olivLaw · US equity research
FormFactor, Inc. FORM
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
FormFactor provides electrical and optical test and measurement technologies for the semiconductor industry, especially probe cards for memory and advanced logic chips. In the second quarter of 2026 revenue reached a record 258.2 million USD, driven by demand tied to artificial intelligence infrastructure, which makes the company relevant to investors and sector analysts.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, FormFactor, Inc. (FORM) stock was 85.24 USD (−11.93% on the day), with market capitalisation 6.7 bn USD, P/E 38.9 on diluted EPS of 2.19 USD over the last 12 months, beta 2.36, 52-week range 48.68–159.93 USD. Latest reported quarter (Q3 2026): revenue of 280.5 m USD (+38.4% YoY), net income of 73.8 m USD (+371.5% YoY), diluted EPS 0.93 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 35.6
- weak (30–45)
- Bollinger (20, 2)
- 77.30 – 139.64
- in the lower half of the band · %B 0.13 · band width 57.5%
- SMA 50 / 200
- 115.03 / 114.25
- mixed trend
- MACD (12, 26, 9)
- -9.03 / -6.71
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −42.4% | −1.1% | −41.3 pp | — |
| 3 months | −25.5% | −0.5% | −25.1 pp | — |
| 6 months | −42.8% | +4.4% | −47.2 pp | — |
| Year to date | +52.8% | +12.3% | +40.5 pp | — |
| 1 year | +64.8% | +13.5% | +51.3 pp | +35.9% |
| 3 years | +153.2% | +76.4% | +76.8 pp | +34.4% |
| 5 years | +91.9% | +63.7% | +28.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 26 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 189.5 m | 171.4 m | 195.8 m | 202.7 m | 215.2 m | 226.1 m | 258.2 m | 280.5 m |
| Cost of revenue | 115.9 m | 106.8 m | 122.9 m | 122.1 m | 124.4 m | 139.4 m | 127.3 m | 127.2 m |
| Gross profit | 73.6 m | 64.5 m | 72.9 m | 80.6 m | 90.8 m | 86.8 m | 130.9 m | 153.4 m |
| Research & development | 30.5 m | 27.8 m | 28.8 m | 28.7 m | 30.4 m | 30.8 m | 31.1 m | 29.5 m |
| SG&A | 35.2 m | 33.5 m | 31.5 m | 33.0 m | 35.2 m | 32.3 m | 37.2 m | 35.9 m |
| Operating income | 7.9 m | 3.3 m | 12.3 m | 18.0 m | 23.5 m | 16.6 m | 57.8 m | 81.6 m |
| Interest expense | — | 99.0 k | — | — | — | — | — | — |
| Pre-tax income | 11.9 m | 7.5 m | 14.9 m | 20.4 m | 26.5 m | 19.3 m | 60.7 m | 84.8 m |
| Income tax | 2.2 m | 1.1 m | 2.4 m | 5.9 m | 3.6 m | 396.0 k | 6.7 m | 13.1 m |
| Net income | 9.7 m | 6.4 m | 9.1 m | 15.7 m | 23.2 m | 20.4 m | 56.2 m | 73.8 m |
| Diluted EPS | 0.12 ≈ | 0.08 | 0.12 | 0.20 | 0.29 ≈ | 0.26 | 0.71 | 0.93 |
| Operating cash flow | 35.9 m | 23.5 m | 18.9 m ≈ | 27.0 m ≈ | 46.0 m | 45.0 m | 61.8 m ≈ | 104.3 m ≈ |
| Capex | 7.7 m | 18.6 m | 66.3 m ≈ | 7.5 m ≈ | 11.3 m | 15.2 m | 9.6 m ≈ | 39.6 m ≈ |
| Share repurchases | 16.1 m | 22.1 m | 2.5 m ≈ | 1.7 m ≈ | 0 | 0 | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 47 percentile of its own 36-quarter history (min 10.2, median 39.4, max 112.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 529.7 m | 589.5 m | 693.6 m | 769.7 m | 747.9 m | 663.1 m | 763.6 m | 785.0 m |
| Revenue YoY | −3.4% | +11.3% | +17.7% | +11.0% | −2.8% | −11.3% | +15.2% | +2.8% |
| Net income | 104.0 m | 39.3 m | 78.5 m | 83.9 m | 50.7 m | 82.4 m | 69.6 m | 54.4 m |
| Net income YoY | +154.3% | −62.2% | +99.6% | +6.9% | −39.5% | +62.4% | −15.5% | −21.9% |
