SkyWater Technology Inc

What they do

SkyWater runs two reportable segments: Legacy SkyWater, which provides Advanced Technology Services (ATS) and Wafer Services from its Bloomington, Minnesota fab and advanced packaging from Kissimmee, Florida; and SkyWater Texas, a high-volume 200mm fab in Austin, Texas acquired as Fab 25, offering copper processing, high-voltage technology, and 65nm node infrastructure support. The company operates exclusively in the United States and targets customers needing secure domestic manufacturing, long product life cycles, high reliability, and engineering collaboration. It serves commercial and government customers across aerospace and defense, automotive, industrial, medical, energy, and emerging computing platforms.

Revenue drivers

• SkyWater Texas (Fab 25) wafer services — The Austin fab generated $89.0M in Q4 2025 revenue and $175.6M across the second half of fiscal 2025, and is the primary driver of the company's revenue growth following its acquisition.
• Legacy SkyWater ATS development revenue — Process development, tool installation and qualification, facility and tool access, leases, and security services produced $53.2M in Q4 2025, down 10% year over year and 2% sequentially.
• Legacy SkyWater wafer services — Foundational-node wafer fabrication at the Bloomington, Minnesota fab contributed $6.0M in Q4 2025, up 37% year over year but down 4% sequentially.
• Tools revenue — Procurement and resale of customer-owned equipment retained in SkyWater fabs generated $22.9M in Q4 2025, up 95% year over year and 521% sequentially.

Recent performance

Fiscal 2025 revenue was $442.1M, up 29% from $342.3M in fiscal 2024, driven primarily by the Fab 25 acquisition; full-year net income to shareholders was $118.9M and diluted EPS was $2.44, though Q3 2025 net income of $144.0M included items that made the quarter atypical. Q4 2025 revenue was $171.0M versus $75.5M a year earlier, but gross margin fell to 14.9% from 25.6%, and the company reported a net loss to shareholders of $7.8M, or $(0.16) diluted. Recent quarterly revenue was $150.7M in Q3 2025, $171.0M in Q4 2025, $160.7M in Q1 2026, and $156.4M in Q2 2026. At June 28, 2026, total assets were $722.5M, total liabilities $536.7M, shareholder equity $177.3M, and cash and equivalents $12.6M.

Strategy

SkyWater's stated strategy is to operate and expand a U.S.-based foundry platform dedicated to foundational-node wafer fabrication and advanced packaging, positioning itself around domestic supply-chain resilience. The company integrates production-scale manufacturing with advanced technology development so customers can move specialized technologies from development to volume production. In December 2023 it applied for CHIPS and Science Act funding for Minnesota modernization and equipment upgrades, and in December 2024 signed a preliminary memorandum of terms for up to $16 million, in addition to $19 million in State of Minnesota incentives. Management reports progress in advanced packaging facilitization in Florida and continued growth in quantum-related ATS engagements. IonQ announced an agreement on January 26, 2026 to acquire SkyWater for $35.00 per share in cash and stock.

Risks

• Pending IonQ merger — Completion of the IonQ Mergers is subject to stockholder adoption, Hart-Scott-Rodino clearance, absence of legal prohibitions, and other conditions, any of which may not be satisfied or may delay closing.
• CHIPS funding uncertainty — The company states it cannot predict when or if the up-to-$16 million CHIPS funding or the $19 million in Minnesota incentives will be received.
• Margin pressure — Q4 2025 gross margin declined to 14.9% from 25.6% a year earlier despite higher revenue, reflecting the cost profile of the expanded operations.
• Liquidity and leverage — At June 28, 2026, cash and equivalents were $12.6M against $536.7M in total liabilities and $61.1M of long-term debt, and fiscal 2025 operating cash flow was negative $29.0M.

Outlook

Management points to record fiscal 2025 revenue of $442.1M, strong Fab 25 results exceeding earlier expectations, and quantum-related ATS revenues that grew over 30% in fiscal 2025. The company also reports advanced packaging facilitization in Florida progressing ahead of plan, with ATS and Tools revenue in Florida exceeding fourth-quarter expectations. The announced IonQ transaction, expected to close in the second or third quarter of 2026, remains subject to stockholder and regulatory approvals. SkyWater states it cannot predict the timing or receipt of CHIPS and Minnesota incentive funding.