Formfactor Inc.

Semiconductor Equipment & Materials • Technology • Livermore, CA, United States • FORM (NMS)

925 290 4000 7005 Southfront Road, Livermore, CA 94551, United States

Quarter: Q1 2026 Reported: January 9, 2026 Sentiment: Neutral

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, thermal systems, cryogenic systems, and related services in the United States and internationally. The company offers probe cards to test various semiconductor device types, including systems on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, network and digital signal processing integrated circuits, radio frequency amplifiers, filters and antenna in package devices, analog, mixed signal, image sensors, electro-optical, DRAM memory, NAND flash memory, NOR flash memory, and quantum computer processor devices; and analytical probes, which are used for device characterization, electrical simulation model development, failure analysis, and prototype design debugging. It also offers probe stations for semiconductor design engineers to capture and analyze accurate data; thermal subsystems, which include thermal chucks and other test systems used in probe stations and other applications for precise temperature management; cryogenic systems, which includes the manufacture of precision cryogenic instruments and semiconductor test and measurement systems; and services and support, including installation services. In addition, the company provides on-site probe card maintenance and service training, seminars, and telephone support services. It markets and sells its products through direct sales force, manufacturers' representatives, and distributors. The company was incorporated in 1993 and is headquartered in Livermore, California.

Analysis Summary

FORMFACTOR INC. (FORM) announced a comprehensive restructuring plan on January 5, 2026, designed to enhance its cost structure and support gross margin improvement towards its target financial model. The core of this initiative involves the consolidation of manufacturing facilities located in Carlsbad, California, and Baldwin Park, California. This strategic alignment of manufacturing capabilities with current and anticipated business needs is expected to result in personnel-related costs impacting approximately 200 to 300 employees, through either severance or retention. The company projects total GAAP restructuring charges to be in the aggregate amount of $30 million to $40 million. This figure is primarily comprised of $20 million to $25 million related to impairment of leasehold improvements, facility exits, and other costs; $9 million to $13 million for severance, retention, and other employee-related expenses; and $1 million to $2 million for contract and lease termination costs. The majority of these charges are anticipated to be incurred within the current fiscal year, with the overall plan expected to be largely completed by the end of December 2026, though some facilities charges may extend beyond this period. Of the total estimated charges, $10 million to $15 million are expected to result in future cash expenditures, while $20 million to $25 million are projected to be non-cash charges. Management's commentary emphasizes the plan's objective to optimize operational efficiency and align with strategic priorities. However, the company also highlighted that the estimates of charges and future cash expenditures are based on current expectations and are subject to significant risks and uncertainties, with actual results potentially differing materially. FormFactor may be required to revise these estimates in future periods, and such revisions could be material.

Key Highlights

• FORMFACTOR adopted a restructuring plan on January 5, 2026.
• The plan involves consolidating manufacturing facilities in Carlsbad and Baldwin Park, California.
• Approximately 200 to 300 employees are expected to be impacted (severed or retained).
• Anticipated GAAP restructuring charges total $30 million to $40 million.
• Charges include $20-$25M for facility impairments/exits and $9-$13M for employee-related costs.
• The majority of charges are expected in the current fiscal year, with the plan largely completed by end of 2026.
• The restructuring aims to align cost structure and improve gross margins.

Financial Metrics

eps

N/A

YoY: N/A

revenue

N/A N/A

YoY: N/A

guidance

net income

N/A N/A

YoY: N/A

employee impact

200-300 employees

restructuring charges gaap

30-40 million

non cash charges from restructuring

20-25 million

cash expenditures from restructuring

10-15 million

Stock Performance (90 Days)

Data through Feb 12, 2026

Layoff Events

Earnings Calls

Positive Signals

• Proactive measures taken to align cost structure and support gross margin improvement.
• Strategic consolidation of manufacturing facilities for operational efficiency.
• Clear identification of expected restructuring charges and their components.
• Defined timeline for the completion of the restructuring plan (largely by end of 2026).
• Focus on aligning manufacturing capabilities with current and anticipated business needs.

Risks & Concerns

— Estimates of charges and future cash expenditures are subject to significant risks and uncertainties.
— Actual results may differ materially from current estimates.
— Company may be required to revise estimates in future periods, and such revisions could be material.
— Facilities charges may extend beyond the anticipated completion date of December 2026.