Revenue growth has turned sharply negative, with 2026Q3 results showing a 43.7% decline and operating margins compressing to -41.0% due to high fixed-cost overhead.
| Metric | TTM | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 45.26M | 58.97M | 66.22M | 64.96M | 50.83M | 16.6M | 22.29M | 21.06M | 29.55M | 18.9M | 14.5M | 10.02M | 19.68M | 16.49M | 15.52M | 13.74M | 11.67M | 21.41M | 39.04M | 27.35M | 23.8M | 16.08M | 15.8M | 15.09M | 12.57M | 31.04M | 24.5M | 18.15M | 40.8M | 42M |
| Revenue Growth % | -26.39% | -10.95% | 1.93% | 27.8% | 206.2% | -25.53% | 5.87% | -28.76% | 56.39% | 30.32% | 44.75% | -49.11% | 19.38% | 6.23% | 12.99% | 17.67% | -45.47% | -45.17% | 42.74% | 14.92% | 48.02% | 1.77% | 4.69% | 20.08% | -59.51% | 26.66% | 35.04% | -55.53% | -2.85% | - |
| Cost of Goods Sold | 31.35M | 35.03M | 33.67M | 32.22M | 27.16M | 10.57M | 13.92M | 13.45M | 17.17M | 12.12M | 9.36M | 6.18M | 9.46M | 9.71M | 9.31M | 8.22M | 5.57M | 19.82M | 19.07M | 13.44M | 13.16M | 11.82M | 10.09M | 9.35M | 6.49M | 17.92M | 17.27M | 12.2M | 24.36M | 25.1M |
| COGS % of Revenue | - | 59.41% | 50.85% | 49.59% | 53.44% | 63.66% | 62.45% | 63.9% | 58.09% | 64.12% | 64.52% | 61.69% | 48.07% | 58.9% | 60.01% | 59.87% | 47.72% | 92.6% | 48.85% | 49.13% | 55.31% | 73.49% | 63.87% | 61.98% | 51.62% | 57.74% | 70.46% | 67.24% | 59.7% | 59.76% |
| Gross Profit | 13.9M | 23.93M | 32.54M | 32.75M | 23.66M | 6.03M | 8.37M | 7.6M | 12.39M | 6.78M | 5.14M | 3.84M | 10.22M | 6.78M | 6.21M | 5.51M | 6.1M | 1.18M | 19.97M | 13.91M | 10.64M | 4.26M | 5.71M | 5.74M | 6.08M | 13.12M | 7.24M | 5.95M | 16.45M | 16.9M |
| Gross Margin % | 30.72% | 40.59% | 49.15% | 50.41% | 46.56% | 36.34% | 37.55% | 36.1% | 41.91% | 35.88% | 35.48% | 38.31% | 51.93% | 41.1% | 39.99% | 40.13% | 52.28% | 5.53% | 51.15% | 50.87% | 44.69% | 26.51% | 36.13% | 38.02% | 48.38% | 42.26% | 29.54% | 32.76% | 40.3% | 40.24% |
| Gross Profit Growth % | - | -26.46% | -0.62% | 38.37% | 292.32% | -27.94% | 10.12% | -38.62% | 82.68% | 31.78% | 34.05% | -62.45% | 50.86% | 9.17% | 12.61% | -9.68% | 415.46% | -94.07% | 43.53% | 30.81% | 149.5% | -25.32% | -0.52% | -5.63% | -53.64% | 81.21% | 21.75% | -63.85% | -2.69% | - |
| Operating Expenses | 29.4M | 28.25M | 22.46M | 19.37M | 15.87M | 10.21M | 10.92M | 11.88M | 11.47M | 11.71M | 11.3M | 10.53M | 9.72M | 10.08M | 10.71M | 10.53M | 10.85M | 26.39M | 14.16M | 12.86M | 10.18M | 9.24M | 10.22M | 10.46M | 10.58M | 11.64M | 12.43M | 10.58M | 12.25M | 13.2M |
| OpEx % of Revenue | - | 47.9% | 33.93% | 29.82% | 31.21% | 61.53% | 48.97% | 56.41% | 38.81% | 61.96% | 77.92% | 105.13% | 49.41% | 61.15% | 69.03% | 76.66% | 92.96% | 123.25% | 36.26% | 47.03% | 42.78% | 57.45% | 64.66% | 69.32% | 84.21% | 37.51% | 50.73% | 58.29% | 30.01% | 31.43% |
