10-Q · May 5, 2026
Ichor Holdings reported Q1 2026 results with revenue of $256.1 million, slightly above estimates, and an EPS of $0.15, outperforming expectations by 36%. The results indicate a recovery in operations as both gross and…
Earnings analysis · 10-Q
ICHR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Ichor delivered a strong operating recovery in Q2: revenue increased 22.7% year over year to $294.8 million, gross margin expanded 260 bps to 13.9%, and GAAP EPS turned positive at $0.03 versus a negative $0.28 loss a…
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Ichor delivered a strong operating recovery in Q2: revenue increased 22.7% year over year to $294.8 million, gross margin expanded 260 bps to 13.9%, and GAAP EPS turned positive at $0.03 versus a negative $0.28 loss a year ago. The balance sheet was fortified by a $195.4 million ATM raise, lifting cash to $256.5 million, but the first half generated negative $18.8 million operating cash flow as working capital absorbed cash. Management remains constructive on semiconductor-equipment demand, but identifies tariffs, export controls and geopolitical uncertainty as potential constraints.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.03
What stood out
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Revenue rose 22.7% year over year
Q2 net sales were $294.8 million, up $54.5 million, or 22.7%, from $240.3 million in Q2 2025, driven by higher customer demand associated with semiconductor-capacity expansion and advanced process technologies. Sales also rose from $256.1 million in Q1 2026.
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Margins returned decisively to profit
GAAP gross margin expanded 260 basis points year over year to 13.9% from 11.3%, and operating margin improved to 2.4% from negative 2.0%. Management cited lower employee costs relative to revenue (+130 bps), nonrecurrence of prior-year restructuring charges (+80 bps), and factory overhead leverage (+50 bps).
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GAAP profitability restored
GAAP net income was $1.0 million, or $0.03 diluted EPS, versus a $9.4 million loss and negative $0.28 EPS a year earlier. Non-GAAP diluted EPS improved to $0.34 from negative $0.01.
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ATM equity raise materially increased cash
Liquidity strengthened substantially: cash and equivalents ended at $256.5 million, up $158.2 million from December 26, 2025, following $195.4 million of net proceeds from issuing approximately 2.5 million ordinary shares at an average $80.70 per share.
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Restructuring largely completed
The geographic footprint rationalization and restructuring plan was substantially completed in Q2. However, Q2 GAAP operating income of $7.2 million excluded $2.7 million of restructuring-plan costs in the company's non-GAAP presentation.
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No segment-level sales disclosure
No reportable segment revenue breakdown was disclosed in the filing. The company reported consolidated sales of $294.8 million and attributed growth to its semiconductor capital-equipment markets, particularly etch and deposition.
What to watch
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Working-capital build drove negative operating cash flow
Cash used in operating activities was $18.8 million in the first six months of 2026, compared with $11.5 million of cash provided in the prior-year period. Management attributed the decline principally to $42.9 million of unfavorable changes in operating assets and liabilities amid higher production and sales activity.
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Elevated effective tax rate constrained earnings
Despite $7.2 million of Q2 GAAP operating income, tax expense was $4.4 million on $5.4 million of pretax income, producing an 81.6% effective tax rate and limiting Q2 GAAP net income to $1.0 million. The filing cites the end of the Singapore tax holiday, jurisdictional earnings mix, foreign taxes, and a U.S. deferred-tax-asset valuation allowance.
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Restructuring charges remain material
The company recorded $2.7 million of Q2 restructuring-plan costs, including $1.3 million of fixed-asset charges and $0.9 million of right-of-use asset impairment. These costs remain a drag on GAAP earnings even though the plan was substantially completed in Q2.
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No formal risk-factor updates; trade risks persist
Item 1A states that the filing should be read with the 2025 Form 10-K risk factors and identifies no new or revised risk factors; therefore, there were 0 disclosed risk-factor updates versus the annual filing. Management nevertheless specifically flags volatile trade conditions, potential tariffs, and export controls affecting China as risks to costs, pricing, demand and supply chains.
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Equity financing increased share count
The June ATM issuance added approximately 2.5 million ordinary shares, while Q2 non-GAAP diluted EPS used 36.3 million diluted shares versus 34.2 million a year earlier. The equity-funded cash increase therefore carries dilution risk for existing holders.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that long-term semiconductor-equipment and product demand is expected to grow, while noting trade, tariff, export-control and geopolitical uncertainty.
Earlier filings 4
10-K · February 20, 2026
Ichor reported full-year revenue of $947.7 million in 2025, up from $849.0 million in 2024 and $811.1 million in 2023, driven by semiconductor OEM demand. Despite top-line growth, GAAP results deteriorated with a net…
10-Q · August 5, 2025
Ichor reported Q2 net sales of $240,285 (in thousands) versus $203,227 in Q2 2024, but GAAP profitability and cash flow deteriorated. Gross profit rose in dollars to $27,202 (Q2 2025) but gross margin compressed to…
10-K · February 21, 2025
Ichor positions itself as a specialized, engineering‑led supplier of gas and chemical fluid delivery subsystems that engages early with OEM customers and operates a capital‑efficient, geographically proximate…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.