Skywater Technology Inc (SKYT)
NASDAQ:SKYT
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SkyWater Technology
(NASDAQ:SKYT)
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Rating:66Neutral
Price Target:
$41.00
▲(24.66% Upside)
Action:Reiterated
Date:06/17/26
The score is driven primarily by improved operating results and a de-risked balance sheet, but it is held back by negative and volatile TTM cash flow. Technicals are constructive with an established uptrend, while valuation looks reasonable at ~16x earnings. Corporate events add both upside (deal approval) and meaningful uncertainty (extended FTC review).
Positive Factors
De-risked balance sheet / low leverage
Very low trailing twelve-month debt and a meaningfully larger equity base materially reduce refinancing and solvency risk. This stronger capital structure supports operational continuity, funding of process development or capex, and flexibility through industry cycles or integration costs.
Negative Factors
Negative and volatile operating/free cash flow
Persistent negative operating and free cash flow increases reliance on external financing or equity, constraining reinvestment and M&A flexibility. Cash volatility also raises execution risk on capacity expansion and process development, and can pressure liquidity during cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet / low leverage
Very low trailing twelve-month debt and a meaningfully larger equity base materially reduce refinancing and solvency risk. This stronger capital structure supports operational continuity, funding of process development or capex, and flexibility through industry cycles or integration costs.
Read all positive factors
SkyWater Technology (SKYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)15.7
Beta (1Y)2.15
Revenue Growth67.18%
EPS GrowthN/A
CountryUS
Employees702
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.36
Shares Outstanding49,204,600
10 Day Avg. Volume711,750
30 Day Avg. Volume1,077,334
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)4.73
Price to Sales (P/S)2.01
P/FCF Ratio-16.70
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.67
Enterprise Value/Gross Profit18.69
Enterprise Value/Ebitda14.17
Forecast
1Y Price Target
$35.00Price Target Upside6.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.33
Revenue Forecast (FY)$607.53M
SkyWater Technology Business Overview & Revenue Model
Company Description
SkyWater Technology, Inc., alongside its subsidiaries, operates within the semiconductor sector, providing both development and fabrication services for microelectronic components. The company collaborates closely with clients, offering extensive ...
How the Company Makes Money
SkyWater makes money primarily by providing foundry and technology services to customers that design chips but outsource manufacturing. Its core revenue model is contract-based: customers pay for wafer fabrication (running customer designs through...
SkyWater Technology Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
SkyWater had a strong quarter with record revenues and significant growth in the Quantum computing segment. The acquisition of Fab 25 has been successfully integrated and is contributing positively. However, challenges in A&D revenues and potential additional costs in Q4 pose some risks.Positive Updates
Record Q3 Revenues
SkyWater reported record Q3 revenues of nearly $151 million, which exceeded expectations by more than $9 million.
Negative Updates
Challenges in Aerospace and Defense (A&D) Revenue
A&D-related ATS revenues are expected to decline in Q4 due to government budget dynamics and a shutdown of the U.S. government.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Q3 Revenues
SkyWater reported record Q3 revenues of nearly $151 million, which exceeded expectations by more than $9 million.
