# ONTO INNOVATION INC. (ONTO)

Informational only - not investment advice.

CIK: 0000704532
SIC: 3829 Measuring & Controlling Devices, NEC
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3829 Measuring & Controlling Devices, NEC](/industry/3829/)
Latest 10-K filed: 2026-02-24
SEC page: https://www.sec.gov/edgar/browse/?CIK=704532
Filing source: https://www.sec.gov/Archives/edgar/data/704532/000119312526066937/onto-20260103.htm

## At a glance

FY2025 · period end 2026-01-03 · filed 2026-02-24 · accession 0001193125-26-066937 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000704532.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,005,263,000 USD | 2025 | verified |
| Net income | 136,759,000 USD | 2025 | verified |
| Assets | 2,367,741,000 USD | 2025 | verified |
| Free cash flow | 299,802,000 USD | 2025 | computed |
| Net margin | 13.60% | 2025 | computed |
| Operating margin | 13.22% | 2025 | computed |
| Revenue YoY | +1.82% | 2025 | computed |
| ROE | 6.51% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ONTO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.6% | 3.1% | 77 | 148 |
| Operating margin | 13.2% | 6.4% | 64 | 145 |
| Revenue growth | 1.8% | 8.3% | 22 | 153 |
| FCF margin | 29.8% | 7.4% | 97 | 152 |
| ROE | 6.5% | 2.4% | 56 | 145 |
| ROA | 5.8% | 1.1% | 69 | 154 |
| Liabilities / equity | 0.13 | 0.82 | 3 | 150 |
| Current ratio | 5.79 | 2.81 | 83 | 153 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 38 SIC Major Group 38, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1005263000 | USD | 2025 | 2026-02-24 |
| Net income | 136759000 | USD | 2025 | 2026-02-24 |
| Assets | 2367741000 | USD | 2025 | 2026-02-24 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000704532.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 221,129,000 | 255,098,000 | 273,784,000 | 305,896,000 | 556,496,000 | 788,899,000 | 1,005,183,000 | 815,868,000 | 987,321,000 | 1,005,263,000 |
| Net income |  | 44,035,000 | 32,909,000 | 45,096,000 | 223,334,000 | 31,025,000 | 142,349,000 | 223,334,000 | 121,159,000 | 201,670,000 | 136,759,000 |
| Operating income |  | 29,095,000 | 59,288,000 | 51,084,000 | -5,043,000 | -26,677,000 | -156,407,000 | 236,714,000 | 116,078,000 | 187,103,000 | 132,927,000 |
| Gross profit |  | 114,124,000 | 134,595,000 | 148,279,000 | 135,028,000 | 278,453,000 | 429,086,000 | 539,221,000 | 420,254,000 | 515,308,000 | 499,770,000 |
| Diluted EPS |  | 1.75 | 1.27 | 1.74 | 0.06 | 0.63 | 2.86 | 4.49 | 2.46 | 4.06 | 2.78 |
| Operating cash flow |  | 45,685,000 | 64,171,000 | 35,094,000 | 18,146,000 | 105,984,000 | 175,281,000 | 136,703,000 | 171,973,000 | 245,676,000 | 328,315,000 |
| Capital expenditures |  | 3,999,000 | 10,210,000 | 7,542,000 | 6,802,000 | 3,829,000 | 12,039,000 | 18,405,000 | 22,573,000 | 31,903,000 | 28,513,000 |
| Share buybacks | 1,721,000 |  | 26,999,000 | 21,069,000 | 744,000 | 52,000,000 | 0.00 | 65,257,000 | 3,197,000 | 25,069,000 | 75,015,000 |
| Assets |  | 287,830,000 | 309,699,000 | 418,040,000 | 1,448,580,000 | 1,468,172,000 | 1,649,813,000 | 1,794,863,000 | 1,909,712,000 | 2,117,091,000 | 2,367,741,000 |
| Liabilities |  | 44,056,000 | 47,316,000 | 56,152,000 | 184,554,000 | 203,426,000 | 223,758,000 | 198,437,000 | 173,177,000 | 191,209,000 | 267,094,000 |
| Stockholders' equity |  | 293,735,000 | 333,154,000 | 361,888,000 | 1,264,026,000 | 1,264,746,000 | 1,426,055,000 | 1,596,426,000 | 1,736,535,000 | 1,925,882,000 | 2,100,647,000 |
| Cash and cash equivalents |  | 47,062,000 | 34,899,000 | 112,388,000 | 130,673,000 | 136,720,000 | 169,602,000 | 175,872,000 | 233,508,000 | 212,945,000 | 346,119,000 |
| Free cash flow |  | 41,686,000 | 53,961,000 | 27,552,000 | 11,344,000 | 102,155,000 | 163,242,000 | 118,298,000 | 149,400,000 | 213,773,000 | 299,802,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 19.91% | 12.90% | 16.47% | 73.01% | 5.58% | 18.04% | 22.22% | 14.85% | 20.43% | 13.60% |
| Operating margin |  | 13.16% | 23.24% | 18.66% | -1.65% | -4.79% | -19.83% | 23.55% | 14.23% | 18.95% | 13.22% |
| Return on equity |  | 14.99% | 9.88% | 12.46% | 17.67% | 2.45% | 9.98% | 13.99% | 6.98% | 10.47% | 6.51% |
| Return on assets |  | 15.30% | 10.63% | 10.79% | 15.42% | 2.11% | 8.63% | 12.44% | 6.34% | 9.53% | 5.78% |
| Liabilities / equity |  | 0.15 | 0.14 | 0.16 | 0.15 | 0.16 | 0.16 | 0.12 | 0.10 | 0.10 | 0.13 |
| Current ratio |  | 5.15 | 5.45 | 7.80 | 7.48 | 6.09 | 6.14 | 7.07 | 8.69 | 8.69 | 5.79 |

