Tower Semiconductor Reports Record Revenue for the Fourth Quarter of 2025
Rhea-AI Summary
Tower Semiconductor (NASDAQ: TSEM) reported record Q4 2025 revenue of $440 million (Q4 vs Q4 +14%, Q/Q +11%) and full-year 2025 revenue of $1.57 billion (+9% YoY). Q4 net profit was $80 million ($0.71 basic EPS). The company plans an additional $270 million CapEx for SiPho, totaling $920 million, targeting >5x December 2026 SiPho wafer starts versus Q4‑2025 monthly run‑rate.
Positive
- Record revenue of $440 million in Q4 2025 (+14% YoY)
- Full-year revenue of $1.57 billion in 2025 (+9% YoY)
- $920 million total SiPho/SiGe CapEx planned through 2026 to expand capacity
Negative
- Q4 operating cash generation impacted to $40 million due to $105 million lease prepayment
- Intel capacity agreement dispute currently in mediation, creating execution risk for outsourced flows
- Heavy CapEx of $437 million invested in 2025 could pressure near-term free cash flow
Key Figures
Market Reality Check
Peers on Argus
TSEM is down 7.43% while peers are mixed (e.g., LSCC up 3.61%, SMTC down 3.02%), indicating a stock-specific reaction to the earnings and capex/Intel updates.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | AI collaboration | Positive | +6.4% | Announced NVIDIA collaboration on 1.6T data center optical modules using SiPho. |
| Jan 29 | Investor conference | Neutral | -3.0% | Disclosed attendance at Susquehanna technology conference with 1:1 meeting options. |
| Jan 20 | Earnings scheduling | Neutral | -0.6% | Announced date and call details for Q4 and FY 2025 earnings release. |
| Jan 05 | Strategic partnership | Positive | -2.0% | Partnered with LightIC to apply SiPho to automotive and Physical AI LiDAR. |
| Dec 29 | Investor conference | Neutral | -0.4% | Announced participation in Needham Growth Conference with investor meetings. |
Positive partnership/technology news often saw muted or negative follow-through, with only the recent NVIDIA SiPho collaboration aligning with a positive price move.
Over recent months, Tower Semiconductor has highlighted strategic collaborations and investor outreach. A Feb 5, 2026 NVIDIA silicon photonics collaboration coincided with a 6.43% gain, while multiple conference participation announcements in Jan 2026 and Dec 2025 drew modest negative moves. A LiDAR-focused partnership with LightIC on Jan 5, 2026 also saw a small decline. Against this backdrop, today’s record Q4 2025 results and large SiPho/SiGe capex plan arrive after a series of AI and photonics-related milestones.
Market Pulse Summary
This announcement reports record Q4 2025 revenue of $440 million, full-year revenue of $1.57 billion, and net profit of $220 million, alongside Q1 2026 revenue guidance of $412 million. Management detailed a cumulative $920 million SiPho/SiGe capex plan targeting capacity more than 5x Q4 2025 shipments by late 2026. Investors may monitor progress on capacity ramp, customer prepayments, and the mediation process after Intel indicated it would not perform under the New Mexico capacity agreement.
Key Terms
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AI-generated analysis. Not financial advice.
Further Expanding SiPho Capacity and Capability with Additional
MIGDAL HAEMEK, Israel, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Tower Semiconductor (NASDAQ/TASE: TSEM) reports today its results for the fourth quarter of 2025 and for the year ended December 31, 2025.
Fourth Quarter of 2025 Results Overview
Record revenue for the fourth quarter of 2025 was
Gross profit and operating profit for the fourth quarter of 2025 were
Net profit for the fourth quarter of 2025 was
Cash flow generated from operating activities in the fourth quarter of 2025 was
Full Year 2025 Results Overview
Revenue for the full year of 2025 was
Gross profit and operating profit for 2025 were
Cash flow generated from operating activities for the year ended December 31, 2025, was
Business Outlook
The company guides revenue for the first quarter of 2026 to be
Cap-Ex Investments for Growth
SiPho and SiGe demand continues to grow, and hence aligned with key customers, in addition to the previously announced and presently acting upon
Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, said: “We ended 2025 having achieved our highest-ever quarterly revenue with a substantial increase in profitability. This was driven by a strong base where each of our key technology platforms provided growth, combined with exceptional performance and strong incremental margins of our market-leading SiPho platforms. We previously announced a
Ellwanger further added: “We remain focused on a value-driven growth strategy and are targeting sequential quarterly increases in revenue and profitability during 2026. Having moved strong customer partnerships into the next stage, namely deeply trust rooted technical alliances, we are redefining our business and financial landscape.”