| Selling, General & Admin | 17.51M | 17.78M | 13.75M | 12.24M | 10.05M | 6.56M | 7.53M | 7.72M | 7.29M | 7.05M | 6.97M | 6.47M | 6.32M | 6.87M | 6.53M | 5.96M | 6.09M | 20.62M | 7.66M | 6.54M | 5.84M | 5.21M | 5.57M | 5.92M | 6.55M | 7.26M | 7.93M | 6.89M | 8.62M | 8.9M |
| SG&A % of Revenue | - | 30.16% | 20.76% | 18.84% | 19.77% | 39.53% | 33.78% | 36.68% | 24.67% | 37.32% | 48.1% | 64.58% | 32.12% | 41.68% | 42.05% | 43.42% | 52.2% | 96.34% | 19.61% | 23.9% | 24.55% | 32.43% | 35.27% | 39.22% | 52.09% | 23.4% | 32.36% | 37.98% | 21.12% | 21.19% |
| Research & Development | 11.67M | 10.46M | 8.72M | 7.13M | 5.82M | 3.65M | 3.39M | 4.15M | 4.18M | 4.66M | 4.32M | 4.06M | 3.4M | 3.21M | 4.19M | 4.57M | 4.76M | 5.76M | 6.5M | 6.32M | 4.34M | 4.02M | 4.64M | 4.54M | 4.04M | 4.38M | 4.5M | 3.69M | 3.63M | 3.7M |
| R&D % of Revenue | - | 17.74% | 13.17% | 10.98% | 11.45% | 22% | 15.19% | 19.72% | 14.15% | 24.64% | 29.82% | 40.55% | 17.28% | 19.47% | 26.98% | 33.25% | 40.76% | 26.92% | 16.65% | 23.12% | 18.23% | 25.02% | 29.4% | 30.1% | 32.11% | 14.12% | 18.37% | 20.31% | 8.89% | 8.81% |
| Other Operating Expenses | 219K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 600K |
| Operating Income | -15.5M | -4.31M | 10.08M | 13.38M | 7.8M | -4.18M | -2.54M | -4.28M | 915K | -4.93M | -6.15M | -6.69M | 497K | -3.31M | -4.51M | -5.02M | -4.75M | -24.8M | 5.81M | 1.05M | 455K | -4.97M | -4.51M | -4.72M | -4.5M | 1.47M | -5.19M | -4.63M | 4.2M | 3.7M |
| Operating Margin % | -34.25% | -7.31% | 15.22% | 20.59% | 15.35% | -25.19% | -11.42% | -20.3% | 3.1% | -26.08% | -42.44% | -66.82% | 2.52% | -20.06% | -29.04% | -36.54% | -40.68% | -115.85% | 14.88% | 3.84% | 1.91% | -30.94% | -28.54% | -31.3% | -35.83% | 4.74% | -21.19% | -25.53% | 10.29% | 8.81% |
| Operating Income Growth % | - | -142.8% | -24.65% | 71.47% | 286.51% | -64.32% | 40.47% | -567.21% | 118.56% | 19.91% | 8.07% | -1446.88% | 115.03% | 26.63% | 10.2% | -5.69% | 80.85% | -526.79% | 452.9% | 130.99% | 109.15% | -10.33% | 4.55% | -4.91% | -405.91% | 128.35% | -12.11% | -210.31% | 13.49% | - |
| EBITDA | -11.83M | -925K | 11.44M | 13.82M | 8.11M | -3.87M | -2.16M | -3.84M | 1.33M | -4.66M | -5.95M | -6.56M | 638K | -2.98M | -4.02M | -4.45M | -4.06M | -24.16M | 6.29M | 1.37M | 795K | -4.65M | -4.13M | -4.14M | -3.84M | 2.12M | -4.49M | -4.18M | 4.68M | 4.3M |
| EBITDA Margin % | -26.14% | -1.57% | 17.28% | 21.28% | 15.95% | -23.33% | -9.69% | -18.26% | 4.51% | -24.65% | -41.04% | -65.47% | 3.24% | -18.1% | -25.87% | -32.37% | -34.77% | -112.85% | 16.1% | 5.02% | 3.34% | -28.93% | -26.11% | -27.45% | -30.56% | 6.84% | -18.32% | -23.03% | 11.46% | 10.24% |
