Kulicke & Soffa (NASDAQ: KLIC) Q2 revenue rises to $242.6M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Kulicke & Soffa reported strong results for its second fiscal quarter ended April 4, 2026. Net revenue reached $242.6 million, up from $162.0 million a year earlier, as semiconductor, memory, automotive and industrial demand improved. GAAP net income was $35.1 million, or $0.66 diluted EPS, compared with a prior-year loss, while non-GAAP diluted EPS was $0.79. Gross margin was 49.3%, and GAAP operating income was $38.6 million with a 15.9% operating margin. Management plans to lift fiscal 2026 capital expenditure from about $12 million to about $22 million to expand Thermo-Compression bonding system capacity, targeting up to roughly $400 million in annual TCB system sales. For the third quarter of fiscal 2026, the company expects net revenue of about $310 million ± $20 million, GAAP diluted EPS of about $0.87 ± 10%, and non-GAAP diluted EPS of about $1.00 ± 10%.
Positive
- Strong revenue and earnings rebound: Fiscal Q2 2026 net revenue rose to $242.6 million from $161.986 million a year earlier, with GAAP diluted EPS improving from a $(1.59) loss to $0.66 and non-GAAP diluted EPS reaching $0.79.
- Upbeat guidance and capacity expansion: The company guides Q3 2026 revenue to about $310 million ± $20 million and non-GAAP EPS to about $1.00 ± 10%, while nearly doubling 2026 capital expenditure to expand TCB capacity toward roughly $400 million in annual system sales.
Negative
- None.
Insights
Kulicke & Soffa shows strong Q2 rebound and issues upbeat Q3 outlook.
Kulicke & Soffa delivered a sharp year-over-year turnaround. Q2 2026 net revenue of $242.6 million rose from $161.986 million, and GAAP diluted EPS improved from a $(1.59) loss to $0.66. Non-GAAP diluted EPS reached $0.79, reflecting healthier core operations.
Profitability also strengthened. Gross margin was 49.3%, while non-GAAP operating margin improved to 19.1%. Management highlighted stronger-than-anticipated demand across general semiconductor, memory, automotive and industrial markets, indicating broad-based end-market support for the recovery.
Forward-looking signals are notable. The company plans to boost fiscal 2026 capital expenditure from about $12 million to about $22 million to expand Thermo-Compression bonding capacity, supporting up to $400 million in annual TCB system sales. For Q3 2026, guidance of roughly $310 million revenue and non-GAAP EPS near $1.00 suggests continued momentum, though actual results will depend on market conditions and execution.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Net Revenue: $242.6 million
Q2 2026 GAAP Diluted EPS: $0.66 per share
Q2 2026 Non-GAAP Diluted EPS: $0.79 per share
+5 more
8 metrics
Q2 2026 Net Revenue
$242.6 million
Fiscal second quarter 2026 net revenue vs $161.986 million in Q2 2025
Q2 2026 GAAP Diluted EPS
$0.66 per share
Fiscal second quarter 2026 GAAP diluted earnings per share vs $(1.59) in Q2 2025
Q2 2026 Non-GAAP Diluted EPS
$0.79 per share
Fiscal second quarter 2026 non-GAAP diluted earnings per share
Q2 2026 Gross Margin
49.3%
Fiscal second quarter 2026 gross margin
Q3 2026 Revenue Outlook
$310 million ± $20 million
Guided net revenue for third quarter of fiscal 2026 ending July 4, 2026
Q3 2026 Non-GAAP EPS Outlook
$1.00 ± 10%
Guided non-GAAP diluted EPS for third quarter of fiscal 2026
2026 Capital Expenditure Plan
$22 million (approx.)
Planned fiscal year 2026 capex increase from about $12 million to about $22 million
TCB Annual Sales Capacity Target
$400 million
Target annual Thermo-Compression bonding system sales supported by expanded capacity
Key Terms
non-GAAP, Thermo-Compression bonding, adjusted free cash flow, operating margin, +1 more
5 terms
non-GAAP financial
"A reconciliation between the GAAP and non-GAAP adjusted results is provided in the financial tables"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Thermo-Compression bonding technical
"expand the Company's production of its Thermo-Compression bonding ("TCB") systems"
Thermo-compression bonding is a manufacturing process that joins two metal surfaces by applying heat and pressure so they fuse together without added glue or liquid solder; think of it as using a hot press to weld tiny parts at the microscopic level. For investors, it matters because it affects how reliably and cheaply electronic components and sensors can be made, influencing product quality, production yield, and the speed and cost of bringing devices to market.