Capacity Agreement
In September 2023, Intel signed a contract with Tower to manufacture 300mm wafers for Tower’s customers in Intel’s New Mexico facility. Recently, Intel has expressed its intention not to perform under the agreement. The parties are presently in a mediation process. The flows which have been transferred, or were in the process of being transferred, were originally qualified in Tower’s Fab7 in Japan. Customers are now being redirected to be supported by Fab7.
Teleconference and Webcast
Tower Semiconductor will host an investor conference call today, Wednesday, February 11, 2026, at 10:00 a.m. Eastern time (9:00 a.m. Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific time and 5:00 p.m. Israel time) to discuss the Company’s financial results for the fourth quarter and full year of 2025 and its business outlook, including an updated financial model.
The call will be webcast and available through the Investor Relations section of Tower Semiconductor’s website at ir.towersemi.com. The pre-registration form required for dial-in participation is accessible here. Upon completing the registration, participants will receive the dial-in details, a unique PIN, and a confirmation email with all necessary information. To access the webcast, click here. The teleconference will be available for replay for 90 days.
Non-GAAP Financial Measures
The Company presents its financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial information included in the tables below includes unaudited condensed financial data. Some of the financial information, which may be used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, which we may describe as adjusted financial measures and/or reconciled financial measures, are non-GAAP financial measures as defined in Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission (the “SEC”) as they apply to our Company. These adjusted financial measures are calculated excluding the following: (i) amortization of acquired intangible assets as included in our costs and expenses, (ii) compensation expenses in respect of equity grants to directors, officers, and employees as included in our costs and expenses, (iii) merger contract termination fees received from Intel, net of associated cost and taxes following the previously announced Intel contract termination as included in net profit in 2023 and (iv) restructuring income, net, which includes income, net of cost and taxes associated with the reorganization and restructure of our operations in Japan including the cessation of operations of the Arai facility, which occurred during 2022, as included in net profit. These adjusted financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables also present the GAAP financial measures, which are most comparable to the adjusted financial measures used and/or presented in this release, as well as a reconciliation between the adjusted financial measures and the comparable GAAP financial measures. As used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, as well as may be included and calculated in the tables herein, the term Earnings Before Interest Taxes, Depreciation and Amortization which we define as EBITDA consists of operating profit in accordance with GAAP, excluding (i) depreciation expenses, which include depreciation recorded in cost of revenue and in operating cost and expenses lines (e.g., research and development related equipment and/or fixed other assets depreciation), (ii) stock-based compensation expense, (iii) amortization of acquired intangible assets, (iv) merger contract termination fees received from Intel, net of associated cost following the previously announced Intel contract termination, as included in operating profit and (v) restructuring income, net in relation to the reorganization and restructure of our operations in Japan including the cessation of operations of the Arai facility, as included in operating profit. EBITDA is reconciled in the tables below and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company from GAAP operating profit. EBITDA and the adjusted financial information presented herein and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, are not a required GAAP financial measure and may not be comparable to a similarly titled measure employed by other companies. EBITDA and the adjusted financial information presented herein and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Net Cash, as may be used and/or presented in this release and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, is comprised of cash, cash equivalents and short-term deposits less debt amounts as presented in the balance sheets included herein. The term Net Cash is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for cash, debt, operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Free Cash Flow, as used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, is calculated to be net cash provided by operating activities (in the amounts of
