FormFactor, Inc. (NASDAQ: FORM) Q2 2025 Earnings | 08/01/2025

About this video

FormFactor, Inc. achieved sequential revenue growth in the second quarter of 2025, with revenues rising 14.3% to $195.8 million, exceeding the company’s outlook and expectations. This increase was propelled by robust demand for High Bandwidth Memory (HBM) and Foundry & Logic probe cards, marking a strategic milestone as FormFactor began volume shipments to all three major HBM manufacturers. Despite the strong revenue, GAAP net income was $9.1 million ($0.12 per share), up from $6.4 million in Q1 2025 but down from $19.4 million year-over-year. Non-GAAP net income reached $21.2 million, or $0.27 per diluted share. While revenue exceeded forecasts, profitability faced headwinds from an unfavorable product mix and unanticipated ramp-up costs associated with a new HBM DRAM customer. Gross margin on a GAAP basis was 37.3%, a slight decline from 37.7% in the previous quarter and lower than 44.0% in the prior-year quarter. Cash from operations totaled $18.9 million, with free cash flow at negative $47.1 million, reflecting significant strategic investments, including the acquisition of a new 50,000-square-foot manufacturing facility in Farmers Branch, Texas. Management underscored the company’s commitment to expand operational flexibility, scale production cost-effectively, and invest in next-generation technologies to capture secular growth in the semiconductor test industry. Looking ahead, FormFactor expects third-quarter 2025 revenue to be in line with Q2 at approximately $200 million and anticipates slightly improved gross margins and operating profit. The company remains confident in its leadership position in HBM probe cards and its ability to navigate current margin challenges, leveraging its expanded manufacturing footprint and deep R&D expertise to drive long-term value. About Inside Ticker: For more expert analysis and real-time updates on FormFactor, Inc. (NASDAQ: FORM) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #FormFactor #FORM #Q22025 #Earnings #FinancialResults #Revenue #ProbeCards #HBM #Semiconductors #NetIncome #GrossMargin #TechStocks #ManufacturingExpansion #OperationalFlexibility #R&D #FreeCashFlow #Growth #AI #AdvancedPackaging #DigitalTransformation #InsideTicker #2025Outlook