Axcelis Announces Financial Results for Third Quarter 2025

Rhea-AI Summary

Axcelis (Nasdaq: ACLS) reported third-quarter 2025 results with revenue of $213.6 million, GAAP gross margin of 41.6% and GAAP diluted EPS of $0.83. Non-GAAP diluted EPS was $1.21 and Adjusted EBITDA was $43.2 million. Management highlighted record CS&I revenue, strong operating leverage, and over $590 million in cash and investments on the balance sheet.

The company provided fourth-quarter 2025 guidance of approximately $215 million revenue, GAAP EPS of about $0.76, and non-GAAP EPS of about $1.12. Management reiterated the proposed merger with Veeco Instruments as a strategic milestone intended to create a larger semiconductor equipment company.

Positive

• Cash & investments > $590 million
• Q4 revenue guidance ~ $215 million
• Recorded CS&I revenue high in the quarter

Negative

• Revenue down ~16.7% YoY ($256.6M to $213.6M)
• GAAP net income down ~46% YoY ($48.6M to $26.0M)
• GAAP diluted EPS down ~44% YoY ($1.49 to $0.83)
• Adjusted EBITDA down ~27.6% YoY ($59.7M to $43.2M)

Insights

Equity Analyst

Mixed quarterly results: revenues and EPS fell year‑over‑year but strong cash, free cash flow and a planned merger change the picture.

Axcelis reported $213.6 million revenue for Q3 and GAAP diluted EPS of $0.83, down from prior-year figures. GAAP gross margin was 41.6% and GAAP operating margin was 11.7%; non-GAAP EPS was $1.21. The company cites record CS&I revenue and disciplined cost control as drivers of operating leverage.

Key dependencies and risks remain explicit: fourth-quarter guidance of approximately $215 million revenue, GAAP EPS $0.76, and non-GAAP EPS $1.12 will test momentum. The announced merger with Veeco and the stated $590 million in cash and investments are material facts that could affect capital allocation and integration-related costs. Monitor regulatory approvals, conversion of backlog to revenue, and Q4 margin trends over the next quarter.

Q3 Highlights:

• Revenue of $213.6 million
• GAAP Gross Margin of 41.6%, and Non-GAAP Gross Margin of 41.8%
• GAAP Operating Margin of 11.7% and Non-GAAP Operating Margin of 18.2%
• GAAP Diluted earnings per share of $0.83, and Non-GAAP Diluted earnings per share of $1.21

BEVERLY, Mass., Nov. 4, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2025.

President and CEO Russell Low commented, "We delivered another solid quarter, with sales and earnings both exceeding our expectations. We are also pleased to report record CS&I revenue in the quarter, reflecting the success of our aftermarket strategy and the continued expansion of our installed base. We are executing on our product development roadmap and customer engagement initiatives with focus and urgency, while maintaining disciplined cost controls. These actions have enabled us to successfully navigate the anticipated cyclical digestion period across our markets in 2025."

Low added, "We entered the fourth quarter with a solid financial foundation and are well poised to execute on our strategy as we enter into our next chapter of growth and innovation. Our recently announced merger with Veeco Instruments marks a critical milestone that we believe will position the combined company to capitalize on powerful secular tailwinds including AI and electrification. By bringing our two companies together, we believe we are building a leading semiconductor equipment company with the capabilities, resources and financial foundation to drive sustainable growth and value creation for shareholders and deliver meaningful benefits to all stakeholders."

Executive Vice President and Chief Financial Officer Jamie Coogan stated, "We generated robust operating leverage through higher volume and disciplined cost management, translating into strong free cash flow. With over $590 million in cash and investments on the balance sheet, Axcelis has ample flexibility to capitalize on our value-enhancing strategic initiatives and long-term growth priorities."

Results Summary  (In thousands, except per share amounts and percentages)
		Three months ended September 30,
		2025			2024
Revenue	$	213,611		$	256,564
Gross margin		41.6 %			42.9 %
Operating margin		11.7 %			18.3 %
Net income	$	25,986		$	48,576
Diluted earnings per share	$	0.83		$	1.49
Non-GAAP Results
Non-GAAP gross margin		41.8 %			43.0 %
Non-GAAP operating margin		18.2 %			21.7 %
Adjusted EBITDA	$	43,202		$	59,674
Non-GAAP net income	$	37,900		$	56,191
Non-GAAP diluted earnings per share	$	1.21		$	1.72

 

Business Outlook
For the fourth quarter ending December 31, 2025, Axcelis expects revenues of approximately $215 million, GAAP earnings per diluted share of approximately $0.76, and non-GAAP earnings per share of approximately $1.12.

