Aehr Test Sys Financials
Aehr Test Sys (AEHR) reported $50.0M in revenue for fiscal year 2026, down 15.2% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Financing-led liquidity now supports a shrinking, margin-compressing operation rather than cash generated by operations.
In FY2026, operating cash flow was-$3.3M while financing cash flow supplied$97.2M , so the balance-sheet expansion was driven externally rather than by the current business. The same period brought shares outstanding from 29.9M to 32.6M, reinforcing that financing—not earnings conversion—was the main source of liquidity.
Gross margin compressed from
Debt-to-equity was just 0.1x while the current ratio reached 10.3x, indicating substantial short-term liquidity and little reliance on debt. However, cash of
Financial Health Signals
Scored against operating companies for FY2026. 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 -28.3%, meaning the company loses $28 on every $100 of revenue. This results in a profitability score of 16/100. This is down from -9.6% the prior year.
Aehr Test Sys's revenue declined 15.2% year-over-year, from $59.0M to $50.0M. This contraction results in a growth score of 8/100.
Aehr Test Sys carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 78/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 10.33, Aehr Test Sys holds $10.33 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 97/100.
Aehr Test Sys's operations used $3.3M of cash, and capex of $2.1M added to the outflow, for a free cash flow shortfall of $5.4M. This results in a cash flow score of 15/100.
Aehr Test Sys posts a -3.3% return on equity (ROE), meaning it loses $3 for every $100 of shareholders' equity. This results in a returns score of 28/100. This is down from -3.2% the prior year.
Aehr Test Sys scores 58.84, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($2.6B) relative to total liabilities ($27.2M). 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 2 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
Aehr Test Sys reported a net loss of $7.1M while operations used $3.3M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Aehr Test Sys reported an operating loss of $14.1M against $1.4M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Aehr Test Sys generated $50.0M in revenue in fiscal year 2026. This represents a decrease of 15.2% from the prior year.
Aehr Test Sys's EBITDA was -$11.3M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 237.3% from the prior year.
Aehr Test Sys reported -$7.1M in net income in fiscal year 2026. This represents a decrease of 82.3% from the prior year.
Aehr Test Sys earned -$0.23 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 76.9% from the prior year.
Cash & Balance Sheet
Aehr Test Sys recorded an outflow of $5.4M in free cash flow in fiscal year 2026, representing a cash shortfall after capex. This represents an increase of 56.6% from the prior year.
Aehr Test Sys held $116.4M in cash as of fiscal year 2026; long-term debt is not reported for that period.
Not reported for fiscal year 2026.
Margins & Returns
Aehr Test Sys's gross margin was 35.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 5.3 percentage points from the prior year.
Aehr Test Sys's operating margin was -28.3% in fiscal year 2026, reflecting core business profitability. This is down 18.7 percentage points from the prior year.
Aehr Test Sys's net profit margin was -14.2% in fiscal year 2026, showing the share of revenue converted to profit. This is down 7.6 percentage points from the prior year.
Aehr Test Sys's ROE was -3.3% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 0.1 percentage points from the prior year.
Capital Allocation
Aehr Test Sys invested $12.6M in research and development in fiscal year 2026. This represents an increase of 20.7% from the prior year.
Aehr Test Sys invested $2.1M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 58.6% from the prior year.
Not reported for fiscal year 2026.
AEHR Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $18.8M+82.6% | $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 |
| Cost of Revenue | $10.8M+55.7% | $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 |
| Gross Profit | $8.0M+138.1% | $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 |
| R&D Expenses | $3.6M+15.1% | $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 |
| SG&A Expenses | $5.6M+26.0% | $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 |
| Operating Income | -$1.2M+71.5% | -$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 |
| Interest Expense | $748K+211.7% | $240K+23.7% | $194K+8.4% | $179K-19.4% | $222K-17.8% | $270K+18.4% | $228K-66.5% | $681K |
| Income Tax | -$1.8M-131.3% | -$798K+34.3% | -$1.2M-61.4% | -$752K-764.4% | -$87K+62.3% | -$231K-6.5% | -$217K-240.9% | $154K |
| Net Income | $1.4M+143.4% | -$3.2M+0.8% | -$3.2M-55.0% | -$2.1M+28.1% | -$2.9M-350.9% | -$643K+37.5% | -$1.0M-255.8% | $660K |
| EPS (Diluted) | $0.05+150.0% | -$0.10+9.1% | -$0.11-57.1% | -$0.07+30.0% | -$0.10-400.0% | -$0.02+33.3% | -$0.03-250.0% | $0.02 |
AEHR Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $246.7M+57.1% | $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 |
| Current Assets | $184.4M+92.3% | $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 |
| Cash & Equivalents | $116.4M+215.2% | $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 |
| Inventory | $41.4M+0.5% | $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 |
| Accounts Receivable | $17.5M+48.0% | $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 |
| Goodwill | $10.7M0.0% | $10.7M0.0% | $10.7M0.0% | $10.7M0.0% | $10.7M-0.2% | $10.7M0.0% | $10.7M+3.8% | $10.4M |
| Total Liabilities | $27.2M+48.9% | $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 |
| Current Liabilities | $17.9M+104.2% | $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 |
| Total Equity | $219.5M+58.2% | $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 |
| Retained Earnings | -$30.2M+4.4% | -$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 |
Not reported in any period shown, so not listed: Long-Term Debt.
