Onto Innovation第二季收入3.43億美元增35% 擬收購Rigaku股權

10-Q
 
 
 
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 Table of Contents

  
 

 UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
(Mark One)

 
 
 
 
 

 
 ☒

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 For the Quarterly Period Ended June 30, 2026
OR

 
 
 
 
 

 
 ☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 For the transition period from to
Commission File No. 001-39110
 
ONTO INNOVATION INC.
(Exact name of registrant as specified in its charter)
 

 
 
 
 
 
 

 
 Delaware

  

 94-2276314

 

 
 (State or other jurisdiction of
incorporation or organization)

  

 (I.R.S. Employer
Identification Number)

 

  
16 Jonspin Road, Wilmington, Massachusetts 01887
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (978) 253-6200
 
Securities registered pursuant to Section 12(b) of the Act

 
 
 
 
 
 

 
 Title of Each Class

 Trading Symbol(s)

 Name of Each Exchange on Which Registered

 

 
 Common Stock, $0.001 par value per share

 ONTO

 New York Stock Exchange (NYSE)

 

 Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 

 
 
 
 
 
 
 
 
 

 
 Large accelerated filer

 ☒

 

 

 Accelerated filer

 ☐

 

 
 Non-accelerated filer

 ☐

  

 

 Smaller reporting company

 ☐

 

 
 

 

 

 

 Emerging growth company

 ☐

 

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of outstanding shares of the registrant’s Common Stock on July 31, 2026 was 49,074,247.
 

  

 
 Table of Contents

  
 

 TABLE OF CONTENTS
 

 
 
 
 
 
 

 
 Item No.

  

 Page

 

 
  

 PART I FINANCIAL INFORMATION

  

 

 
  

  

  

 

 
 Item 1.

 Financial Statements (unaudited)

 1

 

 
  

 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and June 28, 2025

 1

 

 
  

 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2026 and June 28, 2025

 2

 

 
  

 Condensed Consolidated Balance Sheets at June 30, 2026 and January 3, 2026

 3

 

 
  

 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and June 28, 2025

 4

 

 
  

 Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2026 and June 28, 2025

 5

 

 
  

 Notes to Condensed Consolidated Financial Statements

 7

 

 
 Item 2.

 Management’s Discussion and Analysis of Financial Condition and Results of Operations

 22

 

 
 Item 3.

 Quantitative and Qualitative Disclosures about Market Risk

 29

 

 
 Item 4.

 Controls and Procedures

 29

 

 
  

  

  

 

 
  

 PART II OTHER INFORMATION

  

 

 
  

  

  

 

 
 Item 1.

 Legal Proceedings

 29

 

 
 Item 1A.

 Risk Factors

 29

 

 
 Item 2.

 Unregistered Sales of Equity Securities and Use of Proceeds

 31

 

 
 Item 3.

 Defaults Upon Senior Securities

 32

 

 
 Item 4.

 Mine Safety Disclosures

 32

 

 
 Item 5.

 Other Information

 32

 

 
 Item 6.

 Exhibits

 34

 

  
Signatures

  

 
 Table of Contents

  
 

 PART I FINANCIAL INFORMATION
Item 1. Financial Statements
ONTO INNOVATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended

  

  

 Six Months Ended

  

 

 
  

  

 June 30,

  

  

 June 28,

  

  

 June 30,

  

  

 June 28,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Revenue

  

 $

 343,129

  

  

 $

 253,597

  

  

 $

 635,078

  

  

 $

 520,204

  

 

 
 Cost of revenue

  

  

 159,875

  

  

  

 131,475

  

  

  

 305,435

  

  

  

 254,849

  

 

 
 Gross profit

  

  

 183,254

  

  

  

 122,122

  

  

  

 329,643

  

  

  

 265,355

  

 

 
 Operating expenses:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Research and development

  

  

 38,879

  

  

  

 35,292

  

  

  

 73,977

  

  

  

 63,322

  

 

 
 Sales and marketing

  

