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May 04
Photronics Q2 2025 Earnings Report
Photronics reported a decline in revenue and net income for Q2 FY2025 while initiating a CEO transition.
Key Takeaways
Photronics saw a modest revenue decline in Q2 2025, with net income significantly dropping compared to the prior year. The company repurchased $72 million of stock and initiated a CEO transition as Dr. Frank Lee stepped down. Operating margin remained stable while IC segment revenue showed slight sequential growth.
Revenue was $211.0M, down 1% sequentially and 3% YoY.
GAAP net income dropped sharply to $8.9M compared to $36.3M in Q2 2024.
Photronics repurchased $72M in stock, emphasizing long-term confidence.
Dr. Frank Lee stepped down as CEO, succeeded by George Macricostas.
Photronics
Photronics
Photronics Revenue by Segment
Revenue by Segment
IC Revenue
CapyFin.comFPD Revenue
CapyFin.com Forward Guidance
Photronics guided Q3 2025 revenue and non-GAAP EPS slightly below Q2 levels, indicating cautious optimism amid ongoing investments.
Positive Outlook
- Revenue guidance of $200M to $208M shows resilience despite recent decline.
- Non-GAAP EPS forecasted between $0.35 and $0.41.
- Continued strength in Asia operations highlighted.
- Ongoing investments in capital expenditures signal growth commitment.
- Strong cash balance of $558.4M positions company for flexibility.
Challenges Ahead
- Sequential decline in both revenue and earnings.
- Significant drop in GAAP net income.
- Weaker performance in the FPD segment.
- Cash burn from repurchases and capex exceeds operational cash flow.
- Leadership transition introduces near-term uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income