Kulicke & Soffa Reports Third Quarter 2026 Results

Rhea-AI Summary

Kulicke & Soffa (NASDAQ: KLIC) reported fiscal Q3 2026 net revenue of $330.4 million, up from $148.4 million a year ago and $242.6 million in Q2 2026. GAAP net income was $57.4 million, or $1.07 diluted EPS, versus a loss of $0.06 per share in Q3 2025. Non-GAAP net income was $64.2 million, or $1.20 diluted EPS. Gross margin reached 47.8%.

According to the company, Q3 GAAP operating income was $68.3 million (20.7% margin) and non-GAAP operating income was $75.8 million (22.9% margin). Operating cash flow was $45.2 million and adjusted free cash flow was $41.0 million. The company repurchased 5.0 thousand shares for $0.5 million and continued a quarterly dividend of $0.205 per share. For Q4 2026, Kulicke & Soffa guides net revenue to about $375 million ± $20 million, GAAP diluted EPS of $1.29 ±10%, and non-GAAP diluted EPS of $1.42 ±10%.

Positive

• Revenue +123% YoY to $330.4 million in Q3 2026
• GAAP EPS improved to $1.07 from a $(0.06) loss year-ago
• Non-GAAP EPS up to $1.20 from $0.07 in Q3 2025
• Non-GAAP operating margin expanded to 22.9% from 1.1% year-ago
• Q3 operating cash flow of $45.2 million; adjusted free cash flow $41.0 million
• Q4 2026 revenue guidance midpoint of $375 million, above Q3 actual revenue

Negative

• Nine‑month operating cash flow fell to $46.6 million from $105.0 million prior-year period
• Total cash, cash equivalents and short-term investments declined to $516.6 million from $556.5 million year-ago
• Operating expenses for nine months rose to $252.0 million from $200.8 million prior-year period
• Current liabilities increased to $320.8 million from $188.2 million as of prior fiscal year-end

News Explained

At July 4, the company reported $516,573 thousand in cash and short-term investments, while facility completion remains scheduled for the second half of fiscal 2027.

The release reports a July 4, 2026 balance-sheet snapshot showing $368,573 thousand in cash and cash equivalents and $148,000 thousand in short-term investments.

It also places completion of the expanded Advanced Solutions production facility within the second half of fiscal 2027, making completion a future milestone rather than a completed project.

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SINGAPORE, Aug. 5, 2026 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S," "our," or the "Company"), today announced financial results of its third fiscal quarter ended July 4, 2026. The Company reported third quarter net revenue of $330.4 million, net income of $57.4 million, representing EPS of $1.07 per fully diluted share, and non-GAAP net income of $64.2 million, representing non-GAAP EPS of $1.20 per fully diluted share.

Quarterly Results
	Fiscal Q3 2026	Fiscal Q3 2025	Fiscal Q2 2026
Net Revenue (in thousands)	$330,409	$148,413	$242,621
GAAP EPS – Diluted	$1.07	$(0.06)	$0.66
Non GAAP EPS - Diluted	$1.20	$0.07	$0.79

A reconciliation between the GAAP and non-GAAP adjusted results is provided in the financial tables included at the end of this press release. See also the "Use of non-GAAP Financial Results" section of this press release.

Lester Wong, Kulicke & Soffa's Interim Chief Executive Officer and Chief Financial Officer, stated, "We see strong sequential growth in the third quarter and demand conditions continue to improve across all end markets. We remain closely engaged to support the evolving technology requirements of our industry, and remain committed to address the immediate and long-term production needs of our customers."

Kulicke & Soffa anticipates its expanded Advanced Solutions production facility will be completed, as scheduled, within the second half of fiscal 2027.

Third Quarter Fiscal 2026 Financial Highlights

• Net revenue of $330.4 million.
• Gross margin of 47.8%.
• Net income of $57.4 million or $1.07 per share; non-GAAP net income of $64.2 million or $1.20 per fully diluted share.
• GAAP cash flow from operations of $45.2 million; Adjusted free cash flow of $41.0 million.
• The Company repurchased a total of 5.0 thousand shares of common stock at a cost of $0.5 million.

Fourth Quarter Fiscal 2026 Outlook

K&S currently expects net revenue in the fourth quarter of fiscal 2026 ending October 3, 2026 to be approximately $375 million +/- $20 million, GAAP diluted EPS to be approximately $1.29 +/- 10%, and non-GAAP diluted EPS to be approximately $1.42 +/- 10%.

