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Jun 28, 2025
Formfactor Q2 2025 Earnings Report
FormFactor reported its second quarter 2025 financial results, with revenues exceeding outlook but profitability falling short due to product mix and ramp-up costs.
Key Takeaways
FormFactor, Inc. announced second-quarter fiscal 2025 revenues of $195.8 million, surpassing its outlook range. However, GAAP net income was $9.1 million ($0.12 per diluted share) and non-GAAP net income was $21.2 million ($0.27 per diluted share), with gross margins and overall profitability falling short of expectations due to an unfavorable product mix and unforecasted ramp-up costs for a new HBM DRAM customer.
Second-quarter revenue reached $195.8 million, exceeding the company's outlook range.
GAAP net income was $9.1 million, or $0.12 per diluted share, a decrease from $19.4 million in Q2 2024.
Non-GAAP net income was $21.2 million, or $0.27 per diluted share, also down from $27.3 million in Q2 2024.
Gross margin and overall profitability were lower than anticipated, primarily due to an unfavorable product mix and unforecasted ramp-up costs for a second HBM DRAM customer.
Forward Guidance
For the third quarter ending September 27, 2025, FormFactor expects revenue to be comparable to the second quarter, with slightly higher gross margin and operating profit.
Positive Outlook
- Anticipated revenue of $200 million +/- $5 million for Q3 2025, comparable to Q2.
- Expected non-GAAP gross margin of 40% +/- 1.5% for Q3 2025, an increase from Q2.
- Projected non-GAAP net income per diluted share of $0.25 +/- $0.04 for Q3 2025.
- Outlook assumes consistent foreign currency rates.
- Continued strength in HBM and Foundry & Logic probe cards expected.
Challenges Ahead
- GAAP gross margin expected to be 38.5% +/- 1.5% for Q3 2025, still below previous year's non-GAAP levels.
- GAAP net income per diluted share projected at $0.14 +/- $0.04 for Q3 2025, lower than non-GAAP.
- Profitability in Q2 fell short of outlook, indicating potential for future shortfalls.
Historical Earnings Impact
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