Onto Innovation (ONTO) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of $267 million and annual revenue of $1,005 million for 2025.

• Advanced packaging and specialty devices drove over half of Q4 revenue, with 2.5D packaging sales doubling from Q3.

• Orders from 2.5D packaging for AI devices more than doubled, and cash generation reached a record $95 million in Q4.

• Completed the Semilab acquisition in mid-November, contributing $9 million to Q4 revenue and expanding materials analysis capabilities.

• Secured a $240 million volume purchase agreement with a leading HBM manufacturer for DragonflyⓇ systems.

Financial highlights

• Q4 gross margin improved to 54.6% sequentially; Q4 non-GAAP operating margin was 25.2%.

• Q4 adjusted diluted EPS was $1.26; Q4 GAAP net income was $10.5 million (EPS $0.21), non-GAAP net income $62.3 million.

• Full-year GAAP net income was $136.8 million (EPS $2.78), non-GAAP net income $243.5 million (EPS $4.94).

• Ended Q4 with $639.6 million in cash and short-term investments.

• Cash conversion in Q4 was approximately 150% of non-GAAP net income.

Outlook and guidance

• Q1 2026 revenue expected between $275 million and $285 million; Q2 revenue projected to exceed $300 million.

• Q1 2026 gross margin projected at 54.6% to 55.6%; non-GAAP operating margin guidance is 25.5%-26.5%.

• Q1 EPS expected in the range of $1.26-$1.36.

• Advanced packaging revenue projected to grow over 30% in 2026; advanced nodes expected to grow in the mid-teens percentage.

• Core business growth for H1 2026 forecasted at 12%-14% over H2 2025.