adjusted free cash flow financial
"GAAP cash flow from operations of $10.3 million; Adjusted free cash flow of $6.3 million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
operating margin financial
"Non-GAAP operating margin | 19.1 % | (16.9) %"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
forward-looking statements regulatory
"this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Net Revenue: $242.6 million · Guidance included
Q2 2026
Net Revenue
$242.6 million
GAAP Diluted EPS
$0.66
Non-GAAP Diluted EPS
$0.79
Gross Margin
49.3%
Guidance
For Q3 2026, the company expects net revenue of approximately $310 million ± $20 million, GAAP diluted EPS of about $0.87 ± 10%, and non-GAAP diluted EPS of about $1.00 ± 10%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________
FORM 8-K
____________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 6, 2026
____________________________________________________
KULICKE AND SOFFA INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
____________________________________________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices and Zip Code)
Registrant’s telephone number, including area code: (215 ) 784-6000
N/A
(Former Name or Former Address, if Changed Since Last Report)
____________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2026, Kulicke and Soffa Industries, Inc. (the “Company”) issued a press release with respect to its financial results for its second fiscal quarter ended April 4, 2026. A copy of this press release is furnished as Exhibit 99.1 to this report, and is incorporated by reference into this Item 2.02 as if fully set forth herein.
The information in this report, furnished under “Item 2.02 Results of Operations and Financial Condition,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits. | |||||||
| (d) | Exhibits. | |||||||
| Exhibit No. | Description | |||||||
| 99.1 | Press Release dated May 6, 2026 | |||||||
| 104 | Inline XBRL for the cover page of this Current Report on Form 8‑K. | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KULICKE AND SOFFA INDUSTRIES, INC. | |||||||||||
| Date: May 6, 2026 | By: | /s/ LESTER WONG | |||||||||
| Name: | Lester Wong | ||||||||||
| Title: | Executive Vice President, Interim Chief Executive Officer and Chief Financial Officer (principal executive officer, principal financial officer and principal accounting officer) | ||||||||||
Exhibit 99.1
 | Kulicke & Soffa Pte. Ltd. 23A Serangoon North Ave 5 Singapore 554369 +65 6880-9600 main Co. Regn. No. 199902120H | ||||
Kulicke and Soffa Industries, Inc. 1005 Virginia Drive Fort Washington, PA 19034 USA +1-215-784-6000 main www.kns.com | |||||
Kulicke & Soffa Reports Second Quarter 2026 Results
Singapore – May 6, 2026 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa,” “K&S,” “our,” or the “Company”), today announced financial results of its second fiscal quarter ended April 4, 2026. The Company reported second quarter net revenue of $242.6 million, net income of $35.1 million, representing EPS of $0.66 per fully diluted share, and non-GAAP net income of $42.1 million, representing non-GAAP EPS of $0.79 per fully diluted share.
| Quarterly Results | |||||||||||
| Fiscal Q2 2026 | Fiscal Q2 2025 | Fiscal Q1 2026 | |||||||||
| Net Revenue (in thousands) | $242,621 | $161,986 | $199,625 | ||||||||
| GAAP EPS – Diluted | $0.66 | $(1.59) | $0.32 | ||||||||
| Non GAAP EPS - Diluted | $0.79 | $(0.52) | $0.44 | ||||||||
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, “Demand is stronger than anticipated due to both technology and capacity needs across general semiconductor, memory, automotive and industrial end markets. In addition to helping customers reach their production goals, we are also ramping near-term capital investment to support longer-term Advanced Solutions growth."
The Company anticipates fiscal year 2026 capital expenditure to increase sequentially from approximately $12 million to approximately $22 million. This incremental investment is expected to significantly expand the Company's production of its Thermo-Compression bonding ("TCB") systems, supporting up to approximately $400 million in annual TCB system sales.
Second Quarter Fiscal 2026 Financial Highlights
•Net revenue of $242.6 million.
•Gross margin of 49.3%.
•Net income of $35.1 million or $0.66 per share; non-GAAP net income of $42.1 million or $0.79 per fully diluted share.
•GAAP cash flow from operations of $10.3 million; Adjusted free cash flow of $6.3 million.
•The Company repurchased a total of 3.0 thousand shares of common stock at a cost of $0.1 million.
