XVARY Composite Score
54
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Aehr makes machines that stress-test chips before they ship.
How it gets paid
Last year Aehr Test Systems made $59.0M in revenue. Systems was the main engine at $24M, or 41% of sales.
Why it's growing
Revenue grew 11% last year. Bookings were $6.2M for the quarter; backlog was $11.8M at quarter end with "effective backlog" including post-quarter bookings at $18.3M.
What just happened
Q2 FY2026 revenue was $9.9M, with non-GAAP diluted EPS about $.
At a Glance
B balance sheet — gets the job done, barely
25/100 earnings predictability — expect surprises
29.7% return on capital — every dollar works hard here
-$0.13 fy2025 eps est
H2 FY2026 rev guide ~$25–30M (company)
XVARY composite: 54/100 — below average
What They Do
Aehr makes machines that stress-test chips before they ship.
Aehr sold more than 2,500 systems since inception. It does that with 115 employees. That puts its gear inside chip factories, where your customer does not swap machines for fun.
How They Make Money
$59.0M
FY2025 revenue · down ~11% vs. FY2024 ($66.2M)
Systems
$24M
WaferPak aligners and DiePak loaders
$12M
Contactors, carriers, and test fixtures
$8M
Upgrades and spare parts
$7M
Service contracts and engineering charges
$8M
The Products That Matter
Wafer-level burn-in and test
FOX Systems
$14M order · march 2026
this is the product the market cares about. A $14M order from its lead AI customer is large enough to matter because the latest quarter only produced $9.9M in total revenue.
lead ai customer
Temporary wafer packaging
DiePak Carriers
paired with FOX installs
these reusable carriers sit inside the roughly $35M wafer-level burn-in stack. They matter because recurring accessories are a lot less lumpy than waiting for the next big system order.
repeat revenue
Packaged chip burn-in and test
Packaged Part Burn-in & Test
$~24M segment mix
this looks like the steadier legacy piece of the business. At roughly $24M of the segment mix shown here, it is smaller than the AI-facing story but big enough that you should not ignore it.
second engine
Key Numbers
$25–30M
H2 FY2026 revenue guide
Company-reinstated outlook for the second half of fiscal 2026 — not a full-year $2B story.
$59M
TTM revenue
This is the FY2025 sales base from the company; the swing factor is whether H2 FY2026 guidance converts into reported revenue.
loss
GAAP operating result
Recent quarters have been loss-making on a GAAP basis; gross margin and volume need to recover for operating leverage to show up.
29.7%
return on capital
Each dollar invested has thrown off 29.7 cents in profit. That is the good part.
Financial Health
B
Strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 5 / 100
- long-term debt $10M (1% of capital)
B — functional but not a standout on the balance sheet.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
soft Q2 FY2026 print
Q2 FY2026 revenue was $9.9M (down ~26.5% vs. Q2 FY2025), with non-GAAP diluted EPS about $(0.04).
Bookings were $6.2M for the quarter; backlog was $11.8M at quarter end with "effective backlog" including post-quarter bookings at $18.3M (company definitions). Management reinstated H2 FY2026 bookings guidance of ~$60–80M and revenue guidance of ~$25–30M.
$9.9M
Q2 FY2026 rev
$(0.04)
non-GAAP EPS
29.8%
non-GAAP gm
the number that mattered
Reinstated second-half guidance (bookings and revenue) is the bridge from a ~$10M quarter back toward a credible FY path.
source: Aehr Q2 FY2026 results (Jan 8, 2026) · aehr.com
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What Could Go Wrong
The top risk here is lead AI customer concentration. Aehr is small enough that one delayed production ramp can change the whole year.
Med
One customer is carrying too much of the story
The page gives you the math. A single $14M order from the lead AI customer is the headline, while the latest quarter only produced $9.9M in total revenue.
If that customer slows qualification, pushes out a ramp, or trims volume, the market does not have much else to grab onto.
Med
Revenue is lumpy enough to break clean narratives
Earnings predictability is just 25/100, and management already described recent revenue as softer than anticipated. That is what small-cap equipment businesses look like when orders arrive in bursts, not streams.
Even if demand is real, timing can make reported results look broken for a quarter or two. A premium multiple hates that kind of suspense.
Med
The valuation is ahead of the income statement
Against a ~$59M FY2025 revenue base, the market capitalization can still embed a steep sales multiple while GAAP results are loss-making — you are paying for operating leverage before it fully arrives.
If quarterly revenue stays stuck near the recent $9.9M level instead of inflecting higher, the multiple has room to compress hard.
That $14M order equals about 24% of the roughly $59M segment revenue shown on this page — and more than one recent quarter's sales. Concentration is not a side note here. It is the story.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
The number that mattered
Revenue needs to move past the $9.9M quarter
A smaller loss helps, but the bull case is not built on cost control. You want proof that system shipments are turning into materially larger quarterly revenue.
Calendar
Next earnings will test the reinstated guidance
Management brought guidance back after saying visibility improved. The next report is where that confidence either graduates into numbers or goes back into the lab.
Trend
Does the AI order become a production pattern
One $14M order is enough to get attention. Two or three similar follow-ons would start to look like a real production ramp instead of a promising pilot.
Risk
Customer mix needs to widen
If new design wins show up outside the lead AI customer, the story gets safer. If not, you are still underwriting one relationship at a very generous valuation.
Analyst Rankings
earnings predictability
25 / 100
Low predictability means reported results can swing around more than you want. In human-speak: analysts do not have a clean read on the cadence here.
risk rank
2
This measure says the balance-sheet risk is better than the stock's reputation suggests. That's a financing comfort, not a promise that the shares will behave.
price stability
5 / 100
The stock itself is not stable. You are owning a company with a decent balance sheet inside a share price that trades like caffeine.
Source: institutional data
Institutional Activity
institutional ownership data for AEHR is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$41
Current price
Target midpoint · from current
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