Aehr Test Systems (AEHR) Q1 2026 Financial Results Summary
Release Date: October 6, 2025
Aehr Test Systems (NASDAQ: AEHR), a prominent provider of semiconductor test and burn-in equipment, reported its financial results for the first quarter of fiscal 2026, ending August 29, 2025. Below is a comprehensive summary of the key financial metrics and developments from the report.
Financial Highlights
- Net Revenue:
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$11.0 million, down 15.9% from $13.1 million in Q1 of fiscal 2025.
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GAAP Net Loss:
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$(2.1) million, or $(0.07) per diluted share, compared to GAAP net income of $0.7 million, or $0.02 per diluted share in Q1 of fiscal 2025.
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Non-GAAP Net Income:
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$0.2 million, or $0.01 per diluted share, a significant decrease of 90.9% from non-GAAP net income of $2.2 million, or $0.07 per diluted share in the same quarter last year.
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Bookings:
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Total bookings for the quarter were $11.4 million.
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Backlog:
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As of August 29, 2025, backlog was $15.5 million. Effective backlog, which includes bookings received after the quarter, was $17.5 million.
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Total Cash Position:
- Cash, cash equivalents, and restricted cash totaled $24.7 million, down from $26.5 million on May 30, 2025.
Comparison with Previous Q1 (Fiscal 2025)
- Revenue:
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Decreased by $2.1 million (15.9%).
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Net Loss:
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Increased by $2.8 million, switching from a profit of $0.7 million to a loss of $2.1 million.
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Non-GAAP Net Income:
- Decreased by $2.0 million (90.9%).
Operational Updates
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The company has seen strong activity in AI and data center-related semiconductor testing, which is expected to open multi-year market opportunities.
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Key customer engagements led to multiple follow-on volume production orders, particularly for the Sonoma ultra-high-power packaged part burn-in systems and consumables.
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Notably, Aehr introduced significant upgrades to the Sonoma system, enhancing capabilities to handle higher power requirements and improving automation processes, receiving positive feedback from customers.
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The company delivered the world’s first production wafer level burn-in (WLBI) systems for AI processors, showcasing their capabilities at premier OSAT facilities.
Dividends and Share Repurchase
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Quarterly Dividend: No quarterly dividend was declared for the first quarter of fiscal 2026.
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Share Repurchase: Shares were repurchased to withhold taxes on vesting of restricted stock units; $328,000 spent on repurchases compared to $162,000 in the same period last year.
Outlook
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Despite uncertainties due to ongoing tariff issues, the management expressed optimism about broad-based order growth across most served markets.
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Emerging markets such as silicon carbide and others could see increased demand in the second half of fiscal 2026.
Conclusion
Aehr Test Systems aims to leverage its technology advancement in the growing semiconductor market, particularly driven by demands from AI and high-performance computing sectors. Earnings significantly fell in this quarter compared to the previous fiscal year, highlighting challenges that the company is navigating in a competitive landscape. Detailed guidance for the future remains cautiously optimistic.
For further details, a management conference call will be hosted today at 5:00 p.m. Eastern (2:00 p.m. PT) to discuss these financial results.
AEHR TEST SYSTEMS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended | |||
|---|---|---|---|
| August 29, 2025 | May 30, 2025 | August 30, 2024 | |
| Revenue | $10,969 | $14,089 | $13,119 |
| Cost of revenue | $7,250 | $9,817 | $6,041 |
| Gross profit | $3,719 | $4,272 | $7,078 |
| Operating expenses: | |||
| Research and development | |||
| Selling, general and administrative | |||
| Restructuring charges | |||
| Total operating expenses | $7,785 | $7,476 | $6,919 |
| Income (loss) from operations | $219 | $864 | $- |
| Interest income, net | $4,717 | $3,926 | $4,558 |
| Other income (expense), net | $2,849 | $2,686 | $2,361 |
| Income (loss) before income tax expense (benefit) | $(4,066) | $(3,204) | $159 |
| Income tax expense (benefit) | $179 | $222 | $681 |
| Net income (loss) | $(2,084) | $(2,899) | $660 |
| Net income (loss) per share: | |||
| Basic | $(0.07) | $(0.10) | $0.02 |
| Diluted | $(0.07) | $(0.10) | $0.02 |
| Shares used in per share calculations: | |||
| Basic | 29,923 | 29,823 | 29,107 |
| Diluted | 29,923 | 29,823 | 29,632 |
AEHR TEST SYSTEMS CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
| August 29, 2025 | May 30, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $22,708 | $24,529 |
| Accounts receivable | $13,055 | $14,191 |
| Inventories | $41,842 | $41,997 |
| Prepaid expenses and other current assets | $6,447 | $8,061 |
| Total current assets | $84,052 | $88,778 |
| Property and equipment, net | $9,001 | $8,969 |
| Goodwill | $10,719 | $10,719 |
| Intangible assets, net | $10,439 | $10,781 |
| Deferred tax assets, net | $19,875 | $19,114 |
| Operating lease right-of-use assets, net | $9,422 | $9,601 |
| Other non-current assets | $584 | $546 |
| Total assets | $144,092 | $148,508 |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $3,380 | $6,728 |
| Accrued expenses and other current liabilities | $6,509 | $6,020 |
| Operating lease liabilities, short-term | $905 | $909 |
| Deferred revenue, short-term | $1,119 | $1,981 |
| Total current liabilities | $11,913 | $15,638 |
| Operating lease liabilities, long-term | $9,710 | $9,921 |
| Deferred revenue, long-term | $35 | $36 |
| Other long-term liabilities | $40 | $42 |
| Total liabilities | $21,698 | $25,637 |
| Shareholders equity: | ||
| Common stock, $0.01 par value: | ||
| Authorized: 75,000 shares; Issued and outstanding: | $300 | $299 |
| Additional paid-in capital | $147,333 | $145,758 |
| Accumulated other comprehensive loss | $(95) | $(126) |
| Accumulated deficit | $(25,144) | $(23,060) |
| Total shareholders’ equity | $122,394 | $122,871 |
| Total liabilities and shareholders equity | $144,092 | $148,508 |