AEHR Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.8M+149.7% | -$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 |
| Capital Expenditures | $134K+81.1% | $74K-84.2% | $467K-66.4% | $1.4M-50.6% | $2.8M+70.2% | $1.7M+415.9% | $321K+62.9% | $197K |
| Free Cash Flow | $1.7M+145.1% | -$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 |
| Investing Cash Flow | -$134K-81.1% | -$74K+96.7% | -$2.3M-63.0% | -$1.4M+50.6% | -$2.8M-33.2% | -$2.1M-559.2% | -$321K+97.0% | -$10.8M |
| Financing Cash Flow | $77.8M+691.2% | $9.8M+0.5% | $9.8M+6288.0% | -$158K-162.9% | $251K+320.2% | -$114K-119.2% | $594K+660.4% | -$106K |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
AEHR Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.6%+9.9pp | 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% |
| Operating Margin | -6.4%+34.6pp | -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% |
| Net Margin | 7.4%+38.4pp | -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% |
| Return on Equity | 0.6%+2.9pp | -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% |
| Return on Assets | 0.6%+2.6pp | -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% |
| Current Ratio | 10.33-0.6x | 10.97+0.4x | 10.62+3.6x | 7.06+1.4x | 5.680.0x | 5.71-1.8x | 7.55+1.5x | 6.03 |
| Debt-to-Equity | 0.120.0x | 0.130.0x | 0.140.0x | 0.180.0x | 0.210.0x | 0.170.0x | 0.150.0x | 0.19 |
| FCF Margin | 9.0%+45.5pp | -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% |
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Where Aehr Test Sys Ranks
Frequently Asked Questions
What is Aehr Test Sys's annual revenue?
Aehr Test Sys (AEHR) reported $50.0M in total revenue for fiscal year 2026. This represents a -15.2% 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 15.2% year-over-year, from $59.0M to $50.0M in fiscal year 2026.
Is Aehr Test Sys profitable?
No, Aehr Test Sys (AEHR) reported a net income of -$7.1M in fiscal year 2026, with a net profit margin of -14.2%.
What is Aehr Test Sys's EBITDA?
Aehr Test Sys (AEHR) had EBITDA of -$11.3M in fiscal year 2026, 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 35.3% in fiscal year 2026, 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 -28.3% in fiscal year 2026, 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 -14.2% in fiscal year 2026, 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 -3.3% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Aehr Test Sys's free cash flow?
Aehr Test Sys (AEHR) recorded an outflow of $5.4M in free cash flow during fiscal year 2026. This represents a 56.6% 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) recorded an outflow of $3.3M in operating cash flow during fiscal year 2026, representing cash used by core business activities.
What are Aehr Test Sys's total assets?
Aehr Test Sys (AEHR) had $246.7M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Aehr Test Sys's capital expenditures?
Aehr Test Sys (AEHR) invested $2.1M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Aehr Test Sys spend on research and development?
Aehr Test Sys (AEHR) invested $12.6M in research and development during fiscal year 2026.
What is Aehr Test Sys's current ratio?
Aehr Test Sys (AEHR) had a current ratio of 10.33 as of fiscal year 2026, 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 0.12 as of fiscal year 2026, 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 -2.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Aehr Test Sys's Altman Z-Score?
Aehr Test Sys (AEHR) has an Altman Z-Score of 58.84, 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 2 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) reported a net loss of $7.1M while operations used $3.3M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $14.1M against $1.4M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 40 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.