SkyWater Technology Reports Mixed Q4 2025 Results Amidst Pending Acquisition
SKYT has more than doubled off its 52-week low of $5.67 on light trading volume (0.3× avg).
Summary
SkyWater Technology announced Q4 and full fiscal year 2025 results, showing strong revenue growth from the Fab 25 acquisition but a notable decline in Q4 profitability due to increased costs, all while its acquisition by IonQ for $35.00 per share is pending.
Key Events · Earnings and Guidance · SKYT
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Strong Q4 2025 Revenue Growth
Total consolidated revenue for the fourth quarter of 2025 increased 127% year-over-year to $171.0 million, primarily driven by the acquisition of Fab 25. Legacy SkyWater revenue also increased 9% year-over-year.
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Q4 2025 Profitability Decline
GAAP gross margin decreased significantly to 14.9% in Q4 2025 from 25.6% in Q4 2024. The GAAP net loss to shareholders widened to $(7.8) million, or $(0.16) per diluted share, compared to a net loss of $(0.7) million in the prior year, attributed to higher tooling installation costs.
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Full Fiscal Year 2025 Performance
SkyWater Technology reported record revenues of $442.1 million for fiscal year 2025, a 29% increase from fiscal year 2024. GAAP net income to shareholders was $118.9 million, or $2.44 per diluted share, largely benefiting from a bargain purchase gain related to the Fab 25 acquisition.
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Pending Acquisition by IonQ
The company reiterated the definitive agreement for IonQ to acquire SkyWater for $35.00 per share in a cash-and-stock transaction, which is expected to close in the second or third quarter of 2026, subject to shareholder and regulatory approvals.
Analysis · SKYT · Manufacturing
SkyWater Technology reported strong top-line growth for both Q4 and the full fiscal year 2025, largely driven by the acquisition of Fab 25. However, Q4 profitability saw a significant decline, with GAAP gross margin falling and net loss widening due to higher-than-expected costs for tooling installations in Florida. While the full fiscal year showed GAAP net income, this was primarily due to a one-time bargain purchase gain from the Fab 25 acquisition, with non-GAAP net income remaining very low. The company also reiterated its pending acquisition by IonQ for $35.00 per share, which provides a significant premium to the current stock price and remains the primary market driver.
At the time of this filing, SKYT was trading at $29.35 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $5.67 to $36.27. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.