ONTO ONTO INNOVATION INC.

Overview and Growth

In fiscal 2025, ONTO INNOVATION INC. recorded $1.01B of revenue, net income of $136.76M, and an operating cash inflow of $328.31M. The $1.01B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 1.8% above fiscal 2024 revenue of $987.32M, marking a year-over-year increase. Diluted earnings per share were $2.78, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $4.06 in fiscal 2024, the current result was 31.5% lower. Asset turnover was 0.42x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $499.77M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 49.7% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $132.93M of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 13.2%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $136.76M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 13.6% margin after operating costs and the remaining recognized items. The earnings statement records $162.90M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 16.2% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $26.14M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 16.0%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 6.5%, indicating the profitability achieved on book capital. The net-income-to-assets relationship measured 5.8%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

The company held $2.37B of assets against $267.09M of liabilities and $2.10B of equity, revealing how the asset base was financed. The near-term balance sheet paired $1.27B of current assets with $218.95M of current liabilities at the reporting date. Current assets covered current liabilities by 5.79x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $346.12M, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 158.1%, excluding receivables and other current assets. Liabilities represented 11.3% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 14.6%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 11.8% from $2.12B in fiscal 2024, leaving current total assets higher year over year. Against $1.93B of equity in fiscal 2024, the current book-equity balance moved 9.1% and ended higher.

Cash Flow and Earnings Quality

The company reported $328.31M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 2.4x, showing the relationship between accrual earnings and operating cash. Capital spending was $28.51M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 8.7%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $299.80M, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 29.8%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 12.7%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jan 3, 2026. Analysis generated Oct 21, 2026.