v3.25.2
Revenue
 6 Months Ended
Jun. 29, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregated Revenue
The Company recognizes ATS development, tools, and Wafer Services revenues pursuant to its revenue recognition policies as described in Note 3 – Summary of Significant Accounting Policies to the annual consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2024. The following tables disclose revenue by product type and the timing of recognition of revenue for transfer of goods and services to customers:
Three-Month Period Ended June 29, 2025
Topic 606 Revenue
Point-in-TimeOver Time
Lease Revenue Per Topic 842
Total Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$— $36,566 $— $36,566 
Fixed price contracts3,737 11,524 — 15,261 
Other— — 778 778 
Total ATS development3,737 48,090 778 52,605 
Wafer Services296 5,115 — 5,411 
Combined ATS development and Wafer Services4,033 53,205 778 58,016 
Tools1,047 — — 1,047 
Total$5,080 $53,205 $778 $59,063 

Three-Month Period Ended June 30, 2024
Topic 606 Revenue
Point-in-TimeOver Time
Lease Revenue Per Topic 842
Total Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$— $40,363 $— $40,363 
Fixed price contracts1,590 18,549 — 20,139 
Other— — 1,167 1,167 
Total ATS development1,590 58,912 1,167 61,669 
Wafer Services357 5,423 — 5,780 
Combined ATS development and Wafer Services1,947 64,335 1,167 67,449 
Tools25,880 — — 25,880 
Total$27,827 $64,335 $1,167 $93,329 
Six-Month Period Ended June 29, 2025
Topic 606 Revenue
Point-in-TimeOver Time
Lease Revenue Per Topic 842
Total Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$1,204 $72,441 $— $73,645 
Fixed price contracts8,569 20,981 — 29,550 
`
Other— — 1,945 1,945 
Total ATS development9,773 93,422 1,945 105,140 
Wafer Services380 12,558 — 12,938 
Combined ATS development and Wafer Services10,153 105,980 1,945 118,078 
Tools2,281 — — 2,281 
Total$12,434 $105,980 $1,945 $120,359 


Six-Month Period Ended June 30, 2024
Topic 606 Revenue
Point-in-TimeOver Time
Lease Revenue Per Topic 842
Total Revenue
ATS development
Time-and-materials and cost-plus-fixed-fee contracts$— $82,859 $— $82,859 
Fixed price contracts1,590 36,070 — 37,660 
Other— — 2,334 2,334 
Total ATS development1,590 118,929 2,334 122,853 
Wafer Services1,503 14,270 — 15,773 
Combined ATS development and Wafer Services3,093 133,199 2,334 138,626 
Tools34,339 — — 34,339 
Total$37,432 $133,199 $2,334 $172,965 
Deferred Contract Costs
The Company recognizes an asset for the incremental cost of obtaining a contract with a customer (i.e., deferred contract costs) when costs are considered recoverable and the duration of the contract is in excess of one year. Deferred contract costs are amortized as the related revenue is recognized. The Company recognized amortization of deferred contract costs totaling $0 for the three-month period ended June 29, 2025 and recognized amortization of deferred contract costs of $0 for the three-month period ended June 30, 2024. The Company recognized amortization of deferred contract costs totaling $0 and $172 for the six-month periods ended June 29, 2025 and June 30, 2024, respectively. There were no deferred contract costs capitalized as of June 29, 2025 and June 30, 2024 .
Contract Assets
Contract assets represent SkyWater’s rights to payments for services it has transferred to its customers, but has not yet billed to its customers. Contract assets were $19,250 and $20,890 at June 29, 2025 and December 29, 2024, respectively, and are presented net of allowances for expected credit losses of $19 and $42, respectively.
Contract Liabilities
The Company’s contract liabilities principally consist of deferred revenue which represents payments from customers for which performance obligations have not yet been satisfied and deferred lease revenue which represents prepayments on a leasing arrangement in which the Company serves as lessor. In some instances, cash may be received, or payment may be contractually due by a customer before the related revenue is recognized. The contract liabilities and other significant components of contract liabilities at June 29, 2025 and December 29, 2024 are as follows:
 June 29, 2025December 29, 2024
Contract
Deferred Revenue (1)		Lease Deferred
Revenue		Total
Contract Liabilities		Contract
Deferred Revenue (1)		Lease Deferred
Revenue		Total
Contract Liabilities
Current contract liabilities$60,472 $778 $61,250 $53,222 $1,944 $55,166 
Long-term contract liabilities90,887 — 90,887 51,901 — 51,901 
Total contract liabilities$151,359 $778 $152,137 $105,123 $1,944 $107,067 
__________________
(1)Contract deferred revenue includes $42,638 and $48,200 at June 29, 2025 and December 29, 2024, respectively, related to material rights provided to a significant customer in exchange for funding additional manufacturing capacity. Of these amounts, $11,123 and $11,123 were classified as current in the interim condensed consolidated balance sheets as of June 29, 2025 and December 29, 2024, respectively.

The change in contract liabilities during the three- and six-month periods ended June 29, 2025 and June 30, 2024 are as follows:
Three-Month Period Ended
Six-Month Period Ended
June 29, 2025June 30, 2024June 29, 2025June 30, 2024
Balance at beginning of period$158,479 $114,714 $107,067 $115,305 
Revenue recognized included in the balance at the beginning of the period(9,581)(21,960)(19,076)(34,647)
Increase due to payments received, excluding amounts recognized as revenue3,239 13,123 64,146 25,219 
Balance at end of period$152,137 $105,877 $152,137 $105,877 
Remaining Performance Obligations
At June 29, 2025, the Company had $133,821 of remaining performance obligations that had not been fully satisfied on contracts with original expected durations of one year or more, which were primarily related to ATS development and tools
revenue contracts. The Company expects to recognize those revenues as it satisfies its performance obligations, which is not expected to exceed 4.0 years.
The Company does not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Further, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between when it transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.