0001437749-26-004339
SEC filingCohu's FY25 revenue grew 12.7% to $453.0M, driven by AI/mobile demand, but gross margin contracted to 42.7% on product mix and restructuring charges.
Cohu, Inc. describes itself as a global supplier of equipment and services that optimize semiconductor manufacturing yield and productivity. Founded in 1947, the company provides a differentiated and broad product portfolio that enables optimized yield and productivity, accelerating customers' manufacturing time-to-market. Cohu's recurring revenue consists of interface products, services, spares, upgrades, configuration tooling, and software analytics, which complement systems revenue driven by customer capital expenditure. The company's active equipment installed base exceeds 25,000 systems, serving over 280 high-volume manufacturing facilities across 108 customers in 31 countries.
Cohu operates as a single reportable segment: Semiconductor Test and Inspection Equipment. This segment encompasses all of the company's product lines, including test automation, inspection and metrology, semiconductor ATE, interface solutions, software analytics, and services. Financial information for this segment is included in Note 11 of the Form 10-K. During fiscal 2025, semiconductor test and inspection systems (including kits) represented 40% of consolidated net sales, while recurring revenues (interface products, spares, kits not part of system sales, software, and services) represented 60%.
Cohu's product portfolio is organized into several key lines. Test automation products include equipment and systems that automate movement of semiconductor devices, control temperature during test, and optimize throughput, using innovative active thermal management (ATC) technology. Inspection and metrology equipment provides advanced quality inspection of molded leaded and leadless devices, post-singulated WLCSP, and bare dies, utilizing deep learning and pattern recognition. Semiconductor ATE consists of an instrumentation and universal platform for testing devices in RF, digital, mixed signal, and power management applications. Interface solutions include test contactors and power probe cards that provide the electrical interface between test equipment and the device. Software analytics products include an AI-driven digital twin platform using machine learning and the proprietary DTQL® scripting language. Services include device applications, spares, board repair, and service agreements.
Cohu markets its solutions globally through a direct sales organization and technical marketing managers, supported by targeted independent representatives. The company's customer base includes Integrated Device Manufacturers (IDMs), Outsourced Semiconductor Assembly and Test (OSATs), and fabless semiconductor companies. During fiscal 2023, STMicroelectronics represented 12.0% of consolidated net sales; no customer exceeded 10% in fiscal 2024 or 2025. The company continues to strengthen its regional presence across Asia-Pacific, Europe, and the U.S.
Cohu operates in a highly competitive market characterized by rapid technological change, cyclical demand, and a concentrated customer base. Primary competitors include Advantest, Teradyne, Hon Precision, KLA, and other Asia-based manufacturers. The company differentiates through its broad integrated product portfolio, significant R&D investments, proprietary technologies in active thermal control and machine learning-based process control, a resilient recurring revenue model, strategic partnerships, and a large global field service organization.
Cohu's strategy is centered on innovation, with substantial R&D investments in product development. The company is capitalizing on high-growth opportunities in HBM inspection, high-performance processor test for AI applications, mixed signal devices, SiC and GaN wide bandgap test, and AI-driven software analytics. Key strategic pillars include accelerating growth in high-performance computing and physical AI applications, expanding relationships with major customers and leading OSATs, and growing service and recurring revenue business. The company also pursues strategic partnerships, targeted acquisitions, and disciplined capital allocation.
As of December 27, 2025, Cohu employed approximately 2,857 people across 25 countries, including about 80 temporary employees. Roughly 15% of employees are based in the Americas, 10% in Europe, and 75% in Asia-Pacific. The company is committed to fostering a safe, inclusive, and high-performance workplace, with policies supporting freedom of association and collective bargaining in accordance with local laws. Cohu provides competitive compensation and benefits, including management incentive programs, equity incentive plans, global profit sharing, and an Employee Stock Purchase Plan. The company also conducts formal annual succession planning and has a Leadership Development Program.
