Cohu (COHU) investor relations material

Executive summary

• Q3 2025 revenue reached $126.2 million, up 32.4% year-over-year and sequentially, with recurring revenue comprising 55% and systems 45%, driven by mobile and AI-based computing demand.

• Recurring revenue grew for the third consecutive quarter, and systems revenue improved for the fourth straight quarter.

• Convertible notes offering closed post-quarter, raising $287.5 million at 1.5% interest and 32.5% conversion premium to support growth and strategic initiatives.

• The acquisition of Tignis, an AI process control software provider, was completed in January 2025, expanding analytics offerings.

• A global restructuring program was implemented to improve profitability, targeting $2.0 million in quarterly cost savings by 2025.

Financial highlights

• Q3 2025 revenue was $126.2 million, up 32.4% year-over-year, exceeding guidance, with gross margin at 43.8% GAAP and 44.1% non-GAAP.

• Adjusted EBITDA for Q3 2025 was $11.7 million (9.2% of net sales), up from $2.1 million in Q3 2024.

• Q3 2025 net loss was $4.1 million GAAP ($0.09 per share); non-GAAP net loss was $2.8 million ($0.06 per share).

• Cash and investments at quarter-end were $198.2 million, down due to the Tignis acquisition and operational support.

• No share repurchases in Q3 2025; $22.8 million remains authorized.

Outlook and guidance

• Q4 2025 revenue is expected to be $122 million plus or minus $7 million, reflecting a seasonal decline.

• Recurring revenue is forecasted to increase for the fourth straight quarter, representing about 60% of Q4 revenue.

• Q4 gross margin projected at 45%; operating expenses expected at $50 million; tax provision at $4 million.

• Management expects the restructuring program to yield $2.0 million in quarterly cost savings by 2025.

• Liquidity is expected to be sufficient for at least the next 12 months, with flexibility for strategic acquisitions or increased capital expenditures.