10-Q · May 8, 2026
SkyWater Technology reported a robust 162% increase in revenue to $160.7 million for Q1 2026, driven largely by its SkyWater Texas segment and the acquisition of Fab 25. Despite the significant revenue growth, the…
Earnings analysis · 10-Q
SKYT earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
This filing excerpt does not include current-quarter revenue, margins, EPS, balance-sheet totals or cash-flow figures, so quarterly operating trends cannot be independently assessed. The main disclosure is that controls…
Read full summary
This filing excerpt does not include current-quarter revenue, margins, EPS, balance-sheet totals or cash-flow figures, so quarterly operating trends cannot be independently assessed. The main disclosure is that controls remained ineffective as of June 28, 2026 due to 2 material weaknesses, despite ERP migration and other remediation activity. Financial risk is also elevated by the $192.3 million variable-rate Revolver at 8.0%, with a 100-basis-point rate increase estimated to add $1.9 million of annual interest expense. No quantitative guidance was provided.
What stood out
-
Financial statements affirmed as fairly presented
Management stated that the condensed consolidated financial statements for the three-month periods ended June 28, 2026 and June 29, 2025 fairly present the company’s position, results and cash flows in conformity with GAAP.
-
Fab 25 ERP remediation advanced
SkyWater completed the migration of Fab 25 to its existing ERP system in February 2026 and expected to conclude the transition services agreement in mid-2026, bringing accounting processes fully under company control.
What to watch
-
Two unresolved material weaknesses
Disclosure controls were deemed ineffective as of June 28, 2026 because of 2 material weaknesses: the revenue accounting process and Fab 25 account reconciliation processes. Management cannot conclude remediation is complete until testing is performed throughout fiscal year 2026.
-
Variable-rate debt and interest exposure
The Revolver balance was $192.3 million at June 28, 2026 and carried an 8.0% variable interest rate. A 100-basis-point rate increase would raise annual interest expense by $1.9 million.
-
Remediation timing remains uncertain
The company’s remediation plans require sustained execution and testing throughout fiscal year 2026, and management stated that additional measures or time may be required before the 2 control deficiencies are fully addressed.
Management's outlook
The filing provides no quantitative revenue or EPS guidance and does not disclose a revised outlook.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.