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.
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