Aehr Test Systems (AEHR) Q3 2026 earnings summary

Executive summary

• Quarterly bookings exceeded $37 million, with a book-to-bill ratio over 3.5x and effective backlog surpassing $50 million, driven by strong AI, data center, and silicon photonics demand, and significant new and follow-on customer wins.

• Revenue for Q3 FY26 was $10.3 million, down 44% year-over-year from $18.3 million, primarily due to lower shipments of wafer-level burn-in systems and contactors, partially offset by increased package-level burn-in sales for AI applications.

• Manufacturing capacity expanded, including new contract manufacturing partnerships and facilities, to support anticipated growth in both wafer-level and package-level burn-in systems.

• Positioned as the only provider offering both wafer-level and package-level burn-in solutions at scale.

Financial highlights

• Q3 FY26 revenue was $10.3 million, down from $18.3 million year-over-year; nine-month revenue was $31.2 million, down from $44.9 million.

• Q3 GAAP net loss was $3.2 million, or $0.10 per diluted share; non-GAAP net loss was $1.5 million, or $0.05 per share.

• Gross margin for Q3 was 32.7% (GAAP) and 36.5% (non-GAAP), both down year-over-year due to lower sales volume and less favorable product mix.

• Operating cash outflow was $3.7 million for the quarter and $5.1 million for nine months; quarter-end cash and equivalents were $37.1 million, up from $31 million in Q2, mainly due to equity proceeds.

• Research and development expenses increased 16% for the nine months, while selling, general, and administrative expenses decreased 5%.

Outlook and guidance

• Full-year FY26 revenue expected at the high end of $45 million–$50 million; non-GAAP net loss per share forecasted between -$0.13 and -$0.09.

• Bookings for the second half of FY26 expected at the high end of $60 million–$80 million; revenue guidance for the period is $25–$30 million.

• Gross margin anticipated to improve with higher manufacturing activity; return to non-GAAP profitability expected in Q4 FY26.

• Management expects continued variability in results due to customer order timing, industry demand cycles, and product mix.

• Strong backlog and order funnel position the company for significant revenue growth in FY27.