Technology
New Survey from Harvard Business Review Analytic Services Finds AI Adoption Remains High, Yet Value May Lag Without Modernisation and Workflow Integration
Published
6 months agoon
By
A critical AI success gap is emerging for organisations, with 30% surveyed seeing an impact on new revenue streams.
SYDNEY, April 30, 2026 /PRNewswire/ — Most organisations have moved beyond experimenting with artificial intelligence, but few are realising its full value. New research from Harvard Business Review Analytic Services, sponsored by Appian, finds that while 59% of organisations (who are moving forward with AI to some extent) have AI in production, the majority are currently focused on incremental gains that prioritise efficiency and productivity over top-line growth.
Notably, AI has the strongest impact in bolstering productivity, not enabling growth. Respondents indicated that of the AI performance measures their organisation tracks, most see impact in productivity improvements (64%) and operational efficiency (58%), while metrics like new revenue streams (30%) and ROI (35%) are among the least likely to have improved. This points to a significant opportunity for organisations to use AI to deliver broader business outcomes and growth.
“Enterprises are at an inflection point. Instead of using AI to drive productivity, organisations must evolve to focus on business growth. That’s where Appian comes in,” said Matt Calkins, CEO of Appian. “The true potential of AI can only be realised when it moves from a standalone tool to an embedded worker that drives revenue. To get there, leaders must prioritise the foundational orchestration and rules-based guardrails required to safely apply AI to high-impact work.”
AI Still Sits Outside the Flow of Work
In most organisations, AI is being used alongside work, not built into how work gets done, limiting its ability to drive higher-level business outcomes. Only 18% of respondents report that AI is primarily integrated within workflows, while a larger share (34%) continue to use AI as standalone tools alongside processes/workflows, with another 34% reporting a mix of both approaches and 12% not yet using AI in processes/workflows at all.
Most See Some Returns on AI, but Not Yet at Scale.
Most respondents are seeing some returns from AI investments, but only 16% report realising a high degree of measurable value. The majority describe the impact as moderate (33%), slight (36%), or have no measurable value (8%). Still, expectations remain high, as 86% agree that their organisation is looking to realise more business value from its use of AI. It’s clear that AI is delivering some results, but translating those results into meaningful, scalable business impact is proving difficult.
AI Delivers Value When Embedded in Workflows
As organisations advance their AI strategies, value is closely tied to how effectively AI is integrated into workflows and applied to operational work. Seventy-one percent of organisations embedding AI into processes realised substantial or moderate value from those efforts, according to respondents. In parallel, approximately three-quarters report strong returns from modernising legacy infrastructure/systems (76%), integrating data sources (75%), and orchestrating processes/workflows across systems/applications (73%).
Legacy Systems Continue to Limit AI’s Impact
Nearly seven in ten respondents, 69%, agree that legacy systems are limiting their ability to scale AI across the enterprise. This reinforces the need for modernisation and better integration across systems and data. Siloed or low-quality data (34%), a lack of integration across systems (31%), and a lack of AI talent/skills (30%) are also among the most commonly cited barriers to embedding AI into workflows.
AI Agent Adoption Lags in Core Operations
The research also highlights differences in how AI agents are being applied across the enterprise. Organisations are more actively deploying AI agents in areas such as software development (35%), IT operations (31%), marketing and sales (26%), and customer service (25%). In contrast, agent adoption is more limited in core operational areas such as procurement (9%), manufacturing (10%), and supply chain (11%), where processes tend to be more complex and require greater control and consistency. As organisations look to expand AI into these environments, governance becomes critical.
Most Organisations Lack the Guardrails Needed to Scale AI Agents Safely
Ninety-two percent of respondents agree that AI agents need rules-based guardrails to operate safely and effectively, yet fewer than half (48%) agree that their organisation has defined such rules (among those at organisations using, considering or exploring agentic AI). As organisations explore agentic AI systems (currently used by 25% of organisations and under consideration by 62%), the need for clearly defined processes and guardrails will become even more critical. Without clear guardrails, agents can act unpredictably across systems, increasing the risk of unintended outcomes.
