Quarterly trend — 8 quarter P&L
As of: 2026-04-29 (data through Q4’25 reported 2026-02-11; next print Q1’26 scheduled 2026-05-13).
Reference: Each quarter reconciles to a Tower 6-K earnings release. Tower files Form 6-K (Foreign Private Issuer interim disclosure) approximately 4-6 weeks after each quarter-end; quarterly conference-call slides are posted concurrently to ir.towersemi.com.
Confidence legend: ✓ verified-primary (6-K release / press release / IR slide deck) · ◐ aggregator-sourced (StockAnalysis / Macrotrends / earnings-call summaries where 6-K extraction is incomplete) · ⚠ inferred / computed
1. Eight-quarter P&L tableau
| Quarter | Revenue ($M) | Gross profit ($M) | Gross margin | Operating profit ($M) | Net profit ($M) | EPS basic | EPS diluted | Op CF ($M) | Capex ($M) |
|---|---|---|---|---|---|---|---|---|---|
| Q1 2024 ✓ | 327 | 73 | 22.3% | 34 | 45 | 0.40 | 0.40 | 110 | 98 |
| Q2 2024 ✓ | 351 | 87 | 24.8% | 55 ⚠ | 53 | 0.48 | 0.48 | 113 | 113 |
| Q3 2024 ✓ | 371 | 93 | 25.1% | 56 | 55 | 0.49 | 0.49 | 125 | 128 |
| Q4 2024 ✓ | 387 | 87 | 22.5% | 46 | 55 | 0.49 | 0.49 | 101 | 93 |
| Q1 2025 ✓ | 358 | 73 | 20.4% | 34 | 40 | 0.36 | 0.35 | 94 | 111 |
| Q2 2025 ✓ | 372 | 80 | 21.5% | n/d ⚠ | 47 | 0.42 | 0.41 | n/d | n/d |
| Q3 2025 ✓ | 396 | 93 | 23.5% | n/d ⚠ | 54 | 0.48 | 0.47 | 139 | 103 |
| Q4 2025 ✓ | 440 | 118 | 26.8% | 71 | 80 | 0.71 | 0.70 | 40 ⚠ | 111 |
| Q1 2026 guide ⚠ | 412 ± 5% | n/d | n/d | n/d | n/d | n/d | n/d | n/d | n/d |
Q2 2024 operating profit footnote: The $55M Q2 2024 operating profit included a one-time $6M restructuring income item per the Q2 2024 6-K release. Excluding that, normalized operating profit was approximately $49M.
Q4 2025 operating cash flow footnote: The reported Q4 2025 operating cash flow of $40M was net of a $105M Fab 3 (Newport Beach, CA) lease prepayment. Adjusted for the prepayment, normalized Q4 2025 operating cash flow was ~$145M (FY 2025 normalized OCF: ~$500M).
2. FY 2024 vs FY 2025 full-year reconciliation
| Metric | FY 2024 ✓ | FY 2025 ✓ | $Δ | %Δ |
|---|---|---|---|---|
| Revenue | 1,440 | 1,566 | +126 | +9% |
| Gross profit | 339 | 364 | +25 | +7% |
| Gross margin | 23.5% | 23.2% | −30 bps | — |
| Operating profit | 191 | 194 | +3 | +2% |
| Operating margin | 13.3% | 12.4% | −90 bps | — |
| Net profit | 208 | 220 | +12 | +6% |
| Net margin | 14.4% | 14.0% | −40 bps | — |
| EPS basic | 1.87 | 1.97 | +0.10 | +5% |
| EPS diluted | 1.85 | 1.94 | +0.09 | +5% |
| Operating cash flow | 449 | 395 ⚠ | −54 | −12% |
| Capex (PP&E + intangibles) | 432 | 437 | +5 | +1% |
| Net debt payments | 32 | 33 | +1 | flat |
Source: Q4 2025 6-K release (towersemi.com/2026/02/11/02112026 ✓); Q4 2024 6-K release (towersemi.com/2025/02/10/02102025 ✓).
The full-year ratio paradox. FY 2025 revenue grew +9% but operating profit grew only +2% and gross margin compressed −30 bps. This is the Agrate-startup-cost drag: Tower-ST’s 300mm Agrate facility began absorbing operational cost in Q4 2024 ahead of meaningful revenue contribution. Per the Q4 2024 6-K: “The company took on for the first time its portion of incremental costs of the greenfield Agrate facility” (Globe Newswire ✓). The cost drag is highest while Agrate ramps to capacity utilization through 2026-2027; the offset is sequential gross-margin expansion as utilization climbs (Q1 25: 20.4% → Q4 25: 26.8% confirms the trajectory).
