Ultra Clean Holdings (0LID) Risk Analysis
Risk Overview Q2, 2026
Source: the company's latest filing for the period ended Jun 26, 2026, filed Aug 04, 2026
Risk Change Over Time
- Share Price & Shareholder Rights - Risk 1The capped call transactions may affect the value of our common stock.
In connection with the pricing of the 2031 Convertible Notes, we entered into privately negotiated capped call transactions with certain financial institutions (the "Option Counterparties"). The capped call transactions are expected generally to reduce potential dilution to our common stock upon any conversion of the 2031 Convertible Notes and/or offset any potential cash payments we are required to make in excess of the principal amount of converted notes, subject to a cap. In connection with establishing their initial hedges of the capped call transactions, the option counterparties were expected to enter into various derivative transactions with respect to our common stock and/or purchase shares of our common stock concurrently with or shortly after the pricing of the 2031 Convertible Notes. This activity could have increased, or reduced the size of any decrease in, the market price of our common stock at that time. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to our common stock and/or purchasing or selling our common stock in secondary market transactions following the pricing of the 2031 Convertible Notes and prior to their maturity, and are likely to do so during the relevant valuation period under the capped call transactions and following any early conversion or repurchase of notes by us. This activity could cause or avoid an increase or a decrease in the market price of our common stock. In addition, if any such capped call transactions fail to become effective, the option counterparties or their respective affiliates may unwind their hedge positions with respect to our common stock, which could adversely affect the value of our common stock.
- Debt & Financing - Risk 2The conditional conversion feature of our 2031 Convertible Notes, if triggered, may adversely affect our financial condition and operating results.
Before December 16, 2030, holders of the 2031 Convertible Notes will have the right to convert their notes only upon the occurrence of certain specified conditions. Many of these conditions are beyond our control. If one or more of these conditions is satisfied and holders elect to convert their notes, we will be required to settle conversions partially or entirely in cash. We may not have sufficient liquidity to satisfy any such conversion obligation at the time it arises, which could have a material adverse effect on our financial condition. In addition, if any of the conditions to the convertibility of the 2031 Convertible Notes is satisfied, we may be required under applicable accounting standards to reclassify the liability carrying value of the notes as a current, rather than long-term, liability on our consolidated balance sheet. This reclassification could be required even if no holders ultimately convert their notes and could materially reduce our reported working capital, which may adversely affect how investors, analysts, and lenders evaluate our financial condition and liquidity.
Risk Highlights Q2, 2026
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 42
- Share Price & Shareholder Rights - Risk 1AddedThe capped call transactions may affect the value of our common stock.
In connection with the pricing of the 2031 Convertible Notes, we entered into privately negotiated capped call transactions with certain financial institutions (the "Option Counterparties"). The capped call transactions are expected generally to reduce potential dilution to our common stock upon any conversion of the 2031 Convertible Notes and/or offset any potential cash payments we are required to make in excess of the principal amount of converted notes, subject to a cap. In connection with establishing their initial hedges of the capped call transactions, the option counterparties were expected to enter into various derivative transactions with respect to our common stock and/or purchase shares of our common stock concurrently with or shortly after the pricing of the 2031 Convertible Notes. This activity could have increased, or reduced the size of any decrease in, the market price of our common stock at that time. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivatives with respect to our common stock and/or purchasing or selling our common stock in secondary market transactions following the pricing of the 2031 Convertible Notes and prior to their maturity, and are likely to do so during the relevant valuation period under the capped call transactions and following any early conversion or repurchase of notes by us. This activity could cause or avoid an increase or a decrease in the market price of our common stock. In addition, if any such capped call transactions fail to become effective, the option counterparties or their respective affiliates may unwind their hedge positions with respect to our common stock, which could adversely affect the value of our common stock.
- Share Price & Shareholder Rights - Risk 2We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value.
We have a stock repurchase program under which we are authorized to repurchase our common stock. Our repurchase program may be suspended or terminated at any time. Even if our stock repurchase program is fully implemented, it may not enhance long-term stockholder value. Also, the amount, timing, and execution of our stock repurchase programs may fluctuate based on our priorities for the use of cash for other purposes and because of changes in cash flows, tax laws, and the market price of our common stock.
- Share Price & Shareholder Rights - Risk 3The market for our stock is subject to significant fluctuation.
The size of our public market capitalization is relatively small, and the average volume of our shares that are traded is relatively low. The market price of our common stock could be subject to significant fluctuations. Among the factors that could affect our stock price are: - quarterly variations in our operating results;- our ability to successfully introduce new products and services and manage new product transitions;- changes in revenue or earnings estimates or publication of research reports by analysts;- speculation in the press or investment community;- strategic actions by us, our customers or our competitors, such as acquisitions or restructurings;- announcements relating to any of our key customers, significant suppliers or the semiconductor manufacturing and capital equipment industry generally;- the effects of war and terrorist attacks;- domestic and international economic or political factors unrelated to our performance; and,- the results of our operations not meeting our guidance or analysts' expectations. The stock markets in general, and the markets for technology stocks in particular, have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock.
- Share Price & Shareholder Rights - Risk 4If securities or industry analysts do not publish research or reports about our business, or if they issue an adverse opinion regarding our stock, our stock price and trading volume could decline.
The trading market for our common stock is influenced by the research and reports that industry analysts publish about us or our business. If any of the analysts issue an adverse opinion regarding our stock, our stock price would likely decline. Similarly, if these analysts cease publishing regular reports on us, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline.
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.