CAMTEK LTD. Q1 2026 Financial Summary
Business Context and Reporting Period
CAMTEK LTD. (NASDAQ: CAMT) is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. This Form 6-K filing reports preliminary unaudited financial results for the first quarter ended March 31, 2026, released on May 12, 2026.
Key Financial Metrics
| Metric | Q1 2026 (GAAP) | Q1 2026 (Non-GAAP) |
|---|---|---|
| Revenue | $121.7 million | $121.7 million |
| Gross Margin | 50.1% | 51.0% |
| Operating Income | $27.3 million (22.4%) | $31.1 million (25.5%) |
| Net Income | $31.6 million | $35.3 million |
| Diluted EPS | $0.63 | $0.70 |
| Operating Cash Flow | $3.1 million | N/A |
| Cash & Equivalents | $849.7 million | N/A |
| Convertible Notes | $487.8 million | N/A |
Material Changes vs. Prior Period
- Revenue: Increased 2.5% year-over-year (YoY) to $121.7 million from $118.6 million in Q1 2025.
- Operating Income: GAAP operating income decreased 17% YoY to $27.3 million, driven by higher operating expenses. Non-GAAP operating income also decreased 17% YoY to $31.1 million.
- Net Income: GAAP net income decreased 8% YoY to $31.6 million. Non-GAAP net income decreased 9% YoY to $35.3 million.
- Expenses: Research and development expenses increased significantly to $14.3 million from $10.4 million in Q1 2025. Selling, general, and administrative expenses rose to $19.3 million from $17.5 million.
- Liquidity: Total cash, short-term deposits, and marketable securities remained stable at $849.7 million, compared to $851.1 million at year-end 2025.
Guidance, Outlook, and Risks
- Q2 2026 Guidance: Revenue expected between $129 million and $131 million.
- Full Year Outlook: Management expects revenue growth of over 25% in the second half of 2026 compared to the first half, citing strong order momentum and an unprecedented start to the year.
- Management Commentary: CEO Rafi Amit highlighted heavy investment in AI-based algorithms and software, including capabilities developed following the recent acquisition of Visual Layer. The company anticipates a surge in demand driven by AI, HBM, and Chiplet applications.
- Risks: Key risks include ongoing hostilities in the Middle East, global supply chain disruptions (specifically the Strait of Hormuz), potential changes in U.S. trade policies and export controls, and foreign currency exchange rate fluctuations.
Investor Verification Checklist
- Verify the sustainability of the projected >25% revenue growth in H2 2026 against current backlog conversion rates.
- Confirm the impact of increased R&D spending ($14.3M) on future product cycles and competitive positioning.
- Review the specific terms and maturity of the $487.8 million in convertible notes.
- Assess the integration progress and financial contribution of the recently acquired Visual Layer.
- Monitor geopolitical developments in the Middle East that could disrupt manufacturing or logistics.