Cohu Inc. Reports Mixed Financial Results for Fourth Quarter 2025

Cohu reported net sales of $122.2 million for the fourth quarter of 2025, marking a 30% increase year-over-year from $94.1 million in Q4 2024. Despite this growth in sales, the company also reported a GAAP net loss of $22.5 million, equating to $0.48 per share. This loss was significantly larger than the loss of $4.1 million or $0.09 per share reported in the previous quarter (Q3 2025).

For the entire fiscal year 2025, Cohu recorded net sales of $453.0 million, an increase from $401.8 million in 2024. However, the full-year GAAP net loss surged to $74.3 million, or $1.59 per share, compared to a loss of $69.8 million or $1.49 per share in 2024.

When looking at non-GAAP results, the fourth quarter net loss was $7.2 million, or $0.15 per share, while the full year non-GAAP net loss stood at $10.1 million, or $0.22 per share. This comparison indicates a less severe financial impact than the GAAP results, highlighting the importance of evaluating performance through both measures.

Cohu’s President and CEO, Luis Müller, commented on the results, stating, “Cohu delivered Q4 revenue of $122 million, up 30% year over year, supported by improving market fundamentals with estimated test cell utilization increasing to 76% in December.” He emphasized the significant growth in recurring revenue, which was up 25% year-over-year, driven by strong demand across various segments including services, interface solutions, and handler-related spares.

Müller also highlighted the company’s robust design-win momentum across various applications such as automotive ADAS (Advanced Driver Assistance Systems), power devices, computing AI, and HBM (High Bandwidth Memory) inspection metrology solutions.

Looking ahead, Cohu anticipates first quarter 2026 sales to be in the range of $122 million plus or minus $7 million, indicating a stable yet cautious outlook in the near term.

As of the end of the fourth quarter, Cohu reported total cash and investments of $484.0 million. The company had recently issued $287.5 million in 1.50% Convertible Senior Notes due in 2031, which provided approximately $246.7 million in net proceeds after costs.

Notably, Cohu did not repurchase any shares of its common stock during the fourth quarter, which may suggest a focus on maintaining liquidity amid the financial challenges faced during the year.

Cohu’s fourth quarter results present a mixed picture for investors, with significant growth in sales tempered by larger-than-expected losses. The company’s strong recurring revenue and positive market indicators offer some optimism, but the overall financial performance highlights the challenges faced in a volatile semiconductor industry. As Cohu navigates these complexities, its forthcoming strategies and market position will be crucial for restoring investor confidence and achieving sustainable growth in 2026.