| Diluted EPS | 1.38 | 0.51 | 0.99 | 1.06 | 0.65 | 1.05 | 0.89 | 0.69 |
| Diluted EPS YoY | +150.9% | −63.0% | +94.1% | +7.1% | −38.7% | +61.5% | −15.2% | −22.5% |
| net % | 19.6% | 6.7% | 11.3% | 10.9% | 6.8% | 12.4% | 9.1% | 6.9% |
| Free cash flow | 48.8 m | 100.2 m | 113.4 m | 72.9 m | 66.5 m | 8.6 m | 79.1 m | 11.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 27 Dec 2025
- Cash
- 103.3 m USD
- Financial debt
- 12.2 m USD
- Net debt
- -91.1 m USD
- Equity
- 1.0 bn USD
- Total assets
- 1.2 bn USD
- Debt / equity
- 0.01x
- Current ratio
- 4.50x
- ROE
- 5.5%
- ROA
- 4.6%
- FCF margin
- 1.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 693.6 m | 769.7 m | 747.9 m | 663.1 m | 763.6 m | 785.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Cost of revenue | 405.7 m | 446.9 m | 451.9 m | 404.5 m | 455.7 m | 476.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Gross profit | 287.9 m | 322.8 m | 296.0 m | 258.6 m | 307.9 m | 308.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Research & development | 89.0 m | 100.9 m | 109.2 m | 115.8 m | 121.9 m | 115.7 m | SEC (XBRL)· 20 Feb 2026verified |
| SG&A | 115.1 m | 123.8 m | 131.9 m | 133.0 m | 141.8 m | 133.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Operating income | 83.8 m | 98.0 m | 54.9 m | 82.8 m | 64.8 m | 57.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Interest expense | 864.0 k | 602.0 k | 579.0 k | 421.0 k | 418.0 k | 521.0 k | SEC (XBRL)· 20 Feb 2026verified |
| Pre-tax income | 85.2 m | 98.5 m | 57.9 m | 89.3 m | 79.4 m | 69.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Income tax | 6.7 m | 14.6 m | 7.1 m | 6.9 m | 9.8 m | 13.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Net income | 78.5 m | 83.9 m | 50.7 m | 82.4 m | 69.6 m | 54.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Diluted EPS | 0.99 | 1.06 | 0.65 | 1.05 | 0.89 | 0.69 | SEC (XBRL)· 20 Feb 2026verified |
| Weighted average diluted shares | 79.0 m | 79.1 m | 78.2 m | 78.2 m | 78.4 m | 78.3 m | SEC (XBRL)· 20 Feb 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 187.2 m | 151.0 m | 109.1 m | 177.8 m | 190.7 m | 103.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Receivables | 107.6 m | 115.5 m | 88.1 m | 103.0 m | 104.3 m | 125.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Inventories | 99.2 m | 111.5 m | 123.2 m | 111.7 m | 101.7 m | 110.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Current assets | 487.1 m | 524.0 m | 474.6 m | 573.8 m | 605.1 m | 557.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Property, plant & equipment, net | 104.1 m | 146.6 m | 189.8 m | 204.4 m | 210.2 m | 259.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Goodwill | 212.8 m | 212.3 m | 211.4 m | 201.1 m | 199.2 m | 216.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Intangibles (excl. goodwill) | 59.1 m | 36.3 m | 26.8 m | 12.9 m | 10.4 m | 16.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Total assets | 963.2 m | 1.0 bn | 1.0 bn | 1.1 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Accounts payable | 62.0 m | 57.9 m | 69.3 m | 63.9 m | 62.3 m | 47.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Short-term debt | 9.5 m | 8.9 m | 1.0 m | 1.1 m | 1.1 m | 1.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Long-term debt | 25.0 m | 15.4 m | 14.4 m | 13.3 m | 12.2 m | 11.