Process Design Is Emerging as the Key to Unlocking AI Value
Realising the full value of AI and achieving sustainable ROI requires rethinking how work is structured and governed. According to respondents, organisations are increasingly focused on better defining rules/guardrails that AI must follow (50%), standardising processes/workflows across functions (49%), and increasing cross-functional coordination (47%) to improve the success of AI implementations.
“Organisations are adopting AI, but many haven’t integrated it into the core processes that drive business outcomes,” said Alex Clemente, managing director of Harvard Business Review Analytic Services. “Those that successfully embed AI into workflows will be better positioned to realise meaningful value.”
About the Research
In March 2026, Harvard Business Review Analytic Services, sponsored by Appian, surveyed 385 business decision makers from organisations that are exploring, piloting, or actively using artificial intelligence (AI).
About Appian
Appian provides process automation technology. We automate complex processes in large enterprises and governments. Our platform is known for its unique reliability and scale. We’ve been automating processes for 25 years and understand enterprise operations like no one else. For more information, visit appian.com. [Nasdaq: APPN]
Logo – https://mma.prnewswire.com/media/1488235/5943800/Appian_Caption_2700px_Logo.jpg
SOURCE Appian
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Technology
Sandbox VR Expands in Miami Area with Second Location at The Falls, Opening October 30
Published
18 minutes agoon
October 27, 2026By
Sandbox VR brings the ‘best virtual reality experience on the planet’ to The Falls
MIAMI, Oct. 27, 2026 /PRNewswire/ — Sandbox VR, the world’s premier venue for virtual reality experiences, will open its second location in the Greater Miami area on October 30 at The Falls. The more than 4,100-square-foot venue at 8888 SW 136th Street, Unit 407A, will be operated by Immersa Entertainment LLC and franchise operators Carolina Brost and William Santiago. Guests who book online by October 29 can save 25% on tickets at https://sandboxvr.com/miami/the-falls.
The Falls is a 55-acre open-air shopping, dining and entertainment destination in South Florida. Sandbox VR’s new venue includes four private holodecks where groups of up to six guests suit up with headsets, haptic vests, and motion trackers for full-body immersion. The technology allows players to see and physically interact with one another, creating the feeling of living inside the action together. After each session, guests receive personalized highlight videos to relive and share their adventure.
“As local business owners, we believe entertainment should be more than just an activity – it should be an opportunity to bring people together, create lasting memories, and strengthen our community. Opening our second entertainment venue with a franchise of Sandbox VR is an exciting next chapter in our commitment to delivering exceptional experiences. Our priority has always been to provide a safe, fun, and welcoming environment where families, friends, and colleagues can enjoy innovative, high-quality entertainment. We are proud to bring this world-class immersive experience to The Falls and look forward to continuing to serve the South Florida community that has supported us throughout our journey,” said Carolina Brost and William Santiago, Owners, Sandbox VR The Falls.
Sandbox VR operates both corporate-owned locations and a robust franchise program, and recently hit $300M in lifetime sales while scaling to 100 global locations across five continents and 13 countries since launching in 2016. The company is redefining group entertainment with immersive experiences that transform any outing into lasting memories. Built by a team of veteran developers from EA, Sony, and Ubisoft, Sandbox VR delivers full-body immersion through exclusive content and original experiences, including the recently launched Stranger Things: Catalyst, in collaboration with Netflix, and the new Age of Dinosaurs experience in partnership with the Natural History Museum of London and leading dinosaur experts.
Sandbox VR provides an unparalleled entertainment experience with over 250,000 five-star reviews from guests worldwide. With over 6 million lifetime tickets sold across five continents, the company has established itself as the global leader in location-based virtual reality. Sandbox VR is backed by Andreessen Horowitz, Alibaba Entrepreneurs Fund, Gobi Partners, Craft, and Stanford University, along with individuals such as Kevin Durant, Justin Timberlake, and Katy Perry.
