six Months Ended
  June 28,
2025
  March 29,
2025
  June 29,
2024
  June 28,
2025
  June 29,
2024
Revenues $ 195,798     $ 171,356     $ 197,474     $ 367,154     $ 366,199  
Cost of revenues   122,860       106,833       110,574       229,693       216,561  
Gross profit   72,938       64,523       86,900       137,461       149,638  
Operating expenses:                  
Research and development   28,793       27,800       31,564       56,593       60,191  
Selling, general and administrative   31,839       33,454       37,874       65,293       70,953  
Total operating expenses   60,632       61,254       69,438       121,886       131,144  
Gain on sale of business               310             20,581  
Operating income   12,306       3,269       17,772       15,575       39,075  
Interest income, net   2,642       3,317       3,415       5,959       6,571  
Other income (expense), net   (6 )     890       360       884       880  
Income before income taxes   14,942       7,476       21,547       22,418       46,526  
Provision for income taxes   2,372       1,075       2,155       3,447       5,353  
Loss from equity investment   3,484                   3,484        
Net income $ 9,086     $ 6,401     $ 19,392     $ 15,487     $ 41,173  
Net income per share:                  
Basic $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.53  
Diluted $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.52  
Weighted-average number of shares used in per share calculations:                
Basic   77,107       77,345       77,235       77,226       77,343  
Diluted   77,527       77,884       78,717       77,721       78,746  
                                       


FORMFACTOR, INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
(In thousands, except per share amounts)
(Unaudited)
 
  Three Months Ended   Six Months Ended
  June 28,
2025
  March 29,
2025
  June 29,
2024
  June 28,
2025
  June 29,
2024
GAAP Gross Profit $ 72,938     $ 64,523     $ 86,900     $ 137,461     $ 149,638  
Adjustments:                  
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   528       542       545       1,070       1,131  
Stock-based compensation   1,690       2,005       1,932       3,695       3,860  
Restructuring charges   183       60       39       243       83  
Non-GAAP Gross Profit $ 75,339     $ 67,130     $ 89,416     $ 142,469     $ 154,712  
                   
GAAP Gross Margin   37.3 %     37.7 %     44.0 %     37.4 %     40.9 %
Adjustments:                  
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   0.3 %     0.3 %     0.3 %     0.3 %     0.3 %
Stock-based compensation   0.8 %     1.2 %     1.0 %     1.0 %     1.1 %
Restructuring charges   0.1 %     %     %     0.1 %     %
Non-GAAP Gross Margin   38.5 %     39.2 %     45.3 %     38.8 %     42.3 %
                   
GAAP operating expenses $ 60,632     $ 61,254     $ 69,438     $ 121,886     $ 131,144  
Adjustments:                  
Amortization of intangibles   (191 )     (191 )     (191 )     (382 )     (382 )
Stock-based compensation   (7,701 )     (7,791 )     (8,277 )     (15,492 )     (16,754 )
Restructuring charges   (195 )     (2,823 )     (49 )     (3,018 )     (98 )
Costs related to sale and acquisition of businesses   (55 )     (217 )     (43 )     (272 )     (689 )
Non-GAAP operating expenses $ 52,490     $ 50,232     $ 60,878     $ 102,722     $ 113,221  
                   
GAAP operating income $ 12,306     $ 3,269     $ 17,772     $ 15,575     $ 39,075  
Adjustments:                  
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   719       733       736       1,452       1,513  
Stock-based compensation   9,391       9,796       10,209       19,187       20,614  
Restructuring charges   378       2,883       88       3,261       181  
Gain on sale of business, net of costs and acquisition related expenses   55       217       (267 )     272       (19,892 )
Non-GAAP operating income $ 22,849     $ 16,898     $ 28,538     $ 39,747     $ 41,491  
                                       


FORMFACTOR, INC.
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
(In thousands, except per share amounts)
(Unaudited)
 
  Three Months Ended   Six Months Ended
  June 28,
2025
  March 29,
2025
  June 29,
2024
  June 28,
2025
  June 29,
2024
GAAP net income $ 9,086     $ 6,401     $ 19,392     $ 15,487     $ 41,173  
Adjustments:                  
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   719       733       736       1,452       1,513  
Stock-based compensation   9,391       9,796       10,209       19,187       20,614  
Restructuring charges   378       2,883       88       3,261       181  
Gain on sale of business and assets, net of costs and acquisition related expenses   3,460       217       (267 )     3,677       (19,892 )
Income tax effect of non-GAAP adjustments   (1,812 )     (2,026 )     (2,835 )     (3,838 )     (1,922 )
Non-GAAP net income $ 21,222     $ 18,004     $ 27,323     $ 39,226     $ 41,667  
                   
GAAP net income per share:                  
Basic $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.53  
Diluted $ 0.12     $ 0.08     $ 0.25     $ 0.20     $ 0.52  
                   
