Ultra Clean Holdings, Inc. (UCTT): Results of Operations and Financial Condition
Ultra Clean Holdings, Inc. (UCTT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Press Release Source: Ultra Clean Holdings, Inc. Ultra Clean Reports Second Quarter 2026 Financial Results HAYWARD, Calif., August 3, 2026 /PRNewswire/ Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 2
How this was made
The 30-second read
Why it matters
Traders can update near-term estimates using the reported Q2 profitability metrics and the explicit Q3 revenue and GAAP/non-GAAP EPS ranges.
Market read
The filing provides fresh, decision-relevant numbers: Q2 revenue and earnings, and a quantified Q3 outlook that can move short-term positioning.
What to watch
Gross margin and operating margin are still relatively modest, and the company’s outlook is a range, leaving room for downside if customer demand normalizes.
Ultra Clean Reports Second Quarter 2026 Financial Results
Second-quarter revenue, GAAP profitability and non-GAAP profitability improved materially from the prior quarter, and third-quarter revenue and diluted EPS guidance moved higher than reported second-quarter levels.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $644.9 million | – | – |
| Products revenueGAAP | $572.7 million | – | – |
| Services revenueGAAP | $72.2 million | – | – |
| Total cost revenuesGAAP | $541.2 million | – | – |
| Gross marginGAAP | $103.7 million | – | – |
| Gross margin percentageGAAP | 16.1% | – | – |
| Research and development expenseGAAP | $8.8 million | – | – |
| Sales and marketing expenseGAAP | $16.4 million | – | – |
| General and administrative expenseGAAP | $49.0 million | – | – |
| Impairment of goodwillGAAP | — | – | – |
| Total operating expensesGAAP | $74.2 million | – | – |
| Income from operationsGAAP | $29.5 million | – | – |
| Operating marginGAAP | 4.6% | – | – |
| Interest incomeGAAP | $1.0 million | – | – |
| Interest expenseGAAP | $(1.1) million | – | – |
| Other income (expense), netGAAP | $0.6 million | – | – |
| Income before provision for income taxesGAAP | $30.0 million | – | – |
| Provision for income taxesGAAP | $18.1 million | – | – |
| Net incomeGAAP | $11.9 million | – | – |
| Net income attributable to UCTGAAP | $8.7 million | – | – |
| Diluted net income per share attributable to UCT common stockholdersGAAP | $0.19 | – | – |
| Basic net income per share attributable to UCT common stockholdersGAAP | $0.19 | – | – |
| Non-GAAP gross profitnon-GAAP | $107.6 million | – | – |
| Non-GAAP gross marginnon-GAAP | 16.7% | – | – |
| Non-GAAP income from operationsnon-GAAP | $45.1 million | – | – |
| Non-GAAP operating marginnon-GAAP | 7.0% | – | – |
| Non-GAAP net incomenon-GAAP | $32.3 million | – | – |
| Non-GAAP diluted net income per sharenon-GAAP | $0.70 per diluted share | – | – |
| Six-month total revenuesGAAP | $1,178.6 million | – | – |
| Six-month net income attributable to UCTGAAP | $(9.2) million | – | – |
| Six-month diluted net income per share attributable to UCT common stockholdersGAAP | $(0.20) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ProductsNot separately stated. | $572.7 million | – | – |
| ServicesNot separately stated. | $72.2 million | – | – |
Third Quarter 2026 outlook
- Revenue$700 million to $750 million
- NoteGAAP diluted net income per share of $0.67 to $0.87
- Notenon-GAAP diluted net income per share of $0.83 to $1.03
Capital returns
- Repurchase of common stock $(40.0) million
- Payment for capped call transactions $(25.1) million
What drove it
- Strong operational execution and increasing customer demand.
- AI continues to drive investment across the semiconductor industry.
- UCT 3.0 priorities include expanding global manufacturing capacity, enhancing engineering and operational capabilities, and accelerating digital transformation.
Concerns
- Six-month net cash used in operating activities was $(74.4) million.
- Inventories were $629.9 million as of June 26, 2026, compared with $390.9 million as of December 26, 2025.
- Long-term debt was $599.4 million as of June 26, 2026, compared with $467.0 million as of December 26, 2025.
- Cash and cash equivalents were $255.9 million as of June 26, 2026, compared with $311.8 million as of December 26, 2025.
What to watch
- Third-quarter revenue delivery within the guided range of $700 million to $750 million.
- Third-quarter GAAP diluted net income per share delivery within the guided range of $0.67 to $0.87.
- Third-quarter non-GAAP diluted net income per share delivery within the guided range of $0.83 to $1.03.
- Inventory levels, operating cash flow, and the execution of global manufacturing capacity expansion.