To learn more or book an experience at Sandbox VR The Falls, visit https://sandboxvr.com/miami/the-falls.
ABOUT SANDBOX VR
Sandbox VR is the world’s premier destination for location-based virtual reality experiences. Operating across 100 venues around the globe through a franchise and corporate-owned model, Sandbox VR attracts over 150,000 guests each month. Sandbox VR gives guests the opportunity to step out of everyday reality into unforgettable adventures through group-play immersive experiences. Using a proprietary full-body VR platform, the company develops original and licensed content, including exclusive experiences like Stranger Things: Catalyst and Squid Game Virtuals in collaboration with Netflix, and the Sandbox VR original Deadwood series. With over 6 million tickets sold worldwide, Sandbox VR has become a leader in immersive entertainment, combining premium technology with emotionally engaging storytelling. Recognized as one of Fast Company’s Most Innovative Companies and a two-time honoree on the Inc. 5000 list of America’s fastest-growing private companies, Sandbox VR is headquartered in San Francisco with offices in Hong Kong and Vancouver. The company has raised over $70 million from investors, including Andreessen Horowitz, Alibaba Entrepreneurs Fund, Gobi Partners and Craft, with individual backers including Justin Timberlake, Kevin Durant, and Will Smith.
Media Contact:
Carolina Brost, Owner
Immersa Entertainment LLC
dba Sandbox VR The Falls
(786) 530-2020
sandboxvr.thefalls@gmail.com
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SOURCE Sandbox VR
Technology
10x Genomics to Participate in the 2026 Jefferies Global Healthcare Conference
Published
19 minutes agoon
October 27, 2026By
PLEASANTON, Calif., Oct. 27, 2026 /PRNewswire/ — 10x Genomics, Inc. (Nasdaq: TXG), the life science technology leader focused on accelerating science and advancing human health, announced today that members of its management team will participate in a fireside chat at the 2026 Jefferies Global Healthcare Conference in London on Tuesday, November 17, at 4:30 p.m. Greenwich Mean Time.
Interested parties may access a live webcast of the fireside chat on the “Investors” section of the company’s website at: https://investors.10xgenomics.com/. The webcast will be archived and available for replay for at least 30 days after the event.
About 10x Genomics
10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated research solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world’s understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.
Disclosure Information
10x Genomics uses filings with the Securities and Exchange Commission, our website (www.10xgenomics.com), press releases, public conference calls, public webcasts and our social media accounts as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
Contacts
Investors: investors@10xgenomics.com
Media: media@10xgenomics.com
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SOURCE 10x Genomics, Inc.
Technology
Ultra Clean Reports Third Quarter 2026 Financial Results
Published
19 minutes agoon
October 27, 2026By
HAYWARD, Calif., Oct. 27, 2026 /PRNewswire/ — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the third quarter ended September 25, 2026.
Highlights for the Third Quarter 2026 were as follows:
Record revenue of $759 million, up 18% compared to Q2 2026 and up 49% compared to Q3 2025.GAAP gross margin of 16.9% and non-GAAP gross margin of 17.3%.GAAP EPS of $0.85 and non-GAAP EPS of $1.15.
“UCT delivered another strong quarter of growth and solid operational performance, as we responded with speed and agility to scale production and meet accelerating customer demand,” said James Xiao, CEO. “We are positioning UCT to capture more value from this next phase of AI-driven industry expansion by co-innovating with our customers, developing more advanced solutions, and executing with focus and discipline. Through UCT 3.0, we are building a more agile and efficient company that is well positioned to anticipate customer needs, accelerate innovation, and translate industry growth into lasting shareholder value.”
Third Quarter 2026 GAAP Financial Results
Total revenue was $759.0 million. Products contributed $681.9 million and Services added $77.1 million. Total gross margin was 16.9%, operating margin was 7.1%, and net income was $39.1 million or $0.85 per diluted share. This compares to total revenue of $644.9 million, gross margin of 16.1%, operating margin of 4.6%, and net income of $8.7 million or $0.19 per diluted share, in the prior quarter.
