SkyWater Technology’s Financial Performance: Year-End 2025
In an exciting announcement, SkyWater Technology, Inc. (NASDAQ: SKYT) released its financial results for the fourth quarter and the full fiscal year 2025, which ended on December 28, 2025. This period marked a significant turning point for the semiconductor foundry, showcasing impressive growth figures and strategic developments that set the stage for future endeavors.
Eye-Catching Fiscal Highlights
Fiscal year 2025 was a landmark year for SkyWater, characterized by consolidated revenue of $442.1 million, which represented a robust 29% increase year-over-year. This substantial growth pivoted SkyWater from a net loss in fiscal year 2024 to a GAAP net income of $118.9 million for 2025. This turnaround not only showcases the company’s resilience but also highlights the efficacy of its operational strategies and market positioning.
In the fourth quarter alone, SkyWater recorded consolidated revenue of $171.0 million, although it noted a GAAP net loss to shareholders of $7.8 million. The adjusted EBITDA for the quarter stood at $21.0 million, demonstrating healthy operational metrics despite the setbacks.
Acquisition by IonQ: A Strategic Move
SkyWater Technology’s future looks bright with its previously announced acquisition agreement by IonQ (NYSE: IONQ), a leader in quantum computing. Announced on January 26, 2026, this acquisition at $35.00 per share in a cash-and-stock transaction could fundamentally reshape the landscape of both companies, combining SkyWater’s semiconductor manufacturing expertise with IonQ’s quantum technology innovations. The deal is expected to close in the second or third quarter of 2026, pending shareholder and regulatory approvals.
Business Achievements: A Year of Growth and Expansion
Beyond revenue figures, several noteworthy developments characterized SkyWater’s 2025 performance:
- Record Financial Results: The achievement of $442.1 million in revenues demonstrated not just monetary growth but underscored a continued upward trajectory following the acquisition of Fab 25.
- Focus on Quantum Computing: In an area increasingly vital to tech innovation, SkyWater established eight commercial Advanced Technology Services (ATS) engagements with quantum computing firms, leading to a 30% revenue increase in this segment compared to the previous fiscal year.
- Success in Texas Operations: The Texas-based Fab 25 facility contributed significantly, generating $175.6 million in total revenue during the second half of the fiscal year, surpassing initial expectations and enhancing the company’s overall profitability.
- Advanced Packaging Progress: Operations in Florida began to flourish, with substantial growth in Advanced Packaging revenue, suggesting a promising outlook for future projects in this domain.
Q4 2025 Summary: Mixed Financial Metrics
In reviewing the fourth quarter of 2025, it’s important to unpack the financial metrics that tell the story of SkyWater’s operational effectiveness:
- Revenue Composition: The legacy aspects of SkyWater’s operations saw a revenue of $82.1 million, boosted by $53.2 million from ATS development, focusing on process development and tool installation services. Notably, revenue generated through Tools saw a remarkable growth of 95% compared to the fourth quarter of 2024.
- Gross Profit Margins: Despite gross profit being reported at $25.6 million, or 14.9% of total revenue, this represented a decline compared to prior years, mainly due to cost overruns in tooling installations related to inflation.
- Operating Expenses: Operating expenses rose to $25.5 million, a significant leap from $16.6 million in Q4 2024, reflecting increased investment in operational capacity and development.
- Net Loss Analysis: With a quarterly net loss of $7.8 million, SkyWater faced obstacles, although this should be viewed within the context of long-term strategic investments.
Annual Overview of Fiscal Year 2025
As the fiscal year 2025 drew to a close, a comprehensive analysis of its performance was necessary:
- Declining Legacy Revenue: Total legacy revenue was reported at $266.6 million, a decrease of 22% year-over-year. This was influenced by several market dynamics, including shifts in demand and adaptational responses to tech advancements.
- Balanced Profitability: While gross profit attributed to GAAP measures reached $86.9 million, showing a slight increase in margin efficiency, this aspect will require focus to maintain going forward.
- Expense Control: Operating expenses surged to $89.5 million, highlighting the necessity for efficient cost management strategies as SkyWater continues its growth trajectory.
- Impressive Returns: The noteworthy GAAP net income of $118.9 million pointed to a strong market recovery and substantial gains, marking an impressive rebound from the previous year’s losses.
This comprehensive analysis of SkyWater Technology’s financial performance in 2025 exemplifies not just the metrics of a growing enterprise, but also its strategic positioning for future advancements, especially in the realm of quantum technology. As SkyWater approaches the anticipated acquisition by IonQ, stakeholders watch with interest to see how these developments will continue to unfold.
