Ichor Holdings reported a mixed fourth quarter with revenue slightly above guidance, but a GAAP net loss and declining non-GAAP EPS. The company anticipates a strengthening demand environment in fiscal 2026, with expectations for improved gross margins and earnings leverage.
Fourth quarter revenue of $223.6 million was above the mid-point of guidance.
positiveFiscal year 2025 revenue increased 11.6% year-over-year to $947.7 million.
positiveNon-GAAP net income for fiscal year 2025 was $7.9 million, an increase from $5.9 million in fiscal year 2024.
positivePositive outlook for Q1 2026 with expected revenue between $240 million and $260 million, indicating upward momentum.
positiveGAAP net loss of $(15.961) million in Q4 FY2025, compared to a net loss of $(3.943) million in Q4 FY2024.
negativeGAAP diluted EPS was $(0.46) in Q4 FY2025, a significant decline from $(0.12) in Q4 FY2024.
negativeNon-GAAP diluted EPS decreased to $0.01 in Q4 FY2025 from $0.08 in Q4 FY2024.
negativeGAAP gross margin declined to 9.4% in Q4 FY2025 from 11.6% in Q4 FY2024.
attentionSignificant inventory levels of $231.8 million at the end of Q4 FY2025, although down from $250.1 million in Q4 FY2024.
attentionCapital expenditures of $36.2 million in FY2025 significantly exceeded operating cash flow of $29.9 million, resulting in negative free cash flow of $(6.3) million for the year.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
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.
With Q4 results favorably aligned with our earlier expectations, our focus now shifts to the strengthening demand environment ahead for fiscal 2026.
Early indications of customer demand entering the year provide us with a first-quarter revenue outlook reflecting solidly upward momentum from Q4’s trough levels.
While our gross margin improvement strategies are just beginning to take shape, we believe we will demonstrate meaningfully improved gross margin performance in fiscal 2026, compared to fiscal 2025.
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