Third Quarter 2026 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 17.3%, operating margin was 9.0%, and net income was $53.2 million or $1.15 per diluted share. This compares to gross margin of 16.7%, operating margin of 7.0%, and net income of $32.3 million or $0.70 per diluted share, in the prior quarter.
Fourth Quarter 2026 Outlook
The Company expects revenue in the range of $800 million to $860 million. The Company expects GAAP diluted net income per share to be between $1.02 and $1.26, and non-GAAP diluted net income per share to be between $1.11 and $1.35.
Conference Call
The call will take place at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 33664#. The Webcast will be available on the Investor Relations section of the Company’s website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company’s operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.
The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, debt refinancing costs, legal-related costs, unrealized loss (gain) on foreign exchange, VAT settlement, and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, “forward-looking statements” (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as “anticipates,” “projection,” “outlook,” “forecast,” “believes,” “plan,” “expect,” “future,” “intends,” “may,” “will,” “estimates,” “see,” “predicts,” “should” and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company’s actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our annual report on Form 10-K for the year ended December 26, 2025, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share data)
Three Months Ended
Nine Months Ended
September 25, 2026
September 26, 2025
September 25, 2026
September 26, 2025
Revenues:
Products
$ 681.9
$ 445.0
$ 1,720.3
$ 1,356.9
Services
77.1
65.0
217.3
190.4
Total revenues
759.0
510.0
1,937.6
1,547.3
Cost of revenues:
Products
575.7
380.4
1,465.2
1,163.9
Services
54.9
47.4
155.9
137.8
Total cost of revenues
630.6
427.8
1,621.1
1,301.7
Gross profit
128.4
82.2
316.5
245.6
Operating expenses:
Research and development
8.8
7.8
26.1
23.2
Sales and marketing
15.9
15.1
47.8
45.5
General and administrative
50.0
48.7
148.1
144.1
Impairment of goodwill
—
—
—
151.1
Total operating expenses
74.7
71.6
222.0
363.9
Income (loss) from operations
53.7
10.6
94.5
(118.3)
Interest income
1.4
1.1
3.8
3.0
Interest expense
(1.5)
(9.9)
(9.8)
(29.9)
Other expense, net
(2.5)
(1.2)
(3.2)
(2.5)
Income (loss) before provision for income taxes
51.1
0.6
85.3
(147.7)
Provision for income taxes
10.3
8.7
47.5
23.3
Net income (loss)
40.8
(8.1)
37.8
(171.0)
Less: Net income attributable to noncontrolling interests
1.7
2.8
7.9
6.9
Net income (loss) attributable to UCT
$ 39.1
$ (10.9)
$ 29.9
$ (177.9)
Net income (loss) per share attributable to UCT common stockholders:
Basic
$ 0.86
$ (0.24)
$ 0.66
$ (3.93)
Diluted
$ 0.85
$ (0.24)
$ 0.65
$ (3.93)
Shares used in computing net income (loss) per share:
Basic
45.4
45.4
45.3
45.2
Diluted
46.2
45.4
46.2
45.2
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
September 25,
2026
December 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 270,9
$ 311,8
Accounts receivable, net of allowance for credit losses
272,4
208,8
Inventories
723,3
390,9
Prepaid expenses and other current assets
67,6
48,2
Total current assets
1 334,2
959,7
Property, plant and equipment, net
