Aehr Test Systems 2025 Q4 Earnings Misses Targets as Net Income Plummets 112%

Aehr Test Systems (AEHR) reported its fiscal 2025 Q4 earnings on July 28th, 2025. The company faced a challenging quarter, with revenue declining significantly and a shift from profitability to a net loss. The quarterly revenue of $14.09 million fell short of expectations, as did the quarterly earnings. Despite these setbacks, Aehr Test Systems maintained its guidance for the fiscal year ending May 30, 2025, projecting total revenue of at least $70 million and a non-GAAP net profit before taxes of at least 10% of revenue.

Revenue
Aehr Test Systems saw a 15.1% decline in total revenue for Q4 2025, dropping to $14.09 million from $16.60 million in Q4 2024, reflecting challenges in maintaining growth momentum.

Earnings/Net Income
The company moved from a profit of $0.82 per share in the prior year to a loss of $0.10 per share in Q4 2025, resulting in a net loss of $2.90 million. This represents a 112.1% decline in net income from the previous year, indicating a challenging financial quarter.

Price Action
The stock price of Aehr Test Systems dropped 4.89% during the latest trading day, surged 27.11% over the most recent full trading week, and increased 79.18% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing AEHR stock when it surpasses revenue expectations and holding it for 30 days has historically delivered remarkable returns, achieving an impressive 631.22% return and significantly outperforming the benchmark return of 88.74%. The excess return of 542.49% underscores substantial gains relative to the market. With a compound annual growth rate (CAGR) of 49.15%, the strategy demonstrates strong compounding effectiveness. Although the strategy experienced a high maximum drawdown of 96.19%, it remarkably registered a maximum drawdown of 0.00% during the backtest period, suggesting effective risk management.

CEO Commentary
Gayn Erickson, President and CEO of Aehr Test Systems, highlighted fiscal 2025 as a transformative year with significant strides in expanding the company's addressable market and diversifying its customer base. He noted the successful launch of the first production wafer-level burn-in system for AI processors, showcasing the effectiveness and cost benefits of their solutions. Erickson expressed optimism about securing more AI customers and acknowledged progress in gallium nitride (GaN) semiconductors and hard disk drive markets. Despite challenges in the silicon carbide sector, he maintained a positive outlook for long-term growth across diverse markets.

Guidance
Aehr Test Systems reaffirmed its guidance for the fiscal year ending May 30, 2025, projecting total revenue of at least $70 million and a non-GAAP net profit before taxes of at least 10% of revenue. Management anticipates order growth across most market segments, though they remain cautious about potential delays due to tariff-related uncertainties, particularly affecting the silicon carbide sector.

Additional News
In recent weeks, Aehr Test Systems has seen significant developments beyond its earnings report. The company announced the strategic acquisition of Incal Technology, which enhances its capabilities in the packaged part testing market for AI processors. This acquisition positions Aehr as a comprehensive provider of reliability and testing solutions in the rapidly expanding AI market. Additionally, Aehr successfully secured a major order from a leading hyperscaler for its high-power FOX-XP wafer-level test and burn-in systems. This order underscores Aehr's successful diversification efforts and strengthens its foothold in the growing AI segment. Furthermore, the company has been actively exploring new markets, such as gallium nitride power semiconductors and silicon photonics, further broadening its growth prospects.