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Aehr Test Sys Financials

AEHR
Source SEC Filings (10-K/10-Q) Updated Nov 28, 2025 Currency USD FYE May

This page shows Aehr Test Sys (AEHR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 36 / 100
Financial Profile 36/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
1

Aehr Test Sys has an operating margin of -9.6%, meaning the company retains $-10 of operating profit per $100 of revenue. This below-average margin results in a low score of 1/100, suggesting thin profitability after operating expenses. This is down from 15.2% the prior year.

Growth
15

Aehr Test Sys's revenue declined 10.9% year-over-year, from $66.2M to $59.0M. This contraction results in a growth score of 15/100.

Leverage
98

Aehr Test Sys carries a low D/E ratio of 0.21, meaning only $0.21 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 98/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
100

With a current ratio of 5.68, Aehr Test Sys holds $5.68 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Cash Flow
0

While Aehr Test Sys generated -$7.4M in operating cash flow, capex of $5.0M consumed most of it, leaving -$12.4M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Returns
4

Aehr Test Sys generates a -3.2% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 4/100. This is down from 29.7% the prior year.

Piotroski F-Score Weak
0/9

Aehr Test Sys passes 0 of 9 financial strength tests. No profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Low Quality
1.89x

For every $1 of reported earnings, Aehr Test Sys generates $1.89 in operating cash flow (-$7.4M OCF vs -$3.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk
-4.1x

Aehr Test Sys earns $-4.1 in operating income for every $1 of interest expense (-$5.7M vs $1.4M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue
$59.0M
YoY-10.9%
5Y CAGR+21.5%
10Y CAGR+19.4%

Aehr Test Sys generated $59.0M in revenue in fiscal year 2025. This represents a decrease of 10.9% from the prior year.

EBITDA
-$3.4M
YoY-131.3%

Aehr Test Sys's EBITDA was -$3.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 131.3% from the prior year.

Net Income
-$3.9M
YoY-111.8%

Aehr Test Sys reported -$3.9M in net income in fiscal year 2025. This represents a decrease of 111.8% from the prior year.

EPS (Diluted)
$-0.13
YoY-111.6%

Aehr Test Sys earned $-0.13 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 111.6% from the prior year.

Cash & Balance Sheet

Free Cash Flow
-$12.4M
YoY-1330.6%

Aehr Test Sys generated -$12.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 1330.6% from the prior year.

Cash & Debt
$24.5M
YoY-50.1%
5Y CAGR+35.2%
10Y CAGR+16.1%

Aehr Test Sys held $24.5M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
30M
YoY+3.1%
5Y CAGR+5.1%
10Y CAGR+8.7%

Aehr Test Sys had 30M shares outstanding in fiscal year 2025. This represents an increase of 3.1% from the prior year.

Margins & Returns

Gross Margin
40.6%
YoY-8.6pp
5Y CAGR+3.0pp
10Y CAGR+2.3pp

Aehr Test Sys's gross margin was 40.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 8.6 percentage points from the prior year.

Operating Margin
-9.6%
YoY-24.9pp
5Y CAGR+2.8pp
10Y CAGR+57.2pp

Aehr Test Sys's operating margin was -9.6% in fiscal year 2025, reflecting core business profitability. This is down 24.9 percentage points from the prior year.

Net Margin
-6.6%
YoY-56.7pp
5Y CAGR+5.9pp
10Y CAGR+59.7pp

Aehr Test Sys's net profit margin was -6.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 56.7 percentage points from the prior year.

Return on Equity
-3.2%
YoY-32.9pp
5Y CAGR+16.8pp
10Y CAGR+142.3pp

Aehr Test Sys's ROE was -3.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 32.9 percentage points from the prior year.

Capital Allocation

R&D Spending
$10.5M
YoY+20.0%
5Y CAGR+25.3%
10Y CAGR+9.9%

Aehr Test Sys invested $10.5M in research and development in fiscal year 2025. This represents an increase of 20.0% from the prior year.

Share Buybacks
N/A
Capital Expenditures
$5.0M
YoY+566.5%
5Y CAGR+98.3%
10Y CAGR+45.4%

Aehr Test Sys invested $5.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 566.5% from the prior year.