About Tower Semiconductor
Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development, and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiPho, SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, integrated power management (BCD and 700V), and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services including development, transfer, and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor currently owns one operating facility in Israel (200mm), two in the U.S. (200mm), and two in Japan (200mm and 300mm) which it owns through its
CONTACT:
Liat Avraham | Investor Relations | +972-4-6506154 | liatavra@towersemi.com
Forward-Looking Statements
This release, as well as other statements and reports filed, stated and published in relation to this quarter’s results, include certain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, projections and statements with respect to our future business, financial performance and activities. The use of words such as “projects”, “expects”, “may”, “targets”, “plans”, “intends”, “committed to”, “tracking”, or words of similar import, identifies a statement as “forward-looking.” Actual results may vary from those projected or implied by such forward-looking statements and you should not place any undue reliance on such forward-looking statements, which describe information known to us only as of the date of this release. Factors that could cause actual results to differ materially from those projected or implied by such forward-looking statements include, without limitation, risks and uncertainties associated with: (i) demand in our customers’ end markets, (ii) reliance on acquisitions and/or gaining additional capacity for growth, (iii) difficulties in achieving acceptable operational metrics and indices as a result of operational, technological or process-related problems, (iv) identifying and negotiating with third-party buyers for the sale of any excess and/or unused equipment, inventory and/or other assets, (v) maintaining current key customers and attracting new key customers, (vi) over demand for our foundry services resulting in high utilization and its effect on cycle time, yield and on schedule delivery, as well as customers potentially being placed on allocation, which may cause customers to transfer their business to other vendors, (vii) financial results may fluctuate from quarter to quarter, (viii) our debt and other liabilities may impact our financial position and operations, (ix) our ability to successfully execute acquisitions, integrate them into our business, utilize our expanded capacity and find new business, (x) fluctuations in cash flow, (xi) our ability to satisfy the covenants stipulated in our agreements with our debt holders, (xii) pending litigation, (xiii) meeting the conditions set in approval certificates and other regulations under which we received grants and/or royalties and/or any type of funding from the Israeli, US and/or Japan governmental agencies, (xiv) receipt of orders that are lower than the customer purchase commitments or forecast and/or failure to receive customer orders currently expected, (xv) possible incurrence of additional indebtedness, (xvi) the effects of global recession, credit crisis and/or unfavorable macro-economic conditions, such as the imposition of regulatory requirements, tariffs, import and export restrictions and other trade barriers and restrictions, including the timing and availability of export licenses and permits, (xvii) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles which may cause financial results to fluctuate from quarter to quarter, (xviii) possible situations of obsolete inventory if forecasted demand exceeds actual demand when we create inventory before receipt of customer orders, (xix) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (xx) capacity and capability expansion and acquisition related transactions in our existing fabrications, strategic and/or other in-organic capacity and/ or capability growth and/ or M&A transactions and opportunities, and/ or the acquisition of and/ or the establishment of a new factory or factories, which could require funding needs beyond our existing cash, the