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 ...

Company Overview - FormFactor has a global presence with approximately 2,200 employees and manufactures over 115 million MEMS probes annually[7] - The company's trailing twelve months (TTM) revenue as of June 28, 2025, was $765 million[7] Financial Performance - In 2024, FormFactor's revenue was $764 million, non-GAAP EPS was $1.15, and free cash flow was $83 million[20] - The company's target model aims for $850 million in revenue, a non-GAAP gross margin of 47%, and non-GAAP diluted earnings per share of $2.00[90] Market Position and Growth - The advanced probe card market is estimated to be $2.6 billion in 2027[83] - FormFactor is targeting above-market growth in engineering systems, aiming for a 5%+ CAGR compared to the market's 3% CAGR[86] Industry Recognition - FormFactor was named the 1 global supplier in Test Subsystems and Focused Chip Making Equipment in TechInsights' 2025 customer satisfaction survey[25] - Intel recognized FormFactor with the 2024 EPIC Distinguished Supplier Award[35] Recent Financial Results - In Q1 2025, FormFactor's revenue was $171.4 million, with a gross margin of 39.2% and diluted EPS of $0.23[109] - In Q2 2025, revenue reached $195.8 million, but gross margin was 38.5% and diluted EPS was $0.27[109]

Company Overview - FormFactor has a global presence with approximately 2,150 employees and manufactures over 115 million MEMS probes annually[7] - The company's trailing twelve months (TTM) revenue as of October 30, 2024, was $742 million[7] - FormFactor is recognized by industry leaders such as Intel, Samsung, Micron, SK hynix, and TSMC[7] Financial Performance - In 2023, FormFactor's revenue was $663 million[20] - The company's non-GAAP EPS in 2023 was $0.73[20] - The free cash flow for 2023 was $11 million[20] - The non-GAAP gross margin in 2023 was 40.7%[20] - The target model revenue is $850 million, with a target non-GAAP EPS of $2.00[87] - The target free cash flow is $160 million[87] Market and Growth - The advanced probe card market is estimated to be $2.0 billion, while the engineering systems market is $0.5 billion[47] - The advanced probe card market is expected to grow at an annual rate of 8%[52] - The engineering systems market is expected to grow at an annual rate of 3%[52] - FormFactor estimates its growth in the advanced probe card market to be 10%+ CAGR[79]

Company Overview - FormFactor has a global presence with approximately 2,200 employees [6] - The company manufactures over 115 million MEMS probes annually [6] - The company's trailing twelve months (TTM) revenue as of April 30, 2025, was $766 million [6, 7] Financial Performance - In 2024, FormFactor's revenue was $764 million [15] - The company's non-GAAP EPS in 2024 was $1.15 [15] - The non-GAAP gross margin in 2024 was 41.7% [15] - Free cash flow in 2024 was $83 million [15] - Q1 2025 revenue was $171.4 million with a gross margin of 39.2% and EPS of $0.23 [104] - Q2 2025 outlook projects revenue of $190 million +/- $5 million with a gross margin of 40.0% +/- 1.5% and EPS of $0.30 +/- $0.04 [104] Market and Growth - The served available market (SAM) for advanced probe cards and engineering systems is $2.75 billion [82] - The company is targeting $850 million in revenue with a non-GAAP EPS of $2.00 [83] - The advanced probe card market is projected to reach $2.6 billion in 2027 [76]