  

 23,105

  

  

  

 14,910

  

  

  

 44,564

  

  

  

 34,626

  

 

 
 General and administrative

  

  

 34,260

  

  

  

 25,003

  

  

  

 65,669

  

  

  

 47,788

  

 

 
 Amortization

  

  

 19,699

  

  

  

 8,446

  

  

  

 39,399

  

  

  

 16,891

  

 

 
 Restructuring and other

  

  

 3,761

  

  

  

 6,224

  

  

  

 8,970

  

  

  

 7,347

  

 

 
 Total operating expenses

  

  

 119,704

  

  

  

 89,875

  

  

  

 232,579

  

  

  

 169,974

  

 

 
 Operating income

  

  

 63,550

  

  

  

 32,247

  

  

  

 97,064

  

  

  

 95,381

  

 

 
 Other income, net

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest income, net

  

  

 5,245

  

  

  

 8,631

  

  

  

 10,347

  

  

  

 17,897

  

 

 
 Foreign currency exchange losses

  

  

 (139

 )

  

  

 (1,149

 )

  

  

 (600

 )

  

  

 (1,911

 )

 

 
 Other (expense) income, net

  

  

 (160

 )

  

  

 12

  

  

  

 (263

 )

  

  

 31

  

 

 
 Total other income, net

  

  

 4,946

  

  

  

 7,494

  

  

  

 9,484

  

  

  

 16,017

  

 

 
 Income before provision for income taxes

  

  

 68,496

  

  

  

 39,741

  

  

  

 106,548

  

  

  

 111,398

  

 

 
 Provision for income taxes

  

  

 8,394

  

  

  

 5,830

  

  

  

 12,696

  

  

  

 13,392

  

 

 
 Net income

  

 $

 60,102

  

  

 $

 33,911

  

  

 $

 93,852

  

  

 $

 98,006

  

 

 
 Earnings per share:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic

  

 $

 1.22

  

  

 $

 0.69

  

  

 $

 1.89

  

  

 $

 2.00

  

 

 
 Diluted

  

 $

 1.21

  

  

 $

 0.69

  

  

 $

 1.88

  

  

 $

 1.99

  

 

 
 Weighted average number of shares outstanding:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic

  

  

 49,412

  

  

  

 48,925

  

  

  

 49,575

  

  

  

 49,053

  

 

 
 Diluted

  

  

 49,682

  

  

  

 49,016

  

  

  

 49,841

  

  

  

 49,213

  

 

  
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

 1

 
 Table of Contents

  
 

 ONTO INNOVATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended

  

  

 Six Months Ended

  

 

 
  

  

 June 30,

  

  

 June 28,

  

  

 June 30,

  

  

 June 28,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Net income

  

 $

 60,102

  

  

 $

 33,911

  

  

 $

 93,852

  

  

 $

 98,006

  

 

 
 Other comprehensive (loss) income, net of tax:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Change in net unrealized (losses) gains on available-for-sale marketable securities

  

  

 (342

 )

  

  

 (106

 )

  

  

 (1,001

 )

  

  

 232

  

 

 
 Change in currency translation adjustments

  

  

 (167

 )

  

  

 6,868

  

  

  

 (2,027

 )

  

  

 8,881

  

 

 
 Total other comprehensive (loss) income, net of tax

  

  

 (509

 )

  

  

 6,762

  

  

  

 (3,028

 )

  

  

 9,113

  

 

 
 Total comprehensive income

  

 $

 59,593

  

  

 $

 40,673

  

  

 $

 90,824

  

  

 $

 107,119

  

 

  
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
 
 

 2

 
 Table of Contents

  
 

 ONTO INNOVATION INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,
2026

  

  

 January 3,
2026

  

 

 
 ASSETS

  

  

  

  

  

  

 

 
 Current Assets:

  

  

  

  

  

  

 

 
 Cash and cash equivalents

  

 $

 1,253,205

  

  

 $

 346,119

  

 

 
 Marketable securities

  

  

 628,945

  

  

  

 293,503

  

 

 
 Accounts receivable, net of allowance of $2,476 at June 30, 2026 and $2,462 at January 3, 2026.