| EBITDA Growth % | -521.26% | -108.09% | -17.24% | 70.53% | 309.38% | -79.18% | 43.78% | -388.59% | 128.6% | 21.73% | 9.27% | -1128.06% | 121.37% | 25.67% | 9.67% | -9.53% | 83.2% | -484.36% | 357.42% | 72.83% | 117.09% | -12.78% | 0.41% | -7.84% | -280.92% | 147.28% | -7.44% | -189.33% | 8.79% | - |
| D&A (Non-Cash Add-back) | 3.67M | 3.39M | 1.36M | 450K | 307K | 310K | 384K | 431K | 417K | 271K | 203K | 135K | 141K | 322K | 491K | 573K | 690K | 644K | 474K | 323K | 340K | 323K | 384K | 582K | 662K | 651K | 703K | 453K | 479K | 600K |
| EBIT | -15.28M | -4.29M | 12.46M | 14.62M | 9.54M | -2.16M | -2.77M | -4.96M | 854K | -4.95M | -6.17M | -6.48M | 433K | -3.34M | -3.4M | -3.42M | -620K | -25.06M | 5.97M | 2.5M | 789K | -4.73M | -4.51M | -4.72M | -4.5M | 1.47M | -5.19M | -4.63M | 4.2M | 3.68M |
| Net Interest Income | 835K | 1.4M | 2.39M | 1.25M | 13K | -46K | 10K | -252K | -399K | -678K | -605K | -130K | -26K | -49K | -4K | 3K | 5K | 142K | 231K | 1.43M | 374K | 155K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 835K | 1.4M | 2.39M | 1.25M | 13K | 0 | 10K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 5K | 142K | 231K | 1.43M | 374K | 155K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 46K | 0 | 252K | 399K | 678K | 605K | 130K | 26K | 49K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.24M | 22K | 2.38M | 1.24M | 1.74M | 1.98M | -221K | -933K | -460K | -699K | -621K | 81K | -90K | -82K | 1.1M | 1.6M | 4.13M | -255K | 160K | 1.45M | 334K | 241K | 626K | 106K | 477K | 1.06M | 1.47M | 1.63M | 540K | -1.14M |
| Pretax Income | -14.27M | -4.29M | 12.46M | 14.62M | 9.54M | -2.2M | -2.77M | -5.21M | 455K | -5.63M | -6.78M | -6.61M | 407K | -3.39M | -3.4M | -3.42M | -620K | -25.06M | 5.97M | 2.5M | 789K | -4.73M | -3.88M | -4.62M | -4.03M | 2.53M | -3.72M | -3.01M | 4.74M | 2.6M |
| Pretax Margin % | -31.53% | -7.28% | 18.81% | 22.5% | 18.77% | -13.28% | -12.41% | -24.73% | 1.54% | -29.78% | -46.72% | -66.01% | 2.07% | -20.55% | -21.93% | -24.91% | -5.31% | -117.05% | 15.29% | 9.15% | 3.31% | -29.44% | -24.58% | -30.6% | -32.03% | 8.16% | -15.18% | -16.57% | 11.61% | 6.19% |
| Income Tax | -2.85M | -381K | -20.7M | 60K | 91K | -177K | 36K | 27K | -73K | 25K | 10K | 34K | -15K | 30K | -15K | -49K | -139K | 4.92M | -4.6M | 75K | -21K | 136K | 76K | -74K | 1.24M | 1.05M | -1.12M | -677K | 2.33M | -700K |
| Effective Tax Rate % | 19.98% | 8.88% | -166.14% | 0.41% | 0.95% | 8.03% | -1.3% | -0.52% | -16.04% | -0.44% | -0.15% | -0.51% | -3.69% | -0.89% | 0.44% | 1.43% | 22.42% | -19.62% | -77.07% | 3% | -2.66% | -2.87% | -1.96% | 1.6% | -30.82% | 41.28% | 29.99% | 22.51% | 49.25% | -26.92% |
| Net Income | -11.42M | -3.91M | 33.16M | 14.56M | 9.45M | -2.03M | -2.8M | -5.24M | 528K | -5.65M | -6.79M | -6.65M | 422K | -3.42M | -3.39M | -3.37M | -481K | -29.97M | 10.57M | 2.43M | 810K | -4.87M | -3.96M | -4.54M | -5.27M | -141K | -2.6M | -2.33M | 2.4M | 3.3M |
