Ultra Clean (UCTT) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $510.0 million, with products contributing $445.0 million and services adding $65.0 million[2] - Gross margin improved to 16.1% in Q3 2025, compared to 15.3% in the previous quarter, while operating margin was 2.1%[2] - Non-GAAP net income for Q3 2025 was $12.9 million, or $0.28 per diluted share, up from $12.1 million, or $0.27 per diluted share in the prior quarter[3] - The company reported a net loss of $(10.9) million in Q3 2025, compared to a net loss of $(162.0) million in the prior quarter[2] - For the nine months ended September 26, 2025, the company reported a net loss of $171.0 million compared to a net income of $14.5 million for the same period in 2024[17] - Reported net loss attributable to Ultra Clean Holdings on a GAAP basis was $10.9 million for the three months ended September 26, 2025, compared to a loss of $2.3 million for the same period in 2024[22] - Non-GAAP net income attributable to Ultra Clean Holdings was $12.9 million for the three months ended September 26, 2025, down from $15.9 million in the prior year[22] Revenue and Profitability - Total revenues for the three months ended September 26, 2025, were $510.0 million, with product revenues at $445.0 million and service revenues at $65.0 million[20] - The gross profit for the same period was $82.2 million, resulting in a gross margin of 16.1%[20] - Reported income from operations on a GAAP basis was $10.6 million for the three months ended September 26, 2025, compared to $25.2 million in the same period of 2024[22] - Non-GAAP income from operations for the three months ended September 26, 2025, was $29.2 million, compared to $10.6 million on a GAAP basis[20] - Non-GAAP gross profit was $86.9 million for the three months ended September 26, 2025, compared to $96.0 million in the prior year[23] Cash Flow and Assets - The company’s cash and cash equivalents stood at $314.1 million as of September 26, 2025, slightly up from $313.9 million at the end of the previous year[15] - Cash flows from investing activities showed a net usage of $37.0 million, down from $46.2 million in the previous year[17] - Total current assets decreased to $941.4 million as of September 26, 2025, from $970.1 million at the end of the previous year[15] - The net cash provided by operating activities increased to $57.5 million from $47.9 million year-over-year[17] Expenses and Charges - Research and development expenses for Q3 2025 were $7.8 million, compared to $7.1 million in the previous year[13] - The company incurred restructuring charges of $2.1 million during the three months ended September 26, 2025[20] - The company incurred restructuring charges of $7.1 million for the three months ended September 26, 2025, compared to $0.3 million in the same period of 2024[22] - Stock-based compensation expense was $4.6 million for the three months ended September 26, 2025, compared to $4.5 million in the prior year[25] Future Outlook - The company expects Q4 2025 revenue to be in the range of $480 million to $530 million, with GAAP diluted net income (loss) per share projected between $(0.11) and $0.09[4] - Ultra Clean Holdings, Inc. continues to focus on AI-enabled high-performance computing as a key driver for semiconductor innovation[2] Impairment and Tax Rates - The company experienced a significant impairment of goodwill amounting to $151.1 million during the nine months ended September 26, 2025[17] - Effective income tax rate on a GAAP basis was 1450.0% for the three months ended September 26, 2025, compared to 97.1% in the same period of 2024[24] - Non-GAAP effective income tax rate was 22.7% for the three months ended September 26, 2025, compared to 27.1% in the prior year[25]