Aehr Test Systems Revenue Plunges 44% to $10.3M in Q3 FY2026

Aehr Test Systems, a semiconductor test equipment manufacturer, reported revenue of $10.3 million for the three months ending February 27, 2026, a 44% decline from $18.3 million in the same quarter a year earlier. The company swung deeper into the red with a net loss of $3.2 million compared to a loss of $643,000 in the prior-year period. Read more earnings reports.

For the nine months ending February 27, 2026, total revenue fell 31% to $31.2 million from $44.9 million in the first nine months of fiscal 2025. The nine-month net loss widened significantly to $8.5 million from $1.0 million in the year-ago period.

Margins Compress as Costs Outpace Revenue

Gross profit for the third quarter fell to $3.4 million from $7.2 million a year earlier, reflecting the sharp revenue decline. Cost of revenue decreased to $6.9 million from $11.1 million, but not enough to offset the top-line contraction.

Operating expenses totaled $7.6 million in the quarter, down 8% from $8.3 million in Q3 FY2025. Research and development spending held steady at $3.2 million, while selling, general and administrative expenses declined to $4.4 million from $5.2 million.

The company reported an operating loss of $4.2 million for the quarter compared to an operating loss of $1.1 million in the prior-year period. For the nine-month period, the operating loss expanded to $12.9 million from $2.5 million.

Balance Sheet and Cash Position

Total assets stood at $157.0 million as of February 27, 2026, up from $148.5 million at the end of fiscal 2025 on May 30, 2025. Cash and cash equivalents increased to $36.9 million from $24.5 million over the same period.

Inventory declined slightly to $41.2 million from $42.0 million. Total liabilities decreased to $18.3 million from $25.6 million, driven by a reduction in current liabilities to $8.7 million from $15.6 million. Accounts payable fell sharply to $2.1 million from $6.7 million.

Stockholders' equity rose to $138.8 million from $122.9 million, boosted by $19.4 million in cash from financing activities during the nine-month period. The company had 31.5 million shares outstanding as of the period end.

Cash Flow Deteriorates

Cash used in operations totaled $5.1 million for the nine months ending February 27, 2026, roughly flat with $5.1 million used in the prior-year period. Cash used in investing activities was $3.7 million, down from $13.2 million a year earlier.

The cash infusion from financing activities of $19.4 million compared to just $374,000 in the year-ago period, helping offset operational cash burn and rebuild the company's cash position.

Per-Share Results

The company reported a loss of $0.10 per share for the third quarter, compared to a loss of $0.02 per share in Q3 FY2025. For the nine-month period, the loss per share was $0.28 versus $0.03 in the prior year. Both basic and diluted share counts averaged approximately 30.7 million for the quarter and 30.3 million for the nine-month period.