Ultra Clean (UCTT) investor relations material

Executive summary

• Q1 2026 revenue reached $533.7 million, exceeding guidance midpoint, driven by robust AI-related demand and broad-based customer growth in both Products and Services segments.

• Non-GAAP net income was $14.5 million (EPS $0.31), while GAAP net loss was $17.9 million, reflecting significant adjustments for amortization, stock-based compensation, and restructuring.

• Operational excellence, ramp readiness, and digital transformation are key pillars of the growth strategy, supporting speed, quality, and scalability.

• Leadership transition announced, with the CFO set to retire after 17 years, ensuring a smooth succession process.

Financial highlights

• Q1 2026 total revenue was $533.7 million, up from $506.6 million in Q4 2025 and 2.9% year-over-year.

• Product revenue was $465.7 million (Q4: $442.4 million), Services revenue $68.0 million (Q4: $64.2 million), with Services outpacing Products in growth.

• Non-GAAP gross margin was 16.5%, operating margin 5.1%; GAAP gross margin was 15.8%, operating margin 2.1%.

• Cash and cash equivalents stood at $323.5 million at quarter end.

• Operating cash flow was negative $33.3 million, reflecting inventory build and working capital changes.

Outlook and guidance

• Q2 2026 revenue guidance: $565 million to $605 million; non-GAAP EPS: $0.44–$0.60; GAAP EPS: $0.20–$0.36.

• Gross margin expected to improve through the year, with further gains anticipated by Q4 as revenue and mix trends remain favorable.

• Management expects continued growth in semiconductor demand, driven by AI, cloud, and advanced memory applications.