## As-reported value updates

4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ONTO/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000704532.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2021-Q4 | 2022-01-01 |  | 46,737,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2022-Q1 | 2022-04-02 |  | 53,330,000 |  | reported discrete quarter |
| 2022-Q2 | 2022-04-02 |  | 53,330,000 |  | reported discrete quarter |
| 2022-Q3 | 2022-07-02 |  | 51,575,000 |  | reported discrete quarter |
| 2022-Q3 | 2022-10-01 | 254,253,000 |  | 1.05 | reported discrete quarter |
| 2023-Q1 | 2023-04-01 | 199,165,000 | 29,068,000 | 0.59 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 |  | 29,068,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-07-01 | 190,662,000 |  | 0.53 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 |  | 25,896,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 207,185,000 |  | 0.73 | reported discrete quarter |
| 2024-Q1 | 2024-03-30 | 228,846,000 |  | 0.94 | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 242,327,000 |  | 1.07 | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 252,210,000 |  | 1.07 | reported discrete quarter |
| 2025-Q1 | 2025-03-29 | 266,607,000 | 64,095,000 | 1.30 | reported discrete quarter |
| 2025-Q2 | 2025-06-28 | 253,597,000 | 33,911,000 | 0.69 | reported discrete quarter |
| 2025-Q3 | 2025-09-27 | 218,193,000 | 28,224,000 | 0.57 | reported discrete quarter |
| 2026-Q1 | 2026-03-31 | 291,949,000 | 33,750,000 | 0.67 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 343,129,000 | 60,102,000 | 1.21 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ONTO's latest 10-K: [/company/ONTO/business/](/company/ONTO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ONTO's latest 10-K: [/company/ONTO/risk-factors/](/company/ONTO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/704532/000119312526338401/onto-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements in this Form 10-Q, or incorporated by reference in this Form 10-Q, of Onto Innovation Inc. (referred to in this Form 10-Q, together with its consolidated subsidiaries, unless otherwise specified or suggested by the context, as the “Company,” “Onto Innovation,” “we,” “our” or “us”) are considered “forward-looking statements” or are based on “forward-looking statements,” including, but not limited to, those concerning:

