Onto Innovation Reports $291.9 Million Revenue, 9.5% Increase, and Plans Rigaku Acquisition

Onto Innovation Inc. reported a revenue of $291.9 million for the three months ended March 31, 2026, marking a 9.5% increase from $266.6 million in the same period last year. The company's gross profit for the quarter was $146.4 million, resulting in a gross margin of 50.1%, compared to 53.7% in the prior year. The decline in gross margin was attributed to higher restructuring costs and inventory step-up amortization related to the acquisition of Semilab USA, which contributed $16.8 million to revenue during the quarter. Net income for the period was $33.8 million, down from $64.1 million a year earlier, leading to diluted earnings per share of $0.67, compared to $1.30 in the previous year.

Operating expenses increased significantly to $112.9 million from $80.1 million in the prior year, driven by higher research and development costs, increased sales and marketing expenses, and a substantial rise in amortization expenses related to intangible assets from the Semilab acquisition. Research and development expenses rose to $35.1 million, while general and administrative expenses increased to $31.4 million, reflecting the costs associated with integrating Semilab USA and other operational adjustments. The company also recorded restructuring expenses of $5.2 million, up from $1.1 million in the previous year.

In terms of operational metrics, Onto Innovation's cash, cash equivalents, and marketable securities totaled $654.2 million as of March 31, 2026, an increase from $639.6 million at the beginning of the year. The company’s employee headcount stood at approximately 1,790. The revenue breakdown showed that systems and software sales accounted for 84.7% of total revenue, while parts and services contributed 9.1% and 6.2%, respectively. The company experienced increased demand from advanced packaging customers, although sales to advanced node customers declined.

Looking ahead, Onto Innovation has entered into a definitive agreement to acquire 27% of Rigaku Holdings Corporation for approximately $710 million, with the transaction expected to close in the second half of 2026. To finance this acquisition, the company has secured a $500 million bridge term loan facility. The management expressed optimism about future growth, driven by the integration of Semilab USA and the anticipated benefits from the Rigaku investment, while also acknowledging the challenges posed by market conditions and operational adjustments.