Onto Innovation Achieves Record Fourth Quarter and Full-Year Revenue for 2025, Projects Continued Growth in 2026

Fourth Quarter and Full-Year Revenue Reach New Highs

Onto Innovation (NYSE: ONTO) ended 2025 with notable momentum, setting records both for quarterly and annual revenue. The company reported Q4 2025 revenue of $266.87 million—up 1.1% from Q4 2024—and total 2025 revenue of $1.01 billion, a 1.8% increase year-over-year.

These new highs coincided with key strategic moves, including the acquisition of product lines from Semilab International, and strong traction for its next-generation Dragonfly® inspection platform amid a global AI-driven upcycle in semiconductor spending. The company also closed a $240 million multi-year purchase agreement with a leading HBM memory manufacturer, positioning it well for continued growth.

Profit Margins Mixed, but Non-GAAP Strength Shines Through

While revenue hit records, profit margins showed a split picture. GAAP gross and operating margins softened year-over-year, pressured by acquisition and restructuring costs. However, on a non-GAAP basis—which strips out these non-recurring items—Onto Innovation maintained robust profitability. Notably, Q4 2025 non-GAAP gross margin was 54.6%, almost unchanged from the prior year, and non-GAAP operating margin stood at 25.2% for the quarter and 25.4% for the full year.

GAAP net income fell to $10.53 million for the quarter ($0.21 per diluted share), down from $48.82 million last year. In contrast, non-GAAP net income was $62.26 million for Q4 ($1.26 per share), compared to $74.83 million in Q4 2024. The table below highlights key GAAP and non-GAAP financial measures for Q4 and the full year:

Financial Position Remains Solid After Acquisition Activity

Despite a significant outlay to acquire Semilab product lines, Onto Innovation ended Q4 2025 with $639.62 million in cash and short-term investments, down from $852.33 million a year before. The company generated $95 million in operating cash flow during the fourth quarter—a testament to its ability to convert strong revenue into liquidity even as it invests in growth.

Shareholders’ equity rose to $2.10 billion from $1.93 billion at the end of 2024, signaling continued value creation for investors. Goodwill and intangibles, up sharply due to the acquisition, reached $942.11 million on the balance sheet at year end.

2026 Outlook Signals Acceleration in Revenue and Margins

Looking ahead, Onto Innovation is forecasting a strong start to 2026. Q1 2026 revenue is projected between $275 million and $285 million, with non-GAAP gross margin anticipated between 54.6% and 55.6%, and non-GAAP operating margin expected at 25.5%–26.5%. Non-GAAP diluted EPS is expected in the range of $1.26–$1.36, in line with recent quarterly performance.

Strategic Leverage in Key Growth Markets

Onto Innovation’s CEO highlighted ongoing momentum fueled by AI-driven demand and semiconductor capital spending, with products increasingly tailored to advanced packaging, nodes, and specialty devices. The Dragonfly® 2D and 3D metrology platforms and deep customer engagement underpin management’s confidence in outpacing sector growth through 2026 and beyond.

Investors tracking sector leaders in semiconductor capital equipment may want to watch Onto Innovation’s upcoming webcast and future quarterly reports. The company’s forward-looking commentary and healthy financial outlook add to its positioning in one of the market’s highest growth areas. For details, its webcast and call replay will remain available for a year at www.ontoinnovation.com.

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