•
our business momentum and future growth;

•
technology development, product introduction and acceptance of our products and services;

•
our manufacturing practices and ability to deliver both products and services consistent with our customers’ demands and expectations and to strengthen our market position, including our ability to source components, materials, and equipment due to supply chain delays or shortages;

22

Table of Contents

•
the closing of the Rigaku Transaction (as defined below);

•
the integration of Semilab USA LLC (“Semilab USA”);

•
our expectations of the semiconductor market outlook;

•
future revenue, gross profits, research and development and engineering expenses, selling, general and administrative expenses, and cash requirements;

•
the anticipated effects of tariffs and trade disputes on our business and financial results;

•
the effects of natural disasters or public health emergencies on the global economy and on our customers, suppliers, employees, and business;

•
our dependence on certain significant customers and anticipated trends and developments in and management plans for our business and the markets in which we operate; and

•
our ability to be successful in managing our cost structure and cash expenditures and results of litigation.

Statements contained or incorporated by reference in this Form 10-Q that are not purely historical are forward-looking statements and are subject to safe harbors under Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as, but not limited to, “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “plan,” “should,” “may,” “could,” “will,” “would,” “forecast,” “project” and words or phrases of similar meaning, as they relate to our management or us.

Forward-looking statements contained herein reflect our current expectations, assumptions and projections with respect to future events and are subject to certain risks, uncertainties and assumptions. Actual results may differ materially and adversely from those included in such forward-looking statements as a result of various factors, including risks and uncertainties, many of which are beyond Onto Innovation’s control. Such factors include, but are not limited to, the Company’s ability to leverage its resources to improve its position in its core markets; its ability to weather difficult economic environments; its ability to open new market opportunities and target high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market segments; fluctuations in customer capital spending; the Company’s ability to effectively manage its supply chain and adequately source components from suppliers to meet customer demand; the effects of political, economic, legal, and regulatory changes or uncertainties, changes in U.S. tariff and trade policy and related retaliatory actions, and geopolitical conflicts, including the ongoing conflict involving Israel, the U.S., Iran and other actors, on the Company’s global operations; the Company’s ability to adequately protect its intellectual property rights and maintain data security; the effects of natural disasters or public health emergencies on the global economy and on the Company’s customers, suppliers, employees, and business; its ability to effectively maneuver global trade issues and changes in trade and export regulations, tariffs and license policies; the Company’s ability to maintain relationships with its customers and manage appropriate levels of inventory to meet customer demands; the Company’s ability to complete the Rigaku Transaction on the timing expected or at all; the Company’s ability to realize the anticipated benefits of the Rigaku Transaction; and the Company’s ability to successfully integrate acquired businesses and technologies, including the business of Semilab USA and to realize the anticipated benefits of such acquisitions. Additional information and considerations regarding the risks faced by Onto Innovation are available in our Annual Report on Form 10-K for the fiscal year ended January 3, 2026 (the “2025 Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2026, in Part II, Item 1A. “Risk Factors” and elsewhere in this Form 10-Q, and in the other filings that we make with the SEC from time to time. Forward-looking statements reflect our position as of the date of this Form 10-Q and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Critical Accounting Estimates

The preparation of condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make judgments, assumptions and estimates that affect the amounts reported.

Estimates and assumptions about future events and their effects cannot be determined with certainty. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. In addition, management is periodically faced with uncertainties, the outcomes of which are not within our control and will not be known for prolonged periods of time. Certain of these uncertainties are discussed in the 2025 Form 10-K in the Items entitled

23

Table of Contents

“Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” There have been no material changes in our critical accounting estimates from the information presented in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the 2025 Form 10-K.

