"We see significant potential to expand our packaged part test and burn-in business in the rapidly growing AI semiconductor market with our ultra-high power Sonoma product line."
— Gayn Erickson
03Detailed Report
AEHR
Aehr Test Systems
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
In the second quarter of fiscal 2025, Aehr Test Systems (NASDAQ: AEHR) reported revenues of $13.5 million, a 37% decline compared to $21.4 million in the same period last year. The decline is attributed to challenges in the silicon carbide market and a push towards diversification in AI and gallium nitride testing. Despite the decrease in revenue, significant operational advancements and customer engagement led to a notable increase in demand for their high-margin WaferPaks, accounting for 64% of total revenue this quarter.
Management is optimistic about future growth driven by the rapidly expanding AI semiconductor sector and successful market penetration efforts for new product lines, particularly AI processors, which they expect could comprise 40% of total revenue this fiscal year. The company remains cautious about the ongoing geopolitical and trade risks in the market, particularly in its dealings with China, where competitive pressures are escalating.
Key Performance Indicators
Revenue
Decreasing
13.45M
QoQ: 2.55% | YoY: -37.23%
Gross Profit
Decreasing
5.40M
40.14% margin
QoQ: -23.71% | YoY: -50.72%
Operating Income
Decreasing
-1.51M
QoQ: -1 051.57% | YoY: -127.67%
Net Income
Decreasing
-1.03M
QoQ: -255.76% | YoY: -116.88%
EPS
Decreasing
-0.03
QoQ: -252.86% | YoY: -116.52%
Revenue Trend
Margin Analysis
Financial Highlights
Aehr Test Systems reported significant financial metrics for Q2 2025, with a revenue of $13.5 million, cost of revenue at $8.053 million, resulting in a gross profit of $5.447 million and a gross profit margin of 40.4%. The net income for the quarter stood at a loss of $1.028 million with an EPS of -$0.0347. Operationally, the company faced a gross margin contraction from 51.6% in Q2 2024 to 45.3% in Q2 2025, influenced by a product mix shift post-Incal acquisition. Despite a strong balance sheet, with cash and equivalents of $35.2 million at quarter-end, operational cash flow remains negative at -$5.9 million as the company invests in growth opportunities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.45M
-37.23%
2.55%
Gross Profit
5.40M
-50.72%
-23.71%
Operating Income
-1.51M
-127.67%
-1 051.57%
Net Income
-1.03M
-116.88%
-255.76%
EPS
-0.03
-116.52%
-252.86%
Key Financial Ratios
Gross Profit Margin
Good
40.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.11%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.08%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
7.55
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.05
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-85.76x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
2.86x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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