Aehr Test Sys Financials
This page shows Aehr Test Sys (AEHR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Inventory build and expense growth ahead of demand turned a once cash-generative equipment business back into cash burn.
The least obvious shift is that cash strain came from stockpiling and spend timing, not just weaker sales: by FY2025 inventory nearly doubled to$42.0M while free cash flow fell to-$12.4M . That pattern means the company was financing more product and internal buildout ahead of revenue, so cash deteriorated faster than the top line.
Profit history needs context. FY2024 net income of
Operating economics also weakened. Gross margin fell to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Aehr Test Sys's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Aehr Test Sys has an operating margin of -9.6%, meaning the company retains $-10 of operating profit per $100 of revenue. This results in a moderate score of 44/100, indicating healthy but not exceptional operating efficiency. This is down from 15.2% the prior year.
Aehr Test Sys's revenue declined 10.9% year-over-year, from $66.2M to $59.0M. This contraction results in a growth score of 19/100.
Aehr Test Sys carries a low D/E ratio of 0.21, meaning only $0.21 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 74/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 5.68, Aehr Test Sys holds $5.68 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 92/100.
While Aehr Test Sys generated -$7.4M in operating cash flow, capex of $5.0M consumed most of it, leaving -$12.4M in free cash flow. This results in a low score of 17/100, reflecting heavy capital investment rather than weak cash generation.
Aehr Test Sys's ROE of -3.2% shows moderate profitability relative to equity, earning a score of 43/100. This is down from 29.7% the prior year.
Aehr Test Sys scores 56.74, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($2.4B) relative to total liabilities ($25.6M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Aehr Test Sys passes 0 of 8 computable financial strength tests (1 of the nine could not be computed from available data). No profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
For every $1 of reported earnings, Aehr Test Sys generates $1.89 in operating cash flow (-$7.4M OCF vs -$3.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Aehr Test Sys earns $-4.1 in operating income for every $1 of interest expense (-$5.7M vs $1.4M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Aehr Test Sys generated $59.0M in revenue in fiscal year 2025. This represents a decrease of 10.9% from the prior year.
Aehr Test Sys's EBITDA was -$3.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 131.3% from the prior year.
Aehr Test Sys reported -$3.9M in net income in fiscal year 2025. This represents a decrease of 111.8% from the prior year.
Aehr Test Sys earned $-0.13 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 111.6% from the prior year.
Cash & Balance Sheet
Aehr Test Sys generated -$12.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 1330.6% from the prior year.
Aehr Test Sys held $24.5M in cash against $0 in long-term debt as of fiscal year 2025.
Aehr Test Sys had 30M shares outstanding in fiscal year 2025. This represents an increase of 3.1% from the prior year.
Margins & Returns
Aehr Test Sys's gross margin was 40.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 8.6 percentage points from the prior year.
Aehr Test Sys's operating margin was -9.6% in fiscal year 2025, reflecting core business profitability. This is down 24.9 percentage points from the prior year.
Aehr Test Sys's net profit margin was -6.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 56.7 percentage points from the prior year.
Aehr Test Sys's ROE was -3.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 32.9 percentage points from the prior year.
Capital Allocation
Aehr Test Sys invested $10.5M in research and development in fiscal year 2025. This represents an increase of 20.0% from the prior year.
Aehr Test Sys invested $5.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 566.5% from the prior year.
