Short answer
AEHR TEST SYSTEMS (AEHR) filed its fiscal 2026 10-K annual report with the SEC on Jul 27, 2026. It reported revenue of $50M (−15.2% year over year) and net income of −$7M.
- Top risk flagged: Trade policy risk: U.S. tariffs under International Emergency Economic Powers Act invalidated Feb 2026, but other tariffs remain, raising costs and disrupting operations
FY2026 key financial metrics · XBRL
- Revenue
- $50M
- −15.2% YoY
- Net income
- −$7M
- −82.3% YoY
- Operating margin
- -28.3%
- −18.7 pp YoY
- Gross margin
- 35.3%
- −5.3 pp YoY
- EPS (diluted)
- −$0.23
- −76.9% YoY
- ROE
- -3.2%
- −0.1 pp YoY
- Operating cash flow
- −$3M
- +55.3% YoY
Source: XBRL data from the AEHR TEST SYSTEMS (AEHR) FY2026 10-K on SEC EDGAR. USD.
AEHR TEST SYSTEMS FY2026 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
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