Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $202.7 million, with non-GAAP gross margins at 41%, up 250 basis points from 38.5% in Q2 2025 [23][24] - GAAP gross margins for Q3 were 39.8%, compared to 37.3% in Q2 [25] - Non-GAAP EPS for Q3 was $0.33, exceeding the high end of the outlook range of $0.21 to $0.29 [24][30] - Free cash flow in Q3 was $19.7 million, a significant improvement from negative $47.1 million in Q2 [26] Business Line Data and Key Metrics Changes - In the DRAM Probecards segment, there was double-digit sequential growth in Q3, primarily driven by HBM [10] - The systems segment also saw a sequential revenue increase in Q3, with expectations for further growth in Q4 [15] Market Data and Key Metrics Changes - The company expects continued growth in HBM revenue, with Q4 HBM revenue anticipated to be similar to Q3 levels [10] - Demand in the foundry and logic probecard market was weaker in Q3, with expectations of similar demand levels in Q4 [12] Company Strategy and Development Direction - The company is focused on improving profitability to achieve a target model of 47% non-GAAP gross margins [6][19] - Initiatives include rapid gross margin improvement actions and long-term structural initiatives, such as developing differentiated new products and ramping up the new Farmers Branch facility [8][17] - The company aims to expand its market share in advanced packaging and high-performance compute sectors [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving sequentially higher revenue and gross margins in Q4, building on Q3 performance [6] - The company is addressing challenges such as tariffs and supply chain disruptions while focusing on operational efficiency [19][28] Other Important Information - The company plans to invest between $140 million and $170 million in the Farmers Branch facility over 2026, which is expected to improve gross margins beyond the current target model [27][63] - The company has initiated a share repurchase program to offset dilution from stock-based compensation [27] Q&A Session Summary Question: Insights on HBM growth and Probecard intensity - Management noted that the transition to HBM4 is expected to increase test intensity and complexity, driving growth in Probecard demand [34] Question: Contribution of tactical versus structural improvements to gross margin - Management indicated that both tactical and structural improvements are contributing to the gross margin roadmap, with ongoing benefits expected from restructuring actions [36][38] Question: Impact of CPU and GPU customer ramps on foundry and logic - Management acknowledged the potential for significant revenue impact from CPU and GPU customer ramps, although quantification is challenging at this stage [42][43] Question: Revenue growth drivers in Q4 - Management clarified that revenue growth in Q4 is expected to be driven by a mix of legacy DRAM and improvements in operational efficiency [46][47] Question: Timing of capacity increase from Farmers Branch facility - Management expects initial capacity from the Farmers Branch facility to come online late in 2026, with the majority in 2027 [48] Question: HBM revenue specifics for Q3 - Management confirmed that HBM revenue for Q3 was approximately $40 million, with expectations for growth in Q4 driven by HBM4 [53] Question: Status of CPU customer revenue - Management acknowledged that a major CPU customer did not contribute significantly in Q3 but emphasized the importance of the long-term partnership [56] Question: ASIC projects contribution and updates - Management highlighted ongoing engagements with major hyperscalers in the custom ASIC space, with some revenue contribution in Q3 [60]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $202.7 million, with non-GAAP gross margins at 41%, up 250 basis points from 38.5% in Q2 2025 [23][24] - GAAP gross margins for Q3 were 39.8%, compared to 37.3% in Q2 [25] - Non-GAAP EPS for Q3 was $0.33, exceeding the high end of the outlook range of $0.21-$0.29 [23][24] - Free cash flow in Q3 was $19.7 million, a significant improvement from negative $47.1 million in Q2 [26] Business Line Data and Key Metrics Changes - In the DRAM probecards segment, there was double-digit sequential growth in Q3, primarily driven by HBM [10] - The systems segment also saw a sequential revenue increase in Q3, with expectations for further growth in Q4 [15] Market Data and Key Metrics Changes - The company expects continued growth in HBM revenue, with Q3 HBM revenue around $40 million, primarily from HBM applications [54] - The foundry and logic probecard market experienced weaker demand in Q3, with expectations for similar levels in Q4 [12] Company Strategy and Development Direction - The company is focused on improving profitability to reach a target model of 47% non-GAAP gross margins, with short-term and long-term initiatives in place [6][19] - The strategy includes optimizing operational effectiveness, reducing manufacturing costs, and expanding capacity at a lower cost through the new Farmers Branch facility [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving sequentially higher revenue and gross margins in Q4, driven by improved product mix and cost reduction initiatives [6][28] - The company is addressing challenges such as tariffs and supply chain disruptions while focusing on long-term growth opportunities in advanced packaging and high-performance computing [9][28] Other Important Information - The company plans to invest between $140 million and $170 million in the Farmers Branch facility over 2026, which is expected to enhance gross margins beyond the current target model [27][64] - The company is committed to share repurchase programs to offset dilution from stock-based compensation, with $70.9 million remaining for future purchases [27] Q&A Session Summary Question: Insights on HBM growth and test intensity - Management noted that the transition to HBM4 is expected to increase test intensity and complexity, driving demand for probecards [34] Question: Contribution of tactical versus structural improvements to gross margin - Management indicated that both tactical and structural improvements are contributing to the gross margin roadmap, with ongoing benefits expected [37] Question: Impact of CPU and GPU customer ramps on foundry and logic - Management highlighted that while specific quantification is challenging, significant impacts are anticipated as qualifications and commercial negotiations progress [43] Question: Revenue contribution from ASIC projects - Management confirmed ongoing engagement with major hyperscalers in the custom ASIC space, with contributions expected to grow as specifications align with GPU requirements [61] Question: Timing and focus of capacity expansion at Farmers Branch - Management stated that initial capacity from the Farmers Branch facility is expected to come online late in 2026, with a focus on flexibility to support various product lines [49][50]

