Q3 2025 Financial Performance - SkyWater achieved record Q3 2025 revenues of $150.7 million, exceeding the high end of the guidance range by over $9 million[7] - GAAP gross profit reached $36.2 million with a gross margin of 240%[125] - Adjusted EBITDA was $25.8 million, significantly surpassing forecasts[128] - Net income was $144 million, representing 95.5% of total revenue[128] Q4 2025 Guidance - The company expects Q4 2025 total revenues to be in the range of $155 million to $165 million[55] - SkyWater Texas revenue is projected to be between $84 million and $88 million[55] - Tools revenue is expected to be $17 million to $18 million, with a revised full-year expectation of $23 million to $24 million[55] - Adjusted EBITDA is guided to be in the range of $16 million to $22 million, with an adjusted EBITDA margin between 12.2% and 16.8%[146] Business Highlights and Growth Drivers - SkyWater anticipates strong growth in quantum computing customer revenues, expecting to exceed 30% in 2025[12] - The acquisition of Fab 25 in Texas has led to higher-than-expected revenue and profitability, with SkyWater now operating as two distinct reportable segments[12] - Advanced Packaging revenues are starting to ramp in Florida, with tool installations scheduled for completion in early 2026[12] - The company's acquisition added approximately 400,000 wafer/year capacity to the 200mm U S foundry supply base[29]

Core Viewpoint - SkyWater Technology, the largest U.S.-based pure-play semiconductor foundry, is set to participate in the 28th Annual Needham Growth Conference, indicating its active engagement in industry events and investor relations [1] Group 1 - The conference will take place at the Lotte New York Palace next week, highlighting the significance of the event in the investment community [1] - SkyWater's fireside chat is scheduled for Wednesday, January 14th at 1:30pm EST, which will be webcast live, providing accessibility for a broader audience [1] - The company will utilize presentation materials during the conference, suggesting a structured approach to communicating its business strategy and performance [1]

Company Overview - Intelligent Bio Solutions Inc. (NASDAQ:INBS) announced plans to raise $10 million through a private placement, leading to a significant drop in its share price [1] - Following the announcement, shares of Intelligent Bio fell 19.7% to $7.65 [1] Stock Movements - Lavoro Limited (NASDAQ:LVRO) saw a substantial increase of 181%, reaching $1.2900 [4] - Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) rose 57.7% to $5.32 after issuing FY26 guidance, expecting US net sales of Linzess to be between $1.125 billion and $1.175 billion [4] - Brand Engagement Network, Inc. (NASDAQ:BNAI) jumped 56% to $3.6290 after entering a Vendor Services Project Agreement with a global advertising agency [4] - ChowChow Cloud International Holdings Limited (NYSE:CHOW) increased by 39.7% to $0.8500 due to year-over-year revenue and net income growth in H1 2025 [4] - Sidus Space, Inc. (NASDAQ:SIDU) gained 29% to $4.0314, marking a 470% surge over the past month [4] - Baidu, Inc. (NASDAQ:BIDU) rose 12.1% to $146.57 after announcing a proposed spin-off and Hong Kong listing of its AI unit [4] Declines - Outlook Therapeutics, Inc. (NASDAQ:OTLK) experienced a significant decline of 58% to $0.6632 after receiving a complete response letter from the FDA regarding its biologics license application [4] - ESH Acquisition Corp. (NASDAQ:ESHA) fell 23.5% to $14.68 [4] - Nuvve Holding Corp. (NASDAQ:NVVE) declined 15.3% to $2.1500 after announcing the closing of a private placement [4]

