FormFactor, Inc. 2025 Annual Report: Key Highlights for Investors

Overview

FormFactor, Inc. (Nasdaq: FORM) has released its Annual Report for the fiscal year ended December 27, 2025. The company remains a leading provider of electrical and optical test and measurement technologies for the semiconductor industry, serving a global customer base from its headquarters in Livermore, California.

Key Financial Highlights

• Market Capitalization: As of June 27, 2025, the aggregate market value of FormFactor’s common stock held by non-affiliates was \$1.912 billion. This figure represents a substantial valuation and is a key indicator for shareholders and potential investors.
• Shares Outstanding: As of February 13, 2026, FormFactor had 77,917,947 shares of common stock outstanding.
• Exchange Listing: The common stock is listed on the Nasdaq Global Select Market under the symbol “FORM”.
• SEC Filing Status: FormFactor is a well-known seasoned issuer, a large accelerated filer, and has complied with all SEC reporting requirements and internal controls, including Sarbanes-Oxley Section 404(b) auditor attestation.

Business and Growth Prospects

FormFactor continues to invest heavily in research and development, aiming to maintain its competitive edge in the rapidly evolving semiconductor testing market. The company’s focus is on transitioning to new product architectures to address next-generation semiconductor challenges and bringing innovative products into volume production efficiently.

• Customer Concentration: The report identifies SK Hynix and Intel as major customers, with SK Hynix accounting for up to 15.5% of quarterly revenues in some quarters. This concentration exposes FormFactor to risks related to order reduction, rescheduling, or cancellation from these major accounts.
• Geographical Revenue Mix: Significant sales are attributed to customers in South Korea, Taiwan, the United States, China, Japan, Singapore, Malaysia, and Europe, reflecting a diversified global footprint.
• Product and Customer Sales Mix: The company’s revenue and profitability are sensitive to both product/customer mix and geographical distribution, which may affect margins depending on regional demand and competitive pressures.
• Competitive and Market Risks: The report specifically highlights risks from competitive pressures, pricing reductions, and the timely introduction of new technologies, which could impact profitability and share value.

Operational and Regulatory Risks

• Supply Chain and Manufacturing: The timely availability and cost of labor, components, and materials are cited as critical, especially in the context of optimizing manufacturing capacity and yields.
• Trade and Export Regulations: Changes in trade, tariff, or export regulations in key markets pose risks to production and sales.
• Intellectual Property: The company’s ability to protect its IP and continue investments in R&D is highlighted as essential for sustaining innovation and market leadership.
• Environmental Compliance: FormFactor complies with all material environmental laws and regulations as of December 27, 2025. No pending matters are expected to materially impact the business or financials.
• Political and Global Economic Stability: The report notes risks from natural disasters, pandemics, military conflicts, inflation, and other factors, which could disrupt operations or demand.

Shareholder Considerations

• Share Repurchase Programs: FormFactor has active share repurchase programs, including a new program initiated in April 2025. These programs may support the stock price and signal management’s confidence in the company’s prospects.
• Fluctuating Operating Results: The company cautions that past operating results have fluctuated and are likely to continue fluctuating. Investors should not rely exclusively on period-to-period comparisons as indicators of future performance.
• Forward-Looking Statements: Many statements in the report are forward-looking, subject to risks and uncertainties that could cause actual results to differ materially from expectations.

Potential Price-Sensitive Information

• Major Customer Exposure: High reliance on SK Hynix and Intel could lead to volatility if these customers reduce or cancel orders.
• Share Repurchase Activity: The initiation and execution of new share repurchase programs may affect share price by reducing outstanding shares and signaling confidence.
• Global Risks: Any adverse developments in global supply chains, trade regulations, or geopolitical tensions could materially impact FormFactor’s business and share value.

Conclusion

FormFactor, Inc. remains well-positioned in the semiconductor test and measurement market, with strong financial controls, a diversified global customer base, and ongoing investments in innovation. However, investors should be aware of the risks related to customer concentration, competitive pressures, supply chain challenges, and global economic volatility. The company’s share repurchase programs and compliance with all material regulations provide additional confidence, but continued monitoring is warranted given the inherent uncertainties in the industry and macroeconomic environment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full FormFactor, Inc. Annual Report and consult with their financial advisors before making investment decisions. The information herein is based on the company’s filings and is subject to change. Past performance is not indicative of future results.

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