Financial Data and Key Metrics Changes - FormFactor's Q3 2025 revenue was $202.7 million, with non-GAAP gross margins at 41%, up 250 basis points from 38.5% in Q2 2025 [20][22] - GAAP gross margins for Q3 were 39.8%, compared to 37.3% in Q2 [23] - Non-GAAP EPS for Q3 was $0.33, exceeding the high end of the outlook range of $0.21 to $0.29 [20][24] - Free cash flow in Q3 was $19.7 million, a significant improvement from negative $47.1 million in Q2 [24][25] Business Line Data and Key Metrics Changes - The Probecard segment saw a 254 basis point increase in gross margins, while the systems segment increased by 260 basis points to 40.8% and 42%, respectively [22] - DRAM Probecards achieved double-digit sequential growth in Q3, primarily driven by HBM, with HBM revenue around $40 million [9][49] - The systems segment is expected to continue its growth trajectory into Q4, supported by seasonal demand and advancements in co-packaged optics [13][14] Market Data and Key Metrics Changes - The foundry and logic probecard market experienced weaker demand in Q3, with expectations of similar levels in Q4 [11][12] - Despite a broader PC recovery, significant growth in probecards for CPU applications has not been observed, as demand is being met by existing legacy designs [11][12] - The company is focused on diversifying its customer base in the foundry and logic markets, with ongoing qualifications for major GPU applications [13][40] Company Strategy and Development Direction - The company aims to achieve a target model gross margin of 47%, with a focus on both short-term and long-term initiatives to improve profitability [6][15] - Key strategies include optimizing operational effectiveness, reducing manufacturing costs, and expanding capacity through the new Farmers Branch facility [17][25] - The company is committed to developing differentiated products to increase market share and pricing power, particularly in advanced packaging and high-performance compute [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving sequentially higher revenue and gross margins in Q4, driven by improved demand and cost reduction initiatives [5][26] - The transition to HBM4 is expected to increase test intensity and complexity, providing a competitive advantage for FormFactor [10][31] - Management acknowledged ongoing challenges from tariffs but is actively taking steps to mitigate their impact on gross margins [26][27] Other Important Information - The company plans to invest between $140 million and $170 million in the Farmers Branch facility over 2026, which is expected to enhance gross margins in the long term [25][66] - The share repurchase program aims to offset dilution from stock-based compensation, with $70.9 million remaining for future purchases [25] Q&A Session Summary Question: Insights on HBM growth and Probecard intensity - Management noted that HBM4 is expected to drive increased test intensity and complexity, leading to growth in Probecard demand as the technology evolves [31][32] Question: Contribution of tactical versus structural improvements to gross margin - Management indicated that both tactical and structural improvements are essential, with ongoing actions expected to yield benefits in the coming quarters [34] Question: Factors contributing to gross margin targets - Management clarified that improvements in manufacturing cycle time and yield are independent of product mix, contributing to the path towards target gross margins [38] Question: Impact of CPU and GPU customer ramps on foundry and logic - Management highlighted the significant addressable markets associated with CPU and GPU opportunities, though quantifying the impact remains challenging [40] Question: Revenue growth drivers in Q4 - Management confirmed that revenue growth in Q4 is expected to be driven by non-HBM DRAM applications, with ongoing improvements in gross margins [42][43] Question: Timing of capacity increase from Farmers Branch - Initial capacity from the Farmers Branch facility is expected to come online late in 2026, with the majority in 2027 [44] Question: HBM revenue specifics for Q3 - Management disclosed that HBM revenue for Q3 was approximately $40 million, with expectations for continued growth into Q4 [49] Question: Revenue from top CPU customer - Management acknowledged that a major CPU customer did not contribute significantly in Q3 but emphasized the importance of the long-term partnership [51][52] Question: ASIC projects engagement updates - Management noted ongoing engagements with major hyperscalers in the custom ASIC space, with expectations for future growth as specifications align with GPU requirements [53][54] Question: Gross margin improvement contributions - Management indicated that mix, volume, and cost improvement actions all contributed to the improved gross margins, with cost improvements being a significant factor [58]