| Net Margin % | -25.23% | -6.63% | 50.07% | 22.41% | 18.59% | -12.21% | -12.57% | -24.86% | 1.79% | -29.91% | -46.79% | -66.35% | 2.14% | -20.74% | -21.83% | -24.55% | -4.12% | -140.01% | 27.08% | 8.88% | 3.4% | -30.29% | -25.06% | -30.11% | -41.91% | -0.45% | -10.63% | -12.84% | 5.89% | 7.86% |
| Net Income Growth % | -149.95% | -111.79% | 127.77% | 54.04% | 566.21% | 27.66% | 46.48% | -1091.48% | 109.34% | 16.68% | -2.08% | -1675.12% | 112.34% | -0.89% | -0.47% | -601.25% | 98.4% | -383.47% | 335.46% | 199.75% | 116.63% | -23.01% | 12.87% | 13.73% | -3635.46% | 94.59% | -11.8% | -196.88% | -27.12% | - |
| Net Income (Continuing) | -11.42M | -3.91M | 33.16M | 14.56M | 9.45M | -2.03M | -2.8M | -5.24M | 528K | -5.65M | -6.79M | -6.65M | 422K | -3.42M | -3.39M | -3.37M | -481K | -29.97M | 10.57M | 2.43M | 810K | -4.87M | -3.96M | -4.54M | -5.27M | 1.49M | -2.6M | -2.33M | 2.4M | 3.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | -21K | -19K | -20K | -19K | -20K | -18K | -21K | -20K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.37 | -0.13 | 1.12 | 0.50 | 0.34 | -0.09 | -0.12 | -0.23 | 0.02 | -0.35 | -0.52 | -0.55 | 0.04 | -0.36 | -0.38 | -0.38 | -0.06 | -3.55 | 1.24 | 0.30 | 0.11 | -0.66 | -0.55 | -0.63 | -0.74 | -0.02 | -0.38 | -0.34 | 0.36 | 0.74 |
| EPS Growth % | -148.56% | -111.61% | 124% | 47.06% | 493.52% | 28% | 48.67% | -1269% | 105.71% | 32.69% | 5.45% | -1475% | 111.11% | 5.26% | 0% | -533.33% | 98.31% | -386.29% | 313.33% | 172.73% | 116.67% | -20% | 12.7% | 14.86% | -3675.51% | 94.84% | -11.76% | -194.44% | -51.35% | - |
| EPS (Basic) | - | -0.13 | 1.15 | 0.52 | 0.36 | -0.09 | -0.12 | -0.23 | 0.02 | -0.35 | -0.52 | -0.55 | 0.04 | -0.36 | -0.38 | -0.38 | -0.06 | -3.55 | 1.32 | 0.31 | 0.11 | -0.66 | -0.55 | -0.63 | -0.74 | -0.02 | -0.38 | -0.34 | 0.38 | 0.77 |
| Diluted Shares Outstanding | 30.7M | 29.58M | 29.62M | 29.21M | 27.77M | 23.46M | 22.88M | 22.39M | 22.78M | 16.27M | 13.09M | 12.05M | 11.89M | 9.55M | 9.02M | 8.78M | 8.56M | 8.44M | 8.51M | 8.22M | 7.61M | 7.42M | 7.25M | 7.16M | 7.15M | 7.18M | 6.81M | 6.85M | 6.76M | 4.5M |
| Basic Shares Outstanding | 30.7M | 29.58M | 28.82M | 27.79M | 26.01M | 23.46M | 22.88M | 22.39M | 21.73M | 16.27M | 13.09M | 12.05M | 10.88M | 9.55M | 9.02M | 8.78M | 8.56M | 8.44M | 8.01M | 7.75M | 7.51M | 7.42M | 7.25M | 7.16M | 7.15M | 7.07M | 6.81M | 6.85M | 6.33M | 4.3M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Customer concentration and EV cyclicality
As reported in recent financial filings, AEHR experienced a significant revenue decline of 43.7% in 2026Q3 compared to the prior year, reflecting a broader deceleration in Silicon Carbide capacity expansion that has severely pressured the company's top-line growth trajectory across the most recent quarterly periods.
