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 customer wins.

• Manufacturing capacity expanded through new contract manufacturing partnerships and facilities to support anticipated growth in Sonoma system shipments.

• Q3 revenue was $10.3 million, down 44% year-over-year from $18.3 million, primarily due to lower shipments of FOX systems and wafer-level products.

• Cash, cash equivalents, and restricted cash increased to $37.1 million at quarter end, supported by equity offerings.

Financial highlights

• Q3 revenue: $10.3 million (down from $18.3 million year-over-year); nine-month revenue: $31.2 million (down from $44.9 million prior year).

• Q3 non-GAAP net loss: $1.5 million ($0.05 per diluted share); Q3 GAAP net loss: $3.2 million ($0.10 per share).

• Non-GAAP gross margin was 36.5%, GAAP gross margin 32.7%, both down year-over-year due to lower sales volume and less favorable product mix.

• Operating cash outflow was $3.7 million for Q3; cash used in operating activities for nine months was $5.1 million.

• Non-GAAP operating expenses were $6.3 million, flat year-over-year; GAAP operating expenses were $7.6 million.

Outlook and guidance

• Fiscal 2026 revenue expected at the high end of $45–$50 million; second half bookings anticipated at the high end of $60–$80 million.

• Non-GAAP net loss per diluted share for fiscal 2026 projected between $(0.13) and $(0.09); return to non-GAAP profitability anticipated in Q4 of fiscal 2026.

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