Despite achieving 162.1% revenue growth in 2026Q1, the company continues to face structural margin pressure, evidenced by a negative 3.3% operating margin during the same period.
| Sales/Revenue | 541.53M | 442.14M | 342.27M | 286.68M | 212.94M | 162.85M | 140.44M | 136.72M | 132.17M |
| Revenue Growth % | 67.18% | 29.18% | 19.39% | 34.63% | 30.76% | 15.96% | 2.72% | 3.45% | - |
| Cost of Goods Sold | 435.3M | 353.8M | 272.64M | 227.39M | 186.97M | 170.32M | 117.75M | 111.38M | 100.83M |
| COGS % of Revenue | - | 80.02% | 79.66% | 79.32% | 87.81% | 104.59% | 83.84% | 81.46% | 76.29% |
| Gross Profit | 106.23M | 88.33M | 69.63M | 59.29M | 25.97M | -7.47M | 22.69M | 25.35M | 31.34M |
| Gross Margin % | 19.62% | 19.98% | 20.34% | 20.68% | 12.19% | -4.59% | 16.16% | 18.54% | 23.71% |
| Gross Profit Growth % | - | 26.87% | 17.43% | 128.34% | 447.52% | -132.93% | -10.47% | -19.11% | - |
| Operating Expenses | 105.57M | 89.5M | 63.07M | 74.08M | 55.73M | 49.63M | 31.33M | 34.32M | 17.38M |
| OpEx % of Revenue | - | 20.24% | 18.43% | 25.84% | 26.17% | 30.48% | 22.31% | 25.1% | 13.15% |
| Selling, General & Admin | 89.2M | 74.88M | 48.03M | 63.91M | 46.3M | 43.59M | 25.03M | 18.72M | 15.17M |
| SG&A % of Revenue | - | 16.94% | 14.03% | 22.29% | 21.74% | 26.77% | 17.82% | 13.69% | 11.48% |
| Research & Development | 16.37M | 14.62M | 15.04M | 10.17M | 9.43M | 8.75M | 4.21M | 6.33M | 2.21M |
| R&D % of Revenue | - | 3.31% | 4.39% | 3.55% | 4.43% | 5.37% | 3% | 4.63% | 1.67% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -2.71M | 2.09M | 9.27M | 0 |
| Operating Income | 664K | -1.17M | 6.56M | -14.79M | -29.77M | -57.1M | -8.64M | -8.97M | 13.96M |
| Operating Margin % | 0.12% | -0.26% | 1.92% | -5.16% | -13.98% | -35.07% | -6.15% | -6.56% | 10.56% |
| Operating Income Growth % | - | -117.8% | 144.36% | 50.32% | 47.87% | -560.77% | 3.67% | -164.29% | - |
| EBITDA | 45.21M | 34.5M | 25.25M | 14.14M | -1.57M | -29.74M | 10.22M | 7.69M | 29.04M |
| EBITDA Margin % | 8.35% | 7.8% | 7.38% | 4.93% | -0.74% | -18.26% | 7.28% | 5.63% | 21.97% |
| EBITDA Growth % | 98.92% | 36.63% | 78.57% | 997.9% | 94.7% | -390.85% | 32.93% | -73.52% | - |
| D&A (Non-Cash Add-back) | 44.55M | 35.67M | 18.69M | 28.93M | 28.19M | 27.37M | 18.87M | 16.66M | 15.09M |
| EBIT | 108.37M | -1.17M | 6.56M | -14.79M | -30.87M | -50.65M | -9.3M | -13.43M | 13.96M |
| Net Interest Income | -5.74M | -13.71M | -8.84M | -10.83M | -5.19M | -3.54M | -5.5M | -6.55M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.84M |
| Interest Expense | 5.74M | 13.71M | 8.84M | 10.83M | 5.19M | 3.54M | 5.5M | 6.55M | 0 |
| Other Income/Expense | 89.19M | 96.63M | -8.84M | -10.83M | -6.29M | 2.91M | -6.15M | -11.01M | -13.98M |
| Pretax Income | 89.86M | 95.46M | -2.28M | -25.61M | -36.06M | -54.19M | -14.79M | -19.98M | -21K |
| Pretax Margin % | 16.59% | 21.59% | -0.67% | -8.93% | -16.94% | -33.28% | -10.53% | -14.61% | -0.02% |
| Income Tax | -28.66M | -27.99M | 240K | -521K | 809K | -6.79M | 4.92M | -3.56M | 44K |
| Effective Tax Rate % | -31.89% | -29.32% | -10.54% | 2.03% | -2.24% | 12.53% | -33.25% | 17.81% | -209.52% |
| Net Income | 113.95M | 118.92M | -6.79M | -30.76M | -39.59M | -50.7M | -20.62M | -16.42M | -65K |
| Net Margin % | 21.04% | 26.9% | -1.98% | -10.73% | -18.59% | -31.13% | -14.68% | -12.01% | -0.05% |
| Net Income Growth % | 1455.12% | 1850.55% | 77.91% | 22.32% | 21.9% | -145.89% | -25.57% | -25160% | - |
| Net Income (Continuing) | 118.52M | 123.45M | -2.52M | -25.09M | -36.87M | -47.4M | -19.71M | -16.42M | -65K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 7.63M | 7.99M | 5.88M | 6.96M | 308K | -1.2M | -1.57M | 0 | 0 |
| EPS (Diluted) | 2.34 | 2.44 | -0.14 | -0.68 | -0.90 | -1.19 | -0.50 | -0.42 | -0.00 |
| EPS Growth % | 1450.72% | 1842.86% | 79.41% | 24.44% | 24.37% | -138% | -19.05% | - | - |
| EPS (Basic) | - | 2.47 | -0.14 | -0.68 | -0.90 | -1.19 | -0.50 | -0.42 | -0.00 |
| Diluted Shares Outstanding | 48.77M | 48.71M | 47.4M | 45.51M | 40.84M | 39.84M | 39.06M | 39.06M | 39.06M |
| Basic Shares Outstanding | 48.77M | 48.18M | 47.4M | 45.51M | 40.84M | 39.84M | 39.06M | 39.06M | 39.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Persistent Operating Losses
