AEHR TEST SYSTEMS (AEHR) FY2026 10-K Annual Report
AEHR TEST SYSTEMS (AEHR) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
AEHR TEST SYSTEMS FY2026 10-K Analysis
Business Overview
- • Core business: provider of test, burn-in, and stabilization systems for semiconductor wafers, die, and packages focusing on reliability and quality assurance
- • New emphasis on AI market with High Power FOX-XP system and Sonoma Ultra high-power package level burn-in acquired in fiscal 2025
- • Strategic shift: expanded package level offerings via Sonoma, Tahoe, Echo platforms acquired in fiscal 2025, diversifying beyond wafer-level test
- • Quantitative highlight: backlog increased to $80.6M as of May 29, 2026, from $15.2M the prior year, showing strong order growth
- • Noteworthy fact: EV and power semiconductor revenues declined to 17% of total in FY26 from 92% in FY24, signaling market mix shift
Management Discussion & Analysis
- • Revenue $50.0M, down 15.2% YoY from $58.97M, decline driven by $19.9M lower wafer-level contactor sales, partially offset by $10.4M increase in wafer-level burn-in systems
- • Gross margin 35.3% vs 40.6% prior year, decrease of 5.3 points due to higher assembly, warranty costs, freight, and tariffs
- • Best performing segment: wafer-level burn-in systems, +$10.4M in revenue; worst: wafer-level contactors, -$19.9M
- • Cash and equivalents $116.5M vs $26.5M prior year; operating cash flow negative $3.3M vs negative $7.4M; $97.4M net proceeds from ATM equity offering in fiscal 2026
- • Management expects return to profitability in fiscal 2027; key risk from continued softness in electric vehicle semiconductor demand and evolving trade/tariff policies impacting costs and margins
Risk Factors
- • Trade policy risk: U.S. tariffs under International Emergency Economic Powers Act invalidated Feb 2026, but other tariffs remain, raising costs and disrupting operations
- • Geopolitical exposure: 59% of net sales fiscal 2026 outside U.S.; tensions involving U.S., China, Taiwan risk sales, supply, and market access
- • Supply chain vulnerability: Sole-source suppliers for critical FOX system components risk delays; qualifying new suppliers could be lengthy
- • Competitive threat: FOX and Sonoma systems face competition from larger manufacturers and captive suppliers in Asia with greater resources
- • Customer concentration risk: Top 5 customers accounted for ~70% net sales fiscal 2026; loss or order deferral by key customers could materially hurt revenue
AEHR TEST SYSTEMS FY2026 Key Financial MetricsXBRL
Revenue
$50M
▼ -15.2% YoY
Net Income
-$7M
▼ -82.3% YoY
Gross Margin
35.3%
▼ -529bp YoY
Operating Margin
-28.3%
▼ -1867bp YoY
Net Margin
-14.3%
▼ -762bp YoY
ROE
-3.2%
▼ -6bp YoY
Total Assets
$247M
▲ +66.1% YoY
EPS (Diluted)
$-0.23
▼ -76.9% YoY
Operating Cash Flow
-$3M
▲ +55.3% YoY
Source: XBRL data from AEHR TEST SYSTEMS FY2026 10-K filing on SEC EDGAR. All figures in USD.
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