FormFactor reported strong fourth-quarter results, exceeding outlook for revenue, gross margin, and EPS, driven by record revenue in High Bandwidth Memory and continued growth in DRAM applications. The company anticipates further sequential revenue and margin expansion in Q1 2026, supported by capacity increases and strategic acquisitions.
Fourth quarter revenue of $215.2 million increased 13.6% from the prior year quarter.
positiveFiscal 2025 revenue reached a record $785.0 million, up 2.8% from fiscal 2024.
positiveNon-GAAP gross margin improved by 540 basis points in the second half of 2025, with continued expansion expected.
positiveRecord DRAM revenue driven by non-HBM applications like DDR4 and DDR5.
positiveStrengthened leadership in co-packaged optics testing with the strategic acquisition of Keystone Photonics.
positiveFiscal 2025 gross margin was 39.3%, a decrease from 40.3% in fiscal 2024.
attentionFree cash flow for fiscal 2025 was $13.6 million, a significant decrease from $82.8 million in fiscal 2024.
negativeGAAP net income for fiscal 2025 was $54.4 million, down from $69.6 million in fiscal 2024.
negativeGAAP diluted EPS for fiscal 2025 was $0.69, down from $0.89 in fiscal 2024.
negativeCapital expenditures increased significantly to $103.7 million in fiscal 2025 from $38.4 million in fiscal 2024.
attentionAcquisition of business for $20.6 million in fiscal 2025, contributing to a large decrease in investing cash flow.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
DRAM | N/A | — | — | — |
Foundry & Logic | N/A | — | — | — |
Co-packaged Optics | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
FormFactor’s fourth quarter revenue, gross margin, and earnings per share all exceeded both third quarter results and the high end of our outlook range, and we posted record revenue on both a quarterly and annual basis.
Building on that momentum, we expect to again deliver sequentially higher revenue and non-GAAP gross margin in the first quarter as we meet the challenges and opportunities of increased test intensity and higher test complexity at the intersection of advanced packaging and high-performance-compute.
Another record quarter in DRAM revenue driven by the increase in non-HBM DRAM applications like DDR4 and DDR5, as anticipated.
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