Kulicke and Soffa Industries (KLIC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $199.6 million, up 12.4% sequentially and 20.2% year-over-year, driven by strong demand in General Semiconductor, Memory, Ball Bonding Equipment, and APS, with data center and technology transitions contributing to growth.

• Net income for Q1 2026 was $16.8 million, with non-GAAP net income at $23.1 million and non-GAAP EPS at $0.44.

• Gross margin was 49.6%, up sequentially but down year-over-year due to less favorable product mix.

• Advanced packaging, Power Semiconductor, and Advanced Dispense investments are supporting long-term market expansion and robust customer demand.

• Improved FY26 visibility with ongoing production ramp and new solution demand, despite macroeconomic headwinds.

Financial highlights

• Q1 2026 gross margin was 49.6%, with non-GAAP operating margin at 12.6% and GAAP net margin at 8.4%.

• Non-GAAP net income was $23.1 million; GAAP EPS was $0.32 and non-GAAP EPS was $0.44.

• Operating expenses (non-GAAP) were $74.2 million; total operating expense (GAAP) was $81.1 million.

• Cash and short-term investments totaled $481.1 million, with net cash at $284.3 million.

• Adjusted free cash flow was negative $11.6 million; GAAP cash flow from operations was negative $8.9 million.

Outlook and guidance

• Q2 2026 revenue guidance is $230 million +/- $10 million, with non-GAAP diluted EPS expected at $0.67 +/- 10%.

• Non-GAAP operating expenses projected at $73 million; gross margin expected at 49% +/- 100 bps.

• FY 2026 second-half revenue projected to be 15%-20% higher than the first half, with gross margin expected to remain around 49%-50%.

• Fiscal 2026 capital expenditures expected between $10 million and $14 million, focused on R&D and manufacturing enhancements.

• Liquidity position is sufficient to meet capital requirements for at least the next twelve months.