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Sep 28, 2025
SkyWater Q3 2025 Earnings Report
SkyWater Technology reported record financial results for the third quarter of 2025, exceeding expectations across all metrics, driven by strong performance in quantum computing and the newly acquired Texas operations.
Key Takeaways
SkyWater Technology delivered a record-breaking third quarter in 2025, with total consolidated revenue reaching $150.7 million, a 60.7% increase year-over-year. The company's net income to shareholders was $144.0 million, significantly up from $1.5 million in Q3 2024, largely due to a bargain purchase gain from the Fab 25 acquisition. Non-GAAP diluted EPS was $0.24, a substantial improvement from $0.08 in the prior year.
Total consolidated revenue surged by 60.7% year-over-year to $150.7 million, significantly exceeding expectations.
Net income to shareholders reached $144.0 million, primarily boosted by a $110.8 million bargain purchase gain from the Fab 25 acquisition.
Non-GAAP diluted EPS was $0.24, demonstrating strong profitability growth compared to $0.08 in Q3 2024.
Adjusted EBITDA increased by 135% to $25.8 million, with an adjusted EBITDA margin of 17.1%, up 540 basis points year-over-year.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2025, SkyWater Technology anticipates total consolidated revenue to be between $155.0 million and $165.0 million. GAAP gross margin is expected to range from 16.5% to 19.5%, while non-GAAP gross margin is projected between 17.0% and 20.0%. The company forecasts a GAAP diluted loss per share of $(0.21) to $(0.09) and a non-GAAP diluted loss per share of $(0.08) to $0.04.
Positive Outlook
- Total consolidated revenue is projected to increase to $155.0 million - $165.0 million, indicating continued growth.
- Legacy SkyWater ATS development revenue is expected to remain strong at $48.0 million - $52.0 million.
- SkyWater Texas wafer services revenue is anticipated to be robust at $84.0 million - $88.0 million.
- Non-GAAP diluted loss per share has a potential to break even or turn positive at the high end of the guidance ($0.04).
- Tools revenue for Legacy SkyWater is expected to significantly increase to $17.0 million - $18.0 million.
Challenges Ahead
- GAAP diluted loss per share is projected to be between $(0.21) and $(0.09), indicating continued GAAP losses.
- Non-GAAP diluted loss per share is also expected to be a loss at the low end of the guidance, at $(0.08).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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