For more information, please see our critical accounting estimates as previously disclosed in the 2025 Form 10-K and recent accounting pronouncements discussed in Note 1 to the Condensed Consolidated Financial Statements.

Executive Summary

We are a worldwide leader in the design, development, manufacture and support of process control tools that perform macro-defect inspection and metrology, lithography systems, and process control analytical software used by semiconductor and advanced packaging device manufacturers. We deliver comprehensive solutions throughout the semiconductor fabrication process with our families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down costs and time to market of their devices. We provide process and yield management solutions used in both wafer processing facilities, often referred to as “front-end” manufacturing, and in device packaging and test facilities, commonly referred to as “back-end” manufacturing. Our advanced process control software portfolio includes powerful solutions for standalone tools, groups of tools, or factory-wide suites to enhance productivity and achieve significant cost savings.

Our principal market is semiconductor capital equipment. Semiconductors packaged as integrated circuits (“ICs”), or “chips,” are used in consumer electronics, server and enterprise systems, mobile computing (including smart phones and tablets), data storage devices, and embedded automotive and control systems. Our core focus is the measurement and control of the structure, composition, and geometry of semiconductor devices as they are fabricated on silicon wafers to improve device performance and manufacturing yields.

Our products and services are used by our customers who manufacture many types of ICs for a multitude of applications, each having unique manufacturing challenges. This includes ICs to enable information processing and management (logic ICs), memory storage (NAND, 3D-NAND, NOR, and DRAM), analog devices (e.g., Wi-Fi and 5G radio ICs, power devices), MEMS sensor devices (accelerometers, pressure sensors, microphones), image sensors, and other end markets including components for AI, hard disk drives, LEDs, and power management.

The semiconductor and electronics industries have also been characterized by constant technological innovation. We believe that, over the long term, our customers will continue to invest in advanced technologies and new materials to enable smaller design rules and higher density applications that fuel demand for process control equipment.

The following table summarizes certain key financial information for the periods indicated below:

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","June 30, 2026","","","March 31, 2026"],["","(in thousands, except for percentages and per share data)"],["Revenue","$","343,129","","","$","291,949"],["Gross profit","$","183,254","","","$","146,389"],["Gross profit as a percentage of revenue","","53.4","%","","","50.1","%"],["Total operating expenses","$","119,704","","","$","112,875"],["Net income","$","60,102","","","$","33,750"],["Diluted earnings per share","$","1.21","","","$","0.67"]]
[[/GREPCENT_TABLE]]

•
In the fiscal quarter ended June 30, 2026 (the “June 2026 quarter”), revenue increased 17.5% compared to the fiscal quarter ended March 31, 2026 (the “March 2026 quarter”), primarily due to higher sales of inspection and metrology systems supporting advanced packaging and advanced node semiconductor applications.

•
Gross profit as a percentage of revenue for the June 2026 quarter increased by 330 basis points compared to the March 2026 quarter. This margin increase was primarily driven by a favorable shift in sales mix as product sales move toward high-margin inspection and metrology product lines.

•
Operating expenses for the June 2026 quarter increased by 6.1% compared to the March 2026 quarter. This increase was driven by higher compensation-related costs, increased headcount, and engineering spend related to product development activities.

24

Table of Contents

Our cash, cash equivalents and marketable securities balance increased to $1.9 billion at June 30, 2026, compared to $639.6 million at January 3, 2026. This increase was primarily the result of $1.2 billion of cash provided by financing activities and $87.8 million of cash generated from operating activities partially offset by capital expenditures of $7.2 million. Employee headcount at June 30, 2026 was approximately 1,867.

