Commenting on the fourth-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal fourth quarter achieving record high end revenue with particular strength in the United States. We continue to see positive forecasts from our customers in the U.S. validating our U.S. investment plans, while our Korea capability extension is also anticipated to help diversify our geographic revenue mix and increase our exposure to leading-edge chip designs in the future."
Full Year Fiscal 2025 Results
Revenue was $849.3 million, down 2.0% year-over-year.
GAAP net income attributable to Photronics, Inc. shareholders was $136.4 million, or $2.28 per diluted share, compared with $130.7 million, or $2.09 per diluted share in 2024.
Favorable impact associated with the deferred tax valuation allowance reduction of $16.8 million.
Non-GAAP net income attributable to Photronics, Inc. shareholders was $120.6 million, or $2.01 per diluted share, compared with $127.6 million, or $2.05 per diluted share in 2024.
IC revenue was $615.1 million, down 4% year-over-year.
FPD revenue was $234.2 million, up 2% year-over-year.
Cash generated from operating activities was $247.8 million, and cash invested in organic growth through capital expenditures was $188.1 million.
Fourth Quarter Fiscal 2025 Results
Revenue was $215.8 million, down 3.1% year-over-year and up 2.6% sequentially.
GAAP Net income attributable to Photronics, Inc. shareholders was $61.8 million, or $1.07 per diluted share, compared with $33.9 million, or $0.54 per diluted share, in the fourth quarter of 2024 and $22.9 million, or $0.39 per diluted share, in the third quarter of 2025.
Favorable impact associated with the deferred tax valuation allowance reduction of $16.8 million.
Non-GAAP Net income attributable to Photronics, Inc. shareholders was $34.6 million, or $0.60 per diluted share, compared with $37.1 million, or $0.59 per diluted share in the fourth quarter of 2024 and $29.4 million, or $0.51 per diluted share, in the third quarter of 2025.
IC revenue was $157.4 million, down 4% year-over-year and up 7% sequentially.
FPD revenue was $58.3 million, down 1% from the same quarter last year and down 7% sequentially.
Cash, cash equivalents and short-term investments at the end of the quarter were $588.2 million, of which $422.3 million was associated with our Joint Ventures, of which we own 50.01%.
Cash generated from operating activities was $87.8 million, cash invested in organic growth through capital expenditures was $67.5 million.
First Quarter Fiscal 2026 Guidance
For the first quarter of fiscal 2026, Photronics expects Revenue to be between $217 million and $225 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.51 and $0.59 per diluted share.
Webcast
A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on December 10, 2025. The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time.
About Photronics
Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements" regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially. Please refer to Item 1A "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.
Non-GAAP Financial Measures
Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.
Totals presented may not sum due to rounding.
PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Year Ended
October 31,
August 3,
October 31,
October 31,
October 31,
2025
2025
2024
2025
2024
Revenue
$
215,770
$
210,394
$
222,628
$
849,294
$
866,946
Cost of goods sold
140,236
139,539
140,326
549,464
551,000
Gross Profit
75,534
70,855
82,302
299,830
315,946
Gross margin %
35.0
%
33.7
%
37.0
%
35.3
%
36.4
%
Operating Expenses:
Selling, general and administrative
20,001
18,423
21,008
75,625
77,760
Research and development
3,185
4,271
5,285
15,804
16,576
Total Operating Expenses
23,186
22,694
26,293
91,429
94,336
Other operating expense
(241
)
-
(182
)
(240
)
(92
)
Operating Income
52,107
48,161
55,827
208,161
221,518
Operating Margin
24.1
%
22.9
%
25.1
%
24.5
%
25.6
%
Other income (loss) , net
23,855
(9,428
)
(1,034
)
13,623
