FormFactor, Inc. reported second-quarter fiscal 2025 revenues of $195.8 million, exceeding the high end of its outlook range and representing a 14.3% sequential increase. However, non-GAAP earnings per diluted share were $0.27, falling short of the consensus estimate of $0.30.
Non-GAAP gross margin for the quarter was 38.5%, which also fell short of the company's outlook, primarily due to an unfavorable product mix and unforecasted ramp-up costs for a second HBM DRAM customer. Free cash flow for the quarter was negative $47.1 million, largely driven by $47.7 million in higher capital expenditures, including the Farmers Branch facility investment.
For the third quarter of 2025, FormFactor anticipates revenues of $200 million, plus or minus $5 million, with a non-GAAP gross margin of 40%, plus or minus 150 basis points, and non-GAAP earnings per diluted share of $0.25, plus or minus $0.04. The company also noted a one-time tax impact from the 'One Big Beautiful Bill' (OBBB) Act, resulting in an approximate 31% effective tax rate for Q3.
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