3. Quarterly cadence narrative
3.1 Revenue cadence — V-shaped recovery from FY23 trough
The 8-quarter revenue trajectory tells a clean V-shape recovery story off the FY 2023 cyclical trough:
- FY 2023 revenue: ~$1.42B (full-year, RF mobile + automotive analog double-trough; post-Intel-deal-collapse)
- FY 2024: $1.44B (+1% — base stabilization year)
- FY 2025: $1.57B (+9% — RF Infrastructure / SiPho-led acceleration)
- Q1 2026 guidance: $412M = ~$1.65B annualized run-rate (+15% YoY at quarterly-midpoint level)
Within FY 2024:
- Q1 2024 $327M — soft start (smart-mobile + industrial weakness, also reflected in the Q4 2023 $352M comparison; Q1 2024 was actually down $25M sequentially from Q4 2023, signaling cycle bottom).
- Q2 2024 $351M — first sequential inflection +7% QoQ.
- Q3 2024 $371M — RF Infrastructure first hits ~18% mix (vs ~10% prior).
- Q4 2024 $387M — closing 2024 at +18% trajectory off Q1 base (per management’s “18% growth from Q1 to Q4” target).
Within FY 2025:
- Q1 2025 $358M — typical Q1 seasonality + Agrate cost drag — softest quarter.
- Q2 2025 $372M (+4% QoQ) — RF Infrastructure rises to ~24%.
- Q3 2025 $396M (+6% QoQ) — RF Infrastructure 27% of revenue, SiPho revenue +70% YoY.
- Q4 2025 $440M (+11% QoQ, +14% YoY) — record quarter. RF Infrastructure 32% of Q4 mix.
The load-bearing data point in the 8-quarter view is that Q4 2025 revenue ($440M) is +35% above the Q1 2024 trough ($327M). That is the cycle-recovery proof. The companion data point is that gross margin in Q4 2025 (26.8%) is +630 bps above the Q1 2025 trough of 20.4% — the operating-leverage flow-through of the revenue growth, despite Agrate cost absorption.
3.2 Gross margin — the structural sequential climb in FY 2025
Quarterly gross-margin trajectory:
| Quarter | GM | YoY Δ | QoQ Δ |
|---|---|---|---|
| Q1 2024 | 22.3% | — | (vs Q4’23: −1.6pp) |
| Q2 2024 | 24.8% | — | +250 bps |
| Q3 2024 | 25.1% | — | +30 bps |
| Q4 2024 | 22.5% | — | −260 bps (Agrate cost absorption begins) |
| Q1 2025 | 20.4% | −190 bps | −210 bps (worst quarter — Agrate ramp + seasonality) |
| Q2 2025 | 21.5% | −330 bps | +110 bps |
| Q3 2025 | 23.5% | −160 bps | +200 bps |
| Q4 2025 | 26.8% | +430 bps | +330 bps |
The Q1 2025 → Q4 2025 GM expansion of +640 bps is the operating-leverage flow-through that anchors the FY 2026 thesis. The drivers per management Q4 2025 commentary:
- RF Infrastructure mix shift to higher-ASP photonics + SiGe for 1.6T+ transceivers
- Ramping utilization on Agrate 300mm offsetting absorption drag
- Discontinuation of legacy 150mm Fab 1 lower-margin flows transferred to 200mm Fab 2
Tower’s 2028 financial-model target (disclosed at Q4 2025 release): ~$2.84B revenue, ~39-40% gross margin, ~31.7% operating margin (TipRanks ◐). That implies FY 2025 GM of 23.2% must expand approximately +1,600-1,700 bps over 3 years — a steep but mechanically credible trajectory given utilization fill-out on $920M of incremental SiPho/SiGe capex.
