SkyWater Technology Reports 165% Revenue Growth to $156.4 Million in Q2 2026

SkyWater Technology, Inc. reported significant financial growth in its latest quarterly results, with revenue reaching $156.4 million for the second quarter of 2026, a 165% increase from $59.1 million in the same period last year. The company attributed this surge primarily to the acquisition of Fab 25, which contributed $87.4 million in wafer services revenue. Gross profit also saw a substantial rise, climbing to $35.2 million from $10.9 million, reflecting a gross margin improvement from 18.5% to 22.5%. However, the company still reported a net loss of $6.4 million, although this was a 36% improvement compared to the $10 million loss in the prior year.

In the first half of 2026, SkyWater's revenue totaled $317.1 million, up 163% from $120.4 million in the first half of 2025. The increase was driven by a combination of factors, including a 12% rise in ATS development revenue and a significant contribution from the Fab 25 acquisition. Despite the revenue growth, the company reported a net loss of $18.7 million for the first six months, slightly worse than the $17.3 million loss in the same period last year. The increase in losses was attributed to higher operational costs, including a 283% rise in interest expenses due to increased borrowings.

Strategically, SkyWater has undergone significant changes, including the completion of the Fab 25 acquisition, which has expanded its manufacturing capabilities and customer base. The company now operates through two reportable segments: Legacy SkyWater and SkyWater Texas. The merger with IonQ, finalized on July 31, 2026, is expected to further enhance SkyWater's market position, although it did not impact the financial results for the periods reported. The company has also been actively pursuing funding opportunities under the CHIPS and Science Act to support its growth initiatives.

Operationally, SkyWater's customer base has expanded, with two customers accounting for 72% of revenue in the latest quarter. The company reported a decrease in contract liabilities, indicating improved cash flow management, although accounts receivable and contract assets showed less favorable trends compared to the previous year. The company’s employee headcount has also increased, reflecting its growth strategy and the integration of Fab 25 operations.

Looking ahead, SkyWater anticipates continued revenue growth driven by customer-funded capital investments and the integration of its expanded manufacturing capabilities. However, the company remains cautious about potential market fluctuations and the impact of macroeconomic conditions on its operations. The management is focused on addressing existing material weaknesses in internal controls and ensuring compliance with financial reporting standards as it moves forward.