Core Insights - A collaborative team has developed the first monolithic 3D chip at a U.S. foundry, achieving unprecedented vertical wiring density and speed improvements [2][3] - This innovation is expected to usher in a new era of AI hardware and domestic semiconductor innovation, with the potential for a 1000-fold increase in hardware performance needed for future AI systems [3][7] Group 1: Performance and Design - The new 3D chip's performance is approximately an order of magnitude higher than traditional 2D chips, addressing the long-standing limitations of flat designs [2][3] - Early hardware tests indicate that the prototype chip outperforms similar 2D chips by about four times, with simulations suggesting up to a 12-fold performance increase for future versions [7] - The design allows for a significant enhancement in energy-delay product (EDP), potentially improving it by 100 to 1000 times, which balances speed and energy efficiency [7] Group 2: Technical Challenges and Solutions - Traditional 2D chips face a "memory wall" bottleneck due to the slow data transfer speeds compared to processing speeds, limiting overall system performance [4][5] - The new chip overcomes these challenges by vertically integrating memory and computation, allowing for faster data transmission and higher density connections [5][6] - Unlike previous attempts that relied on stacking separate chips, this new approach uses a continuous process to stack layers directly, enhancing connection density and manufacturability [6] Group 3: Implications for the Semiconductor Industry - The successful production of this 3D chip in a domestic foundry signifies a major step for U.S. semiconductor innovation, indicating that advanced architectures can be commercially viable [6][7] - The transition to vertical monolithic 3D integration will require a new generation of engineers skilled in these technologies, fostering a new wave of innovation in the semiconductor field [7][8] - The breakthrough not only enhances performance but also positions the U.S. to lead in the future of AI hardware development [8]

Company Overview - SkyWater Technology (NASDAQ: SKYT) is the largest U.S.-based, pure-play semiconductor foundry, focusing on securing America's silicon foundation and supporting critical infrastructure [6][12] - The company operates state-of-the-art facilities in Minnesota, Florida, and Texas, specializing in foundational nodes and advanced packaging [6] NYC Summit Participation - SkyWater Technology will participate in the 14th Annual NYC Summit investor conference on December 16, 2025, alongside 14 other companies [1][4] - The summit will feature a "round-robin" format allowing investors and analysts to meet with management teams from the participating companies [3] Financial Performance - SkyWater Technology reported record revenues from multiple quantum computing customers for the third quarter of 2025, exceeding expectations across all metrics [12]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - SkyWater Technology and Silicon Quantum Computing (SQC) have announced a collaboration to advance hybrid quantum-classical computing, aiming to commercialize this technology by integrating quantum and classical components [1][2][3] Company Overview - SkyWater Technology is the largest exclusively U.S.-based, pure-play semiconductor foundry, focusing on secure manufacturing and packaging capabilities for high-performance computing [1][4] - SQC is a leading company in quantum computing, utilizing atomically engineered quantum processors to achieve high fidelities in quantum algorithms [6] Collaboration Details - The partnership will leverage SQC's precision in quantum device engineering and SkyWater's manufacturing capabilities to create a "future compute stack" where quantum processors work alongside classical processors [1][3] - SkyWater's Technology-as-a-Service model will facilitate the integration of quantum and classical components, reinforcing its role as a trusted enabler of next-generation technologies [2][3] Technological Advancements - The collaboration aims to develop hybrid systems that require precise manufacturing, secure packaging, and high-bandwidth connections to effectively integrate quantum and classical components [3] - SQC will provide its atomically-engineered quantum processing units (QPUs), while SkyWater will supply superconducting resonators and tailored silicon wafers [3]