AEHR Income Statement

Metric Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24
Revenue $9.9M-9.9% $11.0M-22.1% $14.1M-23.0% $18.3M+36.1% $13.5M+2.5% $13.1M-21.0% $16.6M+119.5% $7.6M
Cost of Revenue $7.3M+1.2% $7.3M-26.1% $9.8M-11.7% $11.1M+38.1% $8.1M+33.3% $6.0M-25.9% $8.2M+85.0% $4.4M
Gross Profit $2.5M-31.6% $3.7M-12.9% $4.3M-40.5% $7.2M+33.0% $5.4M-23.7% $7.1M-16.2% $8.4M+167.7% $3.2M
R&D Expenses $3.0M+4.3% $2.8M+6.1% $2.7M-14.5% $3.1M+38.0% $2.3M-3.6% $2.4M+9.8% $2.2M+0.6% $2.1M
SG&A Expenses $4.4M-6.0% $4.7M+20.1% $3.9M-23.9% $5.2M+11.3% $4.6M+1.7% $4.6M+21.4% $3.8M+22.6% $3.1M
Operating Income -$4.6M-14.3% -$4.1M-26.9% -$3.2M-186.3% -$1.1M+26.0% -$1.5M-1051.6% $159K-93.7% $2.5M+224.2% -$2.0M
Interest Expense $194K+8.4% $179K-19.4% $222K-17.8% $270K+18.4% $228K-66.5% $681K+15.0% $592K+1.4% $584K
Income Tax -$1.2M-61.4% -$752K-764.4% -$87K+62.3% -$231K-6.5% -$217K-240.9% $154K+100.7% -$20.7M-296400.0% $7K
Net Income -$3.2M-55.0% -$2.1M+28.1% -$2.9M-350.9% -$643K+37.5% -$1.0M-255.8% $660K-97.2% $23.9M+1722.3% -$1.5M
EPS (Diluted) $-0.11-57.1% $-0.07 N/A $-0.02+33.3% $-0.03-250.0% $0.02 N/A $-0.05

AEHR Balance Sheet

Metric Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24
Total Assets $148.7M+3.2% $144.1M-3.0% $148.5M+2.0% $145.6M+2.3% $142.3M-2.5% $145.9M+14.0% $127.9M+25.9% $101.6M
Current Assets $88.2M+4.9% $84.1M-5.3% $88.8M-3.2% $91.7M+3.6% $88.5M-4.7% $92.9M-5.0% $97.8M+6.0% $92.3M
Cash & Equivalents $30.8M+35.8% $22.7M-7.4% $24.5M-16.6% $29.4M-8.7% $32.2M-14.8% $37.8M-23.0% $49.2M+3.3% $47.6M
Inventory $42.7M+2.1% $41.8M-0.4% $42.0M-0.8% $42.3M-3.3% $43.8M+1.9% $43.0M+14.7% $37.5M-1.6% $38.1M
Accounts Receivable $10.3M-21.2% $13.1M-8.0% $14.2M+18.3% $12.0M+63.5% $7.3M-14.3% $8.6M-12.6% $9.8M+79.2% $5.5M
Goodwill $10.7M0.0% $10.7M0.0% $10.7M-0.2% $10.7M0.0% $10.7M+3.8% $10.4M $0 N/A
Total Liabilities $18.0M-17.2% $21.7M-15.4% $25.6M+19.8% $21.4M+12.0% $19.1M-18.3% $23.4M+43.3% $16.3M+8.1% $15.1M
Current Liabilities $8.3M-30.3% $11.9M-23.8% $15.6M-2.7% $16.1M+37.1% $11.7M-24.0% $15.4M+46.7% $10.5M+14.5% $9.2M
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $130.8M+6.8% $122.4M-0.4% $122.9M-1.1% $124.2M+0.8% $123.2M+0.6% $122.5M+9.8% $111.6M+29.0% $86.5M
Retained Earnings -$28.4M-12.8% -$25.1M-9.0% -$23.1M-14.4% -$20.2M-3.3% -$19.5M-5.6% -$18.5M+3.4% -$19.1M+55.5% -$43.0M

AEHR Cash Flow Statement

Metric Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24
Operating Cash Flow -$1.2M-315.2% -$282K+87.7% -$2.3M-43.4% -$1.6M+72.7% -$5.9M-346.8% $2.4M+94.4% $1.2M+143.3% -$2.8M
Capital Expenditures $467K-66.4% $1.4M-50.6% $2.8M+70.2% $1.7M+415.9% $321K+62.9% $197K+328.3% $46K-82.5% $263K
Free Cash Flow -$1.6M+2.1% -$1.7M+67.3% -$5.1M-57.0% -$3.3M+47.4% -$6.2M-383.7% $2.2M+85.3% $1.2M+138.2% -$3.1M
Investing Cash Flow -$2.3M-63.0% -$1.4M+50.6% -$2.8M-33.2% -$2.1M-559.2% -$321K+97.0% -$10.8M-23404.3% -$46K+82.5% -$263K
Financing Cash Flow $9.8M+6288.0% -$158K-162.9% $251K+320.2% -$114K-119.2% $594K+660.4% -$106K-125.2% $421K+166.5% $158K
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks N/A N/A N/A N/A N/A N/A N/A N/A