Balance sheet and cash flow
- Cash and cash equivalents of $255.9 million as of June 26, 2026
- Long-term debt of $599.4 million as of June 26, 2026
- Total assets of $1,918.1 million as of June 26, 2026
- Total liabilities of $1,201.0 million as of June 26, 2026
- Total equity of $717.1 million as of June 26, 2026
- Six-month net cash used in operating activities of $(74.4) million
- Six-month purchases of property, plant and equipment of $(25.8) million
- Six-month net cash used in investing activities of $(25.7) million
- Proceeds from the issuance of convertible notes of $600.0 million
- Borrowings on revolving credit facility of $15.0 million
- Principal payments on bank borrowings of $(481.5) million
- Six-month net cash provided by financing activities of $48.5 million
- Cash and cash equivalents at end of period of $255.9 million
Analysis
Ultra Clean reported second-quarter GAAP revenue of $644.9 million, with Products contributing $572.7 million and Services adding $72.2 million. Revenue was above the $533.7 million reported in the prior quarter. Management attributed the result to strong operational execution and increasing customer demand, while also describing AI-driven semiconductor investment as supportive of the longer-term market outlook.
Profitability improved sequentially. GAAP gross margin was 16.1%, compared with 15.8% in the prior quarter, and GAAP operating margin was 4.6%, compared with 2.1%. Net income attributable to UCT was $8.7 million, or $0.19 per diluted share, following a prior-quarter net loss attributable to UCT of $(17.9) million, or $(0.40) per diluted share. Non-GAAP gross margin improved to 16.7% from 16.5%, non-GAAP operating margin increased to 7.0% from 5.1%, and non-GAAP net income rose to $32.3 million from $14.5 million.
The report also shows a large year-over-year change in operating expenses because the prior-year quarter included $151.1 million of goodwill impairment, while the current quarter reported no goodwill impairment. Current-quarter total operating expenses were $74.2 million, compared with $221.3 million in the prior-year quarter. GAAP income from operations was $29.5 million, versus a loss from operations of $(141.8) million in the prior-year quarter.
Cash flow and working capital require attention. For the six months ended June 26, 2026, net cash used in operating activities was $(74.4) million, including an inventory increase of $(238.9) million, partly offset by a $104.4 million increase in accounts payable. Inventories were $629.9 million at period end, while cash and cash equivalents were $255.9 million. The company issued $600.0 million of convertible notes, made $(481.5) million of principal payments on bank borrowings, and repurchased $(40.0) million of common stock during the six-month period.
Third-quarter guidance calls for revenue of $700 million to $750 million, above second-quarter revenue of $644.9 million, with GAAP diluted net income per share of $0.67 to $0.87 and non-GAAP diluted net income per share of $0.83 to $1.03. The outlook places focus on continued demand conversion, execution against UCT 3.0 capacity and operational initiatives, and whether higher revenue is accompanied by sustained margin improvement and improved operating cash flow.
Management, verbatim
UCT delivered second quarter results above the top end of our guided range reflecting strong operational execution and increasing customer demand.
James Xiao, CEO
The long-term outlook for semiconductor manufacturing remains compelling as AI continues to drive investment across the industry.
James Xiao, CEO
Not in the filing
stated, not guessed- Previous-quarter Products revenue
- Previous-quarter Services revenue
- Year-over-year percentage changes for total revenue and segment revenue
- Year-over-year GAAP gross margin percentage
- Year-over-year GAAP operating margin percentage
- Year-over-year non-GAAP metrics
- Second-quarter operating cash flow
- Second-quarter free cash flow
- Free cash flow for the six months ended June 26, 2026
- Third-quarter gross margin guidance
- Third-quarter operating expense guidance
- Third-quarter tax rate guidance
- Prior outlook guidance for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 reporting Ultra Clean’s Q2 2026 results and providing Q3 2026 outlook, plus a conference call schedule.
Ticker impact
Ultra Clean Holdings reported Q2 2026 revenue of $644.9M, GAAP net income of $8.7M, and guided Q3 revenue to $700M-$750M.
Likely near-term positive bias as traders price in improved earnings power and the guided Q3 range.
The filing includes concrete GAAP and non-GAAP profitability improvements versus the prior quarter plus explicit Q3 revenue and EPS guidance, which are direct inputs to valuation and near-term expectations.
Market effects
Semiconductor manufacturing services and ultra-high purity cleaning demand narrative is reinforced by management citing increasing customer demand and AI-driven capex.
Limited direct regional read-through beyond US semiconductor supply chain sentiment.
Primarily US-listed semiconductor supply chain sentiment; global impact is secondary because the disclosure is company-specific.
Counterpoint
Guidance could still be sensitive to semiconductor capex timing, and non-GAAP strength may not fully translate to sustained GAAP earnings.
Key entities
- companyUltra Clean Holdings, Inc.
Nasdaq-listed semiconductor subsystems and ultra-high purity cleaning and analytical services provider.
- executiveJames Xiao
CEO quoted on Q2 performance and execution of the UCT 3.0 plan.