3.3 Operating profit and net income
Quarterly operating profit — incomplete 6-K extraction; aggregator-derived for Q2/Q3 2025:
| Quarter | Op profit ($M) | Op margin |
|---|---|---|
| Q1 2024 | 34 | 10.4% |
| Q2 2024 | 55 (incl $6M restructuring income) | 15.7% |
| Q3 2024 | 56 | 15.1% |
| Q4 2024 | 46 | 11.9% |
| Q1 2025 | 34 | 9.5% |
| Q2 2025 | n/d ⚠ | n/d |
| Q3 2025 | n/d ⚠ | n/d |
| Q4 2025 | 71 | 16.1% |
Net profit FY 2025 of $220M is +6% YoY but materially below the gross-profit growth of +7% because of Agrate cost drag and elevated capex-driven depreciation. The Q4 2025 net margin of 18.2% (= $80M / $440M) is the cleanest “exit-rate” indicator of normalized profitability before the FY 2026 Agrate utilization step-up.
3.4 EPS progression — basic/diluted detail
| Quarter | EPS basic ($) | EPS diluted ($) | Diluted share count (M) ⚠ |
|---|---|---|---|
| Q1 2024 | 0.40 | 0.40 | ~112 |
| Q2 2024 | 0.48 | 0.48 | ~112 |
| Q3 2024 | 0.49 | 0.49 | ~112 |
| Q4 2024 | 0.49 | 0.49 | ~112 |
| Q1 2025 | 0.36 | 0.35 | ~113 |
| Q2 2025 | 0.42 | 0.41 | ~113 |
| Q3 2025 | 0.48 | 0.47 | ~114 |
| Q4 2025 | 0.71 | 0.70 | ~114 |
FY 2024 EPS: $1.87 basic / $1.85 diluted (avg basic shares ~111M). FY 2025 EPS: $1.97 basic / $1.94 diluted (avg basic shares ~112M).
The ~111-114M diluted share count is consistent with the 111.76M ordinary shares outstanding anchor from the FY 2024 20-F cover page. Modest dilution year-over-year reflects employee equity-plan grants; Tower has not executed equity issuance since the Intel-deal collapse (Aug 2023) — capital structure is share-count-stable.
3.5 Operating cash flow + capex
| Quarter | OCF ($M) | Capex ($M) | FCF ($M) |
|---|---|---|---|
| Q1 2024 | 110 | 98 | +12 |
| Q2 2024 | 113 | 113 | 0 |
| Q3 2024 | 125 | 128 | (3) |
| Q4 2024 | 101 | 93 | +8 |
| Q1 2025 | 94 | 111 | (17) |
| Q2 2025 | n/d | n/d | n/d |
| Q3 2025 | 139 | 103 | +36 |
| Q4 2025 | 40 ⚠ | 111 | (71) ⚠ |
Note on Q4 2025 OCF: The $40M reported figure is net of a $105M Fab 3 lease prepayment. Normalized Q4 2025 OCF: ~$145M; normalized Q4 2025 FCF: ~$34M.
FY 2025 capex of $437M is roughly flat YoY ($432M FY 2024) — the headline-stable run-rate. However, Tower has now committed to $920M of incremental SiPho/SiGe capacity capex (the original $650M Q3 2025 announcement plus +$270M added at the Q4 2025 release per Investing.com ✓) — about 28% of which has already been paid, with remainder spreading through 2026. Implied FY 2026 capex run-rate is materially elevated to the $700-900M range — see balance sheet and comps valuation for the cash-flow-vs-capex tension that this creates.
4. FY 2026 Q1 guide reconciliation
| Metric | Q1 2026 guide ⚠ | Q1 2025 actual ✓ | YoY | Q4 2025 actual ✓ | QoQ |
|---|---|---|---|---|---|
| Revenue | $412M ± 5% | $358M | +15% | $440M | −6% |
| Gross margin | n/d | 20.4% | n/d | 26.8% | n/d |
| Operating margin | n/d | 9.5% | n/d | 16.1% | n/d |
Q1 sequential softness vs Q4 2025 reflects standard Q1 seasonality (Tower’s revenue has historically been weaker in calendar Q1 due to handset OEM model-year transitions and industrial-customer holiday pullback). The +15% YoY at the revenue line continues the recovery trajectory and aligns with management’s “expects sequential revenue and profitability growth throughout 2026” framing on the Q4 2025 call (Investing.com ✓).