Financial Performance - Revenue for the third quarter of 2025 was $150.7 million, a 61% increase from $93.8 million in the third quarter of 2024[154] - Gross profit for the third quarter of 2025 was $36.2 million, representing a 79% increase from $20.2 million in the same period last year[153] - Operating income increased by 67% to $7.9 million in the third quarter of 2025, compared to $4.7 million in the third quarter of 2024[153] - Net income attributable to SkyWater Technology increased by $142.5 million in Q3 2025 compared to Q3 2024, driven by the impacts of the aforementioned changes[169] - Net income increased to $26.5 million in the third quarter of 2025, up from $2.6 million in the same quarter of 2024, representing a 1,019% increase[197] - For the first nine months of 2025, net income rose to $11.4 million from a net loss of $3.0 million in the same period of 2024, marking a 484% increase[197] - Adjusted EBITDA increased by $14.8 million or 135% in Q3 2025 compared to Q3 2024, supported by expansion in the advanced compute end market and the addition of Fab 25[170] - Adjusted EBITDA for the three-month period ended September 28, 2025, was $25.8 million, compared to $11.0 million for the same period in 2024[243] Acquisition and Investments - The acquisition of Fab 25 was completed on June 30, 2025, for a total purchase consideration of $206.5 million, enhancing SkyWater's semiconductor manufacturing capabilities[150] - SkyWater Texas wafer services revenue increased by $86.6 million due to the Fab 25 acquisition, with $8.6 million attributed to non-cash purchase accounting adjustments[158] - A bargain purchase gain of $110.8 million was recognized in conjunction with the Fab 25 acquisition, reflecting the excess of fair value over purchase consideration[167] - The company incurred transaction and integration costs of $7.1 million related to the acquisition of Fab 25 on June 30, 2025[244] Expenses - Cost of revenue increased by $40.9 million, or 56%, primarily due to the inclusion of Fab 25 operations[160] - Advanced Technology Services (ATS) development revenue decreased by $2.2 million, mainly due to an $8.1 million reduction in revenue from aerospace and defense markets[154] - Research and development expenses rose to $4.4 million, a 27% increase from $3.4 million in the prior year[153] - Selling, general and administrative expense rose by $11.9 million or 98% in Q3 2025 compared to Q3 2024, primarily due to $6.0 million related to the Fab 25 acquisition[164] - Interest expense increased by $3.3 million or 168% in Q3 2025 compared to Q3 2024, mainly due to higher amounts outstanding on the revolving lending facility[166] Tax and Compliance - Income tax expense decreased by $31.9 million in Q3 2025 compared to Q3 2024, resulting from the realization of deferred tax assets related to the Fab 25 acquisition[168] - The company expects customer-funded capital investment to be a significant driver of future growth[151] - The company was in compliance with the covenants of the Amended Loan Agreement and expects to maintain compliance over the next twelve months[221] Cash Flow and Liquidity - Cash and cash equivalents increased to $30.9 million as of September 28, 2025, from $18.8 million as of December 29, 2024[210] - Net cash provided by operating activities was $7.1 million during the first nine months of 2025, a decrease of $12.6 million from $19.7 million in the same period of 2024[211] - Net cash used in investing activities was $107.0 million during the first nine months of 2025, compared to $9.2 million in the same period of 2024, primarily due to the acquisition of Fab 25[212] - The outstanding balance of the Revolver was $155.0 million, with remaining availability of $65 million as of September 28, 2025[217] - The company maintains a liquidity requirement of at least $70 million following certain transactions[220] Financing and Risk - The VIE Financing amounts to $39 million with a fixed interest rate of 3.44%, repayable in equal monthly installments of $0.2 million over 10 years[223] - The VIE Financing is secured by a security interest in the land and building of the SkyWater Minnesota facility[225] - Market risk exposure is primarily related to potential changes in the fair value of debt due to fluctuations in market interest rates[246] - Credit risk is associated with cash and cash equivalents, accounts receivable, and contract assets, with no losses experienced in maintained accounts[247] - As of September 28, 2025, the outstanding balance of the Revolver was $155.0 million at a variable interest rate of 8.6%[248] - A 100 basis point increase in the interest rate would result in an annual increase of $1.6 million in interest expense based on the outstanding balance of the Revolver[248] Regulatory and Reporting - The CHIPS Act provides $52.7 billion for American semiconductor research and development, with SkyWater applying for funding to modernize its Minnesota facility[151] - The company qualifies as an "emerging growth company" and a "smaller reporting company," allowing it to take advantage of certain reporting exemptions[229] - The net income attributable to noncontrolling interests from the variable interest entity (VIE) is included in the adjusted EBITDA financial measure[245] - The preliminary bargain purchase gain from the acquisition of Fab 25 on June 30, 2025, is recognized, with total consideration paid being less than the fair value of net assets acquired[245]

Core Insights - SkyWater Technology (NASDAQ: SKYT) is currently at a pivotal moment, driven by a significant Fab 25 deal and an influx of quantum computing business [1] Revenue and Gross Performance - The third quarter performance was notably strong, primarily attributed to the aforementioned Fab 25 deal and the surge in quantum computing activities [1]

Core Insights - SkyWater Technology (SKYT) is well positioned to contribute to the U.S. strategic mission of achieving independence in the semiconductor sector [1] Group 1 - The premium service "Value in Corporate Events" covers major earnings events, M&A, IPOs, and other significant corporate events with actionable ideas [1][2] - The service provides coverage of 10 major events a month, focusing on identifying the best investment opportunities [2]