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Jun 28, 2025
Onto Innovation Q2 2025 Earnings Report
Onto Innovation reported its second quarter 2025 financial results, exceeding revenue guidance and highlighting strong adoption of its advanced metrology and inspection systems.
Key Takeaways
Onto Innovation delivered a strong second quarter in 2025, with revenue of $253.6 million, surpassing the midpoint of its guidance. The company saw expanded adoption of its Dragonfly® 3Di metrology and sub-surface defect inspection systems, particularly in AI packaging applications. While the third quarter is expected to be a low point for revenue, the company anticipates an acceleration in AI packaging spend in the fourth quarter, returning revenue to levels consistent with the first and second quarters.
Revenue for Q2 2025 reached $253.6 million, exceeding the midpoint of the company's guidance.
The company expanded its Dragonfly® 3Di metrology footprint, shipping tools to over 10 customers for applications like co-packaged optics and advanced 2.5D logic packaging.
Strong adoption of sub-surface defect inspection was noted, with more than 20 Dragonfly systems shipped for advanced AI packaging applications.
Onto Innovation announced the acquisition of synergistic product lines from Semilab International Zrt. for approximately $545 million, expected to add over $130 million in annual revenue and be immediately accretive to EPS.
Forward Guidance
For the third fiscal quarter ending September 27, 2025, Onto Innovation expects revenue between $210 million and $225 million, gross margin of 53% to 55%, non-GAAP operating margin of 18% to 21%, GAAP diluted EPS of $0.52 to $0.72, and non-GAAP diluted EPS of $0.75 to $0.95.
Positive Outlook
- Expected acceleration in AI packaging spend in the fourth quarter.
- Anticipated return of total fourth quarter revenue to levels consistent with Q1 and Q2 2025.
- Continued momentum expected into 2026.
- Acquisition of Semilab product lines expected to add over $130 million in annual revenue.
- Semilab acquisition expected to be immediately accretive to earnings per share.
Challenges Ahead
- Third quarter revenue is likely to represent a low watermark for the year.
- GAAP diluted EPS guidance for Q3 2025 ($0.52-$0.72) is lower than Q2 2025 ($0.69).
- Non-GAAP diluted EPS guidance for Q3 2025 ($0.75-$0.95) is lower than Q2 2025 ($1.25).
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