AEHR Income Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $10.3M+4.3% | $9.9M-9.9% | $11.0M-22.1% | $14.1M-23.0% | $18.3M+36.1% | $13.5M+2.5% | $13.1M-21.0% | $16.6M |
| Cost of Revenue | $6.9M-5.4% | $7.3M+1.2% | $7.3M-26.1% | $9.8M-11.7% | $11.1M+38.1% | $8.1M+33.3% | $6.0M-25.9% | $8.2M |
| Gross Profit | $3.4M+32.3% | $2.5M-31.6% | $3.7M-12.9% | $4.3M-40.5% | $7.2M+33.0% | $5.4M-23.7% | $7.1M-16.2% | $8.4M |
| R&D Expenses | $3.2M+6.6% | $3.0M+4.3% | $2.8M+6.1% | $2.7M-14.5% | $3.1M+38.0% | $2.3M-3.6% | $2.4M+9.8% | $2.2M |
| SG&A Expenses | $4.4M-0.1% | $4.4M-6.0% | $4.7M+20.1% | $3.9M-23.9% | $5.2M+11.3% | $4.6M+1.7% | $4.6M+21.4% | $3.8M |
| Operating Income | -$4.2M+9.0% | -$4.6M-14.3% | -$4.1M-26.9% | -$3.2M-186.3% | -$1.1M+26.0% | -$1.5M-1051.6% | $159K-93.7% | $2.5M |
| Interest Expense | $240K+23.7% | $194K+8.4% | $179K-19.4% | $222K-17.8% | $270K+18.4% | $228K-66.5% | $681K+15.0% | $592K |
| Income Tax | -$798K+34.3% | -$1.2M-61.4% | -$752K-764.4% | -$87K+62.3% | -$231K-6.5% | -$217K-240.9% | $154K+100.7% | -$20.7M |
| Net Income | -$3.2M+0.8% | -$3.2M-55.0% | -$2.1M+28.1% | -$2.9M-350.9% | -$643K+37.5% | -$1.0M-255.8% | $660K-97.2% | $23.9M |
| EPS (Diluted) | $-0.10+9.1% | $-0.11-57.1% | $-0.07 | N/A | $-0.02+33.3% | $-0.03-250.0% | $0.02 | N/A |
AEHR Balance Sheet
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $157.0M+5.6% | $148.7M+3.2% | $144.1M-3.0% | $148.5M+2.0% | $145.6M+2.3% | $142.3M-2.5% | $145.9M+14.0% | $127.9M |
| Current Assets | $95.9M+8.7% | $88.2M+4.9% | $84.1M-5.3% | $88.8M-3.2% | $91.7M+3.6% | $88.5M-4.7% | $92.9M-5.0% | $97.8M |
| Cash & Equivalents | $36.9M+19.7% | $30.8M+35.8% | $22.7M-7.4% | $24.5M-16.6% | $29.4M-8.7% | $32.2M-14.8% | $37.8M-23.0% | $49.2M |
| Inventory | $41.2M-3.7% | $42.7M+2.1% | $41.8M-0.4% | $42.0M-0.8% | $42.3M-3.3% | $43.8M+1.9% | $43.0M+14.7% | $37.5M |
| Accounts Receivable | $11.8M+14.8% | $10.3M-21.2% | $13.1M-8.0% | $14.2M+18.3% | $12.0M+63.5% | $7.3M-14.3% | $8.6M-12.6% | $9.8M |
| Goodwill | $10.7M0.0% | $10.7M0.0% | $10.7M0.0% | $10.7M-0.2% | $10.7M0.0% | $10.7M+3.8% | $10.4M | $0 |
| Total Liabilities | $18.3M+1.6% | $18.0M-17.2% | $21.7M-15.4% | $25.6M+19.8% | $21.4M+12.0% | $19.1M-18.3% | $23.4M+43.3% | $16.3M |
| Current Liabilities | $8.7M+5.3% | $8.3M-30.3% | $11.9M-23.8% | $15.6M-2.7% | $16.1M+37.1% | $11.7M-24.0% | $15.4M+46.7% | $10.5M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $138.8M+6.1% | $130.8M+6.8% | $122.4M-0.4% | $122.9M-1.1% | $124.2M+0.8% | $123.2M+0.6% | $122.5M+9.8% | $111.6M |
| Retained Earnings | -$31.6M-11.3% | -$28.4M-12.8% | -$25.1M-9.0% | -$23.1M-14.4% | -$20.2M-3.3% | -$19.5M-5.6% | -$18.5M+3.4% | -$19.1M |
AEHR Cash Flow Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$3.7M-215.0% | -$1.2M-315.2% | -$282K+87.7% | -$2.3M-43.4% | -$1.6M+72.7% | -$5.9M-346.8% | $2.4M+94.4% | $1.2M |
| Capital Expenditures | $74K-84.2% | $467K-66.4% | $1.4M-50.6% | $2.8M+70.2% | $1.7M+415.9% | $321K+62.9% | $197K+328.3% | $46K |
| Free Cash Flow | -$3.8M-129.7% | -$1.6M+2.1% | -$1.7M+67.3% | -$5.1M-57.0% | -$3.3M+47.4% | -$6.2M-383.7% | $2.2M+85.3% | $1.2M |
| Investing Cash Flow | -$74K+96.7% | -$2.3M-63.0% | -$1.4M+50.6% | -$2.8M-33.2% | -$2.1M-559.2% | -$321K+97.0% | -$10.8M-23404.3% | -$46K |
| Financing Cash Flow | $9.8M+0.5% | $9.8M+6288.0% | -$158K-162.9% | $251K+320.2% | -$114K-119.2% | $594K+660.4% | -$106K-125.2% | $421K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
AEHR Financial Ratios
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.7%+6.9pp | 25.8%-8.2pp | 33.9%+3.6pp | 30.3%-8.9pp | 39.2%-0.9pp | 40.1%-13.8pp | 53.9%+3.1pp | 50.9% |
| Operating Margin | -41.0%+6.0pp | -47.0%-10.0pp | -37.1%-14.3pp | -22.7%-16.6pp | -6.1%+5.1pp | -11.3%-12.5pp | 1.2%-14.1pp | 15.3% |
| Net Margin | -31.1%+1.6pp | -32.7%-13.7pp | -19.0%+1.6pp | -20.6%-17.1pp | -3.5%+4.1pp | -7.6%-12.7pp | 5.0%-138.7pp | 143.8% |
