SkyWater Technology Reports 37% Revenue Decline and $9.98 Million Net Loss in Q2 2025

SkyWater Technology, Inc. reported significant financial challenges in its latest quarterly filing, with revenues for the second quarter of 2025 totaling $59.1 million, a decrease of 37% from $93.3 million in the same period last year. The decline was primarily attributed to a $24.7 million drop in revenue from customer-funded tool technologies, which significantly impacted overall profitability. The company recorded a net loss of $9.98 million for the quarter, compared to a loss of $1.9 million in the second quarter of 2024, marking a 426% increase in losses year-over-year.

For the first half of 2025, SkyWater's revenue also fell by 30% to $120.4 million from $173 million in the first half of 2024. The decrease was driven by a substantial decline in Advanced Technology Services (ATS) revenue, particularly from the aerospace and defense sector, which saw a reduction of $18.1 million due to shifts in U.S. government policy and defense spending. The company’s gross profit for the first six months was $25.2 million, down from $30.1 million in the prior year, reflecting a 16% decline.

In terms of operational developments, SkyWater completed the acquisition of Spansion Fab 25, LLC on June 30, 2025, for approximately $93 million, financed through debt. This acquisition is expected to enhance the company's semiconductor manufacturing capabilities and strengthen its position in the North American semiconductor ecosystem. The company also reported an increase in selling, general, and administrative expenses to $14 million for the second quarter, largely due to acquisition-related costs.

SkyWater's cash position improved significantly, with cash and cash equivalents rising to $49.4 million as of June 29, 2025, compared to $18.8 million at the end of 2024. The company reported net cash provided by operating activities of $54.3 million for the first half of 2025, a substantial increase from $5.4 million in the same period last year. This increase was driven by improved cash collection efforts and a significant rise in contract liabilities.

Looking ahead, SkyWater anticipates that the completion of the acquisition and the associated multi-year wafer supply agreement will bolster its operational capabilities. However, the company remains cautious due to ongoing challenges in the aerospace and defense sectors and the potential impacts of macroeconomic conditions on its business. The management believes that with the current liquidity and operational forecasts, it will have sufficient resources to fund its operations for the next twelve months.