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Current liabilities | 154.6 m | 148.8 m | 149.7 m | 131.1 m | 131.3 m | 123.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Total liabilities | 219.1 m | 204.7 m | 199.9 m | 198.0 m | 198.4 m | 189.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Equity | 744.1 m † | 815.8 m † | 808.3 m † | 908.8 m † | 947.8 m † | 1.0 bn † | SEC (XBRL)· 20 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 169.3 m | 139.4 m | 131.8 m | 64.6 m | 117.5 m | 115.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Capex | 55.9 m | 66.5 m | 65.3 m | 56.0 m | 38.4 m | 103.7 m | SEC (XBRL)· 20 Feb 2026verified |
| Free cash flow | 113.4 m ≈ | 72.9 m ≈ | 66.5 m ≈ | 8.6 m ≈ | 79.1 m ≈ | 11.7 m ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Investing cash flow | -98.9 m | -124.7 m | -75.7 m | 29.0 m | -33.5 m | -191.5 m | SEC (XBRL)· 20 Feb 2026verified |
| Financing cash flow | -30.9 m | -47.2 m | -95.9 m | -22.7 m | -64.6 m | -13.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Share repurchases | 0 | 24.0 m | 82.3 m | 19.8 m | 53.3 m | 26.2 m | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 42 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation47
- Returns33
- Quality51
- Balance sheet100
- Growth15
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 30.16 – 164.00 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)30.16 – 44.84 (Mid 35.89)WACC 9.3% · starting FCFF 181.7 m USD · terminal value share of EV 72%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales44.25 – 164.00 (Mid 73.59)26 companies used · median multiple 5.8x · quartiles 3.4x – 13.0xAAOI, ADI, ALGM, AMAT, AMD, AVGO, FSLR, GFS, ICHR, INTC, JKS, MCHP, MRAM, MRVL, MTSI, MU, NVDA, NXPI, ON, PENG, Q, QUIK, SPCB, TE, TXN, WOLF
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 42/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 47.1% | 18 (on a fixed band) | 11% |
| EBIT margin · Quality | 18.3% | 68 (vs peers) | 9% |
| FCF margin · Quality | 18.5% | 74 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 1.6% | 6 (on a fixed band) | 18% |
| Revenue growth (YoY) · Growth | 2.8% | 31 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.7x | 100 (on a fixed band) | 7% |
| EV/Sales · Valuation | 6.7x | 41 (vs peers) | 18% |
| FCF yield · Valuation | 2.7% | 54 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 0.0% | 33 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth15/100 · 2/2 factors with a value
- Quality51/100 · 3/3 factors with a value
- Returns33/100 · 1/1 factors with a value
- Valuation47/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
FormFactor, Inc. (FORM). Latest full fiscal year: 2025; data up to 2026-09-26.
Figures computed from the financial statements: revenue 785.0 m USD in 2025; YoY growth 2.8%; net margin 17.7%; ROE 15.9%.
The estimated value range is 37.20–104.42 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 54.74 USD, the price of 85.24 USD leaves a potential of -35.8% (value / price − 1) and a margin of safety of -55.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF margin: 18.5%
- Current ratio: 3.7x
What contradicts it
- Gross margin: 47.1%
- Revenue CAGR 3Y: 1.6%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA.
