Tower Semiconductor (TSEM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $358 million, up 9% year-over-year from $327 million in Q1 2024.

• Net profit for Q1 2025 was $40 million ($0.36 basic EPS, $0.35 diluted), down from $45 million in Q1 2024, which included a non-recurring tax benefit.

• Q2 2025 revenue guidance is $372 million, plus or minus 5%, representing about 6% year-over-year growth.

• RF infrastructure achieved record revenue, with strong growth in power and entry into envelope trackers using 300mm technology.

• Management reaffirmed sequential revenue growth and strong acceleration expected in the second half of 2025.

Financial highlights

• Gross profit for Q1 2025 was $73 million, flat year-over-year, with gross margin at 20.4%.

• Operating profit was $33 million, slightly down from $34 million in Q1 2024.

• Adjusted net profit for Q1 2025 was $50.5 million, with adjusted diluted EPS of $0.45.

• Cash and cash equivalents at March 31, 2025, were $275 million.

• Cash flow from operations was $94 million; free cash flow was negative due to $111 million in capital investments.

Outlook and guidance

• Q2 2025 revenue guidance is $372 million (+/- 5%), with sequential quarter-over-quarter growth expected.

• Affirmed target for year-over-year growth and strong acceleration in the second half as capacity investments ramp.

• Operating expenses expected to remain flat at ~$40 million per quarter.