availability of which cannot be assured on favorable terms, if at all, and which may have adverse impact on the market value of the Company and the price of the Company’s ordinary shares, (xxi) operating our facilities at sufficient utilization rates necessary to generate and maintain positive and sustainable gross, operating and net profit, (xxii) the purchase of equipment and/or raw material (including purchases under committed contracts), the timely completion of the equipment installation, technology transfer and raising the funds therefor, (xxiii) product returns and defective products, (xxiv) our ability to maintain and develop our technology processes and services to keep pace with new technology, including artificial intelligence, evolving standards, changing customer and end-user requirements, new product introductions and short product life cycles, (xxv) competing effectively, (xxvi) the use of outsourced foundry services by both fabless semiconductor companies and integrated device manufacturers, (xxvii) our dependence on intellectual property rights of others, our ability to operate our business without infringing others’ intellectual property rights and our ability to enforce our intellectual property against infringement, (xxviii) Fab 3 landlord’s alleged claims regarding noise abatement and request for judicial declaration of material non-curable breach of the Fab3 lease, and in addition, claims by a third-party with whom the landlord is engaged pertaining the Fab3 site, under which such third party believes he has certain rights with respect to the site, (xxix) retention of key employees and recruitment and retention of skilled qualified personnel, (xxx) exposure to inflation, currency rates (mainly the Israeli Shekel and the Japanese Yen) and interest rate fluctuations and risks associated with doing business locally and internationally, as well as fluctuations in the market price of our traded securities, (xxxi) meeting regulatory requirements worldwide, including export, environmental and governmental regulations, as well as risks related to international operations, (xxxii) engagements for fab establishment, joint venture and/or capital lease transactions for capacity enhancement in advanced technologies, including risks and uncertainties associated with the Agrate fab, such as its qualification schedule, technology, equipment and process qualification, facility operational ramp-up, customer engagements, cost structure, required investments and other terms, which may require additional funding to cover significant capacity investment needs and other payments, (xxxiii) potential liabilities, cost and other impact due to reorganization and consolidation of fabrication facilities, or cessation of operations, (xxxiv) potential security, cyber and privacy breaches, (xxxv) workforce that is not unionized which may become unionized, and/or workforce that is unionized and may take action such as strikes that may create increased cost and operational risks, (xxxvi) the issuance of ordinary shares as a result of exercise and/or vesting of any of our employee equity, as well as any sale of shares by any of our shareholders, or any market expectation thereof, as well as the issuance of additional employees’ restricted stock units, or any market expectation thereof, which may depress the market value of the Company and the price of the Company’s ordinary shares, and in addition may impair our ability to raise future capital, (xxxvii) the dispute resolution process with Intel with regards to the capacity corridor in Intel’s New Mexico fab further to Intel’s notice to the Company that it does not intend to perform under the agreement, and the result therefrom, which process may be costly and/ or may result in losses and/or other adverse impact, (xxxviii) Pillar Two tax rules and regulations previously released by the OECD, which require a minimum effective corporate income tax rate of
A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this release or which may otherwise affect our business is included under the heading "Risk Factors" in the Company’s most recent filings on Forms 20-F and 6-K, as were filed with the SEC and the Israel Securities Authority. Future results may differ materially from those previously reported. The Company does not intend to update, and expressly disclaims any obligation to update, the information contained in this release.
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
| (dollars in thousands) | ||||||
| December 31, | December 31, | |||||
