AEHR Test Systems FY2026 10-K: Revenue Slides 15% to $50M and Net Loss Widens to $7.1M, but Backlog Surges to $80.6M and Cash Hits $116.5M After $97M ATM Raise
AEHR has more than doubled off its 52-week low of $15.94.
Summary
AEHR Test Systems filed its FY2026 10-K, reporting a 15% revenue decline to $50M and a net loss of $7.1M, but ending the year with a record $80.6M backlog and $116.5M in cash after fully utilizing its $100M ATM program.
Key Events · Earnings and Guidance · AEHR
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FY2026 Revenue Down 15%, Net Loss of $7.1M
Revenue fell to $50.0M from $59.0M, driven by a $19.9M drop in wafer-level contactor sales due to soft EV demand. Net loss was $7.1M vs. a $3.9M loss last year. Gross margin compressed to 35.3% from 40.6% on higher costs and tariffs.
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Record Backlog of $80.6M Signals Demand Rebound
Backlog surged to $80.6M from $15.2M a year ago, driven by record Q4 bookings of $60.7M. This suggests a sharp revenue inflection ahead, particularly in silicon photonics and AI-related test systems.
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$97.4M Raised via ATM, Fully Utilizing $100M Program
The company sold 1.94M shares through its ATM at an average price of ~$50.14, raising $97.4M net. The program is now fully utilized. Cash and equivalents ended the year at $116.5M, up from $26.5M.
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No Going Concern, Clean Audit Opinion
The auditor issued a clean opinion. No material weaknesses in internal controls, no restatements, and no going concern language. Deferred tax assets of $23.8M remain fully realizable per management.
Analysis · AEHR · Industrial Applications And Services
AEHR's annual report reveals a challenging year, with revenue falling 15% to $50 million and a net loss of $7.1 million, driven by softness in EV power semiconductor demand. Yet the company ended the year with a record backlog of $80.6 million—more than five times the prior year—and a fortified balance sheet carrying $116.5 million in cash after raising $97.4 million through its at-the-market program. The ATM was fully utilized, diluting shareholders but providing ample runway. There is no going concern warning, no material weaknesses, and no restatements. The fiscal year-end is changing to June 30, which will shift reporting periods. The stock has rallied sharply from its fiscal-year lows, and the massive backlog suggests a potential revenue inflection, but the recent insider selling pattern and the dilutive ATM raise temper the outlook.
At the time of this filing, AEHR was trading at $77.00 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $15.94 to $126.62. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.