Tower Semiconductor (TSEM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $396 million, up 7% year-over-year and 6% sequentially, with net profit of $54 million and basic EPS of $0.48, diluted EPS of $0.47.

• Q4 2025 revenue guidance is set at $440 million (+/-5%), representing a 14% year-over-year increase and a record high.

• Strong expansion in Silicon Photonics and RF infrastructure, with core technologies—power management, CMOS image sensors, and 65nm RF mobile—showing year-over-year growth.

• Cash flow from operating activities in Q3 2025 was $139 million, with net investments in property and equipment at $103 million.

• Announced an additional $300 million investment for SiPho and SiGe capacity and next-generation capabilities.

Financial highlights

• Gross profit for Q3 2025 was $93 million (24% margin), up 16% sequentially; operating profit was $51 million, up 27% sequentially.

• Adjusted net profit for Q3 2025 was $62.8 million, with adjusted diluted EPS of $0.55.

• Nine-month 2025 revenue totaled $1.13 billion, with net profit at $140.3 million and adjusted net profit at $170.4 million.

• Free cash flow for Q3 2025 was $36 million.

• Shareholders' equity reached $2.83 billion; current assets ratio at 7x.

Outlook and guidance

• Q4 2025 revenue expected to reach $440 million, a new record, up 14% year-over-year and 11% quarter-over-quarter.

• Targeting $2.7 billion annual revenue at full fab loading, $560 million operating profit, and $500 million net profit under the strategic model.

• Silicon Photonics revenue projected above $220 million for 2025, with Q4 annualized run rate exceeding $320 million.

• Growth expected across Power Management, Image Sensors, and 65nm RF Mobile.

• Record revenue anticipated due to ramping SiGe and SiPho capacity and strong data center demand.