| 2025 | 2024 | |||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 235,369 | $ | 271,894 | ||
| Short-term deposits | 916,541 | 946,351 | ||||
| Trade accounts receivable | 222,795 | 211,932 | ||||
| Inventories | 256,855 | 268,295 | ||||
| Other current assets | 78,062 | 61,817 | ||||
| Total current assets | 1,709,622 | 1,760,289 | ||||
| PROPERTY AND EQUIPMENT, NET | 1,463,056 | 1,286,622 | ||||
| OTHER LONG-TERM ASSETS, NET* | 149,612 | 33,574 | ||||
| TOTAL ASSETS | $ | 3,322,290 | $ | 3,080,485 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Short-term debt | $ | 28,112 | $ | 48,376 | ||
| Trade accounts payable | 123,915 | 130,624 | ||||
| Deferred revenue and customers' advances | 25,581 | 21,655 | ||||
| Other current liabilities | 86,139 | 84,409 | ||||
| Total current liabilities | 263,747 | 285,064 | ||||
| LONG-TERM DEBT | 133,406 | 132,437 | ||||
| OTHER LONG-TERM LIABILITIES | 20,554 | 22,804 | ||||
| TOTAL LIABILITIES | 417,707 | 440,305 | ||||
| TOTAL SHAREHOLDERS' EQUITY | 2,904,583 | 2,640,180 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,322,290 | $ | 3,080,485 | ||
| * As of December 31, 2025, includes Rights of Use in the amount of | ||||||
| with respect to Fab3 previously announced lease extension agreement. | ||||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||
| (dollars and share count in thousands, except per share data) | |||||||||
| Three months ended | |||||||||
| December 31, | September 30, | December 31, | |||||||
| 2025 | 2025 | 2024 | |||||||
| REVENUE | $ | 440,206 | $ | 395,667 | $ | 387,191 | |||
| COST OF REVENUE | 322,594 | 302,622 | 300,338 | ||||||
| GROSS PROFIT | 117,612 | 93,045 | 86,853 | ||||||
| OPERATING COSTS AND EXPENSES: | |||||||||
| Research and development | 24,850 | 22,056 | 20,622 | ||||||
| Marketing, general and administrative | 21,933 | 20,409 | 19,812 | ||||||
| 46,783 | 42,465 | 40,434 | |||||||
| OPERATING PROFIT | 70,829 | 50,580 | 46,419 | ||||||
| FINANCING AND OTHER INCOME, NET | 10,735 | 10,491 | 8,315 | ||||||
| PROFIT BEFORE INCOME TAX | 81,564 | 61,071 | 54,734 | ||||||
| INCOME TAX EXPENSE, NET | (1,505) | (7,625) | (2,149) | ||||||
| NET PROFIT | 80,059 | 53,446 | 52,585 | ||||||
| Net loss attributable to non-controlling interest | 73 | 199 | 2,553 | ||||||
| NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 80,132 | $ | 53,645 | $ | 55,138 | |||
| BASIC EARNINGS PER SHARE | $ | 0.71 | $ | 0.48 | $ | 0.49 | |||
| Weighted average number of shares | 112,396 | 112,132 | 111,493 | ||||||
| DILUTED EARNINGS PER SHARE | $ | 0.70 | $ | 0.47 | $ | 0.49 | |||
| Weighted average number of shares | 114,191 | 113,751 | 112,967 | ||||||
| RECONCILIATION FROM GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY TO ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY: | |||||||||
| GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 80,132 | $ | 53,645 | $ | 55,138 | |||
| Stock based compensation and amortization of acquired intangible assets | 9,393 | 9,111 | 11,258 | ||||||
| ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 89,525 | $ | 62,756 | $ | 66,396 | |||
| ADJUSTED EARNINGS PER SHARE: | |||||||||
| Basic | $ | 0.80 | $ | 0.56 | $ | 0.60 | |||
| Diluted | $ | 0.78 | $ | 0.55 | $ | 0.59 | |||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||
| (dollars and share count in thousands, except per share data) | ||||||
| Year ended | ||||||
| December 31, | ||||||
| 2025 | 2024 | |||||
| REVENUE | $ | 1,566,104 | $ | 1,436,122 | ||
| COST OF REVENUE | 1,202,250 | 1,096,680 | ||||
| GROSS PROFIT | 363,854 | 339,442 | ||||
| OPERATING COSTS AND EXPENSES: | ||||||
| Research and development | 86,496 | 79,434 | ||||
| Marketing, general and administrative | 83,186 | 74,964 | ||||
| Restructuring income, net * | -- | (6,270) | ||||
| 169,682 | 148,128 | |||||
| OPERATING PROFIT | 194,172 | 191,314 | ||||
| FINANCING AND OTHER INCOME, NET | 46,211 | 26,113 | ||||
| PROFIT BEFORE INCOME TAX | 240,383 | 217,427 | ||||
| INCOME TAX EXPENSE, NET | (21,569) | (10,205) | ||||
| NET PROFIT | 218,814 | 207,222 | ||||
| Net loss attributable to non-controlling interest | 1,656 | 642 | ||||
| NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 220,470 | $ | 207,864 | ||
| BASIC EARNINGS PER SHARE | $ | 1.97 | $ | 1.87 | ||
| Weighted average number of shares | 111,981 | 111,153 | ||||
| DILUTED EARNINGS PER SHARE | $ | 1.94 | $ | 1.85 | ||
| Weighted average number of shares | 113,597 | 112,343 | ||||
| * Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations. | ||||||
| RECONCILIATION FROM GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY TO ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY: | ||||||
| GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 220,470 | $ | 207,864 | ||
| Stock based compensation and amortization of acquired intangible assets | 39,434 | 35,755 | ||||
| Restructuring income, net ** | -- | (2,634) | ||||
| ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 259,904 | $ | 240,985 | ||
| ADJUSTED EARNINGS PER SHARE: | ||||||
| Basic | $ | 2.32 | $ | 2.17 | ||
| Diluted | $ | 2.29 | $ | 2.15 | ||
| ** Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations, net of tax | ||||||
| and profit attributable to non-controlling interest. | ||||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||
| CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED) | |||||||||
| (dollars in thousands) | |||||||||
| Three months ended | |||||||||
| December 31, | September 30, | December 31, | |||||||
| 2025 | 2025 | 2024 | |||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ | 272,742 | $ | 265,293 | $ | 270,979 | |||
| Net cash provided by operating activities | 39,538 | * | 139,423 | 100,816 | |||||
| Investments in property and equipment, net | (110,978) | (103,490) | (93,396) | ||||||
| Debt received (repaid), net | (4,708) | (6,875) | 2,795 | ||||||
| Effect of Japanese Yen exchange rate change over cash balance | (3,225) | (1,609) | (4,972) | ||||||
| Proceeds from (investments in) deposits, marketable securities and other assets, net | 42,000 | (20,000) | (4,328) | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 235,369 | $ | 272,742 | $ | 271,894 | |||
| Year ended | |||||||||
| December 31, | December 31, | ||||||||
| 2025 | 2024 | ||||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ | 271,894 | $ | 260,664 | |||||
| Net cash provided by operating activities | 395,482 | * | 448,682 | ||||||
| Investments in property and equipment, net | (436,561) | (431,653) | |||||||
| Debt repaid, net | (33,353) | (32,455) | |||||||
| Effect of Japanese Yen exchange rate change over cash balance | (563) | (4,758) | |||||||
| Proceeds from deposits, marketable securities and other assets, net | 38,470 | 31,414 | |||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 235,369 | $ | 271,894 | |||||
| * Includes | |||||||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||
| (dollars in thousands) | ||||||
| Year ended | ||||||
| December 31, | December 31, | |||||
| 2025 | 2024 | |||||
| CASH FLOWS - OPERATING ACTIVITIES | ||||||
| Net profit for the period | $ | 218,814 | $ | 207,222 | ||
| Adjustments to reconcile net profit for the period | ||||||
| to net cash provided by operating activities: | ||||||
| Income and expense items not involving cash flows: | ||||||
| Depreciation and amortization * | 303,112 | 266,279 | ||||
| Other expense, net | 10,527 | 24,721 | ||||
| Changes in assets and liabilities: | ||||||
| Trade accounts receivable | (10,498) | (60,036) | ||||
| Other current assets | (25,453) | (33,992) | ||||
| Inventories | 11,800 | 4,778 | ||||
| Other long term assets | (111,018) | * | -- | |||
| Trade accounts payable | (12,175) | 35,784 | ||||
| Deferred revenue and customers' advances | (1,832) | (14,783) | ||||
| Other current liabilities | 12,029 | 22,021 | ||||
| Other long-term liabilities | 158 | (3,312) | ||||
| Net cash provided by operating activities | 395,482 | * | 448,682 | |||
| CASH FLOWS - INVESTING ACTIVITIES | ||||||
| Investments in property and equipment, net | (436,561) | (431,653) | ||||
| Proceeds from deposits, marketable securities and other assets, net | 38,470 | 31,414 | ||||
| Net cash used in investing activities | (398,091) | (400,239) | ||||
| CASH FLOWS - FINANCING ACTIVITIES | ||||||
| Debt repaid, net | (33,353) | (32,455) | ||||
| Net cash used in financing activities | (33,353) | (32,455) | ||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | (563) | (4,758) | ||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (36,525) | 11,230 | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 271,894 | 260,664 | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 235,369 | $ | 271,894 | ||
| * Includes | ||||||
| ** includes stock based compensation and amortization of acquired intangible assets in the amounts of | ||||||
| and | ||||||
FAQ
What were Tower Semiconductor (TSEM) Q4 2025 revenue and EPS results?
How much CapEx did Tower (TSEM) announce for SiPho and when will it be qualified?
What guidance did Tower (TSEM) give for Q1 2026 revenue?
How much of the new SiPho capacity is reserved or backed by customers for Tower (TSEM)?
What was Tower's full-year 2025 profitability and cash flow performance?
