Earnings release
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News Release Investor Contact: Stan Finkelstein Investor Relations (925) 290-4273 ir@formfactor.com FORMFACTOR, INC. REPORTS 2026 SECOND QUARTER RESULTS Delivers Record Revenue, Gross Profit and Earnings Per Share; Sees Strong Demand in DRAM, Foundry & Logic and Systems LIVERMORE, Calif. — July 29, 2026 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2026 ended June 27, 2026. Quarterly revenues were $258.2 million, an increase of 14.2% compared to $226.1 million in the first quarter of fiscal 2026, and an increase of 31.9% from $195.8 million in the second quarter of fiscal 2025. • Produced revenue, gross margins and earnings per share exceeding the high end of the GAAP and Non-GAAP outlook range • Experienced broad-based demand, with strength in key growth initiatives including High Bandwidth Memory and Co- Packaged Optics driving sequential revenue increases in both the Probe Cards and Systems segments, respectively • Announced expanded multi-year partnership with Keystone Microtech, reinforcing FormFactor's presence in the strategically important Taiwan semiconductor ecosystem “Over the past four quarters, FormFactor has grown revenue more than 30%, expanded Non-GAAP gross margin 1,500 basis points, and tripled earnings per share,” said Mike Slessor, CEO of FormFactor, Inc. “These improvements reflect years of investment to create and expand our unique position at the intersection of high-performance compute and advanced packaging, coupled with stronger execution to enhance profitability and drive operating leverage.” Second Quarter Highlights On a GAAP basis, net income for the second quarter of fiscal 2026 was $56.2 million, or $0.71 per fully-diluted share, compared to net income for the first quarter of fiscal 2026 of $20.4 million, or $0.26 per fully-diluted share, and net income for the second quarter of fiscal 2025 of $9.1 million, or $0.12 per fully-diluted share. Gross margin for the second quarter of 2026 was 50.7%, compared with 38.4% in the first quarter of 2026, and 37.3% in the second quarter of 2025. On a non-GAAP basis, net income for the second quarter of fiscal 2026 was $65.0 million, or $0.82 per fully-diluted share, compared to net income for the first quarter of fiscal 2026 of $44.5 million, or $0.56 per fully-diluted share, and net income for the second quarter of fiscal 2025 of $21.2 million, or $0.27 per fully-diluted share. On a non-GAAP basis, gross margin for the second quarter of 2026 was 53.3%, compared with 49.0% in the first quarter of 2026, and 38.5% in the second quarter of 2025. GAAP net cash provided by operating activities for the second quarter of fiscal 2026 was $61.8 million, compared to $45.0 million for the first quarter of fiscal 2026, and $18.9 million for the second quarter of fiscal 2025. Free cash flow for the second quarter of fiscal 2026 was $52.6 million, compared to free cash flow for the first quarter of fiscal 2026 of $30.7 million, and free cash flow for the second quarter of 2025 of negative $47.1 million. A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below. Outlook Dr. Slessor added, “As we look ahead to the third quarter, we continue to see strong demand across our end markets, with particular strength in Foundry & Logic and continued momentum in our Systems business, positioning us for another quarter of record revenue and profitability.”
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For the third quarter ending September 26, 2026, FormFactor is providing the following outlook*: GAAP Reconciling Items** Non-GAAP Revenue $270 million +/- $10 million — $270 million +/- $10 million Gross margin 52.0% +/- 1.5% $5.3 million 54.0% +/- 1.5% Net income per diluted share $0.75 +/- $0.09 $0.11 $0.86 +/- $0.09 *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 27, 2026, and for outlook provided before, as well as for the comparable period of fiscal 2025, 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 optimize device performance and advance 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, market demand, 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, the Company's performance, the Company's business strategies, 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 and investments; demand volatility and cyclicality of the industry; advancement of artificial intelligence; 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
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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.