5. Pre-cycle reference: FY 2023 trough context
For 8-quarter framing, the FY 2023 base year:
- FY 2023 revenue: $1,422M (10-Q-equivalent annualized; full 6-K not extracted)
- Q1 2023 revenue: $356M
- Q4 2023 revenue: $352M (down sequentially from peak prior years)
- FY 2023 gross profit: $354M (24.9% GM)
- FY 2023 net profit: $519M — inflated by the $353M Intel termination fee received Aug 2023 (EE Times ✓). Excluding that: ~$166M operating-business net profit, comparable to FY 2024 ex-tax-effects baseline.
Trough framing. FY 2023 was the cyclical bottom for Tower’s specialty-analog book (RF mobile destocking, post-COVID consumer-electronics overhang, automotive analog inventory burn). The Intel termination fee masks the operating compression. FY 2024 revenue was approximately equal to FY 2023 ex-fee revenue — i.e., FY 2024 was the stabilization year and FY 2025 was the first organic-growth year of this cycle.
6. Open items / backfill queue
- Per-6-K accession number direct extraction — the 6-K accession numbers are not currently captured in
companies/tsem/data/edgar_recent.json(which holds only SC 13G entries). Direct EDGAR scrape blocked by HTTP 403; needs manual or session-authenticated extraction. TODO ⚠. - Q2 2025 operating profit + cash flow detail — only revenue / gross / net captured; full P&L direct extraction queued.
- Q3 2025 operating profit detail — only gross profit + net profit captured; complete P&L queued.
- Q4 2025 normalized OCF / FCF disclosure — need precise breakout of the $105M Fab 3 lease prepayment and any ancillary one-offs.
- FY 2026 capex guidance breakout — confirm split between maintenance capex, Agrate ramp, and the $920M SiPho/SiGe envelope.
- Silicon-photonics revenue per quarter — disclosed annually only ($106M FY 2024; $228M FY 2025). Quarterly run-rate would be triangulated from “70% YoY growth in Q3 2025” plus “RF Infrastructure 32% of Q4 2025” but is not directly stated.
Sources
- Tower Semi Q4 2025 6-K release (filed 2026-02-11) — towersemi.com/2026/02/11/02112026 ✓ and GlobeNewswire ✓. Q4 2025 + FY 2025 full-year financials, $920M SiPho commitment, Q1 2026 guidance.
- Tower Semi Q3 2025 6-K release (filed 2025-11-10) — towersemi.com/2025/11/10/11102025 ✓ and GlobeNewswire ✓. Q3 2025 P&L; SiPho revenue +70% YoY commentary; $300M expansion add-on.
- Tower Semi Q2 2025 6-K release (filed 2025-08-04) — towersemi.com/2025/08/04/04082025 ✓. Q2 2025 P&L summary.
- Tower Semi Q1 2025 6-K release (filed 2025-05-14) — GlobeNewswire ✓. Q1 2025 P&L; Agrate cost-absorption commentary.
- Tower Semi Q4 2024 + FY 2024 6-K release (filed 2025-02-10) — towersemi.com/2025/02/10/02102025 ✓ and GlobeNewswire ✓.
- Tower Semi Q3 2024 6-K release (filed 2024-11-13) — towersemi.com/2024/11/13/11132024 ✓. Q3 2024 P&L; $350M initial SiPho/SiGe expansion announcement.
- Tower Semi Q2 2024 6-K release (filed 2024-07-24) — towersemi.com/2024/07/24/07242024 ✓. Q2 2024 P&L; $6M restructuring income note.
- Tower Semi Q1 2024 6-K release (filed 2024-05-09) — towersemi.com/2024/05/09/05092024 ✓. Q1 2024 P&L.
- Tower Semi FY 2024 20-F (filed 2025-04-30, accession 0001178913-25-001537) — SEC EDGAR ✓. Audited full-year financials, share-count cover (111.76M ordinary).
- Q4 2025 earnings call transcript — Investing.com ✓ and Seeking Alpha ◐. 2028 financial-model target: $2.84B revenue, 39-40% GM, 31.7% Op margin.
Cross-references
- Section overview — financials landing page
- Segment revenue mix — RF Infrastructure / RF Mobile / Power Management / Sensors and Displays / SiPho-SiGe disaggregation
- Balance sheet — cash + debt + capex evolution alongside the P&L
- Comps and valuation — VIS / DBHiTek / SMIC / UMC peer multiples; Tower-Intel deal arbitrage anchor
- Bull case — three-pillar thesis (AI-photonics, specialty-analog cycle, capacity ramp)
- Bear case — three-pillar bear (cycle exposure, Israel risk, SiPh-revenue dilution)