  

  

 337,384

  

  

  

 268,932

  

 

 
 Inventories, net

  

  

 379,243

  

  

  

 298,264

  

 

 
 Prepaid expenses and other current assets, net

  

  

 43,164

  

  

  

 61,217

  

 

 
 Total current assets

  

  

 2,641,941

  

  

  

 1,268,035

  

 

 
 Property, plant and equipment, net

  

  

 123,717

  

  

  

 127,184

  

 

 
 Goodwill

  

  

 643,468

  

  

  

 644,015

  

 

 
 Identifiable intangible assets, net

  

  

 258,699

  

  

  

 298,098

  

 

 
 Deferred income taxes

  

  

 4,408

  

  

  

 3,864

  

 

 
 Other assets

  

  

 26,809

  

  

  

 26,545

  

 

 
 Total assets

  

 $

 3,699,042

  

  

 $

 2,367,741

  

 

 
 LIABILITIES AND STOCKHOLDERS’ EQUITY

  

  

  

  

  

  

 

 
 Current liabilities:

  

  

  

  

  

  

 

 
 Accounts payable

  

 $

 139,430

  

  

 $

 107,685

  

 

 
 Accrued liabilities

  

  

 55,286

  

  

  

 48,544

  

 

 
 Deferred revenue

  

  

 35,916

  

  

  

 31,781

  

 

 
 Other current liabilities

  

  

 41,013

  

  

  

 30,936

  

 

 
 Total current liabilities

  

  

 271,645

  

  

  

 218,946

  

 

 
 2031 Notes, net

  

  

 1,471,731

  

  

 ―

  

 

 
 Deferred and other tax liabilities

  

  

 2,102

  

  

  

 20,401

  

 

 
 Other non-current liabilities

  

  

 30,906

  

  

  

 27,747

  

 

 
 Total liabilities

  

  

 1,776,384

  

  

  

 267,094

  

 

 
 Commitments and contingencies

  

  

  

  

  

  

 

 
 Stockholders’ equity:

  

  

  

  

  

  

 

 
 Common stock, $0.001 par value, 97,000 shares authorized, 49,033 and 49,702 issued and outstanding at June 30, 2026 and January 3, 2026, respectively.

  

  

 50

  

  

  

 50

  

 

 
 Additional paid-in capital

  

  

 1,098,020

  

  

  

 1,366,833

  

 

 
 Accumulated other comprehensive loss

  

  

 (13,049

 )

  

  

 (10,021

 )

 

 
 Accumulated earnings

  

  

 837,637

  

  

  

 743,785

  

 

 
 Total stockholders’ equity

  

  

 1,922,658

  

  

  

 2,100,647

  

 

 
 Total liabilities and stockholders’ equity

  

 $

 3,699,042

  

  

 $

 2,367,741

  

 

  
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
 

 3

 
 Table of Contents

  
 

 ONTO INNOVATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended

  

 

 
  

  

 June 30,

  

  

 June 28,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Cash flows from operating activities:

  

  

  

  

  

  

 

 
 Net income

  

 $

 93,852

  

  

 $

 98,006

  

 

 
 Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:

  

  

  

  

  

  

 

 
 Amortization of intangibles

  

  

 39,399

  

  

  

 16,891

  

 

 
 Accretion of discount on marketable securities

  

  

 (1,199

 )

  

  

 (3,030

 )

 

 
 Depreciation

  

  

 11,611

  

  

  

 10,237

  

 

 
 Share-based compensation

  

  

 17,026

  

  

  

 13,492

  

 

 
 Provision for inventory valuation

  

  

 2,689

  

  

  

 18,060

  

 

 
 Deferred income taxes

  

  

 1,257

  

  

  

 (7,272

 )