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NVDANvidia Corp | 4,823.1 bn | 25.3 | 117.2% | 63.7% | +65.5% | +13% / +328% |
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +85% / +104% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
| ONOn Semiconductor Corp | 27.7 bn | 41.4 | 8.9% | 10.8% | −15.3% | +42% / −0% |
| CRDOCredo Technology Group Holding Ltd | 25.7 bn | 48.7 | 30.7% | 33.8% | +205.7% | −23% / +662% |
| QQnity Electronics, Inc. | 24.8 bn | 42.0 | 7.6% | 11.5% | +9.7% | +46% / unavailable |
| GFSGLOBALFOUNDRIES Inc. | 22.4 bn | 25.4 | 7.8% | 13.0% | +0.6% | +13% / −25% |
| FSLRFirst Solar, Inc. | 20.9 bn | 11.3 | 18.7% | 37.1% | +24.1% | −29% / +23% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 17.8 bn | 74.6 | 17.2% | 20.7% | +32.6% | +33% / +178% |
| RMBSRambus Inc | 8.9 bn | 34.1 | 19.6% | 33.4% | +27.1% | −13% / +23% |
| FORMFormFactor, Inc. | 6.7 bn | 38.9 | 15.9% | 17.7% | +2.8% | +65% / +153% |
| ALGMAllegro Microsystems, Inc. | 5.8 bn | 209.1 | 3.2% | 3.1% | +22.8% | +17% / +15% |
| AAOIApplied Optoelectronics, Inc. | 5.0 bn | — | -5.4% | -9.6% | +82.8% | +121% / +347% |
| HIMXHimax Technologies, Inc. | 3.6 bn | 80.3 | 4.9% | 5.3% | −8.2% | +38% / +83% |
| KLICKulicke And Soffa Industries, Inc. | 3.6 bn | 31.5 | 13.2% | 12.2% | −7.4% | +52% / +33% |
1- and 3-year price returns: for FORM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 49.49 Total return -42% · Per year -42% | 87.62 Total return 3% · Per year 3% | 132.15 Total return 55% · Per year 55% |
| 3 years | 45.29 Total return -47% · Per year -19% | 90.49 Total return 6% · Per year 2% | 150.24 Total return 76% · Per year 21% |
| 5 years | 41.46 Total return -51% · Per year -13% | 93.45 Total return 10% · Per year 2% | 170.80 Total return 100% · Per year 15% |
- Exit P/E± 22.62
- Net margin± 15.84
- Annual revenue growth± 13.37
- Annual dilution± 1.33
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 10-Q (03 Nov 2026), 8-K (28 Oct 2026 · results).
In brief
FormFactor provides electrical and optical test and measurement technologies for the semiconductor industry, especially probe cards for memory and advanced logic chips. In the second quarter of 2026 revenue reached a record 258.2 million USD 3, driven by demand tied to artificial intelligence infrastructure, which makes the company relevant to investors and sector analysts.
SWOT
Strengths
- The company holds a leading position in combined electrical and optical testing and a broad portfolio from lab to production 1.
- The ability to build probe cards with tens of thousands of simultaneous contacts gives a technical advantage that is hard to replicate 1.
- Improved gross margins in 2026 point to stronger operational execution 3.
Weaknesses
- Revenue depends heavily on probe cards and a few large customers, which increases exposure to fluctuations 1.
- The company often lacks a backlog large enough to cover its quarterly targets, which makes revenue difficult to forecast 1.
- Restructuring and factory expansion have created high start-up costs in the current period 2.
Opportunities
Threats
- Export controls and trade tensions could restrict sales to certain countries, including China 1.
- The semiconductor industry is cyclical, and a drop in customer investment could quickly affect revenue 1.
- Competitors with larger resources could cut prices or launch technologies that reduce the value of the company's products 1.
Risks
- Customer concentrationhigh
A small number of customers account for a significant share of revenue, and losing or delaying orders from one of them could hurt results 1.
- Industry cyclicalityhigh
Downturns in the semiconductor industry can sharply reduce customer spending, directly affecting margins and revenue 1.