Investor Presentation October 2025 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 ...

Financial Performance - Q3 2025 revenue was $202.7 million, a 3.5% increase from Q2 2025 and a 2.5% decrease from Q3 2024[1] - GAAP net income for Q3 2025 was $15.7 million, or $0.20 per diluted share, compared to $9.1 million, or $0.12 per diluted share in Q2 2025[3] - Non-GAAP net income for Q3 2025 was $25.7 million, or $0.33 per diluted share, compared to $21.2 million, or $0.27 per diluted share in Q2 2025[4] - Gross margin for Q3 2025 was 39.8%, up from 37.3% in Q2 2025, but down from 40.7% in Q3 2024[3] - GAAP gross profit for the three months ended September 27, 2025, was $80,626,000, an increase from $72,938,000 in the previous quarter[18] - Non-GAAP gross profit for the nine months ended September 27, 2025, was $225,642,000, compared to $242,405,000 for the same period in 2024, reflecting a decrease of 6.9%[18] - GAAP net income for the three months ended September 27, 2025, was $15,656,000, up from $9,086,000 in the previous quarter, representing a 72.5% increase[20] - Non-GAAP net income for the nine months ended September 27, 2025, was $64,910,000, compared to $68,893,000 for the same period in 2024, a decrease of 5.4%[20] - GAAP operating income for the three months ended September 27, 2025, was $18,005,000, compared to $12,306,000 in the previous quarter, an increase of 46.5%[18] - Non-GAAP operating income for the three months ended September 27, 2025, was $28,591,000, compared to $22,849,000 in the previous quarter, reflecting a 25.4% increase[18] Cash Flow and Liquidity - Free cash flow for Q3 2025 was $19.7 million, compared to negative $47.1 million in Q2 2025[5] - Free cash flow for the three months ended September 27, 2025, was $19,658,000, a significant recovery from a negative $47,100,000 in the previous quarter[20] - The company emphasizes the importance of free cash flow as a measure of liquidity, which is preferred by many investors[25] - GAAP net cash provided by operating activities for the nine months ended September 27, 2025, was $69,423,000, down from $81,621,000 in the same period in 2024[22] - Total cash, cash equivalents, and restricted cash at the end of the period was $101,111,000, down from $197,206,000 at the beginning of the period[22] - Cash and cash equivalents increased to $97,678 million in September 2025, compared to $67,380 million in June 2025, a significant rise of 45%[24] Assets and Liabilities - Total assets increased to $1,202,992 million in September 2025, up from $1,181,608 million in June 2025, representing a growth of 1.6%[24] - Total current assets rose to $559,260 million in September 2025, compared to $525,262 million in June 2025, marking an increase of 6.5%[24] - Total liabilities decreased slightly to $193,377 million in September 2025 from $191,585 million in June 2025, a reduction of 0.9%[24] - Stockholders' equity reached $1,009,615 million in September 2025, up from $990,023 million in June 2025, reflecting a growth of 2.6%[24] - Accounts receivable net of allowance for credit losses grew to $133,316 million in September 2025, up from $115,199 million in June 2025, an increase of 15.7%[24] - Deferred revenue increased to $21,623 million in September 2025, compared to $16,450 million in June 2025, representing a growth of 31.5%[24] Future Outlook - For Q4 2025, the company expects revenue of $210 million +/- $5 million and a gross margin of 42.0% +/- 1.5%[8] - The Systems Segment is expected to see additional revenue growth in Q4 2025 with increased momentum towards co-packaged optics production[7] Operational Initiatives - The company is implementing rapid gross margin improvement actions, resulting in a 250 basis point increase from Q2 2025[2] - The company continues to focus on long-term structural initiatives to further enhance gross margins[2] - DRAM probe cards achieved double-digit sequential growth, driven by HBM growth[7] - The company continues to incur expenses similar to non-GAAP adjustments, indicating ongoing operational costs that may impact financial results[25] - Non-GAAP net income and related measures are used by management for planning and forecasting future periods, indicating a focus on operational performance[25]