344,4
324,6
Goodwill
114,2
114,2
Intangible assets, net
136,4
156,8
Deferred tax assets, net
4,1
3,5
Operating lease right-of-use assets
156,3
157,2
Other non-current assets
14,8
13,0
Total assets
$ 2 104,4
$ 1 729,0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$ —
$ 9,9
Accounts payable
335,2
194,9
Accrued compensation and related benefits
63,3
51,1
Operating lease liabilities
22,3
20,2
Other current liabilities
57,8
24,6
Total current liabilities
478,6
300,7
Long-term debt
635,1
467,0
Deferred tax liabilities
13,7
13,8
Operating lease liabilities
152,7
156,6
Other liabilities
11,0
6,8
Total liabilities
1 291,1
944,9
Equity:
UCT stockholders’ equity:
Common stock
0,1
0,1
Additional paid-in capital
601,6
578,7
Common shares held in treasury
(88,7)
(48,4)
Retained earnings
219,1
189,2
Accumulated other comprehensive loss
(4,6)
(8,6)
Total UCT stockholders’ equity
727,5
711,0
Noncontrolling interests
85,8
73,1
Total equity
813,3
784,1
Total liabilities and equity
$ 2 104,4
$ 1 729,0
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Nine Months Ended
September 25,
2026
September 26,
2025
(In millions)
Cash flows from operating activities:
Net income (loss)
$ 37.8
$ (171.0)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
37.5
35.5
Amortization of intangible assets
20.4
21.2
Stock-based compensation
17.2
14.4
Amortization of debt issuance costs
2.5
2.1
Loss on extinguishment of debt
3.4
—
Loss on disposal of property, plant and equipment
1.2
0.7
Impairment of goodwill
—
151.1
Change in the fair value of financial instruments
—
(0.1)
Deferred income taxes
(0.6)
0.4
Changes in assets and liabilities:
Accounts receivable
(63.6)
41.6
Inventories
(332.4)
(1.2)
Prepaid expenses and other current assets
(16.0)
(6.3)
Other non-current assets
0.0
(1.0)
Accounts payable
131.1
(22.8)
Accrued compensation and related benefits
12.2
(0.6)
Income taxes payable
3.3
(12.1)
Operating lease right-of-use assets and operating lease liabilities
(0.9)
10.2
Other liabilities
30.2
(4.6)
Net cash provided by (used in) operating activities
(116.7)
57.5
Cash flows from investing activities:
Purchases of property, plant and equipment
(45.3)
(40.2)
Proceeds from sale of equipment
0.1
3.2
Net cash used in investing activities
(45.2)
(37.0)
Cash flows from financing activities:
Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees
34.0
—
At-the-market offering costs for the issuance of common stock
(0.1)
—
Proceeds from the issuance of convertible notes
600.0
—
Borrowings on revolving credit facility
50.0
—
Proceeds from bank borrowings
—
59.3
Extinguishment of bank borrowings
—
(59.3)
Proceeds from issuance of common stock
1.1
1.1
Payment of debt issuance costs
(17.4)
(0.6)
Repurchase of common stock
(40.0)
(3.4)
Payment for capped call transactions
(25.1)
—
Principal payments on bank borrowings
(481.5)
(18.2)
Employees’ taxes paid upon vesting of restricted stock units
(4.3)
(1.1)
Payments of dividends to a joint venture shareholder
(0.1)
(0.1)
Net cash provided by (used in) financing activities
116.6
(22.3)
Effect of exchange rate changes on cash and cash equivalents
4.4
2.0
Net increase (decrease) in cash and cash equivalents
(40.9)
0.2
Cash and cash equivalents at beginning of period
311.8
313.9
Cash and cash equivalents at end of period
$ 270.9
$ 314.1
ULTRA CLEAN HOLDINGS, INC.
