FormFactor (FORM) Investor presentation summary

Business overview and market position

• Leading provider of advanced probe cards and engineering systems for semiconductor testing, with $840M TTM revenue and a global presence of ~2,100 employees.

• Recognized as the #1 global supplier in test subsystems and focused chip making equipment, with consistent industry awards and strong customer relationships with major semiconductor manufacturers.

• Benefits from secular trends such as exponential semiconductor content growth, AI and data center expansion, and advanced packaging adoption.

• Early customer engagement and technology leadership create high barriers to entry and competitive advantage.

Financial performance and targets

• Demonstrated revenue growth from $663M in 2023 to $785M in 2025, with expanding non-GAAP gross margins (40.7% to 41.7%) and EPS growth ($0.73 to $1.30).

• Target model aims for $850M revenue, 47% non-GAAP gross margin, 22% operating margin, and $2.00 non-GAAP EPS.

• Strong free cash flow generation, with Q1'26 free cash flow at $30.7M and a target of $160M.

• Capital expenditures support organic growth, with recent investments in manufacturing automation and facility expansion.

Industry trends and growth drivers

• Probe card market expected to grow at 5% CAGR, with company targeting 7%+ CAGR through proprietary technologies and strong customer relationships.

• Engineering systems market expected to grow at 3% CAGR, with company outpacing at 5%+ due to largest installed base and autonomous measurement leadership.

• Growth in semiconductor use driven by AI, 5G, automotive, and data center infrastructure, increasing test complexity and probe card demand.

• Advanced packaging and slowing Moore’s Law drive higher test intensity, further boosting probe card sales.