0001652535-25-000078
SEC filingRevenue rose 13% YoY, but GAAP net loss widened to $22.9M due to $16.7M restructuring costs; non-GAAP net income down 43%.
In Q3 2025, Ichor Holdings reported net sales of $239.3 million, a 13.3% increase from $211.1 million in the same quarter last year, driven by stronger demand from semiconductor capital equipment customers. However, GAAP gross margin fell dramatically to 4.6% from 13.2%, primarily due to $16.7 million in inventory write-offs associated with the Consolidation Restructuring Plan initiated during the quarter. Gross profit declined 60.2% to $11.1 million. Operating expenses rose 8.2% to $30.5 million, led by higher selling, general, and administrative costs (up 11.3% to $22.5 million) that included restructuring and facility shutdown expenses. Consequently, GAAP operating loss widened to $19.4 million from $0.4 million, and net loss expanded to $22.9 million ($(0.67) per share) from $2.8 million ($(0.08) per share). On a non-GAAP basis, excluding restructuring, share-based compensation, and amortization, gross margin was 12.1% (down from 13.6%), operating margin was 2.2% (down from 3.0%), and net income fell to $2.3 million ($0.07 per share) from $4.0 million ($0.12 per share). For the nine-month period, revenue increased 17.6% to $724.0 million, but GAAP net loss was $36.8 million versus $16.9 million, with non-GAAP net income of $7.6 million versus $3.1 million.
The MD&A does not provide disaggregated segment revenue or profit data. Ichor operates as a single reportable segment, supplying fluid delivery subsystems and components to semiconductor capital equipment OEMs. Revenue growth was broad-based, reflecting increased etch and deposition equipment spending. The company also serves commercial aerospace, defense, and medical device markets, but these are not separately quantified.
Management anticipates overall semiconductor equipment spending in 2025 to grow over 2024 levels, particularly in etch and deposition. However, uncertainty persists from global trade tensions, potential tariff expansions, and U.S. export controls on advanced semiconductor technology. Ichor believes long-term demand drivers remain intact, including increasing semiconductor capacity and advanced process technologies. The Consolidation Restructuring Plan is expected to generate cost savings but will continue to weigh on near-term margins. No specific quantitative guidance was provided. The company believes its cash, credit facilities, and operating cash flow are sufficient for at least the next 12 months.
As of September 26, 2025, Ichor Holdings held $92.5 million in cash and cash equivalents, a decrease from $108.7 million at December 27, 2024. Total assets were $966.6 million, with inventory of $241.7 million (net of $36.1 million excess/obsolescence and $16.7 million impairment). Total debt stood at $123.5 million (net of unamortized issuance costs), including $125.0 million term loan principal and no revolver borrowings. Shareholders' equity was $676.2 million, down from $698.3 million due to net losses.
The notes disclose no purchase commitments or contractual obligations beyond lease obligations. Operating lease liabilities total $39.7 million, with future payments of $2.7 million for remainder of 2025, $11.6 million in 2026, $10.7 million in 2027, and declining thereafter. No other material commitments were reported.
Ichor did not repurchase shares or pay dividends during the period. The company amended its credit agreement on September 26, 2025, resulting in net debt reduction of $4.4 million (proceeds $57.0 million, repayments $61.4 million). Capital expenditures were $32.9 million for the nine months, representing 4.55% of net sales. Share-based compensation totaled $12.6 million.
The company operates as a single business segment. Note 11 provides geographic sales breakdown: Singapore contributed $113.9 million (47.6% of total), United States $75.1 million (31.4%), Europe $22.8 million (9.5%), and other $27.4 million (11.5%) in Q3 2025. Foreign long-lived assets were $72.3 million as of September 26, 2025.