 

 
 Other, net

  

  

 (382

 )

  

  

 4,733

  

 

 
 Changes in operating assets and liabilities

  

  

 (76,424

 )

  

  

 (1,194

 )

 

 
 Net cash and cash equivalents provided by operating activities

  

  

 87,829

  

  

  

 149,923

  

 

 
 Cash flows from investing activities:

  

  

  

  

  

  

 

 
 Purchases of marketable securities

  

  

 (652,144

 )

  

  

 (419,312

 )

 

 
 Proceeds from maturities and sales of marketable securities

  

  

 316,622

  

  

  

 384,554

  

 

 
 Purchases of property, plant and equipment

  

  

 (7,242

 )

  

  

 (22,005

 )

 

 
 Purchases of non-marketable equity securities

  

  

 —

  

  

  

 (8,000

 )

 

 
 Acquisition related adjustments

  

  

 —

  

  

  

 (57

 )

 

 
 Net cash and cash equivalents used in investing activities

  

  

 (342,764

 )

  

  

 (64,820

 )

 

 
 Cash flows from financing activities:

  

  

  

  

  

  

 

 
 Purchases and retirement of common stock

  

  

 (204,979

 )

  

  

 (75,015

 )

 

 
 Tax payments related to shares withheld for share-based compensation plans

  

  

 (15,062

 )

  

  

 (12,390

 )

 

 
 Issuance of shares through share-based compensation plans

  

  

 5,927

  

  

  

 4,179

  

 

 
 Payment for bridge commitment fees

  

  

 (3,750

 )

  

  

 —

  

 

 
 Proceeds from issuance of 2031 Notes, net of issuance costs

  

  

 1,469,779

  

  

  

 —

  

 

 
 Payment for capped call options

  

  

 (88,950

 )

  

  

 —

  

 

 
 Net cash and cash equivalents provided by (used in) financing activities

  

  

 1,162,965

  

  

  

 (83,226

 )

 

 
 Effect of exchange rate changes on cash and cash equivalents

  

  

 (944

 )

  

  

 2,648

  

 

 
 Net increase in cash and cash equivalents

  

  

 907,086

  

  

  

 4,525

  

 

 
 Cash and cash equivalents at beginning of period

  

  

 346,119

  

  

  

 212,945

  

 

 
 Cash and cash equivalents at end of period

  

 $

 1,253,205

  

  

 $

 217,470

  

 

 
  

  

  

  

  

  

  

 

 
 Supplemental disclosure of cash flow information:

  

  

  

  

  

  

 

 
 Income taxes paid (net of refunds)

  

 $

 5,117

  

  

 $

 32,641

  

 

 
  

  

  

  

  

  

  

 

 
 Supplemental noncash disclosure of cash flow information:

  

  

  

  

  

  

 

 
 Unpaid excise tax on repurchases of common stock

  

 $

 2,050

  

  

 $

 —

  

 

 
 Unpaid debt issuance costs related to issuance of 2031 Notes

  

 $

 1,941

  

  

 $

 —

  

 

 
 Unpaid debt issuance costs related to bridge loan facility

  

 $

 678

  

  

 $

 —

  

 

  
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
 

 4

 
 Table of Contents

  
 

 ONTO INNOVATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Common Stock

  

  

 Additional 
Paid-in

  

  

 Accumulated
Other
Comprehensive

  

  

 Accumulated

  

  

  

  

 

 
  

  

 Shares

  

  

 Amount

  

  

 Capital

  

  

 Loss

  

  

 Earnings

  

  

 Total

  

 

 
 Balance at January 3, 2026

  

  

 49,702

  

  

 $

 50

  

  

 $

 1,366,833

  

  

 $

 (10,021

 )

  

 $

 743,785

  

  

 $

 2,100,647

  

 

 
 Net income

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 33,750

  

  

  

 33,750

  

 

 
 Share-based compensation

  

  

 —

  

  

  

 —

  

  

  

 7,011

  

