FormFactor, Inc. Reports 2025 Second Quarter Results

Core Insights - FormFactor, Inc. reported second-quarter fiscal 2025 revenues of $195.8 million, marking a 14.3% increase from the previous quarter but a 0.8% decrease year-over-year [1][2] - The company experienced stronger-than-expected growth in its probe-card business, although profitability metrics fell short due to an unfavorable product mix and unexpected ramp-up costs for a new customer [2][8] - The outlook for the third quarter anticipates revenue similar to the second quarter, with slightly improved gross margins and operating profit [6] Financial Performance - GAAP net income for Q2 2025 was $9.1 million, or $0.12 per diluted share, compared to $6.4 million in Q1 2025 and $19.4 million in Q2 2024 [2][3] - Non-GAAP net income for Q2 2025 was $21.2 million, or $0.27 per diluted share, up from $18.0 million in Q1 2025 but down from $27.3 million in Q2 2024 [3][16] - Gross margin for Q2 2025 was 37.3%, a slight decline from 37.7% in Q1 2025 and significantly lower than 44.0% in Q2 2024 [2][15] Cash Flow and Investments - GAAP net cash provided by operating activities was $18.9 million in Q2 2025, down from $23.5 million in Q1 2025 and $21.9 million in Q2 2024 [4][18] - Free cash flow for Q2 2025 was negative $47.1 million, compared to positive free cash flow of $6.3 million in Q1 2025 and $14.2 million in Q2 2024 [4][17] - The company closed the acquisition of a manufacturing facility, enhancing operational flexibility and reducing costs [8] Market Position and Strategy - Anticipated strength in HBM and Foundry & Logic probe cards contributed to the sequential revenue growth [8] - FormFactor is now shipping in volume to all three major HBM manufacturers, indicating a strong market position [8] - The company continues to focus on optimizing device performance and advancing yield knowledge for semiconductor companies [10]