REPORTABLE SEGMENTS
GAAP TO NON-GAAP RECONCILIATION
(Unaudited; dollars in millions)
GAAP
Non-GAAP
Three Months Ended
Three Months Ended
September 25, 2026
September 25, 2026
Products
Services
Consolidated
Products
Services
Consolidated
Revenues
$ 681.9
$ 77.1
$ 759.0
$ 681.9
$ 77.1
$ 759.0
Gross profit
$ 106.2
$ 22.2
$ 128.4
$ 108.3
$ 23.2
$ 131.5
Gross margin
15.6 %
28.8 %
16.9 %
15.9 %
30.1 %
17.3 %
Income from operations
$ 46.7
$ 7.0
$ 53.7
$ 58.1
$ 10.5
$ 68.6
Operating margin
6.8 %
9.1 %
7.1 %
8.5 %
13.6 %
9.0 %
Three Months Ended
September 25, 2026
Products
Services
Consolidated
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 106.2
$ 22.2
$ 128.4
Amortization of intangible assets (1)
1.3
1.0
2.3
Stock-based compensation expense (2)
0.6
—
0.6
Restructuring charges (3)
0.2
—
0.2
Non-GAAP gross profit
$ 108.3
$ 23.2
$ 131.5
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
15.6 %
28.8 %
16.9 %
Amortization of intangible assets (1)
0.2 %
1.3 %
0.3 %
Stock-based compensation expense (2)
0.1 %
— %
0.1 %
Restructuring charges (3)
0.0 %
— %
0.0 %
Non-GAAP gross margin
15.9 %
30.1 %
17.3 %
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 46.7
$ 7.0
$ 53.7
Amortization of intangible assets (1)
3.9
2.9
6.8
Stock-based compensation expense (2)
6.3
0.6
6.9
Restructuring charges (3)
0.6
0.0
0.6
Legal-related costs (4)
0.6
—
0.6
Non-GAAP income from operations
$ 58.1
$ 10.5
$ 68.6
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
6.8 %
9.1 %
7.1 %
Amortization of intangible assets (1)
0.6 %
3.8 %
0.8 %
Stock-based compensation expense (2)
0.9 %
0.7 %
0.9 %
Restructuring charges (3)
0.1 %
— %
0.1 %
Legal-related costs (4)
0.1 %
— %
0.1 %
Non-GAAP operating margin
8.5 %
13.6 %
9.0 %
1
Amortization of intangible assets related to the Company’s business acquisitions
2
Represents compensation expense for stock granted to employees and directors
3
Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures
4
Represents estimated costs related to certain legal proceedings and a cybersecurity incident
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended
September 25,
2026
September 26,
2025
June 26,
2026
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions)
Reported net income (loss) attributable to UCT on a GAAP basis
$ 39.1
$ (10.9)
$ 8.7
Amortization of intangible assets (1)
6.8
6.9
6.8
Stock-based compensation expense (2)
6.9
4.6
8.1
Restructuring charges (3)
0.6
7.1
0.7
Debt refinancing costs expensed (4)
—
1.1
0.7
Legal-related costs (5)
0.6
0.2
—
Unrealized loss (gain) on foreign exchange (6)
2.6
(2.4)
(1.9)
VAT settlement (7)
—
(0.2)
—
Income tax effect of non-GAAP adjustments (8)
(3.5)
(4.0)
(2.9)
Income tax effect of valuation allowance (9)
0.1
8.6
12.1
Non-GAAP net income attributable to UCT
$ 53.2
$ 11.0
$ 32.3
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 53.7
$ 10.6
$ 29.5
Amortization of intangible assets (1)
6.8
6.9
6.8
Stock-based compensation expense (2)
6.9
4.6
8.1
Restructuring charges (3)
0.6
7.1
0.7
Legal-related costs (5)
0.6
0.2
—
VAT settlement (7)
—
(0.2)
—
Non-GAAP income from operations
$ 68.6
$ 29.2
$ 45.1
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
7.1 %
2.1 %
4.6 %
Amortization of intangible assets (1)
0.8 %
1.3 %
1.0 %
Stock-based compensation expense (2)
0.9 %
0.9 %
1.3 %
Restructuring charges (3)
0.1 %
1.4 %
0.1 %
Legal-related costs (5)
0.1 %
0.0 %
— %
VAT settlement (7)
— %
0.0 %
— %
Non-GAAP operating margin
9.0 %
5.7 %
7.0 %
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 128.4
$ 82.2
$ 103.7
Amortization of intangible assets (1)
2.3
2.3
2.3
Stock-based compensation expense (2)
0.6
0.5
1.5
Restructuring charges (3)
0.2
2.1
0.1
VAT settlement (7)
—
(0.2)
—