Please refer to Fourth Quarter Outlook under the "Notes on our Non-GAAP Financial Information" section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

Third Quarter 2025 Conference Call
The Company will host a call today to discuss the results at 8:30 a.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a participant here:

https://register-conf.media-server.com/register/BI7b3b54c06ff14c8080f379ce76dc7cab
Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results
This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("non-GAAP financial measures"). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the "Notes on Our Non-GAAP Financial Information" at the end of this press release.

Safe Harbor Statement
This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers and, with respect to the potential transaction with Veeco, failure to obtain applicable regulatory or stockholder approvals in a timely manner or otherwise; failure to satisfy other closing conditions to the proposed transaction or to complete the proposed transaction on anticipated terms and timing; negative effects of the announcement of the proposed transaction; risks that the businesses will not be integrated successfully or that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth, or that such benefits may take longer to realize or may be more costly to achieve than expected; the risk that disruptions from the proposed transaction will harm business plans and operations; risks relating to unanticipated costs of integration; significant transaction and/or integration costs, or difficulties in connection with the proposed transaction and/or unknown or inestimable liabilities; restrictions during the pendency of the proposed transaction that may impact the ability to pursue certain business opportunities or strategic transactions; potential litigation associated with the proposed transaction; the potential impact of the announcement or consummation of the proposed transaction on the Company's, Veeco's or the combined company's relationships with suppliers, customers, employees and regulators; and demand for the combined company's products. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: economic, political and social conditions in the countries in which the Company and Veeco, their respective customers and suppliers operate; disruption to the Company's and Veeco's respective manufacturing facilities or other operations, or the operations of Company's and Veeco's respective customers and suppliers, due to natural catastrophic events, health epidemics or terrorism; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end-markets, or changes in customer capital spending patterns; the Company's, Veeco's and the combined company's ability to timely develop new technologies and products that successfully anticipate or address changes in the semiconductor industry; the Company's, Veeco's and the combined company's ability to maintain their respective technology advantage and protect their respective proprietary rights; the Company's, Veeco's and the combined company's ability to compete with new products introduced by their respective competitors; the Company's, Veeco's and the combined company's ability or the ability of their respective customers to obtain U.S. export control licenses for the sale of certain products or provision of certain services to customers in China. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis:

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

CONTACTS:

Investor Relations Contact:
David Ryzhik
Senior Vice President, Investor Relations and Corporate Strategy
Telephone: (978) 787-2352
Email: David.Ryzhik@axcelis.com

Press/Media Relations Contact:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: Maureen.Hart@axcelis.com

Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
		Three months ended						Nine months ended
			September 30,					September 30,
		2025			2024			2025			2024
Revenue:
Product		$	201,218		$	246,826		$	567,444		$	735,626
Services			12,393			9,738			33,274			29,822
Total revenue			213,611			256,564			600,718			765,448
Cost of revenue:
Product			112,078			136,379			302,041			399,049
Services			12,727			10,215			33,761			27,968
Total cost of revenue			124,805			146,594			335,802			427,017
Gross profit			88,806			109,970			264,916			338,431
Operating expenses:
Research and development			24,640			26,395			78,832			77,843
Sales and marketing			15,838			16,808			45,965			51,483
General and administrative			23,308			19,854			56,976			52,842
Total operating expenses			63,786			63,057			181,773			182,168
Income from operations			25,020			46,913			83,143			156,263
Other income (expense):
Interest income			5,465			6,560			16,547			18,126
Interest expense			(1,305)			(1,333)			(4,028)			(4,017)
Other, net			970			3,225			2,569			1,257
Total other income			5,130			8,452			15,088			15,366
Income before income taxes			30,150			55,365			98,231			171,629
Income tax provision			4,164			6,789			12,290			20,593
Net income		$	25,986		$	48,576		$	85,941		$	151,036
Net income per share:
Basic		$	0.83		$	1.49		$	2.70		$	4.63
Diluted		$	0.83		$	1.49		$	2.70		$	4.61
Shares used in computing net income per share:
Basic weighted average shares of common stock			31,287			32,550			31,796			32,595
Diluted weighted average shares of common stock			31,450			32,675			31,863			32,780

