SkyWater Technology, IncSKYT
SkyWater Technology, Inc Segments Disclosure
Reportable Segment and Geographic Information
Prior to the completion of the Fab 25 acquisition, the Company operated as a single reportable segment which reflected how the Company managed its business and the nature of its services. Following the Fab 25 acquisition, the Company re-evaluated its reportable segments and now operates as two distinct reportable segments, Legacy SkyWater and SkyWater Texas. This determination aligns with how our Chief Executive Officer, who is our chief operating decision maker (“CODM”) currently assesses segment operating performance and allocates resources. Prior to the acquisition, the CODM utilized net earnings as the primary measure of segment profit or loss. Subsequent to the completion of the Fab 25 acquisition, net earnings continues to be the primary measure of segment profit or loss utilized by the CODM in regard to evaluating segment performance and allocation of resources.
•Legacy SkyWater: A pure-play technology foundry that offers advanced semiconductor development and manufacturing services from its fabrication facility in Bloomington, Minnesota and advanced packaging services from its Kissimmee Florida facility. Legacy SkyWater provides ATS and Wafer Services product offerings.
•SkyWater Texas: A high-volume manufacturer that offers manufacturing services from its fabrication facility in Austin, Texas. SkyWater Texas provides Wafer Services product offerings focused on 200 mm semiconductor fabrication, copper processing, high-voltage technology services and 65 nm node infrastructure support.
The following table represents the results of the Company’s reportable segments for the fiscal years ended December 28, 2025, and December 29, 2024:
Fiscal Year Ended | |||||||||||||||||||||||||||||||||||
| December 28, 2025 | December 29, 2024 | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Legacy SkyWater | SkyWater Texas | Total | Legacy SkyWater | SkyWater Texas | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 266,847 | $ | 175,292 | $ | 442,139 | $ | 342,269 | $ | — | $ | 342,269 | |||||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||||||||||||||
| Labor | 79,978 | 53,005 | 132,983 | 79,430 | — | 79,430 | |||||||||||||||||||||||||||||
| Direct expenses | 93,503 | 64,252 | 157,755 | 102,597 | — | 102,597 | |||||||||||||||||||||||||||||
| Cost of tool revenue | 30,655 | — | 30,655 | 73,281 | — | 73,281 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 15,815 | 18,003 | 33,818 | 17,335 | — | 17,335 | |||||||||||||||||||||||||||||
| Total cost of revenue | 219,951 | 135,260 | 355,211 | 272,643 | — | 272,643 | |||||||||||||||||||||||||||||
| Gross profit | 46,896 | 40,032 | 86,928 | 69,626 | — | 69,626 | |||||||||||||||||||||||||||||
| Research and development expense | 14,621 | — | 14,621 | 15,040 | — | 15,040 | |||||||||||||||||||||||||||||
| Selling, general, administrative expense | |||||||||||||||||||||||||||||||||||
| Labor | 26,749 | 7,262 | 34,011 | 24,582 | — | 24,582 | |||||||||||||||||||||||||||||
| Direct expenses | 39,437 | 550 | 39,987 | 23,015 | — | 23,015 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 585 | 300 | 885 | 429 | — | 429 | |||||||||||||||||||||||||||||
| Total selling, general, and administrative expense | $ | 66,771 | $ | 8,112 | $ | 74,883 | $ | 48,026 | $ | — | $ | 48,026 | |||||||||||||||||||||||
| Operating income (loss) | (34,496) | 31,920 | (2,576) | 6,560 | — | 6,560 | |||||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Bargain purchase gain | — | 111,746 | 111,746 | — | — | — | |||||||||||||||||||||||||||||
| Interest expense | (13,713) | — | (13,713) | (8,837) | — | (8,837) | |||||||||||||||||||||||||||||
| Total other income (expense) | $ | (13,713) | $ | 111,746 | $ | 98,033 | $ | (8,837) | $ | — | $ | (8,837) | |||||||||||||||||||||||
| Income (loss) before income taxes | (48,209) | 143,666 | 95,457 | (2,277) | — | (2,277) | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | (33,941) | 5,952 | (27,989) | 240 | — | 240 | |||||||||||||||||||||||||||||
| Net income (loss) | $ | (14,268) | $ | 137,714 | $ | 123,446 | $ | (2,517) | $ | — | $ | (2,517) | |||||||||||||||||||||||
The following table reconciles segment total assets:
Fiscal Year Ended | |||||||||||
| December 28, 2025 | December 29, 2024 | ||||||||||
| (in thousands) | |||||||||||
| Legacy SkyWater | $ | 518,540 | $ | 311,805 | |||||||
| SkyWater Texas | 215,367 | — | |||||||||
| Total Assets | $ | 733,907 | $ | 311,805 | |||||||
The following table discloses revenue for the fiscal years ended December 28, 2025, and December 29, 2024 by country as determined by customer address:
Fiscal Year Ended | |||||||||||
| December 28, 2025 | December 29, 2024 | ||||||||||
| United States | $ | 420,974 | $ | 329,049 | |||||||
| Canada | 13,144 | 8,197 | |||||||||
| Hong Kong | 1,164 | 878 | |||||||||
| United Kingdom | 675 | 1,078 | |||||||||
| All others | 6,182 | 3,067 | |||||||||
| Total revenue | $ | 442,139 | $ | 342,269 | |||||||
All of the Company's long-lived assets are located in the United States.
For the fiscal year ended December 28, 2025, three customers represented 10% or more of consolidated revenue, comprising 43%, 21% and 10% of consolidated revenue. For the fiscal year ended December 29, 2024, two customers represented 10% or more of consolidated revenue, comprising 40%, and 20%, of consolidated revenue. One customer accounted for 10% or more of accounts receivable and, in aggregate, accounted for approximately 59% as of December 28, 2025. The loss of a major customer could adversely affect the Company’s operating results and financial condition
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.