FormFactor (NASDAQ: FORM) — Gross-Margin Walk & Segments

GAAP gross-margin trend and drivers, and the Probe Cards vs Systems segment breakdown, from SEC XBRL filings. ← Executive financial pack (Phase 1) · Peer benchmark →

Data as of SEC filings retrieved … · GAAP per XBRL; company headline figures may be non-GAAP

Gross margin — latest quarter

The Q1 FY2026 inflection

Gross-margin walk — FY2018 → latest filed quarter

GAAP gross margin as filed. The bridge splits each quarter's gross-profit change into a revenue-growth effect (ΔRevenue at the prior quarter's margin) and a margin effect (ΔGM% on current revenue); the two sum exactly to the change in gross profit.

Gross margin fell 3.8 points to 38.4%, from 42.2% the prior quarter

% of revenue, quarterly

Margin compression, not revenue, drove the $4.0M gross-profit decline

$M QoQ: revenue effect + margin effect = Δ gross profit

Show gross-margin table

Segments — Probe Cards vs Systems

Probe Cards carries 88% of revenue and grew 14.7%, while Systems fell 34.0%

$M quarterly — reconciles to total revenue

Probe Cards gross margin rose 6.0 points to 50.5%; Systems fell 3.4 points to 38.0%

% — segment measure, FY2024+ (see method)

Gross-profit bridge — latest quarter

FormFactor's segment gross profit is a segment measure that excludes unallocated cost of revenue (stock-based compensation, intangible amortization, and — this quarter — restructuring charges). The filed Corporate / unallocated line reconciles the two segments to consolidated GAAP gross profit exactly.

The −$23.9M unallocated line — mostly $21.5M of restructuring — is what separates segment from consolidated gross profit

$M, latest filed quarter · segment gross profit reconciled to consolidated GAAP

Segment table

Conformed segment data — revenue (full history) and the reconcilable segment gross margin. “—” marks values not disclosed / not reconcilable from tagged XBRL.

Show segment table

Data & method

Source & freeze. Consolidated figures come from the frozen Phase 1 snapshot (SEC companyfacts, as-of 2026-07-21). Segment figures are dimensional XBRL that the companyfacts API does not carry, so they were pulled once from the individual 10-Q/10-K XBRL instance documents by src/ingest_segments.py — a deliberate extension of the same freeze, at the same as-of date (FormFactor's Q2 FY2026 was not filed until 2026-07-29). This page renders that frozen data and makes no SEC calls at runtime.
GAAP basis. All figures are GAAP as tagged in XBRL. FormFactor's press-release headline margins are typically non-GAAP and will not match — e.g. Q1 FY2026 GAAP gross margin here is ~38.4% vs a ~49% non-GAAP headline.
Gross-profit bridge (decomposition). Each quarter's change in gross profit is split into a revenue effect = ΔRevenue × prior-quarter GM%, and a margin effect = ΔGM% × current-quarter revenue. These are exact and sum to ΔGross profit. Deeper price / volume / mix drivers are not separately quantified in GAAP filings and are not estimated here.
Q1 FY2026 gross-margin drivers (verified from the filing). GAAP gross margin fell ~3.8 pts sequentially (Q4 FY2025 42.2% → Q1 FY2026 38.4%). Per FormFactor's 10-Q MD&A for the period, the largest identifiable GAAP driver was $21.5M of restructuring charges (2026 Restructuring Plans) recorded in cost of revenue — visible below as the −$23.9M Corporate / unallocated gross-profit line — plus tariff costs that “impacted gross margins by 1.4%.” The MD&A frames segment drivers year-over-year: Probe Cards gross margin rose on “a favorable product mix, higher factory utilization, and increased volumes”; Systems fell on “lower factory utilization and decreased volumes.” Source: FormFactor Form 10-Q, period ended March 28, 2026 (filed 2026-05-05).
Segment scope & reconciliation. FormFactor reports two segments, Probe Cards and Systems. Segment revenue is available for every quarter FY2018 → Q1 FY2026 and reconciles to consolidated revenue exactly (validate.py check). Segment gross margin is shown only from FY2024 Q1 onward — the periods where FormFactor files the Corporate / unallocated reconciling line (FASB ASU 2023-07) so segment gross profit ties to consolidated GAAP gross profit to the dollar. Earlier periods carry no tagged reconciling item and are flagged “not reconcilable,” never estimated. Segment operating income is not disclosed (operating expenses are largely unallocated) and is not shown.
Derived Q4 (‡). Segment Q4 values are derived as FY − (Q1+Q2+Q3), flagged derived, same rule as the consolidated series.
Governance. XBRL tags (incl. the segment concepts and the business-segments axis): tag_mapping.csv · automated reconciliation (segment revenue tie-out and the gross-profit bridge): validation_report.md.

Built from public SEC filings (EDGAR XBRL APIs), as-of …. Independent portfolio project — not affiliated with, endorsed by, or based on any non-public information from any company shown. Not investment advice.