According to recent financial disclosures, SkyWater Technology achieved a significant 162.1% year-over-year revenue growth in 2026Q1, signaling a rapid expansion in its Advanced Technology Services pipeline, though this trajectory remains highly sensitive to the timing of project-based milestones and government-funded development contract cycles.
The sharp acceleration in top-line performance suggests that the company is successfully capturing demand for domestic, specialized foundry services. However, investors should monitor whether this growth is sustainable or merely a reflection of lumpy, non-recurring engineering milestones that may not translate into long-term, predictable wafer production volume.
Based on reported income statements, SkyWater's gross margin has fluctuated between 15.2% and 25.6% over the last ten quarters, indicating that the company has yet to achieve the necessary utilization levels to offset its high fixed-cost base inherent in semiconductor fabrication operations.
The inability to consistently expand gross margins despite significant revenue growth suggests that the company's cost structure remains heavily burdened by depreciation and specialized labor requirements. This lack of margin expansion implies that the current business mix is not yet optimized for the high-volume throughput required to achieve Tier-1 foundry profitability.
As reported in recent filings, SkyWater's operating income frequently dips into negative territory, with a 2026Q1 operating margin of -3.3%, demonstrating that operating expenses are scaling in tandem with revenue rather than providing the expected leverage benefits of a maturing semiconductor manufacturing business.
The persistent failure to generate consistent operating income suggests that the company's SG&A and R&D investments are not yet yielding the expected economies of scale. This warrants further investigation into whether the current operating model is fundamentally capable of reaching profitability without a massive, sustained increase in wafer production volume.
Analysis of the income statement reveals a stark divergence between operating and net margins, exemplified by the 2025Q3 net margin of 95.5% against an operating margin of 7.3%, which suggests that reported net income is heavily influenced by non-operational gains rather than core manufacturing performance.
Investors should exercise caution when interpreting bottom-line results, as these figures appear to be driven by accounting anomalies, tax benefits, or warrant valuations rather than operational efficiency. Relying on these headline numbers may obscure the underlying reality that the core business has struggled to maintain consistent profitability since its public offering.
Based on the provided data, SkyWater's low cash position of $23.2 million relative to its capital-intensive requirements poses a significant risk, as the company may be forced to pursue dilutive equity financing to sustain its R&D and equipment upgrades in the near term.
Short-sellers would likely focus on the company's inability to self-fund its operations, viewing the reliance on external capital as a structural weakness. The lack of a clear path to positive free cash flow suggests that the company's long-term viability remains contingent on its ability to secure further government subsidies or capital injections.
Quick answers to the most common questions about buying SKYT stock.
For fiscal year 2025, SkyWater Technology, Inc. (SKYT) reported total revenue of $442.1M. This represents a 234.5% increase compared to $132.2M in 2018.
SkyWater Technology, Inc. (SKYT) is profitable, generating $118.9M in net income for the fiscal year ending 2025 with a net profit margin of 26.9%.
SkyWater Technology, Inc. (SKYT) reported an operating income of $-1.2M, resulting in an operating profit margin of -0.3%. This margin reflects the operational efficiency of the business before interest and taxes.
SkyWater Technology, Inc. (SKYT) generated $88.3M in gross profit for the year, representing a gross profit margin of 20.0%. This demonstrates the company's core pricing power and production efficiency.