Aehr Test Systems: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 8 January 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell from prior year: Second-quarter revenue was $9.9 million, against $13.5 million a year earlier and $11.0 million in the first quarter of fiscal 2026. Source
• GAAP loss widened versus last year: Non-GAAP net loss was $(1.3) million, or $(0.04) per diluted share, against non-GAAP net income of $0.7 million a year earlier. The figure excludes stock-based compensation, acquisition-related items and restructuring. Source
• Bookings and backlog for the quarter: Bookings were $6.2 million in the quarter. Backlog at November 28, 2025 was $11.8 million; effective backlog including later bookings was $18.3 million. Source
• Sonoma orders after quarter-end: Orders for Sonoma ultra-high-power PPBI systems from multiple customers since quarter-end total more than $5.5 million, above all Sonoma orders in the second quarter. Source
• Lead WLBI customer adds capacity: The lead wafer-level burn-in customer for AI processors asked for more capacity this fiscal year and plans to transition to the automatic WaferPak aligner for 300mm wafers. Source
• Lead PPBI customer forecasts growth: The lead packaged-part burn-in customer for AI processors keeps ramping and forecasts substantial growth in 2026 and beyond. Aehr has also received a substantial forecast for AI ASIC capacity. Source
• Silicon photonics production ramp firmed: The lead silicon photonics customer has firmed its production ramp, with production starting early in fiscal 2027. Source
• Non-GAAP gross profit declined: Non-GAAP gross profit was $2.95 million in the quarter, against $6.10 million a year earlier. Cost of revenue was $7.3 million. Source

“While second quarter revenue was softer than anticipated, we made significant progress in both wafer-level burn-in (WLBI) and packaged-part burn-in (PPBI) segments”

Gayn Erickson, President and CEO of Aehr Test Systems

Guidance

What changed from last quarter

• New guidance: Formal guidance for the second half of fiscal 2026 was reinstated. The prior release had said formal guidance was not yet reinstated. Source
• New: A newly introduced next-generation fully automated Sonoma platform received initial orders from a Silicon Valley lab. Source
• New: Aehr announced a strategic partnership with ISE Labs to deliver wafer-level test and burn-in services for HPC and AI applications. Source

Quarterly results and profitability

• Revenue fell from prior year: Second-quarter revenue was $9.9 million, against $13.5 million a year earlier and $11.0 million in the first quarter of fiscal 2026. Source
• GAAP loss widened versus last year: Non-GAAP net loss was $(1.3) million, or $(0.04) per diluted share, against non-GAAP net income of $0.7 million a year earlier. The figure excludes stock-based compensation, acquisition-related items and restructuring. Source
• Six-month revenue lower year on year: Six-month revenue was $20.9 million against $26.6 million. The six-month GAAP net loss was $(5.3) million, or $(0.18) per diluted share. Source

Bookings, backlog and cash

• Bookings and backlog for the quarter: Bookings were $6.2 million in the quarter. Backlog at November 28, 2025 was $11.8 million; effective backlog including later bookings was $18.3 million. Source
• Sonoma orders after quarter-end: Orders for Sonoma ultra-high-power PPBI systems from multiple customers since quarter-end total more than $5.5 million, above all Sonoma orders in the second quarter. Source
• Cash balance rose in quarter: Cash, cash equivalents and restricted cash was $31.0 million at November 28, 2025, up from $24.7 million at August 29, 2025. Operating cash use was $1.5 million for six months. Source

“The progress we made this quarter with a significant number of customer engagements and production installations provides improved visibility into future demand.”

Gayn Erickson, President and CEO of Aehr Test Systems

AI processor programs and customers

• Lead WLBI customer adds capacity: The lead wafer-level burn-in customer for AI processors asked for more capacity this fiscal year and plans to transition to the automatic WaferPak aligner for 300mm wafers. Source
• Two more AI benchmarks requested: Two other AI companies asked for benchmark evaluations of wafer-level testing as an alternative to system-level or packaged-part test. Source
• Lead PPBI customer forecasts growth: The lead packaged-part burn-in customer for AI processors keeps ramping and forecasts substantial growth in 2026 and beyond. Aehr has also received a substantial forecast for AI ASIC capacity. Source
• Sonoma wins for HTOL qualification: Sonoma won new device wins for high-temperature operating life qualification, which management expects to add capacity at test houses. Source

Segments and markets

• Silicon photonics production ramp firmed: The lead silicon photonics customer has firmed its production ramp, with production starting early in fiscal 2027. Source
• Flash memory benchmark completed: A WLBI benchmark with a global flash memory leader was completed. Management says FOX-XP can serve as a cost-effective alternative to traditional packaged-part test for memory. Source
• High Bandwidth Flash test proposed: Aehr proposed a solution for testing High Bandwidth Flash, which management believes represents a new industry standard, with further updates to come. Source
• Data-center silicon photonics demand: Management says silicon photonics for data centers appears to be emerging as a significant driver of demand for WLBI systems. A second large customer's forecast has been finalized. Source
• Expansion into new markets: Progress across AI processors, gallium nitride, data storage, silicon photonics and flash memory expands the addressable market and customer base, management says. Source

Costs, margins and gross profit

• Non-GAAP gross profit declined: Non-GAAP gross profit was $2.95 million in the quarter, against $6.10 million a year earlier. Cost of revenue was $7.3 million. Source
• Research spending rose: Research and development expense was $3.0 million, compared with $2.3 million a year earlier. SG&A was $4.4 million, against $4.6 million. Source
• Restructuring produced a net credit: Restructuring charges were a net credit of $213 thousand in the quarter, primarily from a lease early termination, plus employee termination benefits from a separate initiative. Source
• Income tax benefit recorded: The income tax benefit was $1.2 million in the quarter and $2.0 million for the six months. Source

Capital, shares and cash use

• Public offering added cash: A public offering of common stock brought in $9.4 million net of issuance costs in the six months, shown within financing cash flows. Source
• Share count rose: Common shares outstanding were 30,624 thousand at November 28, 2025, up from 29,877 thousand at May 30, 2025. Source
• Investing outflows rose: Net cash used in investing activities was $3.7 million for six months, including $1.9 million of property and equipment purchases and $1.8 million for a business acquisition payment. Source
• Shares withheld for taxes: Shares repurchased to cover tax withholdings on restricted stock unit vesting used $0.8 million for the six months. Source

Coming up, as management said on 8 January 2026

• Benchmark data collection this quarter: Data collection for the custom high-power WaferPak benchmark with a top-tier AI processor supplier is expected to finish this quarter. Source
• Sonoma production transition later this year: At least one HTOL customer plans to move to production later this calendar year, which management expects to generate significant system demand. Source
• Silicon photonics orders possible in 2026: Management says the silicon photonics ramp could drive orders in calendar 2026 for delivery in late 2026 to early 2027. Source
• AI ASIC shipments begin fiscal 2027: Requested shipments of AI ASIC production capacity begin in the first quarter of fiscal 2027, which management expects to add to fiscal 2026 bookings. Source

Risks management discussed

• Demand: Management notes that lead AI ASIC demand is a customer forecast, with no purchase order received yet. Source
• Demand: Revenue has been concentrated in silicon carbide for electric vehicles over the last two years, which management cites in discussing diversification. Source
• Operational: Wafer-level benchmark evaluations typically take about six months, which sets the timing of new AI programs. Source

Earlier plans management reported on

• Not stated: Management refers back to the generative AI and electrification macro trends it described in the prior quarter. Source

Other quarters

• Q1 FY2027 earnings call
• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q1 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.