Cohu (COHU) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $122.2 million, up 30% year-over-year, with 60% from recurring business and 40% from systems; recurring bookings rose 34% sequentially and systems demand increased 47% quarter-over-quarter, driven by global customers in analog, automotive, RF, and computing.

• Full-year 2025 revenue was $453.0 million, a 13% increase year-over-year, with strong design-win momentum in automotive ADAS, power devices, computing AI, and HBM inspection metrology.

• Top ten customers accounted for 63% of Q4 bookings, and recurring revenue was driven by service agreements, interface solutions, and handler-related spares.

• Business focus shifted to high-performance computing and AI markets, with new product launches and a one-time end-of-manufacturing charge.

• Customer diversification and low direct China exposure provide risk balance amid global trade shifts.

Financial highlights

• Q4 2025 revenue was $122.2 million, with non-GAAP gross margin at 40.8% (down from 44.1% in Q3 due to one-time inventory charges); adjusted EBITDA was 3.1%.

• Q4 2025 GAAP net loss was $22.5 million ($0.48 per share); non-GAAP net loss was $7.2 million ($0.15 per share).

• Cash and investments at year-end totaled $484 million, up from $198 million in Q3, mainly from convertible debt proceeds and operations.

• Total debt increased to $305 million, including $288 million from convertible debt at 1.5% interest.

• Q4 2025 cash flow from operations was $39.8 million.

Outlook and guidance

• Q1 2026 revenue is expected to be seasonally flat at approximately $122 million ±$7 million, with recurring revenue at 60% and systems at 40%.

• Gross margin projected to return to ~45% in Q1 2026, with no repeat of Q4 inventory charges.

• Operating expenses for Q1 expected to remain flat at about $50 million; Q1 tax provision forecasted at $5.5 million.

• Capital expenditures targeted at 2% of revenue for 2026, focused on R&D and maintenance.

• HBM revenue forecasted at $15–$20 million for 2026, with shipments expected to be linear through the year.