Onto Innovation ( (ONTO) ) has released its Q2 earnings. Here is a breakdown of the information Onto Innovation presented to its investors.
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Onto Innovation Inc., a leader in process control technologies for the semiconductor industry, is known for its advanced metrology and inspection solutions that enhance device performance and reliability. The company recently reported its second-quarter results for 2025, showcasing a robust performance with revenue surpassing the midpoint of its guidance range. Significant strides were made with the expansion of the Dragonfly 3Di metrology footprint and a notable acquisition of product lines from Semilab International Zrt., expected to boost annual revenue significantly.
In the second quarter of 2025, Onto Innovation reported a revenue of $253.6 million, marking a 5% increase from the previous year. The company achieved a non-GAAP gross margin of 54.5%, reflecting an improvement from the prior year’s 53.2%. Despite a decrease in GAAP net income to $33.9 million, the non-GAAP net income stood at $61.3 million, demonstrating resilience in its core operations. The acquisition of Semilab’s product lines for $545 million is anticipated to be immediately accretive to earnings per share, further strengthening Onto Innovation’s market position.
The company’s operating income for the quarter was $32.2 million, representing 12.7% of revenue, while non-GAAP operating income was $65.6 million, or 25.9% of revenue. Onto Innovation also generated $57.9 million in cash from operations, ending the quarter with $895 million in cash and short-term investments. The strategic acquisition and expansion efforts underscore Onto Innovation’s commitment to enhancing its product offerings and capturing growth opportunities in advanced semiconductor packaging.
Looking ahead, Onto Innovation anticipates a temporary dip in third-quarter revenue but expects a rebound in the fourth quarter driven by increased AI packaging spending. This outlook suggests continued momentum into 2026, as the company leverages its expanded portfolio and market presence to drive growth and innovation in the semiconductor industry.