Third Quarter Fiscal 2026 Outlook
K&S currently expects net revenue in the third quarter of fiscal 2026 ending July 4, 2026 to be approximately $310 million +/- $20 million, GAAP diluted EPS to be approximately $0.87 +/- 10%, and non-GAAP diluted EPS to be approximately $1.00 +/- 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.
1
Earnings Conference Webcast
A webcast to discuss these results will be held on May 7, 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 13757797.
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.
2
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 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 | |||||
3
KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three months ended | Six months ended | ||||||||||||||||||||||
| April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 | ||||||||||||||||||||
| Net revenue | $ | 242,621 | $ | 161,986 | $ | 442,246 | $ | 328,110 | |||||||||||||||
| Cost of sales | 122,917 | 121,602 | 223,587 | 200,642 | |||||||||||||||||||
| Gross profit | 119,704 | 40,384 | 218,659 | 127,468 | |||||||||||||||||||
| Selling, general and administrative | 42,742 | 48,014 | 83,501 | 86,628 | |||||||||||||||||||
| Research and development | 38,396 | 37,220 | 78,772 | 75,028 | |||||||||||||||||||
| Gain relating to cessation of business | — | — | — | (75,987) | |||||||||||||||||||
| Impairment charges | — | 39,817 | — | 39,817 | |||||||||||||||||||
| Operating expenses | 81,138 | 125,051 | 162,273 | 125,486 | |||||||||||||||||||
| Income / (Loss) from operations | 38,566 | (84,667) | 56,386 | 1,982 | |||||||||||||||||||
| Interest income | 3,980 | 5,622 | 8,739 | 11,974 | |||||||||||||||||||
| Interest expense | (37) | (36) | (77) | (63) | |||||||||||||||||||
| Income / (Loss) before income taxes | 42,509 | (79,081) | 65,048 | 13,893 | |||||||||||||||||||
| Provision for income taxes | 7,361 | 5,438 | 13,104 | 16,770 | |||||||||||||||||||
| Net income / (loss) | $ | 35,148 | $ | (84,519) | $ | 51,944 | $ | (2,877) | |||||||||||||||
| Net income / (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 0.67 | $ | (1.59) | $ | 0.99 | $ | (0.05) | |||||||||||||||
| Diluted | $ | 0.66 | $ | (1.59) | $ | 0.98 | $ | (0.05) | |||||||||||||||
| Cash dividends declared per share | $ | 0.205 | $ | 0.205 | $ | 0.41 | $ | 0.41 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 52,327 | 53,311 | 52,323 | 53,551 | |||||||||||||||||||
| Diluted | 53,121 | 53,311 | 52,963 | 53,551 | |||||||||||||||||||
4
KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
| As of | |||||||||||
| April 4, 2026 | October 4, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 337,864 | $ | 215,708 | |||||||
| Short-term investments | 150,000 | 295,000 | |||||||||
| Accounts and other receivable, net | 255,610 | 183,538 | |||||||||
| Inventories, net | 206,294 | 160,225 | |||||||||
| Prepaid expenses and other current assets | 32,549 | 47,064 | |||||||||
| Total current assets | 982,317 | 901,535 | |||||||||
| Property, plant and equipment, net | 57,924 | 58,993 | |||||||||
| Operating right-of-use assets | 33,921 | 32,193 | |||||||||
| Goodwill | 69,522 | 69,522 | |||||||||
| Intangible assets, net | 4,984 | 5,600 | |||||||||
| Deferred tax assets | 16,144 | 16,109 | |||||||||
| Equity investments | 7,881 | 6,978 | |||||||||
| Investment in debt securities | 10,000 | 10,000 | |||||||||
| Other assets | 3,291 | 3,412 | |||||||||
| TOTAL ASSETS | $ | 1,185,984 | $ | 1,104,342 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 85,445 | $ | 57,178 | |||||||
| Operating lease liabilities | 6,192 | 6,178 | |||||||||
| Accrued expenses and other current liabilities | 119,230 | 97,786 | |||||||||
| Income taxes payable | 22,653 | 27,029 | |||||||||
| Total current liabilities | 233,520 | 188,171 | |||||||||
| Deferred tax liabilities | 34,892 | 35,533 | |||||||||
| Income taxes payable | 17,289 | 16,580 | |||||||||
| Operating lease liabilities | 33,594 | 32,372 | |||||||||
| Other liabilities | 9,143 | 10,195 | |||||||||
| TOTAL LIABILITIES | $ | 328,438 | $ | 282,851 | |||||||
| SHAREHOLDERS' EQUITY | |||||||||||
| Common stock, without par value | 627,269 | 620,043 | |||||||||
| Treasury stock, at cost | (976,253) | (974,202) | |||||||||
| Retained earnings | 1,229,990 | 1,199,500 | |||||||||
