Cohu (COHU) investor relations material

Executive summary

• Q1 2026 revenue reached $125.1 million, up 29% year-over-year, with 60% from recurring revenue and strong growth in AI and high-performance computing segments.

• Gross margin improved to 46.5%, exceeding guidance due to favorable product mix and higher business volume.

• Net loss narrowed to $12.1 million from $30.8 million year-over-year, with non-GAAP net income turning positive at $0.6 million.

• Operating expenses increased to support HPC growth and manufacturing expansion.

• No customer represented more than 10% of sales; cash and investments rose to $489 million.

Financial highlights

• Q1 2026 revenue: $125.1 million; recurring revenue comprised 60% of total.

• Gross margin: 46.5% non-GAAP, 46.3% GAAP; adjusted EBITDA: $7.0 million (5.6% of net sales).

• Net loss: $12.1 million GAAP; non-GAAP net income: $0.6 million.

• Cash and investments: $489 million at quarter-end; operating cash flow: $10.3 million.

• No share repurchases in Q1 2026.

Outlook and guidance

• Q2 2026 revenue expected at $144 million (±$7 million), up 15% sequentially and 34% year-over-year.

• Full-year 2026 revenue growth outlook raised to 20%-25% over 2025.

• Q2 gross margin projected at 44%; full-year gross margin expected in mid-40% range.

• Operating expenses to remain in low $50 million range per quarter for the rest of 2026.

• FY26 high-performance computing revenue outlook raised to $80–100 million.