  

  

 —

  

  

  

 —

  

  

  

 7,011

  

 

 
 Issuance of shares through share-based compensation plans, net

  

  

 73

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Purchases of common stock

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Share-based compensation plan withholdings

  

  

 (31

 )

  

  

 —

  

  

  

 (6,701

 )

  

  

 —

  

  

  

 —

  

  

  

 (6,701

 )

 

 
 Currency translation

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (1,860

 )

  

  

 —

  

  

  

 (1,860

 )

 

 
 Unrealized loss on investments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (659

 )

  

  

 —

  

  

  

 (659

 )

 

 
 Balance at March 31, 2026

  

  

 49,744

  

  

 $

 50

  

  

 $

 1,367,143

  

  

 $

 (12,540

 )

  

 $

 777,535

  

  

 $

 2,132,188

  

 

 
 Net income

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 60,102

  

  

  

 60,102

  

 

 
 Share-based compensation

  

  

 —

  

  

  

 —

  

  

  

 10,015

  

  

  

 —

  

  

  

 —

  

  

  

 10,015

  

 

 
 Issuance of shares through share-based compensation plans, net

  

  

 124

  

  

  

 —

  

  

  

 5,927

  

  

  

 —

  

  

  

 —

  

  

  

 5,927

  

 

 
 Purchases of common stock

  

  

 (805

 )

  

  

 —

  

  

  

 (207,029

 )

  

  

 —

  

  

  

 —

  

  

  

 (207,029

 )

 

 
 Capped call option purchase, net of tax impact

  

  

 —

  

  

  

 —

  

  

  

 (69,675

 )

  

  

 —

  

  

  

 —

  

  

  

 (69,675

 )

 

 
 Share-based compensation plan withholdings

  

  

 (30

 )

  

  

 —

  

  

  

 (8,361

 )

  

  

 —

  

  

  

 —

  

  

  

 (8,361

 )

 

 
 Currency translation

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (167

 )

  

  

 —

  

  

  

 (167

 )

 

 
 Unrealized loss on investments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (342

 )

  

  

 —

  

  

  

 (342

 )

 

 
 Balance at June 30, 2026

  

  

 49,033

  

  

 $

 50

  

  

 $

 1,098,020

  

  

 $

 (13,049

 )

  

 $

 837,637

  

  

 $

 1,922,658

  

 

  

 5

 
 Table of Contents

  
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Common Stock

  

  

 Additional 
Paid-in

  

  

 Accumulated
Other
Comprehensive

  

  

 Accumulated

  

  

  

  

 

 
  

  

 Shares

  

  

 Amount

  

  

 Capital

  

  

 Loss

  

  

 Earnings

  

  

 Total

  

 

 
 Balance at December 28, 2024

  

  

 49,238

  

  

 $

 49

  

  

 $

 1,275,146

  

  

 $

 (13,863

 )

  

 $

 664,550

  

  

 $

 1,925,882

  

 

 
 Net income

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 64,095

  

  

  

 64,095

  

 

 
 Share-based compensation

  

  

 —

  

  

  

 —

  

  

  

 6,814

  

  

  

 —

  

  

  

 —

  

  

  

 6,814

  

 

 
 Issuance of shares through share-based compensation plans, net

  

  

 140

  

  

  

 —

  

  

  

 4,179

  

  

  

 —

  

  

  

 —

  

  

  

 4,179

  

 

 
 Purchases of common stock

  

  

 (492

 )

  

  

 —

  

  

  

 (17,491

 )

  

  

 —

  

  

  

 (57,524

 )

  

  

 (75,015

 )

 

 
 Share-based compensation plan withholdings

  

  

 (49

 )

  

  

 —

  

  

  

 (8,684

 )

  

  

 —

  

  

  

 —

  

  

  

 (8,684

 )

 

 
 Currency translation

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 2,013

  

  

  

 —

  

  

  

 2,013

  

 

 
 Unrealized gain on investments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 338

  

