Cohu (COHU) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue/net sales reached $107.7 million, up from $96.8 million in Q1 2025 and $104.7 million in Q2 2024, with approximately 63% recurring revenue and orders up 26% sequentially, driven by mobile and AI-based computing.

• Test cell utilization improved by 3 points quarter-over-quarter to 75%, supporting demand flexibility and signaling an industry recovery cycle.

• Secured a $28 million design-win order for the Eclipse Handler in mobile and automotive, shipping through Q4 2025.

• Completed the acquisition of Tignis, Inc., an AI process control software provider, for $36.6 million, expanding analytics offerings.

• Initiated a global restructuring program targeting $2.0 million in quarterly cost savings by year-end 2025.

Financial highlights

• Q2 2025 net sales/revenue: $107.7 million (up 2.8% year-over-year), in line with guidance.

• Non-GAAP gross margin: 44.4%; GAAP gross margin: 43.7%.

• Non-GAAP EPS: $0.02; GAAP net loss: $16.9 million; non-GAAP net income: $0.7 million.

• Cash and investments at quarter-end: $209.4 million, up $8.6 million, driven by $16 million in operating cash flow.

• Adjusted EBITDA for Q2 2025 was $3.8 million (3.6% of net sales).

Outlook and guidance

• Q3 2025 revenue guidance: $125 million ±$7 million, a 16% sequential increase.

• Q3 gross margin projected at 44%; operating expenses expected to be about $50 million.

• Q3 tax provision expected to be $15 million due to a one-time true-up from tax law changes.

• Q4 2025 expected to see a typical seasonal slowdown, with a possible mid-single-digit pullback.

• Management expects $2.0 million in quarterly cost savings from restructuring by year-end 2025.