On May 21, 2026, we issued $1.5 billion aggregate principal amount of 2031 Notes. The 2031 Notes were issued pursuant to an Indenture, dated May 21, 2026 (the “Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). Pursuant to the purchase agreement between the Company and the representative of the initial purchasers of the 2031 Notes, we granted the initial purchasers an option to purchase up to an additional $200 million aggregate principal amount of 2031 Notes. On May 19, 2026, the initial purchasers exercised this option in full and the 2031 Notes issued on May 21, 2026 include the additional $200 million aggregate principal amount of 2031 Notes. Also in May 2026, in connection wit

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/704532/000119312526066937/onto-20260103.htm
Complete FY 2026 MD&A: /company/ONTO/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-24
Report date: 2026-01-03

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Executive Summary

We are a worldwide leader in the design, development, manufacture and support of process control tools that perform macro-defect inspection and metrology, lithography systems, and process control analytical software used by semiconductor and advanced packaging device manufacturers. We deliver comprehensive solutions throughout the semiconductor fabrication process with our families of proprietary products that provide critical yield-enhancing information, enabling microelectronic device manufacturers to drive down costs and time to market of their devices. We provide process and yield management solutions used in both wafer processing facilities, often referred to as “front-end” manufacturing, and in device packaging and test facilities, commonly referred to as “back-end” manufacturing. Our advanced process control software portfolio includes powerful solutions for standalone tools, groups of tools, or factory-wide suites to enhance productivity and achieve significant cost savings.

Our principal market is semiconductor capital equipment. Semiconductors packaged as ICs, or “chips,” are used in consumer electronics, server and enterprise systems, mobile computing (including smart phones and tablets), data storage devices, and embedded automotive and control systems. Our core focus is the measurement and control of the structure, composition, and geometry of semiconductor devices as they are fabricated on silicon wafers to improve device performance and manufacturing yields.

Our products and services are used by our customers who manufacture many types of ICs for a multitude of applications, each having unique manufacturing challenges. This includes ICs to enable information processing and management (logic ICs), memory storage (NAND, 3D-NAND, NOR, and DRAM), analog devices (e.g., Wi-Fi and 5G radio ICs, power devices), MEMS sensor devices (accelerometers, pressure sensors, microphones), image sensors, and other end markets including components for AI, hard disk drives, LEDs, and power management.

The semiconductor and electronics industries have also been characterized by constant technological innovation. We believe that, over the long term, our customers will continue to invest in advanced technologies and new materials to enable smaller design rules and higher density applications that fuel demand for process control equipment.

The following table summarizes certain key financial information for the periods indicated below:

[[GREPCENT_TABLE]]
[["","Year Ended"],["","January 3, 2026","","","December 28, 2024"],["","(in thousands, except for percentages and per share data)"],["Revenue","$","1,005,263","","","$","987,321"],["Gross profit","$","499,770","","","$","515,308"],["Gross profit as a percent of revenue","","49.7","%","","","52.2","%"],["Total operating expenses","$","366,843","","","$","328,205"],["Net income","$","136,759","","","$","201,670"],["Diluted earnings per share","$","2.78","","","$","4.06"]]
[[/GREPCENT_TABLE]]

•
In fiscal 2025, revenue increased 2% compared to fiscal 2024, primarily due to higher sales to NAND and OSAT customers as well as revenue attributed to the acquired Semilab USA business, partially offset by lower sales to Foundry and DRAM customers.

•
Gross profit as a percentage of revenue decreased to 49.7% for fiscal 2025 compared to 52.2% for fiscal 2024. This was primarily driven by write-downs of excess and obsolete inventory, restructuring costs related to infrastructure transition and costs related to contract manufacturing set-up in fiscal 2025.

•
The increase in operating expenses in fiscal 2025 compared to fiscal 2024 was primarily due to increased restructuring expenses, transaction and amortization costs related to the acquisition of Semilab USA, research and development project costs and compensation cost.

Our cash, cash equivalents and marketable securities balance decreased to $639.6 million at the end of fiscal 2025 from $852.3 million at the end of fiscal 2024. This decrease was primarily the result of cash used for acquisitions of $436.1 million, purchases of common stock of $75.0 million, capital expenditures of $28.5 million, $13.5 million for tax payments related to net share settlement of employee stock-based compensation plans and purchase of non-marketable equity securities of $8.0 million, partially offset by $328.3 million of cash generated from operating activities and $13.4 million of cash from issuance of shares through share-based compensation plans.