| Return on Equity | -2.3%+0.2pp | -2.5%-0.8pp | -1.7%+0.7pp | -2.4%-1.8pp | -0.5%+0.3pp | -0.8%-1.4pp | 0.5%-20.8pp | 21.4% |
| Return on Assets | -2.0%+0.1pp | -2.2%-0.7pp | -1.5%+0.5pp | -1.9%-1.5pp | -0.4%+0.3pp | -0.7%-1.2pp | 0.4%-18.2pp | 18.7% |
| Current Ratio | 10.97+0.4 | 10.62+3.6 | 7.06+1.4 | 5.68-0.0 | 5.71-1.8 | 7.55+1.5 | 6.03-3.3 | 9.31 |
| Debt-to-Equity | 0.130.0 | 0.14-0.0 | 0.18-0.0 | 0.21+0.0 | 0.17+0.0 | 0.15-0.0 | 0.19+0.0 | 0.15 |
| FCF Margin | -36.5%-19.9pp | -16.6%-1.3pp | -15.3%+21.1pp | -36.3%-18.5pp | -17.8%+28.2pp | -46.0%-62.7pp | 16.6%+9.5pp | 7.1% |
Similar Companies
Frequently Asked Questions
What is Aehr Test Sys's annual revenue?
Aehr Test Sys (AEHR) reported $59.0M in total revenue for fiscal year 2025. This represents a -10.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Aehr Test Sys's revenue growing?
Aehr Test Sys (AEHR) revenue declined by 10.9% year-over-year, from $66.2M to $59.0M in fiscal year 2025.
Is Aehr Test Sys profitable?
No, Aehr Test Sys (AEHR) reported a net income of -$3.9M in fiscal year 2025, with a net profit margin of -6.6%.
What is Aehr Test Sys's EBITDA?
Aehr Test Sys (AEHR) had EBITDA of -$3.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Aehr Test Sys's gross margin?
Aehr Test Sys (AEHR) had a gross margin of 40.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Aehr Test Sys's operating margin?
Aehr Test Sys (AEHR) had an operating margin of -9.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Aehr Test Sys's net profit margin?
Aehr Test Sys (AEHR) had a net profit margin of -6.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Aehr Test Sys's return on equity (ROE)?
Aehr Test Sys (AEHR) has a return on equity of -3.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Aehr Test Sys's free cash flow?
Aehr Test Sys (AEHR) generated -$12.4M in free cash flow during fiscal year 2025. This represents a -1330.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Aehr Test Sys's operating cash flow?
Aehr Test Sys (AEHR) generated -$7.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Aehr Test Sys's total assets?
Aehr Test Sys (AEHR) had $148.5M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Aehr Test Sys's capital expenditures?
Aehr Test Sys (AEHR) invested $5.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Aehr Test Sys spend on research and development?
Aehr Test Sys (AEHR) invested $10.5M in research and development during fiscal year 2025.
What is Aehr Test Sys's current ratio?
Aehr Test Sys (AEHR) had a current ratio of 5.68 as of fiscal year 2025, which is generally considered healthy.
What is Aehr Test Sys's debt-to-equity ratio?
Aehr Test Sys (AEHR) had a debt-to-equity ratio of 0.21 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Aehr Test Sys's return on assets (ROA)?
Aehr Test Sys (AEHR) had a return on assets of -2.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Aehr Test Sys's cash runway?
Based on fiscal year 2025 data, Aehr Test Sys (AEHR) had $24.5M in cash against an annual operating cash burn of $7.4M. This gives an estimated cash runway of approximately 40 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Aehr Test Sys's Altman Z-Score?
Aehr Test Sys (AEHR) has an Altman Z-Score of 56.74, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Aehr Test Sys's Piotroski F-Score?
Aehr Test Sys (AEHR) has a Piotroski F-Score of 0 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Aehr Test Sys's earnings high quality?
Aehr Test Sys (AEHR) has an earnings quality ratio of 1.89x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Aehr Test Sys cover its interest payments?
Aehr Test Sys (AEHR) has an interest coverage ratio of -4.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Aehr Test Sys?
Aehr Test Sys (AEHR) scores 48 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.