LIVERMORE, Calif. — February 4, 2026 —FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the fourth quarter of fiscal 2025 ended December 27, 2025. Quarterly revenues were $215.2 million, an increase of 6.2% compared to $202.7 million in the third quarter of fiscal 2025, and an increase of 13.6% from $189.5 million in the fourth quarter of fiscal 2024. For fiscal 2025, FormFactor recorded revenues of $785.0 million, up 2.8% from $763.6 million in fiscal 2024. "FormFactor's fourth quar ...

Core Insights - FormFactor, Inc. reported record revenue of $785.0 million for fiscal year 2025, driven by growth in high bandwidth memory applications [1][2] - The company exceeded expectations in Q4 2025 for revenue, gross margin, and earnings per share, with a strong outlook for Q1 2026 [2][9] Financial Performance - Q4 2025 revenue was $215.2 million, a 6.2% increase from Q3 2025 and a 13.6% increase from Q4 2024 [1][3] - Fiscal 2025 net income was $54.4 million, or $0.69 per diluted share, compared to $69.6 million, or $0.89 per diluted share in fiscal 2024 [3][4] - Q4 2025 gross margin was 42.2%, up from 39.8% in Q3 2025 and 38.8% in Q4 2024 [3][4] Non-GAAP Measures - Non-GAAP net income for Q4 2025 was $36.6 million, or $0.46 per diluted share, compared to $25.7 million, or $0.33 per diluted share in Q3 2025 [4][6] - Non-GAAP gross margin for Q4 2025 was 43.9%, compared to 41.0% in Q3 2025 [4][6] Cash Flow and Operating Activities - GAAP net cash provided by operating activities for Q4 2025 was $46.0 million, compared to $27.0 million in Q3 2025 [6] - Free cash flow for Q4 2025 was $34.7 million, an increase from $19.7 million in Q3 2025 [6] Outlook - The company anticipates continued revenue growth and gross margin expansion in Q1 2026, with expected revenue of $225 million +/- $5 million [10][9] - FormFactor aims to strengthen its position in advanced packaging and high-performance compute markets, particularly in DRAM applications [10][9]

Core Viewpoint - FormFactor (FORM) shares experienced a 5.1% increase, closing at $83.46, attributed to notable trading volume and a 36.5% gain over the past four weeks, driven by growing test intensity and complexity in the semiconductor industry [1] Company Performance - FormFactor is projected to report quarterly earnings of $0.35 per share, reflecting a year-over-year increase of 29.6%, with expected revenues of $210.08 million, up 10.9% from the previous year [2] - The consensus EPS estimate for FormFactor has been revised 5% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Context - FormFactor operates within the Zacks Electronics - Semiconductors industry, where another company, Sequans (SQNS), closed 1.5% higher at $5.36, with an 8.4% return over the past month [3] - Sequans has an unchanged consensus EPS estimate of -$0.49 for the upcoming report, representing a 38.8% year-over-year change, and currently holds a Zacks Rank of 3 (Hold) [4]

Core Viewpoint - FormFactor, Inc. is set to report its Q4 and full-year 2025 results on February 4, indicating a significant upcoming event for investors and analysts to monitor [1]. Company Overview - FormFactor, Inc. is involved in the semiconductor industry, focusing on providing advanced test and measurement solutions [1]. Investment Strategy - The company is perceived as a long-term investment opportunity, with a typical investment horizon of 5-10 years, emphasizing a balanced portfolio that includes growth, value, and dividend-paying stocks [1].

Core Viewpoint - FormFactor, Inc. is set to report its financial results for the fourth quarter of the 2025 fiscal year on February 4, 2026, at 1:25 p.m. Pacific Time, with a live webcast available for public access [1]. Company Overview - FormFactor, Inc. (NASDAQ: FORM) is a prominent provider of test and measurement technologies throughout the entire integrated circuit (IC) life cycle, which includes characterization, modeling, reliability, design debugging, qualification, and production testing [3]. - The company’s products and services are essential for semiconductor companies aiming to enhance profitability by optimizing device performance and improving yield knowledge [3]. - FormFactor operates a network of facilities across Asia, Europe, and North America to serve its customers effectively [3].

Summary of FormFactor's Conference Call Company Overview - **Company**: FormFactor - **Industry**: Semiconductor testing equipment - **Recent Revenue**: Trailing 12-month revenues approximately $750 million, with guidance for Q4 indicating an annual run rate closer to $800 million [6][11] Business Segments - **Probe Cards**: The largest segment, serving as connectors between test equipment and customer wafers, crucial for testing chips before assembly. Increased demand driven by advanced packaging technologies like high bandwidth memory (HBM) [6][7] - **Engineering Systems**: Focused on co-packaged optics (CPO), aiding customers in R&D and addressing power consumption issues in data centers [8][9] Market Position and Strategy - **Key Customers**: Strong relationships with major DRAM manufacturers, particularly SK Hynix, which represents 10% of FormFactor's revenue [19] - **Competitive Advantage**: Unique capabilities in high-speed and RF testing, particularly for HBM applications, allowing for high parallelism and productivity in testing [20][21] - **Future Technology**: Transitioning to hybrid bonding in HBM may require new probing technologies, which FormFactor is prepared for due to its experience with copper probing [28] Growth Drivers - **HBM and DRAM**: Anticipated growth in DRAM, particularly DDR5, with expectations to set records in probe card sales. Current market dynamics suggest a shortage in supply due to clean room constraints [55][56] - **GPU and ASIC Testing**: Increased focus on GPU testing due to long test times and high transistor counts, with FormFactor adapting its technology to meet these demands [31][36] Operational Changes - **Factory Realignment**: Recent consolidation of manufacturing sites in California and the establishment of a new site in Farmers Branch, Texas, aimed at increasing efficiency and capacity [12][14][70] - **Gross Margin Improvement**: Targeting a gross margin of 47% by 2026, with recent improvements from 38.5% to a projected 42% in Q4, driven by operational efficiencies and cost structure optimization [11][66][70] Challenges and Considerations - **Market Dynamics**: The company faces challenges from tariff impacts, which are estimated to be a 200 basis points headwind to gross margins [70] - **NAND Business**: Limited focus on NAND due to its commodity nature and lack of differentiation opportunities [54] Future Outlook - **CPO and Optical Probing**: Continued investment in CPO technologies, with expectations for significant growth in AI applications. Integration of electrical and optical probing technologies is anticipated [42][43] - **Capacity Expansion**: The new Texas facility is expected to ramp up production by the end of 2026, aligning with anticipated market demand [70][71]

