Cohu (COHU) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $122.2 million, up 30% year-over-year, with 60% from recurring business and 40% from systems; recurring orders increased 34% quarter-over-quarter and systems demand rose 47% quarter-over-quarter, driven by major global customers in analog, automotive, RF, and computing sectors.

• Full year 2025 revenue was $453.0 million, a 13% increase year-over-year, with growth driven by service agreements, interface solutions, and test handler spares.

• Design-win momentum was strong in automotive ADAS, power devices, computing AI, and HBM inspection metrology, with new product launches and expanded tester penetration in analog and connectivity markets.

• Business focus shifted to high-performance computing and AI markets, with key handler and inspection system wins and a one-time end-of-manufacturing charge.

• Entering 2026 with a balanced revenue mix, expanding AI and data center opportunities, and positive market signals across strategic verticals.

Financial highlights

• Q4 2025 revenue was $122.2 million, with non-GAAP gross margin at 40.8% (down from 44.1% in Q3 due to one-time inventory charges); adjusted EBITDA was 3.1%.

• Full year 2025 GAAP net loss was $74.3 million ($1.59 per share); non-GAAP net loss was $10.1 million ($0.22 per share).

• Q4 2025 operating expenses were $49.8 million, in line with guidance; non-GAAP EPS was $(0.06).

• Cash and investments at year-end 2025 totaled $484 million, up from $198 million in Q3, mainly from convertible debt proceeds and operations.

• Total debt increased to $305 million, including $288 million from convertible debt issuance at 1.5% interest.

Outlook and guidance

• Q1 2026 revenue expected to be seasonally flat at ~$122 million ±$7 million, with recurring revenue at 60% and systems at 40%.

• Q1 gross margin projected to return to ~45%, with no repeat of Q4 inventory charges.

• Operating expenses for Q1 expected to remain flat at ~$50 million; Q1 tax provision forecasted at $5.5 million.

• HBM revenue forecasted at $15–$20 million for 2026, with shipments expected to be linear through the year.

• Gross margin expected to rise to 46.7–46.8% at $130 million quarterly revenue, and up to 48% at $160 million; another year of revenue growth is projected for 2026.