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		September 30,			December 31,
		2025			2024
ASSETS
Current assets:
Cash and cash equivalents		$	187,501		$	123,512
Short-term investments			262,059			447,831
Accounts receivable, net			147,636			203,149
Inventories, net			324,342			282,225
Prepaid income taxes			4,687			6,420
Prepaid expenses and other current assets			57,804			60,471
Total current assets			984,029			1,123,608
Property, plant and equipment, net			57,979			53,784
Operating lease assets			29,499			29,621
Finance lease assets, net			14,440			15,346
Long-term restricted cash			7,626			7,552
Deferred income taxes			70,033			68,277
Long-term investments			143,214			-
Other assets			45,120			50,593
Total assets		$	1,351,940		$	1,348,781
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	52,466		$	46,928
Accrued compensation			24,357			25,536
Warranty			9,258			13,022
Deferred revenue			81,486			94,673
Current portion of finance lease obligation			1,505			1,345
Other current liabilities			29,917			26,018
Total current liabilities			198,989			207,522
Long-term finance lease obligation			41,166			42,329
Long-term deferred revenue			47,434			43,501
Other long-term liabilities			44,207			42,639
Total liabilities			331,796			335,991
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 30,998 shares issued and outstanding at September 30, 2025; 32,365 shares issued and outstanding at December 31, 2024			31			32
Additional paid-in capital			532,951			548,654
Retained earnings			488,771			470,318
Accumulated other comprehensive loss			(1,609)			(6,214)
Total stockholders' equity			1,020,144			1,012,790
Total liabilities and stockholders' equity		$	1,351,940		$	1,348,781

 

Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Three months ended							Nine months ended
	September 30,							September 30,
	2025			2024				2025					2024
Cash flows from operating activities
Net income	$	25,986		$	48,576		$		85,941					$	151,036
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,328			3,906				13,152						11,542
Stock-based compensation expense		5,344			5,412				15,668						15,571
Other		6,907			(16,346)				(4,110)						(11,090)
Change in other assets and liabilities, net		2,785			4,200				14,221						(39,021)
Net cash provided by operating activities		45,350			45,748				124,872						128,038
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software		(2,015)			(3,899)				(8,960)						(7,523)
Other changes in investing activities, net		3,393			(52,654)				46,194						(110,324)
Net cash provided by (used in) investing activities		1,378			(56,553)				37,234						(117,847)
Cash flows from financing activities
Repurchase of common stock		(32,335)			(15,363)				(95,850)						(45,358)
Other changes from financing activities, net		(440)			(630)				(4,022)						(11,291)
Net cash used in financing activities		(32,775)			(15,993)				(99,872)						(56,649)
Effect of exchange rate changes on cash and cash equivalents		(106)			1,700				1,829						(774)
Net increase (decrease) in cash, cash equivalents and restricted cash		13,847			(25,098)				64,063						(47,232)
Cash, cash equivalents and restricted cash at beginning of period		181,280			151,817				131,064						173,951
Cash, cash equivalents and restricted cash at end of period	$	195,127		$	126,719		$		195,127					$	126,719

 

Notes on Our Non-GAAP Financial Information

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company's operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors' ability to review the Company's business from the same perspective as the Company's management. 

