FormFactor (FORM) Investor presentation summary

Business overview and market position

• Leading provider of advanced probe cards and engineering systems for semiconductor production, with over 115 million MEMS probes produced annually and more than 10,000 installed probers worldwide.

• Recognized as the #1 global supplier in test subsystems and focused chip making equipment, with major customers including SK hynix, TSMC, Micron, Intel, and Samsung.

• Benefits from secular trends such as exponential semiconductor content growth, AI, data center expansion, and advanced packaging adoption.

• Early customer engagement and technology leadership create high barriers to entry and competitive advantage.

• Largest R&D budget in served markets, enabling innovation and customer intimacy.

Financial performance and targets

• Achieved $785M in trailing twelve-month revenue as of early 2026, with a proven track record of revenue and earnings growth.

• Non-GAAP gross margin reached 40.8% in 2025, with non-GAAP EPS of $1.30 and free cash flow of $14M.

• Target model aims for $850M revenue, 47% gross margin, 22% operating margin, $2.00 non-GAAP EPS, and $160M free cash flow.

• Q4 2025 revenue, gross margin, and EPS exceeded outlook; Q1 2026 outlook reflects strong demand in advanced packaging and high-performance compute markets.

• Capital expenditures support organic growth, with recent investments in new manufacturing centers and automation.

Industry trends and growth drivers

• Semiconductor test and measurement sector is large and growing, with probe card market CAGR projected at 7%+ and engineering systems at 5%+.

• Advanced packaging and slowing Moore's Law drive increased test intensity and probe card demand.

• Infrastructure spending, 5G adoption, and AI proliferation accelerate semiconductor and probe card use.

• Investment in probe cards has outpaced overall industry growth, with intensity up ~10% over 16 years.

• Shorter product cycles and faster time-to-market amplify secular growth in silicon devices.