Ultra Clean (UCTT) Financials

Ultra Clean Holdings, Inc. (NASDAQ: UCTT) has experienced significant shifts in its financial performance and position over the past four years, through Q2 of 2025. Below is a summary analysis of key trends and important points derived from their income statements, cash flow statements, and balance sheets.

• Revenue has generally trended upward from about $433 million in Q1 2023 to around $519 million in Q2 2025, indicating some growth in sales.
• Gross profit margins have stayed relatively stable, with gross profits remaining in the range of approximately $70 to $90 million per quarter across the period, reflecting consistent cost management relative to revenue.
• Significant depreciation and amortization expenses have been recorded consistently, showing ongoing investment in fixed assets; this suggests the company is maintaining or expanding its asset base.
• Cash and equivalents have increased from roughly $293 million in Q1 2024 to $327 million in Q2 2025, indicating a strengthening liquidity position.
• Net cash provided by operating activities has generally been strong, reaching around $29 million in Q2 2025, despite some quarterly fluctuations.
• The company has been steadily repaying debt (e.g., $3.5 million in Q2 2025), which may reduce financial risk over time.
• Total liabilities have been somewhat stable around $950 million to $1.05 billion, indicating no large swings in leverage but steady obligations to stakeholders.
• Equity and noncontrolling interests have fluctuated but remain substantial, around $720 million in Q2 2025 and higher in previous quarters, reflecting investor and minority ownership interests.
• Net income has deteriorated significantly in the most recent quarters, with Q2 2025 reporting a loss of approximately $160 million compared to profits or minor losses in prior quarters, notably driven by a large impairment charge of $151 million in Q2 2025.
• Operating expenses have risen sharply in recent quarters, particularly in Q2 2025 where expenses exceeded $221 million against revenues of $519 million, pressuring operating income into negative territory (-$142 million in Q2 2025).

To summarize, Ultra Clean showed generally positive revenue growth and operating cash flow before recent quarters, with a solid asset base and manageable liabilities. However, the sharp decline in net income driven by impairment charges and increased operating expenses in Q2 2025 signals challenges the company is facing. Investors should watch closely how Ultra Clean addresses these expense pressures and whether it can return to profitability in coming quarters while maintaining liquidity and managing leverage.