Photronics Q2 2025 Earnings Report
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
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