January 2026 Investor Presentation Forward-Looking Statements; Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the U.S. Securities Exchange Act of 1934 and the Securities Act of 1933. The forward-looking statements include statements concerning, among other things, our future business model and strategies, our financial model and structure, market and market share growth, industry trends, customer demand and growth opportunities. In some instances, you ...

Group 1 - FormFactor (FORM) has shown a year-to-date performance increase of approximately 31.1%, outperforming the average gain of 29% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for FormFactor's full-year earnings has risen by 18.5% over the past three months, indicating improved analyst sentiment and a stronger earnings outlook [4] - FormFactor holds a Zacks Rank of 2 (Buy), reflecting its potential to outperform the market in the near term [3] Group 2 - FormFactor is part of the Electronics - Semiconductors industry, which consists of 47 companies and currently ranks 100 in the Zacks Industry Rank [6] - The average gain for stocks in the Electronics - Semiconductors industry this year is 46.4%, suggesting that FormFactor is slightly underperforming its industry [6] - In contrast, Sandisk Corporation, another stock in the Computer and Technology sector, has achieved a year-to-date return of 64% and has a Zacks Rank of 1 (Strong Buy) [5]

Market Overview - U.S. stock markets ended positively with the Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 gaining 1.18%, 1.08%, and 0.93% respectively despite mid-week volatility [1] - Market direction was influenced by U.S. policy developments regarding Venezuela, enthusiasm for AI-linked technology stocks, and mixed economic data [1] Economic Indicators - The manufacturing Purchasing Managers' Index (PMI) fell to 47.9 in December 2025, the lowest since October 2024, indicating contraction [2] - Conversely, the Services PMI unexpectedly rose to 54.4 in December from 52.6 in the previous month, indicating expansion [2] - Nonfarm Payrolls increased by 50,000 jobs in December, below expectations, while the unemployment rate slightly declined to 4.4% from 4.5% in November [2] - Average Hourly Earnings increased by 3.8% year-over-year, up from 3.6% in November [2] Stock Performance - Indivior PLC shares rose 21.7% since being upgraded to Zacks Rank 1 (Strong Buy) on October 31, outperforming the S&P 500's 2% increase [4] - FormFactor, Inc. shares increased by 15.9% since its upgrade to Zacks Rank 2 (Buy) on October 31, also outperforming the S&P 500 [5] - An equal-weight portfolio of Zacks Rank 1 stocks outperformed the equal-weight S&P 500 index by 7 percentage points, returning +17.81% compared to +10.85% for the index [5] Focus List and Model Portfolios - The Zacks Focus List portfolio returned +22.1% in 2025, outperforming the S&P 500 index's +17.9% gain [12] - The Focus List has consistently outperformed the S&P 500 over various time frames, including a +22.1% return in the last year compared to +17.9% for the index [14] - The Earnings Certain Admiral Portfolio (ECAP) returned -1.67% in 2025, underperforming the S&P 500's +17.9% gain [15] - The Earnings Certain Dividend Portfolio (ECDP) returned -0.6% in 2025, also underperforming compared to the S&P 500 [19] Notable Stock Recommendations - FIGS, Inc. shares surged 56.8% since being upgraded to Outperform on November 7, significantly outperforming the S&P 500's 3.5% increase [8] - Five Below, Inc. shares increased by 21.7% since its upgrade on October 29, again outperforming the S&P 500 [8] - Mettler-Toledo International Inc. and Accenture plc saw returns of 16.6% and 16.5% respectively over the past 12 weeks [14]

Company Overview - FormFactor, a semiconductor testing equipment company, is laying off over 200 workers and closing manufacturing facilities to cut costs due to higher import taxes [1][6] - The company plans to close its Baldwin Park facility, resulting in 113 job losses, and its Carlsbad facility, leading to 107 job losses [2] Industry Context - The semiconductor testing equipment industry has been benefiting from increased AI chip adoption and infrastructure spending [3] - The tech industry in California has faced significant job losses post-pandemic, influenced by economic uncertainty and the rise of AI tools that are reshaping the workforce [4] Restructuring Plans - FormFactor's workforce reductions are part of restructuring plans aimed at aligning cost structure and improving gross margins [6] - The company is consolidating its facilities in Baldwin Park and Carlsbad as part of these efforts [7] Competitive Landscape - Companies like Nvidia and OpenAI have thrived during the AI boom, while legacy tech firms such as Intel are struggling to keep pace [6] - The competitive landscape in the tech industry has led to cuts in middle management and other roles as companies accelerate the release of AI-powered products [5]