  

  

 —

  

  

  

 338

  

 

 
 Balance at March 29, 2025

  

  

 48,837

  

  

 $

 49

  

  

 $

 1,259,964

  

  

 $

 (11,512

 )

  

 $

 671,121

  

  

 $

 1,919,622

  

 

 
 Net income

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 33,911

  

  

  

 33,911

  

 

 
 Share-based compensation

  

  

 —

  

  

  

 —

  

  

  

 6,678

  

  

  

 —

  

  

  

 —

  

  

  

 6,678

  

 

 
 Issuance of shares through share-based compensation plans, net

  

  

 137

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Purchases of common stock

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Share-based compensation plan withholdings

  

  

 (37

 )

  

  

 —

  

  

  

 (3,707

 )

  

  

 —

  

  

  

 —

  

  

  

 (3,707

 )

 

 
 Currency translation

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 6,868

  

  

  

 —

  

  

  

 6,868

  

 

 
 Unrealized loss on investments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (106

 )

  

  

 —

  

  

  

 (106

 )

 

 
 Balance at June 28,2025

  

  

 48,937

  

  

 $

 49

  

  

 $

 1,262,935

  

  

 $

 (4,750

 )

  

 $

 705,032

  

  

 $

 1,963,266

  

 

  
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
 

 6

 
 Table of Contents

  
 

 ONTO INNOVATION INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. Basis of Presentation
The accompanying interim unaudited Condensed Consolidated Financial Statements have been prepared by Onto Innovation Inc. (the “Company,” “Onto Innovation,” “we,” “our” or “us”) and in the opinion of management reflect all adjustments, consisting of normal recurring accruals, necessary for their fair presentation in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Certain reclassifications have been made to prior-period amounts to conform to current-period presentation. The interim results for the three and six month periods ended June 30, 2026 are not necessarily indicative of results to be expected for the entire year or any future periods. This interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 3, 2026 (the “2025 Form 10-K”) filed with the Securities and Exchange Commission on February 24, 2026. The accompanying Condensed Consolidated Balance Sheet at January 3, 2026 has been derived from the audited consolidated financial statements included in the 2025 Form 10-K.
On February 18, 2026, the Company’s Board of Directors (“Board”) changed the Company’s fiscal year-end from a 52-53 week fiscal year ending on the Saturday closest to December 31 to a December 31 fiscal year-end. The Company made the fiscal year change on a prospective basis and will not adjust operating results for prior periods. Additionally, the Company has adopted calendar quarter fiscal period ends commencing with the first quarter ended March 31, 2026. The change affects the prior year comparability of the Company’s fiscal quarters in 2025 and has resulted in shifts in the quarterly periods, which is not expected to have a material impact on our quarterly financial results. Our fiscal year ended January 3, 2026 was a 53-week fiscal year. The second quarter of the fiscal year ended January 3, 2026 ended on June 28, 2025. Throughout this document, the three month period ended June 30, 2026 represents the quarterly period that commenced on April 1, 2026, and ended on June 30, 2026. The three month period ended June 28, 2025 represents the quarterly period that commenced on March 30, 2025 and ended on June 28, 2025. The six-month period ended June 30, 2026 represents the period that commenced on January 4, 2026, the first day of our fiscal year, and ended on June 30, 2026. The six-month period ended June 28, 2025 represents the quarterly period that commenced on December 29, 2024 and ended on June 28, 2025. 
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates made by management include excess and obsolete inventory, fair value of assets acquired and liabilities assumed in a business combination, recoverability and useful lives of property, plant and equipment and identifiable intangible assets, recoverability of goodwill, recoverability of deferred tax assets, allowance for credit losses, liabilities for product warranty, share-based payments and liabilities for tax uncertainties. Actual results could differ from those estimates.
These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The Company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments, assets and stock awards associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material.

