A maker of the "plumbing" inside semiconductor manufacturing tools, Ichor designs and builds gas and chemical delivery subsystems, valves, and advanced flow controllers used in etch, deposition, and lithography machines by big names like Lam Research and Applied Materials. Founded in 1999 and based in Fremont, California, it takes its name from Greek myth, where "ichor" is the golden blood that flows in the veins of the gods — fitting for a company whose precise chemical delivery is the lifeblood of chipmaking. Its parts also find their way into aerospace, defense, and medical equipment.
Ichor returned to net profitability in Q2 FY2026 as gross margin recovered to 13.9% on higher volumes and the absence of restructuring charges.
Ichor returned to net profitability for the first time in over a year. rose 22.7% to $294.8 million and expanded 2.6 points to 13.9%, driven by higher factory utilization and the absence of prior-year severance and restructuring costs. The company also raised $195.4 million in an , pushing cash to $256.5 million and strengthening a balance sheet that had been strained by two years of losses.
Key takeaways
was $1.0 million, or $0.03 per diluted share, compared to a $9.4 million loss a year ago, as the gain from higher and improved margins flowed through.
rose to 13.9% from 11.3% a year ago, helped by lower relative employee expenses, the absence of $1.6 million in Scotland exit write-offs and other severance charges, and factory overhead on the 22.7% increase.
rose 22.7% to $294.8 million, the fastest growth since Q4 FY2022, driven by higher customer demand for expanded semiconductor manufacturing capacity and advanced process technologies.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net sales rose 22.7% to $294.8M on strong semiconductor demand, driving GAAP net income of $1.0M vs. a $9.4M loss last year.
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increased 22.7% to $294.8M, driven by higher customer demand for expanded semiconductor manufacturing capacity and advanced process technologies.
Cash and equivalents more than doubled sequentially to $256.5 million after the company raised $195.4 million in net proceeds from an , providing liquidity to fund needs as production ramps.
was a $23.6 million outflow in the quarter, as a build in to support higher production more than offset the improvement in ; was a $15.9 million outflow.
Management flagged ongoing risks from global trade policy uncertainty, export controls, and tariffs that could materially affect costs, pricing, and demand.
What changed
The Q1 FY2026 watch item on whether the $20.5 million build would convert to in Q2 was partially answered: revenue rose 15.1% sequentially to $294.8 million, but remained deeply negative at a $23.6 million outflow as continued to absorb cash.
The FY2025 watch item on whether restructuring savings would lift above the 12-13% range in FY2026 showed early progress: Q2 gross margin reached 13.9%, the highest since Q3 FY2022, as the Scotland exit and other severance costs that depressed prior-year margins did not repeat.
The Q2 FY2025 concern about whether the Scotland exit costs were fully behind the company was confirmed: the $1.6 million in write-offs and $2.0 million in disposal costs that weighed on the year-ago quarter were absent, contributing to the 2.6-point expansion.
Customer concentration with Lam Research and Applied Materials, last reported at 76% of FY2025 sales, was not updated in this filing, leaving open the question of whether the recovery is broadening the customer base.
What to watch
Whether the $195.4 million equity raise signals an acceleration in or acquisition plans, or whether it is purely a precautionary liquidity buffer given ongoing tariff and export-control uncertainty.
Whether can hold above 13% in Q3 FY2026 now that the easy comparison against restructuring charges has passed, or whether unfavorable sales mix and tariff-related cost pressures push it back toward the low teens.
Whether turns positive in the second half of FY2026 as the build moderates, or whether elevated and accumulation keep it negative for a third consecutive year.
Whether the 22.7% growth rate is sustainable, or whether it reflects a one-time snapback from the restructuring-disrupted prior year, with growth decelerating toward the 4.7% rate seen in Q1 FY2026.
improved 260 to 13.9%, primarily due to lower relative employee expenses, absence of prior-year severance/restructuring charges, and factory overhead .
swung to $7.2M from a $4.8M loss, while operating income rose to $16.3M (5.5% margin) after excluding restructuring, , and .
Cash used in operations was $18.8M for the first half, as increased to support higher production more than offset improved .
Liquidity was strengthened by $195.4M in net proceeds from an at-the-market equity offering, ending the quarter with $256.5M in cash and cash equivalents.
Management cites ongoing risks from global trade policy uncertainty, export controls, and tariffs that could materially affect costs, pricing, and demand.
At this time, neither we nor any of our subsidiaries is a party to, and none of our respective property is the subject of, any legal proceeding that, if determined adversely to us, would have a material adverse effect on us.
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At this time, neither we nor any of our subsidiaries is a party to, and none of our respective property is the subject of, any legal proceeding that, if determined adversely to us, would have a material adverse effect on us.
This quarterly report should be read in conjunction with the risk factors included in our 2025 Annual Report on Form 10‑K. These risk factors do not identify all risks that we face – our operations could also be affected by factors that are not presently known to us or that we c…
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This quarterly report should be read in conjunction with the risk factors included in our 2025 Annual Report on Form 10‑K. These risk factors do not identify all risks that we face – our operations could also be affected by factors that are not presently known to us or that we currently consider to be immaterial to our operations. Due to risks and uncertainties, known and unknown, our past financial results may not be a reliable indicator of future performance and historical trends should not be used to anticipate results or trends in future periods.