AEHR Financial Ratios

Metric Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24
Gross Margin 25.8%-8.2pp 33.9%+3.6pp 30.3%-8.9pp 39.2%-0.9pp 40.1%-13.8pp 53.9%+3.1pp 50.9%+9.2pp 41.7%
Operating Margin -47.0%-10.0pp -37.1%-14.3pp -22.7%-16.6pp -6.1%+5.1pp -11.3%-12.5pp 1.2%-14.1pp 15.3%+42.4pp -27.1%
Net Margin -32.7%-13.7pp -19.0%+1.6pp -20.6%-17.1pp -3.5%+4.1pp -7.6%-12.7pp 5.0%-138.7pp 143.8%+163.2pp -19.4%
Return on Equity -2.5%-0.8pp -1.7%+0.7pp -2.4%-1.8pp -0.5%+0.3pp -0.8%-1.4pp 0.5%-20.8pp 21.4%+23.1pp -1.7%
Return on Assets -2.2%-0.7pp -1.5%+0.5pp -1.9%-1.5pp -0.4%+0.3pp -0.7%-1.2pp 0.4%-18.2pp 18.7%+20.1pp -1.5%
Current Ratio 10.62+3.6 7.06+1.4 5.68-0.0 5.71-1.8 7.55+1.5 6.03-3.3 9.31-0.7 10.06
Debt-to-Equity 0.14-0.0 0.18-0.0 0.21+0.0 0.17+0.0 0.15-0.0 0.19+0.0 0.15-0.0 0.17
FCF Margin -16.6%-1.3pp -15.3%+21.1pp -36.3%-18.5pp -17.8%+28.2pp -46.0%-62.7pp 16.6%+9.5pp 7.1%+47.9pp -40.8%

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Frequently Asked Questions

Aehr Test Sys (AEHR) reported $59.0M in total revenue for fiscal year 2025. This represents a -10.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Aehr Test Sys (AEHR) revenue declined by 10.9% year-over-year, from $66.2M to $59.0M in fiscal year 2025.

No, Aehr Test Sys (AEHR) reported a net income of -$3.9M in fiscal year 2025, with a net profit margin of -6.6%.

Aehr Test Sys (AEHR) reported diluted earnings per share of $-0.13 for fiscal year 2025. This represents a -111.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Aehr Test Sys (AEHR) had EBITDA of -$3.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Aehr Test Sys (AEHR) had a gross margin of 40.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Aehr Test Sys (AEHR) had an operating margin of -9.6% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Aehr Test Sys (AEHR) had a net profit margin of -6.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Aehr Test Sys (AEHR) has a return on equity of -3.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Aehr Test Sys (AEHR) generated -$12.4M in free cash flow during fiscal year 2025. This represents a -1330.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Aehr Test Sys (AEHR) generated -$7.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Aehr Test Sys (AEHR) had $148.5M in total assets as of fiscal year 2025, including both current and long-term assets.

Aehr Test Sys (AEHR) invested $5.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Aehr Test Sys (AEHR) invested $10.5M in research and development during fiscal year 2025.

Aehr Test Sys (AEHR) had 30M shares outstanding as of fiscal year 2025.

Aehr Test Sys (AEHR) had a current ratio of 5.68 as of fiscal year 2025, which is generally considered healthy.

Aehr Test Sys (AEHR) had a debt-to-equity ratio of 0.21 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Aehr Test Sys (AEHR) had a return on assets of -2.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Based on fiscal year 2025 data, Aehr Test Sys (AEHR) had $24.5M in cash against an annual operating cash burn of $7.4M. This gives an estimated cash runway of approximately 40 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

Aehr Test Sys (AEHR) has a Piotroski F-Score of 0 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Aehr Test Sys (AEHR) has an earnings quality ratio of 1.89x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Aehr Test Sys (AEHR) has an interest coverage ratio of -4.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Aehr Test Sys (AEHR) scores 36 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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