0001628280-26-027952
SEC filingUltra Clean Holdings reported Q1 2026 revenue of $533.7 million with non-GAAP EPS of $0.31, while issuing Q2 guidance projecting revenue growth to a range of $565-$605 million.
Ultra Clean Holdings reported Q1 2026 financial results that exceeded the midpoint of the company's prior guidance, driven by broad-based demand across its customer base. Total revenue increased to $533.7 million, up from $506.6 million in the prior quarter. The Products division contributed $465.7 million, while Services added $68.0 million. CEO James Xiao highlighted that accelerated technology roadmaps from customers signal the early stages of a multi-year, AI-driven expansion, positioning the company for sustained growth.
Profitability metrics showed mixed results. GAAP net loss widened to $(17.9) million, or $(0.40) per diluted share, compared to a net loss of $(3.3) million in the prior quarter. The increased GAAP loss was primarily driven by a $19.2 million provision for income taxes and significant restructuring charges of $4.8 million. However, on a non-GAAP basis, the company demonstrated improved operational performance, with net income rising to $14.5 million, or $0.31 per diluted share, compared to $10.0 million, or $0.22 per share, in the prior quarter. Non-GAAP gross margin expanded to 16.5% from 16.1%, and non-GAAP operating margin improved to 5.1% from 4.9%.
The balance sheet reflects significant financing activity during the quarter. The company issued $600.0 million in convertible notes and utilized proceeds to repay $462.0 million in bank borrowings and repurchase $40.0 million of common stock. Consequently, long-term debt increased to $601.9 million, while cash and cash equivalents rose to $323.5 million. Operating cash flow was negative $(33.3) million, largely due to a $91.0 million increase in inventories as the company prepares for anticipated demand.
Looking ahead, management provided Q2 2026 guidance projecting revenue between $565 million and $605 million, indicating continued sequential growth. The company expects non-GAAP diluted EPS to range between $0.44 and $0.60, signaling further margin expansion and profitability improvements as the AI-driven cycle gains momentum.