Recent Accounting Pronouncements
Recently Adopted or Effective
In December 2025, the FASB issued ASU 2025-12, “Codification Improvements,” which addresses suggestions received from stakeholders regarding the ASC and makes other incremental improvements to U.S. GAAP. The update represents changes to the ASC that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. The amendments in this update are effective for the Company beginning January 1, 2027, with early adoption permitted. The Company adopted this ASU during the quarter ended June 30, 2026. In connection with the adoption, 

 7

 
 Table of Contents

  
 

 the Company elected an accounting policy to allocate the excess of the repurchase price over par for all shares repurchased and retired to additional paid-in capital on a prospective basis.
In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326),” which simplifies the estimation of credit losses on current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification 606, Revenue from Contracts with Customers. The guidance allows all entities to use a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets. The guidance is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. Early adoption is permitted. Entities that elect the practical expedient are required to apply the amendments prospectively. The Company adopted this ASU during the quarter ended March 31, 2026, with no material impact on the condensed consolidated financial statements.
Updates Not Yet Effective
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements,” to clarify and reorganize U.S. GAAP interim reporting guidance to improve navigability, applicability, and consistency without changing the fundamental nature or volume of required interim disclosures. This amendment clarifies when ASC 270 is applicable, establishes a disclosure principle requiring disclosure of material events or changes occurring since the most recent annual reporting period, and consolidates into ASC Topic 270 a comprehensive list of interim disclosures required by other codification topics. The amendment also clarifies the form and content of interim financial statements, including guidance for condensed interim reporting. The amendment is effective for the Company for interim periods in 2028, with early adoption permitted. The impact of the adoption of the amendments in this update is not expected to be material to the Company’s consolidated financial position and results of operations.
In December 2025, the FASB issued ASU 2025‑10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities,” to establish specific guidance for the recognition, measurement, presentation, and disclosure of government grants received to reduce diversity and increase consistency amongst business entities in accounting for such grants. This amendment amends ASC Topic 832 to require that a government grant received by a business entity should not be recognized as income until it is probable that a business entity will comply with the conditions attached to the grant and the grant will be received, with any grant related to an asset to be purchased, constructed or acquired such as long-lived assets or inventory to be recognized on the balance sheet as either deferred income or as an adjustment to the cost basis of the related asset, or the cost accumulation approach, as such costs are incurred. Any grant income or deferred income shall be recognized in earnings on a systematic and rational basis over the periods in which a business entity recognizes as expenses the costs for which the grant is intended to compensate, whereas any grants accounted for using the cost accumulation approach will not have a direct subsequent recognition in earnings, but rather reduced depreciation or amortization in accounting for the related asset. Entities are also required to present grants recognized in earnings separately under other income or deducted from the related expense, and provide disclosures of the nature of the government grant received, the accounting policies used to account for the grant, and the significant terms and conditions of the grant. The amendment is effective for the Company for annual and interim periods in 2029, with early adoption and multiple transition methods permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements.
In December 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements,” to amend certain aspects of its hedge accounting guidance to better reflect an entity’s risk management activities in the financial statements. The guidance expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions and increases the variable price components eligible to be designated as the hedged risk in the forecasted purchase or sale of nonfinancial assets. For public business entities, the provisions of ASU 2025-09 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software,” which removes all references to software development stages and clarifies the threshold entities apply to begin capitalizing costs. ASU 2025-06 is effective for annual periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. The ASU may be applied prospectively, retrospectively or through a modified transition approach with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40),” which requires additional disclosure of certain costs and expenses, including inventory purchases, employee compensation, selling expense and depreciation expense within the notes to financial statements. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning 

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 after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statements and related disclosures.

NOTE 2. Acquisitions and Investments
Proposed Investment
On April 20, 2026, the Company entered into a definitive share purchase agreement (“the Rigaku Transaction”) with Atom Investment, L.P., an affiliate of The Carlyle Group, to acquire 27% of the outstanding common stock of Rigaku Holdings Corporation (“Rigaku”) for approximately $710 million. In connection with the Rigaku