Aehr Test Systems (AEHR) Q2 2026 earnings summary

Executive summary

• Second quarter revenue was $9.9 million, down 27% year-over-year, mainly due to lower contactor and WaferPak shipments, with softness in electric vehicle demand partially offset by growth in AI and data center applications.

• Net loss for the quarter was $3.2 million (GAAP), or $(0.11) per share, and non-GAAP net loss was $1.3 million, or $(0.04) per share.

• Gross margin declined to 25.7% (GAAP) and 29.8% (non-GAAP), impacted by lower sales, unfavorable product mix, and higher costs.

• Significant progress in wafer-level and packaged part burn-in segments, with new device qualifications, production ramps, and strategic partnerships, especially for AI and data center markets.

• Bookings for the second half of fiscal 2026 are forecasted between $60 million and $80 million, setting up for a strong fiscal 2027.

Financial highlights

• Quarterly revenue was $9.9 million, down from $13.5 million year-over-year; six-month revenue was $20.9 million, down from $26.6 million.

• Non-GAAP gross margin was 29.8%, down from 45.3% a year ago; GAAP gross margin was 25.7%.

• Non-GAAP net loss was $1.3 million, or $(0.04) per share; GAAP net loss was $3.2 million, or $(0.11) per share.

• Cash, cash equivalents, and restricted cash ended at $31 million, up from $24.7 million in Q1, mainly due to $9.4–$10 million raised via ATM equity program.

• Operating cash flow improved by $2 million year-over-year, primarily due to lower inventory purchases and higher non-cash charges.

Outlook and guidance

• Revenue for the second half of fiscal 2026 is expected between $25 million and $30 million.

• Non-GAAP net loss per diluted share is projected between $(0.09) and $(0.05) for the six-month period.

• Bookings in the second half are expected to be much higher than revenue, between $60 million and $80 million, driven primarily by AI processor demand.

• Management expects existing cash resources and anticipated funds from operations to satisfy operating and capital requirements for the next twelve months.