How Much Time Does Ultra Clean’s Cash Buy?
Ultra Clean Holdings (UCTT) builds subsystems and provides services for the makers of semiconductor equipment. During its fiscal second quarter of 2026, which ended June 26, the company spent $57.3 million more cash than it brought in. This marks the fourth consecutive quarter of cash outflows. If it kept going at that pace, how long do you think its cash would last?
How Fast Is Ultra Clean Burning Cash?
During fiscal Q2 2026, Ultra Clean burned cash equal to 8.9% of its sales, after accounting for daily operations and spending on buildings and equipment. In the same quarter a year earlier, the company generated surplus cash equal to 2.4% of sales. It has now burned cash across the last four quarters, reversing a trend of having cash to spare in the four quarters prior.
| Fiscal quarter | Sales | Cash the business brought in | Cash left after spending on buildings and equipment |
|---|---|---|---|
| Q1 FY2025 (ended 2025-03-28) | $519 million | $28.2 million | $15.8 million |
| Q2 FY2025 (ended 2025-06-27) | $519 million | $29.2 million | $12.4 million |
| Q3 FY2025 (ended 2025-09-26) | $510 million | $0.100 million | -$10.9 million |
| Q4 FY2025 (ended 2025-12-26) | $507 million | $8.10 million | -$2.00 million |
| Q1 FY2026 (ended 2026-03-27) | $534 million | -$33.3 million | -$42.9 million |
| Q2 FY2026 (ended 2026-06-26) | $645 million | -$41.1 million | -$57.3 million |
Each row is one fiscal quarter. A negative figure is cash going out. The last column is free cash flow.
The cash burn is growing. Ultra Clean did earn an operating profit in the latest quarter, representing 4.6% of sales. Yet the cash went out anyway, exiting the business faster than in any of the seven quarters before.
How Long Would Ultra Clean’s Cash Last?
Ultra Clean held $256 million in cash and short-term investments on June 26, 2026. If the company raised no new capital and maintained its average cash burn from the last four quarters, that cash would last about nine quarters. At the latest quarter’s pace alone, the runway shrinks to about four and a half. Its debt of $776 million sits at about three times the cash it holds. Ultimately, the cash covers about one year at the latest pace and a little over two years at the average pace.
Who Has Paid For The Burn So Far?
Existing shareholders have not funded this cash consumption, at least not through equity dilution. Ultra Clean’s diluted share count rose only 1.5% between June 28, 2024, and June 26, 2026. Issuing new equity has played almost no part in covering the deficit. The company instead paid from cash it already had and by borrowing more. Over those same two years, its cash fell by about a fifth, and its debt rose about 17%.
What Has To Change At Ultra Clean
During the fiscal Q2 2026 earnings call on August 3, 2026, management said the cash outflow in the first half of 2026 reflects investments in working capital, particularly inventory to support anticipated demand. Concurrently, the company is adding capacity in Singapore and the Czech Republic. Sales are already growing, coming in 24.3% higher in the latest quarter than a year earlier. For the cash burn to shrink, that inventory has to turn back into cash. The crucial figure to watch is the cash Ultra Clean burns each quarter, which stood at $57.3 million in fiscal Q2 2026, when it next reports on or around October 27, 2026.
How To Act On UCTT?
Not necessarily on Ultra Clean alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. Here are two companies from Ultra Clean’s own industry that have beaten it. Over the five years to October 2026, Applied Materials stock rose 224% and Advanced Energy Industries stock rose 174%, while Ultra Clean stock rose 14.3%.
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