The sharp drop in revenue suggests that the company's reliance on a narrow set of EV-focused customers has left it vulnerable to current capital expenditure delays. This trend indicates that the previous growth phase, driven by rapid SiC adoption, has hit a cyclical plateau that may persist until new capacity cycles emerge.
Based on the latest income statement data, gross margins have compressed to 32.7% in 2026Q3, down from historical peaks exceeding 50%, which suggests that the current product mix is failing to provide the necessary pricing power to offset rising manufacturing costs during this period of lower volume.
The erosion of gross margins implies that the high-margin consumable revenue stream is not scaling sufficiently to compensate for the decline in system-level sales. Investors should monitor whether this margin degradation is a temporary byproduct of underutilized capacity or a permanent shift in the competitive landscape for wafer-level burn-in.
According to the company's income statement, operating margins have plummeted to -41.0% in 2026Q3, demonstrating that AEHR's high fixed-cost structure is currently amplifying losses as revenue falls below the critical break-even threshold required to sustain its existing research and administrative overhead levels.
The transition from positive operating income in 2024 to deep losses in recent quarters highlights the risks inherent in the company's operating model. Without a meaningful recovery in system shipments, the current expense base appears increasingly difficult to justify, potentially necessitating further cost-rationalization measures to preserve liquidity.
Analysis of recent financial statements reveals that stock-based compensation, which reached $3.5M in 2026Q2, continues to weigh on the bottom line, masking the true extent of operational cash burn and complicating the assessment of core profitability during this period of significant net income volatility.
The presence of substantial non-cash expenses during a period of negative operating income warrants caution, as it suggests that reported EPS figures may not fully capture the economic reality of the business. Investors should focus on cash-based metrics to determine the sustainability of operations until the company returns to a consistent profit-generating state.
While the company maintains a proprietary position in wafer-level burn-in, the persistent -7.31% operating margin suggests that the market may be overestimating the durability of AEHR's competitive advantage in the face of potential in-house testing solutions by major semiconductor manufacturers.
The counter-argument to the bull case is that the current downturn may be more than just cyclical, potentially signaling a structural shift where customers seek more flexible, generic testing alternatives. If the 'razor-and-blade' model fails to generate sufficient recurring revenue, the company's valuation premium may face further downward pressure.
Quick answers to the most common questions about buying AEHR stock.
For fiscal year 2025, Aehr Test Systems (AEHR) reported total revenue of $59.0M. This represents a 40.4% increase compared to $42.0M in 1997.
Aehr Test Systems (AEHR) reported a net loss of $3.9M for the fiscal year ending 2025.
Aehr Test Systems (AEHR) reported an operating income of $-4.3M, resulting in an operating profit margin of -7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Aehr Test Systems (AEHR) generated $23.9M in gross profit for the year, representing a gross profit margin of 40.6%. This demonstrates the company's core pricing power and production efficiency.