Onto Innovation Inc

Latest Results (15.11.2025):

Onto Innovation Inc reported its financial results for the second quarter of 2025, delivering a robust performance with revenue surpassing the midpoint of its guidance. The company showcased growth in revenue and non-GAAP metrics despite experiencing some margin compression in GAAP figures. Notably, Onto Innovation expanded its Dragonfly ® 3Di metrology footprint, shipped innovative inspection systems, and announced a significant acquisition expected to immediately boost earnings per share, positioning the company for continued momentum into 2026.

Revenue Growth and Margin Performance

For Q2 2025, Onto Innovation Inc achieved $253.6 million in revenue, marking a 5% year-over-year increase. While GAAP gross margin declined from 52.9% to 48.2%, the non-GAAP gross margin improved from 53.2% to 54.5%, reflecting adjustments to ongoing operations.

Operating Income and Profitability

Operating income was reported at $32.2 million (12.7% of revenue) compared to $48.8 million (20.2%) in Q2 2024 under GAAP, with non-GAAP operating income slightly rising to $65.6 million (25.9% of revenue) from $64.5 million. Net income for the quarter fell to $33.9 million, or $0.69 per share, versus $52.9 million, or $1.07 per share, in the same quarter last year.

Strategic Acquisition and Future Outlook

The announcement of acquiring product lines from Semilab for approximately $545 million in cash and stock is expected to add over $130 million in annual revenue and immediately accelerate EPS. Looking ahead, Onto Innovation has provided Q3 2025 guidance with revenue anticipated between $210 million and $225 million, signaling an expected rebound later in the year.

Capital and Cash Generation

During Q2 2025, the company generated approximately $57.9 million in cash from operations and ended the quarter with $895 million in cash and short-term investments, underscoring its strong liquidity position.