35

Table of Contents

In recent years, the U.S. government implemented additional export regulations for U.S. semiconductor technology sold in China. We have applied for export licenses to continue doing business with our customers that are affected by the new export rules. However, the new export controls have resulted in lower net sales in China for fiscal 2025 compared to the prior fiscal years.

For a discussion of the risks related to our business and operations, see Part I, Item 1A – Risk Factors of this Annual Report on Form 10-K.

Results of Operations

The following table sets forth, for the periods indicated, our results of operations as percentages of our revenue. Our results of operations are reported as one business segment.

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","January 3, 2026","","","December 28, 2024","","","December 30, 2023"],["Revenue","","","100.0","%","","","100.0","%","","","100.0","%"],["Cost of revenue","","","50.3","%","","","47.8","%","","","48.5","%"],["Gross profit","","","49.7","%","","","52.2","%","","","51.5","%"],["Operating expenses:"],["Research and development","","","13.1","%","","","11.5","%","","","12.7","%"],["Sales and marketing","","","7.0","%","","","7.7","%","","","7.6","%"],["General and administrative","","","10.7","%","","","8.1","%","","","9.8","%"],["Amortization","","","3.9","%","","","5.0","%","","","6.7","%"],["Restructuring and other","","","1.8","%","","","0.9","%","","","0.4","%"],["Total operating expenses","","","36.5","%","","","33.2","%","","","37.2","%"],["Operating income","","","13.2","%","","","19.0","%","","","14.3","%"],["Interest income, net","","","3.5","%","","","3.4","%","","","2.5","%"],["Other expense, net","","","(0.5",")%","","","\u2014","%","","","(0.5",")%"],["Income before provision for income taxes","","","16.2","%","","","22.4","%","","","16.3","%"],["Provision for income taxes","","","2.6","%","","","1.9","%","","","1.4","%"],["Net income","","","13.6","%","","","20.5","%","","","14.9","%"]]
[[/GREPCENT_TABLE]]

Results of Operations for 2025, 2024 and 2023

Revenue. Our revenue is derived from the sale of our systems and software, spare parts, and services. Our revenue was $1,005.3 million, $987.3 million and $815.9 million for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively. This represents an increase of 2% from 2024 to 2025 and an increase of 21% from 2023 to 2024.

The following table lists, for the periods indicated, the different sources of our revenue in dollars (thousands) and as percentages of our total revenue:

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","January 3, 2026","","","December 28, 2024","","","December 30, 2023"],["","","(in thousands, except for percentages)"],["Systems and software","","$","847,835","","","","84","%","","$","850,443","","","","86","%","","$","683,316","","","","84","%"],["Parts","","","84,200","","","","8","%","","","76,584","","","","8","%","","","74,604","","","","9","%"],["Services","","","73,228","","","","8","%","","","60,294","","","","6","%","","","57,948","","","","7","%"],["Total revenue","","$","1,005,263","","","","100","%","","$","987,321","","","","100","%","","$","815,868","","","","100","%"]]
[[/GREPCENT_TABLE]]

Total systems and software revenue decreased $2.6 million for the year ended January 3, 2026, as compared to the year ended December 28, 2024, primarily due to a decrease in units shipped of our inspection product line to customers in support of advanced packaging needs for chips used in AI applications, partially offset by an increase in metrology product line units shipped to customers in Advanced Nodes and units shipped to Semilab USA customers in SiC specialty devices. Parts and services revenue is generated from part sales, maintenance service contracts, and system upgrades, as well as time and material billable service calls. During fiscal 2025, the increase in total parts and services revenue was primarily due to increased spending by our customers on system upgrades and repairs of existing systems.