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Axcelis Technologies, Inc. Schedule Reconciling Selected Non-GAAP Financial Measures (In thousands, except per share amounts)
			Three months ended September 30,											Nine months ended September 30,
		2025					2024					2025								2024
GAAP gross Profit	$	88,806			$		109,970			$		264,916							$	338,431
Restructuring1		-					-					226								876
Stock-based compensation		499					354					1,421								1,106
Non-GAAP gross profit	$	89,305			$		110,324			$		266,563							$	340,413
Non-GAAP gross margin		41.8 %					43.0 %					44.4 %								44.5 %
GAAP operating expense	$	63,786			$		63,057			$		181,773							$	182,168
Transaction and integration3		(8,274)					-					(8,274)								-
Bad debt expense		-					(3,443)					-								(2,984)
Restructuring1		(236)					-					(1,130)								(553)
Stock-based compensation		(4,845)					(5,058)					(14,247)								(14,465)
Non-GAAP operating expense	$	50,431			$		54,556			$		158,122							$	164,166
GAAP operating income	$	25,020			$		46,913			$		83,143							$	156,263
Transaction and integration3		8,274					-					8,274								-
Bad debt expense		-					3,443					-								2,984
Restructuring1		236					-					1,356								1,429
Stock-based compensation		5,344					5,412					15,668								15,571
Non-GAAP operating income	$	38,874			$		55,768			$		108,441							$	176,247
Non-GAAP operating margin		18.2 %					21.7 %					18.1 %								23.0 %
GAAP income tax provision	$	4,164			$		6,789			$		12,290							$	20,593
Income tax effect of Non-GAAP adjustments2		1,940					1,240					3,542								2,798
Non-GAAP income tax provision	$	6,104			$		8,029			$		15,832							$	23,391
GAAP net income	$	25,986			$		48,576			$		85,941							$	151,036
Transaction and integration3		8,274					-					8,274								-
Bad debt expense		-					3,443					-								2,984
Restructuring1		236					-					1,356								1,429
Stock-based compensation		5,344					5,412					15,668								15,571
Income tax effect of Non-GAAP adjustments2		(1,940)					(1,240)					(3,542)								(2,798)
Non-GAAP net income	$	37,900			$		56,191			$		107,697							$	168,222
GAAP diluted EPS	$	0.83			$		1.49			$		2.70							$	4.61
Transaction and integration3		0.26					-					0.26								-
Bad debt expense		-					0.11					-								0.09
Restructuring1		0.01					-					0.04								0.04
Stock-based compensation		0.17					0.16					0.49								0.48
Income tax effect of Non-GAAP adjustments2		(0.06)					(0.04)					(0.11)								(0.09)
Non-GAAP diluted EPS	$	1.21			$		1.72			$		3.38							$	5.13

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Note 3: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.

 

		Axcelis Technologies, Inc Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages)
					Three months ended September 30,									Nine months ended September 30,
				2025				2024				2025					2024
Net Income			$	25,986			$	48,576		$		85,941				$	151,036
Other (income)/expense				(5,130)				(8,452)				(15,088)					(15,366)
Income tax provision				4,164				6,789				12,290					20,593
Depreciation & amortization				4,328				3,906				13,152					11,542
Subtotal				29,348				50,819				96,295					167,805
Transaction and integration2				8,274				-				8,274					-
Bad debt expense				-				3,443				-					2,984
Restructuring1				236				-				1,356					1,429
Stock-based compensation				5,344				5,412				15,668					15,571
Adjusted EBITDA			$	43,202			$	59,674		$		121,593				$	187,789
Adjusted EBITDA margin				20.2 %				23.3 %				20.2 %					24.5 %

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.

 

Axcelis Technologies, Inc Fourth Quarter Outlook GAAP to Non-GAAP Diluted Earnings Per Share
		Three months ended December 31, 2025
GAAP diluted EPS		$		0.76
Transaction and Integration2				0.19
Restructuring3				0.05
Stock-based compensation				0.18
Income tax effect of non-GAAP adjustments1		(0.06)
Non-GAAP diluted EPS		$		1.12

Note 1: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Note 2: Transaction and Integration costs include expenses associated with the merger agreement with Veeco Instruments, announced on October 1, 2025.

Note 3: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis (ACLS) Q3 2025 revenue and GAAP EPS?

Axcelis reported $213.6 million in revenue and GAAP diluted EPS of $0.83 for Q3 2025.

How did Axcelis (ACLS) Q3 2025 non-GAAP results compare to last year?

Non-GAAP diluted EPS was $1.21 versus $1.72 in Q3 2024, a decline of about 29.7%.

What guidance did Axcelis (ACLS) give for Q4 2025?

Axcelis expects Q4 2025 revenue of approximately $215 million, GAAP EPS ~$0.76, non-GAAP EPS ~$1.12.

How much cash did Axcelis (ACLS) report on its balance sheet in Q3 2025?

Management reported more than $590 million in cash and investments.

What operational positives did Axcelis (ACLS) cite in the Q3 2025 release?

The company cited record CS&I revenue, operating leverage from higher volume, and disciplined cost controls.

What is the status of Axcelis (ACLS) merger with Veeco and its expected impact?

Axcelis described the announced merger with Veeco as a strategic milestone intended to create a larger semiconductor equipment company to pursue growth from AI and electrification tailwinds.