A reconciliation between the GAAP and non-GAAP financial outlook is provided in the financial tables included at the end of this press release.

Earnings Conference Webcast

A webcast to discuss these results will be held on August 6, 2026, beginning at 8:00 am ET. The live webcast link, supplemental earnings presentation, and archived webcast will be available at investor.kns.com. To access the audio-only portion of the live webcast, parties may call +1-877-407-8037, or internationally, +1-201-689-8037.

An audio-only replay of the webcast will also be available approximately one hour after the completion of the live call by calling +1-877-660-6853, or internationally, +1-201-612-7415 and referencing access code 13757798.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP ("GAAP") results, this press release also contains the following non-GAAP financial results: income from operations, operating margin, net income, net margin, net income per fully diluted share and adjusted free cash flow. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation, acquisition and integration costs, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, impairment relating to equity investments, income tax expense/benefit arising from discrete tax items triggered by acquisition, disposal of business (both via a sale or an abandonment), restructuring and significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expenses associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company's operating results. The Company believes these non-GAAP measures enhance investors' understanding of the Company's underlying operational performance, as well as their ability to compare the Company's period-to-period financial results and the Company's overall performance to that of its competitors.

Management uses both GAAP metrics as well as these non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company's reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure discussed in this press release is contained in the financial tables at the end of this press release.

About Kulicke & Soffa

Kulicke & Soffa is a global leader in semiconductor assembly technology, advancing device performance across automotive, compute, industrial, memory and communications markets. Founded on innovation in 1951, K&S is uniquely positioned to overcome increasingly dynamic process challenges – creating and delivering long-term value by aligning technology with opportunity.

Caution Concerning Results, Forward-Looking Statements and Certain Risks Related to our Business

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, including the importance and competitiveness of our products and other emerging technology transitions, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, failures or delays in completing the Company's cessation of its Electronics Assembly equipment business, the persistent macroeconomic headwinds on our business, actual or potential inflationary pressures, interest rate and risk premium adjustments, falling customer sentiment, or economic recession caused directly or indirectly by geopolitical tensions, our ability to develop, manufacture and gain market acceptance of new products, our ability to expand, consolidate or relocate manufacturing and other facilities, our ability to operate our business in accordance with our business plan and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 4, 2025, filed on November 20, 2025, and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Contact:

Kulicke and Soffa Industries, Inc.
Joseph Elgindy
Finance
P: +1-215-784-7518

KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three months ended				Nine months ended
	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Net revenue	$       330,409		$       148,413		$     772,655		$        476,523
Cost of sales	172,460		79,170		396,047		279,812
Gross profit	157,949		69,243		376,608		196,711
Selling, general and administrative	45,769		39,596		129,270		126,224
Research and development	43,914		35,741		122,686		110,769
Gain relating to cessation of business	—		—		—		(75,987)
Impairment charges	—		—		—		39,817
Operating expenses	89,683		75,337		251,956		200,823
Income / (Loss) from operations	68,266		(6,094)		124,652		(4,112)
Interest income	4,529		6,008		13,268		17,982
Interest expense	(34)		(32)		(111)		(95)
Income / (Loss) before income taxes	72,761		(118)		137,809		13,775
Provision for income taxes	15,345		3,171		28,449		19,941
Net income / (loss)	$         57,416		$         (3,289)		$     109,360		$          (6,166)
Net income / (loss) per share:
Basic	$            1.10		$           (0.06)		$          2.09		$            (0.12)
Diluted	$            1.07		$           (0.06)		$          2.06		$            (0.12)
Cash dividends declared per share	$           0.205		$           0.205		$         0.615		$           0.615
Weighted average shares outstanding:
Basic	52,333		52,692		52,326		53,265
Diluted	53,429		52,692		53,190		53,265

 

KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) (Unaudited)
	As of
	July 4, 2026		October 4, 2025
ASSETS
Current assets
Cash and cash equivalents	$           368,573		$               215,708
Short-term investments	148,000		295,000
Accounts and other receivable, net	329,498		183,538
Inventories, net	227,118		160,225
Prepaid expenses and other current assets	31,796		47,064
Total current assets	1,104,985		901,535
Property, plant and equipment, net	66,274		58,993
Operating right-of-use assets	32,567		32,193
Goodwill	69,522		69,522
Intangible assets, net	4,676		5,600
Deferred tax assets	16,258		16,109
Equity investments	10,789		6,978
Investment in debt securities	10,000		10,000
Other assets	4,015		3,412
TOTAL ASSETS	$        1,319,086		$             1,104,342
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$           116,887		$                 57,178
Operating lease liabilities	6,083		6,178
Accrued expenses and other current liabilities	159,774		97,786
Income taxes payable	38,069		27,029
Total current liabilities	320,813		188,171
Deferred tax liabilities	34,496		35,533
Income taxes payable	10,684		16,580
Operating lease liabilities	32,035		32,372
Other liabilities	9,101		10,195
TOTAL LIABILITIES	$           407,129		$               282,851
SHAREHOLDERS' EQUITY
Common stock, without par value	634,232		620,043
Treasury stock, at cost	(976,708)		(974,202)
Retained earnings	1,276,677		1,199,500
Accumulated other comprehensive loss	(22,244)		(23,850)
TOTAL SHAREHOLDERS' EQUITY	$           911,957		$               821,491
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$        1,319,086		$             1,104,342

 

KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Three months ended				Nine months ended
(in thousands)	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Net cash provided by operating activities	$          45,216		$             7,380		$         46,554		$          105,003
Net cash (used in)/provided by investing activities	(3,711)		(17,463)		134,982		26,161
Net cash used in financing activities	(11,361)		(32,606)		(29,532)		(113,408)
Effect of exchange rate changes on cash and cash equivalents	565		2,651		861		1,578
Changes in cash and cash equivalents	30,709		(40,038)		152,865		19,334
Cash and cash equivalents, beginning of period	337,864		286,519		215,708		227,147
Cash and cash equivalents, end of period	$        368,573		$         246,481		$       368,573		$          246,481
Short-term investments	148,000		310,000		148,000		310,000
Total cash, cash equivalents and short-term investments	$        516,573		$         556,481		$       516,573		$          556,481

 

Reconciliation of U.S. GAAP  to Non-GAAP Income from Operations and Operating Margin (In thousands, except percentages) (Unaudited)
		Three months ended
		July 4, 2026		June 28, 2025		April 4, 2026
Net revenue		$    330,409		$     148,413		$     242,621
U.S. GAAP income / (loss) from operations		68,266		(6,094)		38,566
U.S. GAAP operating margin		20.7 %		(4.1) %		15.9 %
Pre-tax non-GAAP items:
Amortization related to intangible assets		308		308		307
Restructuring		190		287		418
Equity-based compensation		7,044		7,092		6,991
Non-GAAP income from operations		$      75,808		$         1,593		$      46,282
Non-GAAP operating margin		22.9 %		1.1 %		19.1 %

 

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and Non-GAAP Net Margin and U.S. GAAP net income per share to Non-GAAP net income per share (In thousands, except percentages and per share data) (Unaudited)
		Three months ended
		July 4, 2026		June 28, 2025		April 4, 2026
Net revenue		$    330,409		$    148,413		$    242,621
U.S. GAAP net income / (loss)		57,416		(3,289)		35,148
U.S. GAAP net margin		17.4 %		(2.2) %		14.5 %
Non-GAAP adjustments:
Amortization related to intangible assets		308		308		307
Restructuring		190		287		418
Equity-based compensation		7,044		7,092		6,991
Net income tax benefit on non-GAAP items		(730)		(626)		(728)
Total non-GAAP adjustments		$       6,812		$       7,061		$       6,988
Non-GAAP net income		$     64,228		$       3,772		$     42,136
Non-GAAP net margin		19.4 %		2.5 %		17.4 %
U.S. GAAP net income / (loss) per share:
Basic		$         1.10		$       (0.06)		$         0.67
Diluted(a)		$         1.07		$       (0.06)		$         0.66
Non-GAAP adjustments per share:(b)
Basic		$         0.13		$         0.13		$         0.14
Diluted		$         0.13		$         0.13		$         0.13
Non-GAAP net income per share:
Basic		$        1.23		$        0.07		$        0.81
Diluted(c)		$        1.20		$        0.07		$        0.79
Weighted average shares outstanding:
Basic		52,333		52,692		52,327
Diluted		53,429		52,866		53,121

(a)	GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive.
(b)	Non-GAAP adjustments per share include amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation expenses, and income tax effects associated with the foregoing non-GAAP items.
(c)	Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating Non-GAAP diluted net loss per share because it would be anti-dilutive.