36

Table of Contents

Total systems and software revenue increased $167.1 million for the year ended December 28, 2024, as compared to the year ended December 30, 2023, primarily due to an increase in units shipped of our inspection product line to customers in support of advanced packaging needs for chips used in AI applications. Parts and services revenue is generated from part sales, maintenance service contracts, and system upgrades, as well as time and material billable service calls. During fiscal 2024, the increase in total parts and services revenue was primarily due to increased spending by our customers on system upgrades and repairs of existing systems.

The following table sets forth, for the periods indicated, our revenue by geographic region as percentages of our revenue.

[[GREPCENT_TABLE]]
[["","","Year Ended"],["","","January 3, 2026","","","December 28, 2024","","","December 30, 2023"],["","","(in thousands, except for percentages)"],["Revenue","","$","1,005,263","","","$","987,321","","","$","815,868"],["Taiwan","","","32","%","","","31","%","","","17","%"],["South Korea","","","28","%","","","29","%","","","21","%"],["United States","","","12","%","","","11","%","","","16","%"],["Japan","","","10","%","","","6","%","","","11","%"],["China","","","7","%","","","12","%","","","17","%"],["Southeast Asia","","","6","%","","","6","%","","","11","%"],["Europe","","","5","%","","","5","%","","","7","%"],["Total revenue","","","100","%","","","100","%","","","100","%"]]
[[/GREPCENT_TABLE]]

The overall Asia region continues to account for a majority of our revenues as a substantial amount of the worldwide capacity investments for semiconductor manufacturing continue to occur in this region and we expect that trend to continue.

Gross Profit. Our gross profit has been and will likely continue to be affected by a variety of factors, including manufacturing efficiencies, provision for excess and obsolete inventory, pricing by competitors or suppliers, new product introductions, production volume, inventory step-up from purchase accounting, customization and reconfiguration of systems, international and domestic sales mix, system and software product mix, and parts and services margins. Our gross profit was $499.8 million, $515.3 million and $420.3 million for the years ended January 3, 2026, December 28, 2024, and December 30, 2023, respectively. Our gross profit represented 49.7%, 52.2% and 51.5% of our revenue for the years ended January 3, 2026, December 28, 2024, and December 30, 2023, respectively. The decrease in gross profit as a percentage of revenue from 2024 to 2025 was primarily due to restructuring and other expenses for the write down of excess and obsolete inventory. The increase in gross profit as a percentage of revenue from 2023 to 2024 was primarily due to an increase in revenue volume and change in product mix, partially offset by write-downs related to the impairment and exit of certain lithography inventory.

Operating Expenses.

Our operating expenses consist of:

•
Research and Development. We believe that it is critical to continue to make substantial investments in research and development to ensure the availability of innovative technology that meets the current and projected requirements of our customers’ m

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/ONTO/mda/fy2026/
All MD&A years: /company/ONTO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ONTO/mda/fy2024/): filed 2025-02-25; accession 0000950170-25-026729 (https://www.sec.gov/Archives/edgar/data/704532/000095017025026729/onto-20241228.htm)
- [FY 2023 MD&A](/company/ONTO/mda/fy2023/): filed 2024-02-26; accession 0000950170-24-020150 (https://www.sec.gov/Archives/edgar/data/704532/000095017024020150/onto-20231230.htm)
- [FY 2022 MD&A](/company/ONTO/mda/fy2022/): filed 2023-02-24; accession 0000950170-23-004283 (https://www.sec.gov/Archives/edgar/data/704532/000095017023004283/onto-20221231.htm)
- [FY 2022 MD&A](/company/ONTO/mda/a-0001564590-22-006948/): filed 2022-02-25; accession 0001564590-22-006948 (https://www.sec.gov/Archives/edgar/data/704532/000156459022006948/onto-10k_20220101.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3829 Measuring & Controlling Devices, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ONTO.md · JSON record: /company/ONTO.json · verified financials: /company/ONTO/financials.json / /company/ONTO/financials.csv · machine TOC for the whole site: /llms.txt