Camtek Ltd. reported third‑quarter 2025 revenue of $126.0 million, a 12% increase from $112.3 million in the same period last year. The jump was driven by robust demand for the company’s advanced packaging and inspection solutions in the high‑performance computing and artificial‑intelligence markets, which continue to expand as data‑center operators invest in next‑generation chip technologies.
Gross profit reached $63.0 million, giving a GAAP gross margin of 50.0%. Operating income was $31.9 million, or 25.3% of revenue. The margin expansion relative to the prior year was largely a result of a higher mix of high‑margin AI‑centric contracts and improved operational leverage as revenue scales, offsetting modest increases in raw‑material costs.
On a GAAP basis the company recorded a net loss of $53.2 million, driven by an $89 million one‑time charge for extinguishing earlier convertible notes. Non‑GAAP net income was $40.9 million, or $0.82 per diluted share, beating the consensus estimate of $0.80–$0.81 by $0.01–$0.02. The EPS beat was largely due to disciplined cost management and a favorable product mix that increased pricing power in the AI segment.
Cash, cash equivalents, and marketable securities totaled $794.0 million at September 30 2025. The company issued $500 million of 0% coupon convertible senior notes and used part of the proceeds to repurchase $167.1 million of earlier notes, extending its debt maturity profile and improving liquidity. The move was timed to take advantage of favorable market conditions for new issuance and to reduce interest‑bearing debt exposure.
For the fourth quarter, Camtek guided revenue to approximately $127 million and projected full‑year 2025 revenue of $495 million, a record year and 15% growth over 2024. The guidance, while meeting analyst expectations, signals management’s confidence in sustained demand from AI and HPC customers, but also reflects a cautious stance on potential near‑term macro uncertainty.
CEO Rafi Amit highlighted that the company’s “record performance” was driven by “increasing demand for high‑performance computing for AI applications.” He added that the company is well positioned to capitalize on large‑scale AI investments and expects continued growth into 2026. Investors, however, reacted with caution because the guidance did not exceed consensus estimates and the GAAP loss from the debt extinguishment was a one‑time charge that may have dampened enthusiasm for the earnings beat.
Overall, Camtek’s Q3 results demonstrate strong operational execution and a solid cash position, while the guidance and one‑time charge illustrate the company’s focus on long‑term financial flexibility and the importance of maintaining momentum in the AI‑driven semiconductor market.
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