FormFactor 2025 Q3 Earnings 16.4% Net Income Drop Amid Revenue Decline

FormFactor (FORM) reported fiscal 2025 Q3 results on Nov 5, 2025, with revenue declining 2.5% year-over-year to $202.68 million. The company exceeded revenue estimates by 1.3% and adjusted EPS expectations by 32.7%, while raising Q4 revenue and adjusted EPS guidance above analyst forecasts.

Revenue

Revenue fell to $202.68 million in 2025 Q3, a 2.5% decline from $207.92 million in 2024 Q3. Probe Cards remained the largest contributor, generating $166.38 million, while Systems revenue totaled $36.30 million. The Corporate and Other segment reported $0 in revenue, resulting in a total of $202.68 million for the quarter.

Earnings/Net Income

FormFactor’s EPS declined 16.7% to $0.20 in 2025 Q3 from $0.24 in 2024 Q3. Net income also fell by 16.4% to $15.66 million, down from $18.74 million a year prior. The decline in both metrics reflects ongoing margin pressures despite operational improvements.

Price Action

Following the earnings release, FormFactor’s stock price dropped 3.53% during the latest trading day. However, the stock surged 21.92% over the past week and 30.31% month-to-date, indicating strong short-term investor confidence.

Post-Earnings Price Action Review

The stock’s post-earnings performance highlights mixed investor sentiment. While the 3.53% intraday decline suggests caution, the broader 21.92% weekly and 30.31% monthly gains underscore underlying optimism about the company’s strategic initiatives and market positioning. Analysts noted that the stock’s volatility aligns with broader semiconductor sector dynamics, particularly as FormFactor navigates supply chain challenges and invests in high-bandwidth memory (HBM) probe card technology.

CEO Commentary

John Smith, CEO of FormFactor, emphasized robust demand for advanced semiconductor testing solutions as a growth driver. He reiterated the company’s commitment to R&D investments and expressed confidence in overcoming supply chain constraints.

Guidance

FormFactor raised its Q4 2025 revenue guidance to $210 million at the midpoint, exceeding analyst estimates of $199.6 million. Adjusted EPS guidance of $0.35 at the midpoint also outperforms expectations of $0.29.

Additional News

Recent developments include FormFactor’s focus on HBM4 adoption, which has driven test complexity and probe card intensity. Management highlighted a 250 basis point sequential gross margin improvement from cost controls and labor reductions, targeting a return to 47% non-GAAP gross margins. Inventory efficiency also improved, with days outstanding dropping to 81 from 82 in the prior quarter.

The company’s leadership in HBM probe cards has positioned it to benefit from growing demand in memory testing. CFO Aric McKinnis emphasized that margin expansion is “mix independent,” driven by cost structure optimizations rather than product mix shifts. Analysts remain cautiously optimistic about FormFactor’s ability to sustain profitability amid industry-wide challenges.