Cohu's net sales for fiscal year 2025 increased 12.7% year-over-year to $453.0 million, up from $401.8 million in fiscal 2024. The growth was primarily driven by stronger demand for mobile and AI-based computing applications, which helped offset ongoing weakness in automotive, industrial, and consumer segments due to macroeconomic headwinds. Gross margin declined to 42.7% from 44.9% in the prior year, pressured by an unfavorable product mix of systems delivered and a one-time $3.3 million charge related to the decision to end manufacturing of certain products. Net excess and obsolete inventory charges increased to $7.5 million from $5.4 million. Research and development expense rose to $92.2 million (20.4% of sales) from $84.8 million (21.1% of sales), reflecting higher material costs for new product development and $3.9 million in incremental costs from the Tignis acquisition. Selling, general and administrative expense decreased to $123.6 million (27.3% of sales) from $128.0 million (31.9% of sales), driven by cost control initiatives and restructuring savings, partially offset by $1.8 million in Tignis-related costs and $0.4 million in transaction costs. Amortization of purchased intangible assets was $37.5 million, down from $39.1 million. Restructuring charges totaled $10.1 million in fiscal 2025, compared to an immaterial amount in the prior year, related to a global restructuring program initiated in February 2025. Net loss widened to $74.3 million from $69.8 million, impacted by lower gross margin, higher restructuring costs, and increased interest expense of $2.1 million (up from $0.6 million) due to the issuance of convertible notes in September 2025.
Cohu operates as a single reportable segment, Semiconductor Test & Inspection, which aggregates three operating segments: Test Handler (TH), Semiconductor Tester (ST), and Interface Solutions (IS). The company does not disclose revenue or operating income at the operating segment level. However, the annual goodwill impairment test as of October 1, 2025, revealed that the IS reporting unit had limited headroom, meaning its fair value only narrowly exceeded carrying value, making it susceptible to future impairment if assumptions change. The IS unit represents 39% of total goodwill. In contrast, the TH and ST reporting units had substantially greater headroom. The acquisition of Tignis on January 7, 2025, added AI process control software capabilities, but its net sales were not material to the consolidated results.
Management's outlook is cautiously optimistic, citing growing demand for semiconductor testing and inspection used in AI data centers as a key long-term driver. The company believes its long-term market drivers remain intact, supported by increasing semiconductor complexity, quality demands, test intensity, automation, and smart manufacturing initiatives. Near-term headwinds persist from higher cost of capital, slowing demand, and elevated inventory levels, particularly in automotive, industrial, and consumer segments. The global restructuring program initiated in February 2025 is designed to improve profitability while maintaining investment in product development. The company repurchased 432,288 shares for $8.6 million in fiscal 2025, with $22.8 million remaining under its share repurchase program. Management expects existing liquidity to be sufficient for at least the next 12 months, though additional capital may be sought for acquisitions or capital expenditures.
Cash and equivalents are not explicitly stated in notes, but notes reveal short-term investments of $256.9M (marketable securities) and total debt of $305.1M. Inventory stood at $129.0M. Deferred revenue totaled $15.3M. The company issued $287.5M convertible notes in Q3 FY2025, significantly increasing leverage. Goodwill of $283M includes a 39% allocation to IS reporting unit with limited headroom, posing impairment risk.
Unsatisfied performance obligations for contracts over one year were $5.1M. Debt principal payments schedule (excluding finance leases) shows $11.1M due in 2026, $1.2M in 2027, etc., with $289.7M after 2030, primarily the convertible notes. No other material purchase commitments were disclosed.
Share repurchases totaled $8.6M (432,288 shares) in FY2025, with $22.8M remaining under the program. No dividends paid. Debt increased by $296.3M net, primarily from the $287.5M convertible notes issuance, partially offset by repayment of construction loans? Actually net increase is from $8.8M to $305.1M. The company also spent $31.4M on capped call transactions to reduce dilution. Capital expenditures are not disclosed in notes.
The notes state that the company has three operating segments (TH, ST, IS) but they are aggregated into one reportable segment, Semiconductor Test & Inspection. Therefore, no segment-level financials are presented in the notes. Geographic mix is also not disclosed in notes.
No cash flow statement data is available in the provided document excerpt. The text includes only the balance sheet, income statement, comprehensive income, and stockholders' equity. The consolidated statements of cash flows are referenced on page 52 but are not reproduced. Therefore, no analysis of operating cash flow, capital expenditures, or free cash flow can be performed. Note that the income statement shows net losses of $(74.3M) and $(69.8M) for 2025 and 2024, respectively, which may indicate negative cash generation, but without the cash flow statement, confirmation is lacking.