FormFactor (FORM) Investor presentation summary

Market position and industry trends

• Holds leadership in the semiconductor test and measurement sector, recognized as #1 global supplier in test subsystems and focused chip making equipment for twelve consecutive years.

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

• Early customer engagement and technology leadership create high barriers to entry and foster strong customer relationships.

• Occupies a unique position across front-end and back-end semiconductor processes, with a focus on advanced probe cards and engineering systems.

• Partnerships with industry leaders, such as SK hynix, drive innovation and reinforce its role in next-generation semiconductor testing.

Financial performance and growth

• Reported trailing twelve-month revenue of $840M as of April 2026, with a workforce of approximately 2,100 people.

• Demonstrates a proven track record of revenue growth, expanding gross margins, and increasing free cash flow over recent years.

• Q1 2026 achieved record revenue of $226.1M, gross margin of 49.0%, and diluted EPS of $0.56; Q2 2026 outlook projects continued growth.

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

• Scale and disciplined spending drive operating leverage, with operating margins targeted to rise to 22%.

Strategic initiatives and business model

• Active acquisition strategy enhances scale and diversification, with notable acquisitions including Microprobe, Cascade Microtech, and Keystone Photonics.

• Capital expenditures support organic growth and manufacturing expansion, including a new facility in Texas.

• Flexible cost structure and strong balance sheet, supported by robust free cash flow and a new $150M revolving credit facility.

• Largest R&D budget in served markets enables continued technology leadership and early involvement in customer product cycles.

• Focused reinvestment in R&D, capacity, and M&A to drive shareholder value and expand the served available market.