SkyWater (SKYT) Q1 2026 earnings summary

Executive summary

• Revenue grew 162% year-over-year to $160.7 million in Q1 2026, driven by the Fab 25 acquisition and expansion in advanced compute and tool sales.

• Net loss widened to $12.3 million from $7.3 million in Q1 2025, reflecting higher costs, integration expenses, and consulting fees.

• Adjusted EBITDA rose 222% to $13.0 million, primarily due to Fab 25 and non-cash revenue from a supply agreement.

• The company entered into a definitive agreement to be acquired by IonQ, with closing expected in Q2 or Q3 2026.

Financial highlights

• Gross profit increased 126% to $32.2 million, but gross margin declined due to tool-related losses and installation costs.

• Research and development expense rose 54% to $5.0 million, partly from Fab 25 integration.

• Selling, general, and administrative expense more than doubled to $32.4 million, including $6.9 million in consulting fees and $3.7 million in transaction/integration costs.

• Interest expense increased to $6.2 million, reflecting higher borrowings post-acquisition.

• Cash and cash equivalents were $22.2 million at quarter-end, with $61.8 million available under the revolving credit facility.

Outlook and guidance

• Management expects continued growth from customer-funded capital investment and government incentives, including potential CHIPS Act funding.

• Sufficient liquidity is projected for the next twelve months, with ongoing compliance with financial covenants.