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FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 27, 2026 March 28, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Revenues $ 258,242 $ 226,144 $ 195,798 $ 484,386 $ 367,154 Cost of revenues 127,320 139,350 122,860 266,670 229,693 Gross profit 130,922 86,794 72,938 217,716 137,461 Operating expenses: Research and development 31,099 30,780 28,793 61,879 56,593 Selling, general and administrative 37,165 32,292 31,482 69,457 64,936 Factory start-up costs 4,859 7,074 357 11,933 357 Total operating expenses 73,123 70,146 60,632 143,269 121,886 Operating income 57,799 16,648 12,306 74,447 15,575 Interest income, net 2,683 2,174 2,642 4,857 5,959 Other income (expense), net 212 441 (6) 653 884 Income before income taxes and equity investment 60,694 19,263 14,942 79,957 22,418 Provision for income taxes 6,729 396 2,372 7,125 3,447 Income (loss) from equity investment 2,242 1,517 (3,484) 3,759 (3,484) Net income $ 56,207 $ 20,384 $ 9,086 $ 76,591 $ 15,487 Net income per share: Basic $ 0.72 $ 0.26 $ 0.12 $ 0.98 $ 0.20 Diluted $ 0.71 $ 0.26 $ 0.12 $ 0.96 $ 0.20 Weighted-average number of shares used in per share calculations: Basic 78,036 77,825 77,107 77,930 77,226 Diluted 79,607 79,415 77,527 79,546 77,721
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FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 27, 2026 March 28, 2026 June 28, 2025 June 27, 2026 June 28, 2025 GAAP Gross Profit $ 130,922 $ 86,794 $ 72,938 $ 217,716 $ 137,461 Adjustments: Restructuring charges 4,292 21,498 183 25,790 243 Stock-based compensation 1,660 1,782 1,690 3,442 3,695 Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 745 659 528 1,404 1,070 Non-GAAP Gross Profit $ 137,619 $ 110,733 $ 75,339 $ 248,352 $ 142,469 GAAP Gross Margin 50.7 % 38.4 % 37.3 % 44.9 % 37.4 % Adjustments: Restructuring charges 1.7 % 9.5 % 0.1 % 5.3 % 0.1 % Stock-based compensation 0.6 % 0.8 % 0.8 % 0.7 % 1.0 % Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 0.3 % 0.3 % 0.3 % 0.3 % 0.3 % Non-GAAP Gross Margin 53.3 % 49.0 % 38.5 % 51.2 % 38.8 % GAAP operating expenses $ 73,123 $ 70,146 $ 60,632 $ 143,269 $ 121,886 Adjustments: Restructuring charges (201) (1,823) (195) (2,024) (3,018) Stock-based compensation (6,930) (6,221) (7,701) (13,151) (15,492) Amortization of intangibles (196) — (191) (196) (382) Costs related to sale and acquisition of businesses (142) (96) (55) (238) (272) Non-GAAP operating expenses $ 65,654 $ 62,006 $ 52,490 $ 127,660 $ 102,722 GAAP operating income $ 57,799 $ 16,648 $ 12,306 $ 74,447 $ 15,575 Adjustments: Restructuring charges 4,493 23,321 378 27,814 3,261 Stock-based compensation 8,590 8,003 9,391 16,593 19,187 Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 941 659 719 1,600 1,452 Costs related to sale and acquisition of businesses 142 96 55 238 272 Non-GAAP operating income $ 71,965 $ 48,727 $ 22,849 $ 120,692 $ 39,747
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FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 27, 2026 March 28, 2026 June 28, 2025 June 27, 2026 June 28, 2025 GAAP net income $ 56,207 $ 20,384 $ 9,086 $ 76,591 $ 15,487 Adjustments: Restructuring charges 4,493 23,321 378 27,814 3,261 Stock-based compensation 8,590 8,003 9,391 16,593 19,187 Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 941 659 719 1,600 1,452 Costs related to sale and acquisition of businesses, net of gain on sale of assets 142 20 3,460 162 3,677 Income tax effect of non-GAAP adjustments (5,367) (7,874) (1,812) (13,241) (3,838) Non-GAAP net income $ 65,006 $ 44,513 $ 21,222 $ 109,519 $ 39,226 GAAP net income per share: Basic $ 0.72 $ 0.26 $ 0.12 $ 0.98 $ 0.20 Diluted $ 0.71 $ 0.26 $ 0.12 $ 0.96 $ 0.20 Non-GAAP net income per share: Basic $ 0.83 $ 0.57 $ 0.28 $ 1.41 $ 0.51 Diluted $ 0.82 $ 0.56 $ 0.27 $ 1.38 $ 0.50 GAAP net cash provided by operating activities $ 61,803 $ 44,961 $ 18,893 $ 106,764 $ 42,432 Adjustments: Sale of business and acquisition related payments in working capital 265 876 168 1,141 1,389 Cash paid for interest 83 85 95 168 187 Capital expenditures (9,599) (15,192) (66,256) (24,791) (84,840) Free cash flow $ 52,552 $ 30,730 $ (47,100) $ 83,282 $ (40,832) GAAP net cash used in investing activities $ (65,304) $ (23,407) $ (78,553) $ (88,711) $ (163,213) GAAP net cash used in financing activities $ (9,526) $ (1,196) $ (4,214) $ (10,722) $ (7,178)
