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FORM's Q3 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise

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Key Takeaways

  • FormFactor posted Q3 earnings of $0.33 per share, beating estimates by 32%.
  • Revenues of $202.7 million exceeded forecasts but slipped 2.5% year over year.
  • Guidance calls for Q4 revenues near $210 million and earnings around 35 cents per share.

FormFactor (FORM - Free Report) reported third-quarter 2025 non-GAAP earnings of 33 cents per share, comfortably surpassing the Zacks Consensus Estimate by 32%. The bottom line decreased 5.7% year over year. Shares were up 23.5% at the time of writing this article. 

Revenues of $202.7 million beat the Zacks Consensus Estimate by 1.31% but decreased 2.5% year over year.

FORM’s Segmental Revenue Details

Probe card revenues were $166.4 million, down 3.4% year over year. The decrease was driven by lower Foundry & Logic revenues. Foundry & Logic revenues (45.8% of the total revenues) were $92.9 million, down 13.6% year over year. DRAM revenues (33.6% of the total revenues) were $68.2 million, up 13.3% year over year. Flash revenues (2.6% of the total revenues) were $5.3 million, up 17.8% year over year. 

Systems revenues (17.9% of the total revenues) were $36.3 million, up 1.7% year over year.
 

FormFactor, Inc. Price, Consensus and EPS Surprise

FormFactor, Inc. Price, Consensus and EPS Surprise

FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote

 

Revenues generated from South Korea, Japan, Malaysia, Singapore and the Rest of the World increased 69.8%, 40.7%, 9.4%, 80% and 14.3%, respectively, year over year. However, revenues from the United States, Taiwan, China and Europe declined 33.8%, 2.1%, 66.1% and 5.1%, respectively, year over year.

FORM’s Operating Results

In the third quarter of 2025, the gross margin contracted 110 basis points (bps) year over year to 41%.

Non-GAAP operating expenses decreased 8% year over year to $54.6 million. As a percentage of revenues, operating expenses were down 160 bps year over year to 26.9%.

The non-GAAP operating margin improved 50 bps year over year to 14.1%.

FormFactor’s Balance Sheet & Cash Flow

As of Sept. 27, 2025, cash and cash equivalents, and marketable securities were $266 million compared with $249.3 million as of June 28, 2025.

Cash generated from operating activities was $27 million in the reported quarter, up from $18.9 million in the previous quarter. Free cash flow was $19.7 million.

FORM Offers Optimistic Q3 Guidance

FORM expects third-quarter 2025 revenues of $210 million (+/- $5 million). The Zacks Consensus Estimate for revenues is currently pegged at $199.43 million, suggesting 5.3% growth over the figure reported in the year-ago quarter.

The company expects a non-GAAP gross margin of 42% (+/- 1.5%). 

On a non-GAAP basis, FORM expects earnings of 35 cents (+/- 4 cents) per share. The Zacks Consensus Estimate for earnings is currently pegged at 28 cents per share, suggesting 3.7% growth over the figure reported in the year-ago quarter.

FormFactor’s Zacks Rank & Stocks to Consider

FormFactor currently carries a Zacks Rank #3 (Hold).

Cirrus Logic (CRUS - Free Report) , Fair Isaac (FICO - Free Report) and CoreWeave (CRWV - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Cirrus Logic shares have returned 31.9% year to date. CRUS is scheduled to release second-quarter fiscal 2026 results on Nov. 4. Cirrus Logic sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Fair Isaac shares have dropped 21.3% year to date. This Zacks Rank #1 company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. 
 
CoreWeave shares have surged 249.9% since its initial public offering. CRWV is set to report its third-quarter 2025 results on Nov. 10. CoreWeave currently has a Zacks Rank #2 (Buy). 

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