COHU INC

Our business, financial condition and results of operations are affected by a number of factors, whether currently known or unknown, including risks specific to us or our industry, as well as risks that affect businesses in general. In addition to the risk factors set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 27, 2025 (the“Annual Report”). The risk factors set forth below update, and should be read in conjunction with, the risk factors disclosed in such Annual Report. Other than the risk factors set forth below, we believe there have been no material changes from the risk factors disclosed in the Annual Report. However, additional risks and uncertainties not currently known or which we currently deem to be immaterial may also materially adversely affect our business, financial condition, or results of operations.

Risks Associated with Operating a Global Business

Impact of the Iran Conflict.

The ongoing military conflict involving Iran (the “Iran Conflict”), including actions by the United States and Israel, could adversely affect our business, results operations, financial condition or financial reporting. The continuation, escalation or expansion of the Iran Conflict could lead to retaliatory actions, international sanctions and embargo regulations, possible disruptions to global energy supplies and oil prices due to tensions in the Strait of Hormuz and the Middle East region, shortages of goods and supply chain challenges, and the international and U.S. domestic inflationary results of the Iran Conflict and related spending by the U.S. and international governments. These developments could, among other things, increase our operating and manufacturing costs (including energy, freight and certain vendor cots), impair the availability, pricing or lead times of components and services used in our products, and result in delays, cancellations or reductions in customer orders as customers adjust capital spending in response to geopolitical uncertainty and macroeconomic volatility, including in the semiconductor capital equipment markets in which we operate. In addition, heightened geopolitical tensions may give risk to increased frequency or sophistication of cybersecurity threats, including potentially from state-sponsored actors associated with the Iran Conflict, such as ransomware and other attacks which could disrupt our operations or those of our suppliers, logistics providers, or other third parties on which we relay and could result in loss of data, remediation costs, litigation, regulatory inquiries, reputational harm, and other adverse consequences.