 

Reconciliation of U.S. GAAP Cash provided by Operating Activities to Non-GAAP Adjusted Free Cash Flow (In thousands, except percentages) (unaudited)
		Three months ended
		July 4, 2026		June 28, 2025		April 4, 2026
U.S. GAAP net cash provided by operating activities		$           45,216		$             7,380		$           10,271
Purchases of property, plant and equipment		(4,277)		(2,090)		(4,077)
Proceeds from sales of property, plant and equipment		18		147		74
Non-GAAP adjusted free cash flow		$           40,957		$             5,437		$             6,268

 

Reconciliation of U.S. GAAP to Non-GAAP Outlook (In millions, except per share data) (Unaudited)
		Fourth quarter of fiscal 2026 ending October 3, 2026
		GAAP Outlook		Adjustments		Non-GAAP Outlook
Net revenue		$375 million +/- $20 million		—		$375 million +/- $20 million
Operating expenses		$95.1 million +/- 2%		$7.6 million B,C,D		$87.5 million +/- 2%
Diluted EPS(1)		$1.29 +/- 10%		$0.13 A - E		$1.42 +/- 10%

Non-GAAP Adjustments
A. Equity-based compensation - Cost of sales		0.4
B. Equity-based compensation - Selling, general and administrative and Research and development		6.6
C. Amortization related to intangible assets		0.3
D. Restructuring expenses		0.7
E. Net income tax effect of the above items		(0.8)

(1) GAAP and non-GAAP diluted EPS based on approximately 53.0 million diluted weighted average shares outstanding.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, unannounced restructuring activities, strategic investments and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

 

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SOURCE Kulicke & Soffa Industries, Inc.

FAQ

How did Kulicke & Soffa (KLIC) perform in fiscal Q3 2026?

Kulicke & Soffa reported Q3 2026 revenue of $330.4 million and GAAP diluted EPS of $1.07. According to the company, non-GAAP diluted EPS was $1.20, and gross margin reached 47.8%, reflecting significantly higher profitability versus the prior-year quarter.

What is Kulicke & Soffa's revenue and EPS outlook for Q4 2026 (KLIC)?

For Q4 2026, Kulicke & Soffa expects net revenue of about $375 million ± $20 million. According to the company, GAAP diluted EPS is forecast at $1.29 ±10%, and non-GAAP diluted EPS at $1.42 ±10%, indicating anticipated sequential growth from Q3 2026.

How did Kulicke & Soffa's Q3 2026 results compare with Q3 2025 for KLIC?

Q3 2026 revenue of $330.4 million more than doubled from $148.4 million in Q3 2025. According to the company, GAAP diluted EPS improved to $1.07 from a $(0.06) loss, and non-GAAP diluted EPS rose to $1.20 from $0.07.

What margins did Kulicke & Soffa (KLIC) report in Q3 2026?

Kulicke & Soffa achieved a Q3 2026 gross margin of 47.8% and GAAP operating margin of 20.7%. According to the company, non-GAAP operating margin was 22.9%, and non-GAAP net margin was 19.4%, all substantially higher than the prior-year quarter.

What do Kulicke & Soffa's Q3 2026 cash flow and liquidity look like for KLIC?

In Q3 2026, Kulicke & Soffa generated $45.2 million in operating cash flow and $41.0 million in adjusted free cash flow. According to the company, total cash, cash equivalents and short-term investments were $516.6 million at quarter-end, providing a sizable liquidity position.

Did Kulicke & Soffa return capital to shareholders in Q3 2026 (KLIC)?

Kulicke & Soffa declared a quarterly dividend of $0.205 per share and repurchased 5.0 thousand shares for about $0.5 million. According to the company, total retained earnings reached $1.28 billion, supporting ongoing shareholder return policies.

What strategic or operational updates did Kulicke & Soffa (KLIC) provide with Q3 2026 earnings?

Kulicke & Soffa stated it sees improving demand across end markets and continued technology engagement with customers. According to the company, its expanded Advanced Solutions production facility is anticipated to be completed as scheduled in the second half of fiscal 2027, supporting future capacity.