Non-GAAP net income per share:                  
Basic $ 0.28     $ 0.23     $ 0.35     $ 0.51     $ 0.54  
Diluted $ 0.27     $ 0.23     $ 0.35     $ 0.50     $ 0.53  
                   
GAAP net cash provided by operating activities $ 18,893     $ 23,539     $ 21,878     $ 42,432     $ 54,890  
Adjustments:                  
Sale of business and acquisition related payments in working capital   168       1,221       630       1,389       677  
Cash paid for interest   95       92       101       187       201  
Capital expenditures   (66,256 )     (18,584 )     (8,398 )     (84,840 )     (21,834 )
Free cash flow $ (47,100 )   $ 6,268     $ 14,211     $ (40,832 )   $ 33,934  
                   
GAAP net cash used in investing activities $ (78,553 )   $ (84,660 )   $ (6,140 )   $ (163,213 )   $ (9,960 )
GAAP net cash used in financing activities $ (4,214 )   $ (2,964 )   $ (4,934 )   $ (7,178 )   $ (19,426 )
                                       


FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
  Six Months Ended
  June 28,
2025
  June 29,
2024
Cash flows from operating activities:      
Net income $ 15,487     $ 41,173  
Selected adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation   17,051       14,563  
Amortization   1,339       1,280  
Stock-based compensation expense   19,187       20,614  
Provision for excess and obsolete inventories   6,695       6,277  
Loss from equity investment   3,484        
Gain on sale of business and assets   (103 )     (20,581 )
Non-cash restructuring charges   2,160        
Other activity impacting operating cash flows   (22,868 )     (8,436 )
Net cash provided by operating activities   42,432       54,890  
Cash flows from investing activities:      
Acquisition of property, plant and equipment   (84,840 )     (21,834 )
Proceeds from sale of business and assets   103       21,585  
Purchase of equity investment   (67,156 )      
Purchases of marketable securities, net   (11,320 )     (9,711 )
Net cash used in investing activities   (163,213 )     (9,960 )
Cash flows from financing activities:      
Purchase of common stock through stock repurchase program, including excise tax paid   (24,586 )     (20,271 )
Proceeds from issuances of common stock   21,576       4,948  
Principal repayments on term loans   (549 )     (534 )
Tax withholdings related to net share settlements of equity awards   (3,619 )     (3,569 )
Net cash used in financing activities   (7,178 )     (19,426 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash   1,658       (2,826 )
Net increase (decrease) in cash, cash equivalents and restricted cash   (126,301 )     22,678  
Cash, cash equivalents and restricted cash, beginning of period   197,206       181,273  
Cash, cash equivalents and restricted cash, end of period $ 70,905     $ 203,951  
               


FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
  June 28,
2025
  December 28,
2024
ASSETS      
Current assets:      
Cash and cash equivalents $ 67,380     $ 190,728  
Marketable securities   181,949       169,295  
Accounts receivable, net of allowance for credit losses   115,199       104,294  
Inventories, net   110,789       101,676  
Restricted cash   1,061       3,746  
Prepaid expenses and other current assets   48,884       35,389  
Total current assets   525,262       605,128  
Restricted cash   2,464       2,732  
Operating lease, right-of-use-assets   19,475       22,579  
Property, plant and equipment, net of accumulated depreciation   259,288       210,230  
Equity investment   67,264        
Goodwill   200,858       199,171  
Intangibles, net   9,017       10,355  
Deferred tax assets   94,795       92,012  
Other assets   3,185       4,008  
Total assets $ 1,181,608     $ 1,146,215  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $ 59,932     $ 62,287  
Accrued liabilities   38,545       43,742  
Current portion of term loan, net of unamortized issuance costs   1,121       1,106  
Deferred revenue   16,450       15,847  
Operating lease liabilities   7,919       8,363  
Total current liabilities   123,967       131,345  
Term loan, less current portion, net of unamortized issuance costs   11,644       12,208  
Long-term operating lease liabilities   15,231       17,550  
Deferred grant   18,000       18,000  
Other liabilities   22,743       19,344  
Total liabilities   191,585       198,447  
       
Stockholders’ equity:      
Common stock   77       77  
Additional paid-in capital   850,064       837,586  
Accumulated other comprehensive income (loss)   3,450       (10,840 )
Accumulated income   136,432       120,945  
Total stockholders’ equity   990,023       947,768  
Total liabilities and stockholders’ equity $ 1,181,608     $ 1,146,215  
               

About our Non-GAAP Financial Measures:

We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” included in this press release.

Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com

Source: FormFactor, Inc.
FORM-F


Primary Logo

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

Share us

on your social networks:
AGPs

Get the latest news on this topic.

SIGN UP FOR FREE TODAY

No Thanks

By signing to this email alert, you
agree to our Terms & Conditions