- Export controlsmedium
Export regulations and tariffs could limit access to certain markets and may lead to sanctions 12.
- Restructuring executionmedium
Consolidating factories and moving production could delay deliveries or raise costs if the plan does not follow its schedule 2.
- Supplier dependencelow
Some components come from a single vendor, and their shortage could slow production 1.
Investment thesis
What would need to be true (bull case)
- If demand for AI chips and HBM memory stays high, revenue and margins could keep growing from recent levels 3.
- Gross margins improved markedly in 2026, which could signal durable gains in operational efficiency 3.
- A leading position in combined electrical and optical testing could bring benefits as silicon photonics moves into volume production 1.
What would break the thesis
What to watch
- Achievement of the 270 million USD revenue outlook for the third quarterQ3 2026
- Non-GAAP gross margin against the 54.0% outlookQ3 2026
- Receipt of IEEPA tariff refunds and their effect on resultsQ3 2026
- Start of production at the Farmers Branch factory and capacity ramp2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 10-Q (03 Nov 2026), 8-K (28 Oct 2026 · results).
The business
FormFactor, Inc. is a leading provider of electrical and optical test technologies across the full semiconductor product lifecycle, from characterization and reliability to production test 1. The company designs and sells customized probe cards, analytical probes, probe stations, thermal and cryogenic systems, and related services 1. Founded in 1993, it is headquartered in Livermore, California 2. In December 2025 it acquired Keystone Photonics to strengthen its position in silicon photonics 1.
Segments
Market context
The semiconductor test market is competitive and cyclical, depending on chip production volumes and the transition to new technology nodes 1. Revenue is concentrated among a few large customers, the largest representing 22.9% of revenue in fiscal 2025 1. In 2026, demand in DRAM and advanced logic has grown strongly 2.
Trends
- Artificial intelligence and HBM demandtailwind
Demand for AI chips and HBM memory has boosted DRAM revenue, which could continue to support growth if investment in AI infrastructure is sustained 13.
- Silicon photonics and co-packaged opticstailwind
Moving co-packaged optics from lab to high-volume production could open new opportunities for combined electrical and optical testing 1.
- Trade restrictions and tariffsheadwind
Export controls and US-China trade measures could reduce sales in certain regions, and the company has exposure to customers in China 12.
- Industry consolidationmixed
Consolidation among semiconductor customers could increase revenue concentration and pricing pressure, with a mixed effect on the company 1.
Competitive position
The probe card market is fragmented, with many domestic and foreign suppliers; the main competitors named include Japan Electronic Materials, Micronics Japan, MPI, Technoprobe and TSE 1. High capital and qualification costs of MEMS technology limit the number of firms offering similar products 1.
Larger competitors may have broader customer bases and greater financial resources, which could let them respond faster to technology changes and reduce prices 1.
- Japan Electronic Materials Corporation
Probe card supplier using similar MEMS technology, named by the company among its main competitors.
- Technoprobe S.p.A
Probe card maker offering products built on comparable MEMS technology.
- MPI Corporation
Competitor in probe cards and probe stations, named in the official filing.
- Micronics Japan Co., Ltd.
MEMS-based probe card supplier active in the same market segments.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Stocks making the biggest moves midday: Rogers, United Therapeutics, Moderna, FormFactor & moreCNBC — Top News · 30 Sept 2026 · EN
- FormFactor CEO Mike Slessor Sells 17,510 SharesYahoo Finance — News · 22 Sept 2026 · EN
- FormFactor Director Sells 2,100 SharesYahoo Finance — News · 09 Sept 2026 · EN
The latest news item in our archive is from 30 Sept 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report03 Nov 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Current report13 Oct 2026Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report19 May 2026Departure or appointment of officers · Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Quarterly report05 May 2026
- Current report29 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement02 Apr 2026
- Annual report20 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-27 · SEC / FormFactor, Inc. · 20 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-27 · SEC / FormFactor, Inc. · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / FormFactor, Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.