Read all positive updates
Company Guidance
During the third quarter of 2025, SkyWater Technology reported exceptional financial results, surpassing expectations across all metrics. The company achieved record Q3 revenues of nearly $151 million, exceeding the forecast by over $9 million, driven largely by the revenue from Fab 25 in Texas and higher-than-anticipated ATS revenues which reached over $54 million. The company also saw its strongest quarter for quantum computing-related revenue, positioning it to exceed 30% revenue growth in this segment for fiscal 2025. The gross margin for Q3 stood at 24.6%, facilitated by an $8 million benefit expected to continue into Q4. For the fourth quarter, SkyWater anticipates revenues between $155 million and $165 million, with a gross margin of 17% to 20% and adjusted EBITDA projected between $16 million and $22 million. The upcoming year is expected to see revenue and adjusted EBITDA performance exceeding prior conservative estimates of at least $600 million and $60 million, respectively, as the company continues to leverage its strategic investments and customer engagements.SkyWater Technology Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 541.53M | 442.14M | 342.27M | 286.68M | 212.94M | 162.85M |
| Gross Profit | 106.23M | 88.33M | 69.63M | 59.29M | 25.97M | -7.47M |
| EBITDA | 140.15M | 144.84M | 25.25M | 14.14M | -2.68M | -23.28M |
| Net Income | 113.95M | 118.92M | -6.79M | -30.76M | -39.59M | -50.70M |
Balance Sheet | ||||||
| Total Assets | 732.90M | 733.78M | 313.77M | 316.76M | 305.76M | 263.60M |
| Cash, Cash Equivalents and Short-Term Investments | 22.23M | 23.22M | 18.84M | 18.38M | 30.02M | 12.92M |
| Total Debt | 238.32M | 250.34M | 76.76M | 72.86M | 103.04M | 61.84M |
| Total Liabilities | 545.05M | 537.96M | 250.28M | 256.06M | 251.79M | 203.67M |
| Stockholders Equity | 180.22M | 187.82M | 57.61M | 53.74M | 53.67M | 61.13M |
Cash Flow | ||||||
| Free Cash Flow | -76.50M | -53.20M | 7.20M | -408.00K | -31.75M | -87.66M |
| Operating Cash Flow | -52.22M | -24.15M | 18.46M | 10.08M | -14.30M | -55.68M |
| Investing Cash Flow | -112.91M | -118.00M | -11.21M | -10.49M | -17.45M | -29.82M |
| Financing Cash Flow | 136.13M | 146.52M | -6.79M | -11.23M | 48.86M | 90.98M |
SkyWater Technology Technical Analysis
Positive
32.89
Price Trends
34.60
Positive
31.83
Positive
25.20
Positive
Market Momentum
0.45
Positive
52.25
Neutral
46.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYT, the sentiment is Positive. The current price of 32.89 is below the 20-day moving average (MA) of 37.14, below the 50-day MA of 34.60, and above the 200-day MA of 25.20, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 46.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYT.
SkyWater Technology Risk Analysis
SkyWater Technology disclosed 62 risk factors in its most recent earnings report. SkyWater Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SkyWater Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $1.80B | 15.65 | 75.20% | ― | 67.18% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $3.27B | -58.73 | -6.91% | ― | 23.10% | 35.49% | |
61 Neutral | $3.44B | -67.32 | -7.50% | ― | 7.53% | -203.93% | |
60 Neutral | $2.31B | 88.38 | 3.46% | 2.25% | 16.77% | -23.42% | |
55 Neutral | $1.44B | -13.51 | -12.98% | ― | 0.60% | -359.56% | |
49 Neutral | $964.34M | -5.55 | -42.36% | ― | 0.17% | -1.78% |
* Technology Sector Average
SKYT
SkyWater Technology
36.57
27.72
313.22%
AOSL
Alpha and Omega
48.04
23.92
99.17%
IMOS
ChipMOS Technologies
66.58
48.59
270.09%
COHU
Cohu
69.40
51.20
281.32%
ICHR
Ichor Holdings
98.61
81.40
472.98%
INDI
indie Semiconductor
4.25
1.08
34.07%
SkyWater Technology Corporate Events
Executive/Board ChangesShareholder Meetings
SkyWater Shareholders Back Board Slate and Auditor Retention
Positive
Jun 16, 2026
At its annual meeting of stockholders held on June 10, 2026, SkyWater Technology, Inc. reported that shareholders elected nine directors to serve until the 2027 annual meeting, with each nominee receiving sufficient votes to remain on the board. S...
Business Operations and StrategyM&A TransactionsShareholder Meetings
SkyWater Shareholders Approve Acquisition by IonQ
Positive
May 8, 2026
On January 25, 2026, SkyWater Technology agreed to be acquired by IonQ through a two-step merger structure that will ultimately make SkyWater a wholly owned subsidiary of the quantum computing company. At a special meeting of stockholders held vir...
M&A TransactionsRegulatory Filings and Compliance
SkyWater Technology merger faces extended FTC review period
Negative
Apr 24, 2026
On January 25, 2026, SkyWater Technology agreed to be acquired by IonQ through a two-step merger structure that will leave SkyWater as a wholly owned subsidiary of IonQ. The deal remains subject to customary closing conditions, including antitrust...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
SkyWater Approves Retention Awards Amid IonQ Merger Plans
Positive
Mar 26, 2026
On March 20, 2026, SkyWater Technology’s board compensation committee approved a cash retention program for key employees, granting awards of $579,145 to CEO Thomas Sonderman, $347,975 to executive John Sakamoto, and $337,840 to executive St...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.