| Accumulated other comprehensive loss | (23,460) | (23,850) | |||||||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 857,546 | $ | 821,491 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,185,984 | $ | 1,104,342 | |||||||
5
KULICKE AND SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three months ended | Six months ended | ||||||||||||||||||||||
| (in thousands) | April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 | |||||||||||||||||||
| Net cash provided by operating activities | $ | 10,271 | $ | 79,877 | $ | 1,338 | $ | 98,779 | |||||||||||||||
| Net cash provided by/(used in) investing activities | 45,368 | (38,415) | 138,693 | 43,624 | |||||||||||||||||||
| Net cash used in financing activities | (283) | (33,506) | (18,171) | (81,958) | |||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 380 | 238 | 296 | (1,073) | |||||||||||||||||||
| Changes in cash and cash equivalents | 55,736 | 8,194 | 122,156 | 59,372 | |||||||||||||||||||
| Cash and cash equivalents, beginning of period | 282,128 | 278,325 | 215,708 | 227,147 | |||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 337,864 | $ | 286,519 | $ | 337,864 | $ | 286,519 | |||||||||||||||
| Short-term investments | 150,000 | 295,000 | 150,000 | 295,000 | |||||||||||||||||||
| Total cash, cash equivalents and short-term investments | $ | 487,864 | $ | 581,519 | $ | 487,864 | $ | 581,519 | |||||||||||||||
6
Reconciliation of U.S. GAAP
to Non-GAAP Income from Operations and Operating Margin
(In thousands, except percentages)
(Unaudited)
| Three months ended | ||||||||||||||||||||
| April 4, 2026 | March 29, 2025 | January 3, 2026 | ||||||||||||||||||
| Net revenue | $ | 242,621 | $ | 161,986 | $ | 199,625 | ||||||||||||||
| U.S. GAAP income / (loss) from operations | 38,566 | (84,667) | 17,820 | |||||||||||||||||
| U.S. GAAP operating margin | 15.9 | % | (52.3) | % | 8.9 | % | ||||||||||||||
| Pre-tax non-GAAP items: | ||||||||||||||||||||
| Amortization related to intangible assets | 307 | 1,171 | 308 | |||||||||||||||||
| Restructuring | 418 | 8,806 | 1,997 | |||||||||||||||||
| Equity-based compensation | 6,991 | 7,493 | 5,330 | |||||||||||||||||
| Impairment charges | — | 39,817 | — | |||||||||||||||||
| Other income – escrow release on sale of subsidiary | — | — | (304) | |||||||||||||||||
| Non-GAAP income / (loss) from operations | $ | 46,282 | $ | (27,380) | $ | 25,151 | ||||||||||||||
| Non-GAAP operating margin | 19.1 | % | (16.9) | % | 12.6 | % | ||||||||||||||
7
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 | ||||||||||||||||||||
| April 4, 2026 | March 29, 2025 | January 3, 2026 | ||||||||||||||||||
| Net revenue | $ | 242,621 | $ | 161,986 | $ | 199,625 | ||||||||||||||
| U.S. GAAP net income / (loss) | 35,148 | (84,519) | 16,796 | |||||||||||||||||
| U.S. GAAP net margin | 14.5 | % | (52.2) | % | 8.4 | % | ||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||
| Amortization related to intangible assets | 307 | 1,171 | 308 | |||||||||||||||||
| Restructuring | 418 | 8,806 | 1,997 | |||||||||||||||||
| Equity-based compensation | 6,991 | 7,493 | 5,330 | |||||||||||||||||
| Impairment charges | — | 39,817 | — | |||||||||||||||||
| Other income – escrow release on sale of subsidiary | — | — | (304) | |||||||||||||||||
| Net income tax benefit on non-GAAP items | (728) | (639) | (986) | |||||||||||||||||
| Total non-GAAP adjustments | $ | 6,988 | $ | 56,648 | $ | 6,345 | ||||||||||||||
| Non-GAAP net income / (loss) | $ | 42,136 | $ | (27,871) | $ | 23,141 | ||||||||||||||
| Non-GAAP net margin | 17.4 | % | (17.2) | % | 11.6 | % | ||||||||||||||
| U.S. GAAP net income / (loss) per share: | ||||||||||||||||||||
| Basic | $ | 0.67 | $ | (1.59) | $ | 0.32 | ||||||||||||||
Diluted(a) | $ | 0.66 | $ | (1.59) | $ | 0.32 | ||||||||||||||
Non-GAAP adjustments per share:(b) | ||||||||||||||||||||
| Basic | $ | 0.14 | $ | 1.07 | $ | 0.12 | ||||||||||||||
| Diluted | $ | 0.13 | $ | 1.07 | $ | 0.12 | ||||||||||||||
| Non-GAAP net income / (loss) per share: | ||||||||||||||||||||
| Basic | $ | 0.81 | $ | (0.52) | $ | 0.44 | ||||||||||||||
Diluted(c) | $ | 0.79 | $ | (0.52) | $ | 0.44 | ||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 52,327 | 53,311 | 52,319 | |||||||||||||||||
| Diluted | 53,121 | 53,311 | 52,521 | |||||||||||||||||
(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, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, gain relating to business cessation or disposal, 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.
