Cohu 2025 Q3 Earnings Narrowed Losses and Strong Revenue Growth

Cohu (COHU) reported fiscal 2025 Q3 results, with revenue of $126.25 million beating estimates and a significant reduction in net losses. The company’s Q4 guidance reflects cautious optimism amid strategic shifts toward AI-driven markets.

Revenue

Cohu’s total revenue surged 32.4% year-over-year to $126.25 million, driven by robust demand for mobile and AI computing applications. Systems revenue stood at $56.24 million, while non-systems revenue contributed $70 million, reflecting a balanced growth trajectory. The 32.4% increase underscores the company’s ability to capitalize on recurring revenue streams and strategic product innovations.

Earnings/Net Income

The company narrowed its net loss to $4.10 million, or $0.09 per share, in Q3 2025, a 77.3% improvement from a $18.06 million loss in the prior-year period. This marked progress highlights effective cost control and operational restructuring, though the EPS remains negative, indicating ongoing challenges to profitability.

Post-Earnings Price Action Review

The stock experienced mixed price action post-earnings, with a 3.99% decline in the latest trading day but a 7.03% weekly gain and an 18.35% monthly surge. While short-term volatility persists, the broader 18.35% monthly climb suggests investor confidence in Cohu’s AI and semiconductor test solutions.

CEO Commentary

CEO Luis Müller emphasized “recurring revenue growth and advancements in semiconductor test and inspection,” noting strategic investments in cutting-edge technologies. He highlighted the company’s position in AI-driven markets and operational efficiency gains, signaling long-term confidence.

Guidance

Cohu expects Q4 2025 sales of $122 million ± $7 million, reflecting a slight seasonal slowdown. The guidance excludes specific earnings metrics but aligns with the company’s focus on AI expansion and recurring revenue.

Additional News

1. Convertible Notes Offering: Cohu completed a $287.5 million convertible notes offering in Q4, providing capital for strategic initiatives and limiting shareholder dilution.

2. Leadership Expansion: Matthew Hutton was appointed Vice President of Strategy, focusing on M&A and partnerships to accelerate growth.

3. Product Innovations: The firm launched the Neon HBM inspection system and Eclipse test handler, targeting AI data centers, with early customer traction reported.

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The company’s financials show a 43.8% gross margin, down from 46.8% in the prior year, attributed to product mix and manufacturing costs. Operating losses improved to 7.7% from 16.5%, reflecting cost discipline.