The stock dropped 16.6% as investors reacted negatively to cautious outlook and margin pressure, despite revenue growth and capacity expansion. The disappointing forward guidance and margin compression overshadowed the quarter’s in-line results.

• Revenue was $151.1 million, within the company’s guidance range of $150 million to $165 million.
• Non-GAAP gross margin came in at 29.2%, at the lower end of the 29%-31% guidance range, indicating margin compression concerns.
• The company reported a non-GAAP loss per share of $0.07, within the expected loss range of $0.09 to breakeven.
• Management cited strong demand outpacing current production capacity with anticipated capacity ramping starting in Q3 2026.
• Despite projecting 2026 revenue above $1.1 billion and operating income above $140 million, the cautious tone on capacity constraints and margin outlook likely contributed to negative investor sentiment.