8
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 | ||||||||||||||||||||
| April 4, 2026 | March 29, 2025 | January 3, 2026 | ||||||||||||||||||
| U.S. GAAP net cash provided by / (used in) operating activities | $ | 10,271 | $ | 79,877 | $ | (8,933) | ||||||||||||||
| Purchases of property, plant and equipment | (4,077) | (1,954) | (2,676) | |||||||||||||||||
| Proceeds from sales of property, plant and equipment | 74 | 60 | 1 | |||||||||||||||||
| Non-GAAP adjusted free cash flow | $ | 6,268 | $ | 77,983 | $ | (11,608) | ||||||||||||||
9
Reconciliation of U.S. GAAP to Non-GAAP Outlook
(In millions, except per share data)
(Unaudited)
Third quarter of fiscal 2026 ending July 4, 2026 | ||||||||||||||||||||
| GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||
| Net revenue | $310 million +/- $20 million | — | $310 million +/- $20 million | |||||||||||||||||
| Operating expenses | $92.4 million +/- 2% | $7.4 million B,C,D | $85.0 million +/- 2% | |||||||||||||||||
Diluted EPS(1) | $0.87 +/- 10% | $0.13 A - E | $1.00 +/- 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 | 0.5 | |||||||
| E. Net income tax effect of the above items | (0.7) | |||||||
(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.
10
FAQ
How did Kulicke & Soffa (KLIC) perform in fiscal Q2 2026?
Kulicke & Soffa posted a strong turnaround in fiscal Q2 2026. Net revenue was $242.6 million versus $161.986 million a year earlier. GAAP net income reached $35.1 million, or $0.66 diluted EPS, while non-GAAP diluted EPS was $0.79, reflecting improved profitability and demand.
What profit margins did Kulicke & Soffa (KLIC) report for Q2 2026?
The company reported solid profitability in Q2 2026. Gross margin was 49.3%, and GAAP operating income of $38.6 million translated into a 15.9% operating margin. On a non-GAAP basis, operating margin improved further to 19.1%, underscoring stronger core operating performance.
What guidance did Kulicke & Soffa (KLIC) give for Q3 2026?
Management issued an optimistic outlook for Q3 2026. The company expects net revenue of approximately $310 million plus or minus $20 million, GAAP diluted EPS of about $0.87 ± 10%, and non-GAAP diluted EPS of about $1.00 ± 10%, indicating anticipated continued growth.
How is Kulicke & Soffa (KLIC) investing in Thermo-Compression bonding (TCB)?
The company plans to significantly increase TCB production capacity. Fiscal 2026 capital expenditure is expected to rise from roughly $12 million to about $22 million. This added investment is intended to support up to approximately $400 million in annual Thermo-Compression bonding system sales.
What were Kulicke & Soffa’s (KLIC) cash flow trends in early 2026?
Cash flow from operations was modest in the latest quarter. For the three months ended April 4, 2026, GAAP cash flow from operations totaled $10.3 million, while non-GAAP adjusted free cash flow was $6.3 million, reflecting investment and working capital dynamics during the recovery.
What is Kulicke & Soffa’s (KLIC) cash and investment position as of April 4, 2026?
The company holds a substantial liquidity position. As of April 4, 2026, cash and cash equivalents were $337.864 million and short-term investments were $150.000 million, supporting total cash, cash equivalents and short-term investments of $487.864 million on the balance sheet.