Non-GAAP gross profit
$ 131.5
$ 86.9
$ 107.6
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
16.9 %
16.1 %
16.1 %
Amortization of intangible assets (1)
0.3 %
0.4 %
0.4 %
Stock-based compensation expense (2)
0.1 %
0.1 %
0.2 %
Restructuring charges (3)
0.0 %
0.4 %
0.0 %
VAT settlement (7)
— %
0.0 %
— %
Non-GAAP gross margin
17.3 %
17.0 %
16.7 %
Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions)
Reported Other income (expense), net on a GAAP basis
$ (2.5)
$ (1.2)
$ 0.6
Debt refinancing costs expensed (4)
—
1.1
0.7
Unrealized loss (gain) on foreign exchange (6)
2.6
(2.4)
(1.9)
Non-GAAP Other income (expense), net
$ 0.1
$ (2.5)
$ (0.6)
Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share
Reported net income (loss) on a GAAP basis
$ 0.85
$ (0.24)
$ 0.19
Amortization of intangible assets (1)
0.15
0.15
0.15
Stock-based compensation expense (2)
0.15
0.10
0.18
Restructuring charges (3)
0.01
0.16
0.01
Debt refinancing costs expensed (4)
—
0.02
0.01
Legal-related costs (5)
0.01
0.00
—
Unrealized loss (gain) on foreign exchange (6)
0.06
(0.05)
(0.04)
VAT settlement (7)
—
0.00
—
Income tax effect of non-GAAP adjustments (8)
(0.08)
(0.09)
(0.06)
Income tax effect of valuation allowance (9)
0.00
0.19
0.26
Impact of dilutive shares
0.00
0.00
0.00
Non-GAAP net earnings
$ 1.15
$ 0.24
$ 0.70
Weighted average number of diluted shares (in millions) on a non-GAAP basis (10)
46.2
45.6
46.0
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
Three Months Ended
September 25,
2026
September 26,
2025
June 26,
2026
Provision for income taxes on a GAAP basis
$ 10.3
$ 8.7
$ 18.1
Income tax effect of non-GAAP adjustments (8)
3.5
4.0
2.9
Income tax effect of valuation allowance (9)
(0.1)
(8.6)
(12.1)
Non-GAAP provision for income taxes
$ 13.7
$ 4.1
$ 8.9
Income before income taxes on a GAAP basis
$ 51.1
$ 0.6
$ 30.0
Amortization of intangible assets (1)
6.8
6.9
6.8
Stock-based compensation expense (2)
6.9
4.6
8.1
Restructuring charges (3)
0.6
7.1
0.7
Debt refinancing costs expensed (4)
—
1.1
0.7
Legal-related costs (5)
0.6
0.2
—
Unrealized loss (gain) on foreign exchange (6)
2.6
(2.4)
(1.9)
VAT settlement (7)
—
(0.2)
—
Non-GAAP income before income taxes
$ 68.6
$ 17.9
$ 44.4
Effective income tax rate on a GAAP basis
20.2 %
1450.0 %
60.3 %
Non-GAAP effective income tax rate
20.0 %
22.9 %
20.0 %
1 Amortization of intangible assets related to the Company’s business acquisitions
2 Represents compensation expense for stock granted to employees and directors
3 Represents costs associated with employee separation, severance, retention, and other expenses related to facility closures
4 Represents certain third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt
5 Represents estimated costs related to certain legal proceedings and a cybersecurity incident
6 Represents unrealized foreign exchange gains and losses arising from the remeasurement of monetary assets and liabilities
7 Represents impact of value added tax ruling
8 Tax effect of items (1) through (7) above based on the non-GAAP tax rate
9 The Company’s GAAP tax expense is generally higher than the Company’s non-GAAP tax expense, primarily due to losses in the U.S. with full federal and state valuation allowances. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect
10 Non-GAAP diluted weighted-average common shares are adjusted to reflect the dilutive impact of our convertible note based on the capped call cap price instead of the initial conversion price
View original content to download multimedia:https://www.prnewswire.com/news-releases/ultra-clean-reports-third-quarter-2026-financial-results-302921159.html
SOURCE Ultra Clean Holdings, Inc.
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