Core Insights - FormFactor, Inc. reported Q3 fiscal 2025 revenues of $202.7 million, a 3.5% increase from Q2 2025 but a 2.5% decrease from Q3 2024 [1] - The company expects to deliver higher results in Q4 2025, building on the profitability improvement initiatives [7] Financial Performance - GAAP net income for Q3 2025 was $15.7 million, or $0.20 per diluted share, compared to $9.1 million, or $0.12 per diluted share in Q2 2025, and $18.7 million, or $0.24 per diluted share in Q3 2024 [3] - Non-GAAP net income for Q3 2025 was $25.7 million, or $0.33 per diluted share, compared to $21.2 million, or $0.27 per diluted share in Q2 2025, and $27.2 million, or $0.35 per diluted share in Q3 2024 [4] - Gross margin for Q3 2025 was 39.8%, up from 37.3% in Q2 2025 but down from 40.7% in Q3 2024 [3] Cash Flow and Operating Activities - GAAP net cash provided by operating activities for Q3 2025 was $27.0 million, compared to $18.9 million in Q2 2025 and $26.7 million in Q3 2024 [5] - Free cash flow for Q3 2025 was $19.7 million, a significant recovery from negative $47.1 million in Q2 2025 [5] Outlook - For Q4 2025, FormFactor anticipates revenues of approximately $210 million, with a gross margin of around 40.0% [7] - The company expects continued improvement in profitability and gross margins due to ongoing initiatives [2][8]

Core Viewpoint - FormFactor (NASDAQ: FORM) has seen significant stock appreciation, with its market cap increasing by approximately one-third over the past six weeks, indicating strong performance in the semiconductor testing and measuring solutions sector [1]. Company Summary - FormFactor is a supplier of test and measuring solutions specifically for the semiconductor industry, highlighting its niche focus within a growing market [1].

Core Viewpoint - FormFactor, Inc. is set to report its financial results for the fiscal third quarter of 2025 on October 29, 2025, 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, including characterization, modeling, reliability, design debugging, qualification, and production testing [3]. - The company supports semiconductor firms in enhancing 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 [3].

Core Viewpoint - Benchmark Electronics, Inc. has appointed Dr. Michael Slessor to its Board of Directors, enhancing its leadership with his extensive experience in the semiconductor industry [1] Company Summary - Dr. Slessor has over 25 years of experience in the semiconductor sector, indicating a strong background that could benefit Benchmark Electronics [1] - He is currently the CEO of FormFactor, Inc., a leader in advanced wafer test solutions, which highlights his expertise in a critical area of technology [1] - Dr. Slessor joined FormFactor through its acquisition of MicroProbe in 2012, showcasing his long-term commitment and experience in the industry [1]

Group 1 - FormFactor, Inc. will participate in the 17th Annual CEO Investor Summit 2025 on October 7th in Phoenix, Arizona [1] - The CEO Investor Summit is held annually during the SEMICON West industry trade show, and this year it will take place in downtown Phoenix [2] - The event will feature a "round-robin" format allowing investors and analysts to meet with management teams from 12 participating companies [2][3] Group 2 - The 12 management teams participating in the summit include companies such as ACM Research, Aehr Test Systems, and FormFactor [3] - Attendance is by invitation only and limited to accredited investors and publishing research analysts, with a registration deadline of September 26, 2025 [4] Group 3 - FormFactor, Inc. is a leading provider of test and measurement technologies for the semiconductor industry, supporting the entire IC life cycle [5] - The company operates facilities across Asia, Europe, and North America, helping semiconductor companies optimize device performance and advance yield knowledge [5]