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FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Six Months Ended June 27, 2026 June 28, 2025 Cash flows from operating activities: Net income $ 76,591 $ 15,487 Selected adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 18,143 18,390 Stock-based compensation expense 16,721 19,187 Provision for excess and obsolete inventories 7,938 6,695 Loss (income) from equity investment (3,759) 3,484 Non-cash restructuring charges 15,736 2,160 Other activity impacting operating cash flows (24,606) (22,971) Net cash provided by operating activities 106,764 42,432 Cash flows from investing activities: Acquisition of property, plant and equipment (24,791) (84,840) Proceeds from sale of assets 576 103 Purchase of equity investment — (67,156) Purchases of marketable securities, net (64,496) (11,320) Net cash used in investing activities (88,711) (163,213) Cash flows from financing activities: Purchase of common stock through stock repurchase program — (24,586) Proceeds from issuances of common stock 5,836 21,576 Principal repayments on term loans (564) (549) Tax withholdings related to net share settlements of equity awards (15,994) (3,619) Net cash used in financing activities (10,722) (7,178) Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,231) 1,658 Net increase (decrease) in cash, cash equivalents and restricted cash 6,100 (126,301) Cash, cash equivalents and restricted cash, beginning of period 107,047 197,206 Cash, cash equivalents and restricted cash, end of period $ 113,147 $ 70,905
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FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 27, 2026 March 28, 2026 December 27, 2025 ASSETS Current assets: Cash and cash equivalents $ 109,761 $ 123,539 $ 103,330 Marketable securities 235,879 179,742 171,842 Accounts receivable, net of allowance for credit losses 155,777 132,155 125,416 Inventories, net 121,409 112,877 110,884 Restricted cash 765 897 1,063 Prepaid expenses and other current assets 45,918 51,596 44,519 Total current assets 669,509 600,806 557,054 Restricted cash 2,621 2,012 2,654 Operating lease, right-of-use-assets 15,089 16,404 17,202 Property, plant and equipment, net of accumulated depreciation 265,402 248,444 259,068 Equity investment 65,891 64,247 64,096 Goodwill 212,557 215,412 216,029 Intangible assets, net 17,961 15,482 16,302 Deferred tax assets 90,916 90,632 89,524 Other assets 2,534 2,411 2,433 Total assets $ 1,342,480 $ 1,255,850 $ 1,224,362 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 77,427 $ 54,226 $ 47,436 Accrued liabilities 53,292 42,123 47,535 Current portion of long-term debt, net of unamortized issuance costs 1,153 1,145 1,137 Deferred revenue 23,976 26,291 20,091 Operating lease liabilities 8,317 8,326 7,662 Total current liabilities 164,165 132,111 123,861 Long-term debt, less current portion, net of unamortized issuance costs 10,491 10,782 11,071 Deferred tax liabilities 2,382 1,568 1,600 Long-term operating lease liabilities 9,951 11,638 12,488 Deferred grant 18,000 18,000 18,000 Other liabilities 26,131 22,952 21,939 Total liabilities 231,120 197,051 188,959 Stockholders’ equity: Common stock 78 78 78 Additional paid-in capital 870,028 870,689 863,547 Accumulated other comprehensive loss (10,643) (7,658) (3,528) Accumulated income 251,897 195,690 175,306 Total stockholders’ equity 1,111,360 1,058,799 1,035,403 Total liabilities and stockholders’ equity $ 1,342,480 $ 1,255,850 $ 1,224,362
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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 understand 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. Source: FormFactor, Inc. FORM-F