Ultra Clean (UCTT) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $506.6 million, with Products at $442.4 million and Services at $64.2 million.

• Non-GAAP net income for Q4 was $10.0 million ($0.22 per diluted share), while GAAP net loss was $3.3 million ($0.07 per diluted share), reflecting adjustments for amortization, restructuring, and other non-recurring items.

• Full year 2025 revenue totaled $2.1 billion, with non-GAAP net income of $47.7 million ($1.05 per diluted share) and a GAAP net loss of $181.2 million ($4.00 per diluted share) due to a $151.1 million goodwill impairment.

• Strategic transformation to "UCT 3.0" focuses on ramp readiness, operational agility, and digital transformation to support rapid growth and customer needs.

• Facility optimizations have created capacity to support $3 billion in revenue, with current utilization at 65% and plans to increase Asian manufacturing to 60% of global capacity.

Financial highlights

• Q4 2025 gross margin was 16.1% non-GAAP (15.2% GAAP); operating margin was 4.9% non-GAAP (2.2% GAAP).

• Q4 net income was $10.0 million non-GAAP (EPS $0.22), compared to $12.9 million in Q3; full-year non-GAAP net income was $47.7 million (EPS $1.05), down from $55.2 million (EPS $1.44) in 2024.

• Cash and equivalents at year-end were $311.8 million; full-year operating cash flow was $65.6 million.

• Products segment Q4 revenue was $442.4 million (14.1% non-GAAP gross margin, 3.9% non-GAAP operating margin); Services segment revenue was $64.2 million (29.7% non-GAAP gross margin, 12.4% non-GAAP operating margin).

• Full year 2025 gross margin was 16.5% non-GAAP (down from 17.5% in 2024); operating margin was 5.3% non-GAAP (vs. 6.9% prior year).

Outlook and guidance

• Q1 2026 revenue guidance: $505–$545 million; non-GAAP EPS guidance: $0.18–$0.34.

• GAAP diluted EPS guidance for Q1 2026 is $(0.13) to $0.03.

• Expect sequential revenue and margin growth, with a significant step-up in the second half of 2026.

• WFE market expected to grow 15–20% year-over-year; company expects to match or outpace WFE growth.

• Margins expected to expand as utilization increases and product mix improves through 2026.