$CAMT earnings report

Camtek's presentation signals a stronger revenue trajectory into year-end. The company preannounced Q3 2026 revenue growth of + 27 % YoY and guided Q4 2026 revenue growth of + 40 % YoY. It stated that this trajectory brings FY 2026 to ~$ 595 M and presented an initial FY 2027 outlook of > + 35 % over FY 2026 E, with >$ 800 m expected in 2027.

The underlying demand case centers on AI-driven semiconductor investment, particularly advanced packaging, HBM, 2.5 D/ 3 D integration and photonics. Camtek identifies ~ 80 % of its business as Advanced Packaging and says OSATs account for > 50 % of its customer mix. The company also reported Over $ 800 M of Orders Received in 2026, supporting management's stated growth outlook.

The historical financial data show FY 2025 revenue of $496.1 million compared with $429.2 million in FY 2024. FY 2025 GAAP gross margin was 50.4 % and non-GAAP gross margin was 51.6 %, while GAAP operating margin was 25.90 % and non-GAAP operating margin was 30.1 %. The respective FY 2024 margins printed in the reconciliation were 48.90 %, 50.80 %, 25.20 % and 30.40 %.

GAAP earnings were affected by a $88.7 million loss from extinguishment of Capital Notes recorded during the third quarter of 2025. FY 2025 GAAP net income was $50.7 million, versus $118.5 million in FY 2024, while non-GAAP net income was $159.0 million versus $138.6 million. FY 2025 non-GAAP diluted EPS was $3.26, compared with $2.83 in FY 2024.

Management's longer-term model targets $ 1.2 B in annual organic revenue in ~ 3 years, 51 - 52 % gross margin and 34 – 36 % non-GAAP operating margin at that revenue level. The proposed model relies on continued product growth in inspection and bump metrology, expansion in metrology applications, and service and software revenue reaching 12 % of revenue. The presentation explicitly states that this model reflects goals and targets rather than guidance.

Camtek reported record Q2 2026 revenue of $133.2 million, up 8% from $123.3 million in the second quarter of 2025 and up 10% sequentially. Management attributed the outlook to significant acceleration in order intake since the beginning of 2026, with year-to-date orders of more than $600 million, deliveries scheduled through the remainder of 2026 and into 2027, and record backlog. The company completed the Visual Layer acquisition during the quarter.

Growth did not translate into higher reported profitability. GAAP gross margin was 50.1%, below 50.8% a year earlier, while non-GAAP gross margin was 51.4%, below 51.9%. GAAP operating income fell 15% to $27.2 million and its margin declined to 20.4% from 25.9%. Non-GAAP operating income declined 4% to $36.0 million, with the non-GAAP operating margin falling to 27.0% from 30.3%. Research and development expense and selling, general and administrative expense were both higher than in the prior-year quarter.

GAAP net income was $23.3 million, down 31%, and GAAP diluted EPS was $0.46 versus $0.69. Non-GAAP net income increased 2% to $39.4 million, while non-GAAP diluted EPS was $0.78 compared with $0.79. The reconciliation identifies acquisition-related expenses, one-time tax expenses and share-based compensation as non-GAAP adjustments. Income tax expense was 10,899 (in thousands), compared with 3,221 (in thousands) in the prior-year quarter.

Liquidity included $815.8 million of cash and cash equivalents, short-term and long-term deposits, and marketable securities as of June 30, 2026, compared with $849.7 million as of March 31, 2026. The company generated operating cash flow of $12.2 million during the quarter and reported convertible notes of 488,497 (in thousands) at June 30, 2026. No dividend or share-repurchase activity was announced.

Management guided third-quarter revenue to $158 million to $160 million, representing an exceptional 20% sequential increase over Q2. It also expects more than 30% growth in H2-26 versus H1-26, continued growth into 2027, and approximately 70% Advanced Packaging revenue growth between the first and fourth quarters of 2026. The key reporting focus is whether the expected order conversion and Advanced Packaging growth can accompany improvement in gross and operating margins.