Strong Q4 Revenue Beat and Sequential Recovery
Q4 revenue of $32.8M, above guidance and the highest quarter of the year; Q4 revenue rose $6.6M or 25% sequentially from $26.2M in Q3 (including ~$2M of shipments slipped from Q3).
Robust Order Momentum and Growing Backlog
Q4 orders exceeded $37M and Q4 orders were up 22% year-over-year (+$0.8M vs Q4 2024). Year-end backlog $53.9M, up 36% year-over-year and 9% sequentially; ~60% of backlog expected to ship beyond 2026, providing forward visibility.
Gross Margin Expansion
Q4 gross margin expanded to 45.4%, up 350 basis points sequentially and 570 basis points year-over-year, driven by volume gains and higher sales of higher-margin new Alphamation products; full-year normalized gross margin ~43%.
Profitability Improvement in Q4 Metrics
Q4 net income $1.2M; adjusted EBITDA $3.2M representing a 9.7% adjusted EBITDA margin versus a Q3 trough of $0.4M (1.5%); Q4 diluted EPS $0.10, adjusted EPS $0.16.
Meaningful Market Diversification and New Product Traction
Nearly 80% of Q4 revenue derived from non-semiconductor end markets; life sciences orders tripled sequentially in Q4 and full-year orders: life sciences +137% YoY, auto EV +89% YoY, industrial +53% YoY. New product contributions (Alphamation, Archaeologic) accelerating progress toward Vision 2030 target of 25% revenue from new products.
Debt Reduction and Strong Liquidity Position
Reduced debt by $1.4M in Q4 and $7.6M in 2025 to total debt of $7.5M; liquidity approximately $58M including $18.1M cash and full access to a $30M delayed draw term loan facility and $10M revolver.
Prudent 2026 Guidance with Return-to-Growth Plan
Provided 2026 guidance: revenue $125M–$130M (midpoint ~12% growth vs 2025), gross margin ~45%, operating expenses $53M–$55M, Q1 revenue guide $31M–$33M and Q1 gross margin ~44%; management expects a year of returning growth while not assuming a major semi rebound.
Operational Efficiency and Cost Discipline
Manufacturing efficiency initiatives, scaling of Malaysia operations, and cost actions helped reduce operating expenses as a percent of revenue to 41.5% in Q4 and contributed to margin lift despite low semi contribution.