FormFactor Q3 revenue rises 38% to $280.5 million, guidance above estimates

FormFactor, Inc. (Nasdaq: FORM) is a provider of test and measurement technologies for semiconductors, serving customers through facilities in Asia, Europe and North America.

FormFactor said in a press release furnished with an 8-K filing that third-quarter revenue for the fiscal period ended Sept. 26 was $280.5 million. That was an 8.6% increase from $258.2 million in the second quarter and up 38.4% from $202.7 million in the third quarter of fiscal 2025.

GAAP net income was $73.8 million, or 93 cents per fully-diluted share, compared with 20 cents per share a year earlier. Non-GAAP net income was $82.3 million, or $1.04 per fully-diluted share.

Gross margin was 54.7% on a GAAP basis and 56.5% on a non-GAAP basis.

Segment highlights

Foundry and logic revenue grew 10% sequentially, the company said, with broad-based strength across multiple end applications.

Systems segment revenue rose more than 20% sequentially on higher demand for co-packaged optics.

Following the end of the quarter, FormFactor announced an expansion of its longstanding partnership with Teradyne aimed at accelerating the development, validation and high-volume production of next-generation semiconductor applications for high-performance compute.

Cash flow

GAAP net cash provided by operating activities was $104.3 million in the quarter. Free cash flow was $64.8 million, compared with $19.7 million a year earlier.

Outlook

For the fourth quarter ending Dec. 26, the company provided a revenue, GAAP and non-GAAP outlook in a table in its release. The outlook assumes consistent foreign currency rates.

CEO Mike Slessor said the company's results reflected continued momentum and its ability to meet rising customer demand by increasing output within its existing manufacturing footprint.

Slessor said productivity gains from the existing footprint are moderating as it approaches capacity limits, and that the new Farmers Branch factory is coming online to add capacity.

The company said it posted its revenue breakdown by geographic region, market segment and customers with more than 10% of total revenue on its investor relations website. It will hold a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, on Oct. 28.

In after-hours trading, the company's shares were not trading at a usable price as of the filing.

Revenue has risen in each of the last three quarters, from $202.7 million to $258.2 million, according to its SEC filings.