Veeco Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Veeco Instruments (NASDAQ: VECO) reported its Q2 2025 financial results with revenue of $166.1 million, down from $175.9 million in Q2 2024. The company posted GAAP net income of $11.7 million ($0.20 per diluted share) and non-GAAP net income of $21.5 million ($0.36 per diluted share).

The company's performance was driven by shipments of wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks, particularly in High-Performance Computing and AI technologies. For Q3 2025, Veeco expects revenue between $150-170 million and non-GAAP EPS of $0.20-0.35.

Positive

• Strong cash position with $188.9 million in cash and equivalents
• Gross margin improvement to 42.6% on non-GAAP basis
• Healthy order momentum in High-Performance Computing and AI technologies
• Total stockholders' equity increased to $856.2 million from $770.8 million

Negative

• Revenue declined 5.6% year-over-year to $166.1 million
• GAAP net income decreased 21.5% to $11.7 million compared to Q2 2024
• Operating income dropped 26% year-over-year on a GAAP basis
• Expected revenue guidance suggests potential continued weakness in Q3

Insights

Financial Analyst

Veeco reported Q2 revenue of $166.1M, down 5.6% YoY with lower earnings, signaling mild headwinds despite AI-driven segments.

Veeco's Q2 2025 results reveal revenue of $166.1 million, a 5.6% decline from the $175.9 million reported in Q2 2024. Both GAAP and non-GAAP earnings showed similar downward trends, with GAAP net income falling to $11.7 million ($0.20 per diluted share) from $14.9 million ($0.25 per diluted share), representing a 21.5% decrease. Non-GAAP net income also declined to $21.5 million ($0.36 per diluted share) from $25.4 million ($0.42 per diluted share), a 15.4% drop.

Gross margin compression is evident in the results, with GAAP gross margin declining from 42.9% to 41.4% year-over-year. This 150 basis point deterioration suggests challenges in manufacturing efficiency or pricing power. Despite the overall revenue decline, CEO Bill Miller highlighted strength in specific product categories, particularly wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks, driven by AI and High-Performance Computing demand.

Looking ahead, management's Q3 2025 guidance suggests continued caution with revenue projected between $150 million and $170 million, potentially representing another year-over-year decline. The midpoint of this guidance ($160 million) would be below the current quarter's performance. Similarly, non-GAAP EPS guidance of $0.20 to $0.35 shows potential sequential deterioration from the current quarter's $0.36.

The balance sheet remains relatively healthy with $354.9 million in cash, cash equivalents, and short-term investments, up from $344.5 million at the end of 2024. Long-term debt decreased from $276.2 million to $225.4 million, improving the company's financial flexibility. Inventory levels increased slightly to $259 million from $246.7 million, requiring monitoring as revenue trends downward to prevent potential obsolescence issues.

Second Quarter 2025 Highlights:

• Revenue of $166.1 million, compared with $175.9 million in the same period last year
• GAAP net income of $11.7 million, or $0.20 per diluted share, compared with $14.9 million, or $0.25 per diluted share in the same period last year
• Non-GAAP net income of $21.5 million, or $0.36 per diluted share, compared with $25.4 million, or $0.42 per diluted share in the same period last year
  

PLAINVIEW, N.Y., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its second quarter ended June 30, 2025. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.

U.S. Dollars in millions, except per share data
GAAP Results		Q2 '25			Q2 '24
Revenue		$	166.1		$	175.9
Net income		$	11.7		$	14.9
Diluted earnings per share		$	0.20		$	0.25

Non-GAAP Results		Q2 '25			Q2 '24
Operating income		$	23.1		$	28.3
Net income		$	21.5		$	25.4
Diluted earnings per share		$	0.36		$	0.42

“Veeco delivered strong financial results this quarter, fueled by rapid expansion of High-Performance Computing and AI technologies,” said Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “This performance was driven by shipments of our wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks.”

Guidance and Outlook

The following guidance is provided for Veeco’s third quarter 2025:

• Revenue is expected in the range of $150 million to $170 million
• GAAP diluted earnings per share are expected in the range of $0.04 to $0.22
• Non-GAAP diluted earnings per share are expected in the range of $0.20 to $0.35
  

Conference Call Information

A conference call reviewing these results has been scheduled for today, August 6, 2025 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

Forward-looking Statements

This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

-financial tables attached-

Veeco Contacts:
Investors:	Anthony Pappone	(516) 500-8798	apappone@veeco.com
Media:	Brenden Wright	(410) 984-2610	bwright@veeco.com

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
		Three months ended June 30,							Six months ended June 30,
		2025				2024			2025				2024
Net sales		$	166,104			$	175,879		$	333,396			$	350,363
Cost of sales			97,377				100,489			196,202				199,554
Gross profit			68,727				75,390			137,194				150,809
Operating expenses, net:
Research and development			31,560				31,696			60,074				61,338
Selling, general, and administrative			23,927				24,595			48,955				49,295
Amortization of intangible assets			821				1,825			1,642				3,716
Other operating expense (income), net			49				552			5				(2,307	)
Total operating expenses, net			56,357				58,668			110,676				112,042
Operating income			12,370				16,722			26,518				38,767
Interest income (expense), net			905				349			1,741				1,054
Other income (expense), net			(653	)			—			(653	)			—
Income before income taxes			12,622				17,071			27,606				39,821
Income tax expense			889				2,127			3,926				3,023
Net income		$	11,733			$	14,944		$	23,680			$	36,798
Income per common share:
Basic		$	0.20			$	0.27		$	0.41			$	0.66
Diluted		$	0.20			$	0.25		$	0.40			$	0.61
Weighted average number of shares:
Basic			59,076				56,277			58,434				56,160
Diluted			60,237				62,535			60,072				61,733

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)
		June 30,			December 31,
		2025			2024
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	188,902		$	145,595
Restricted cash			87			224
Short-term investments			165,890			198,719
Accounts receivable, net			106,524			96,834
Contract assets			36,475			37,109
Inventories			258,984			246,735
Prepaid expenses and other current assets			35,030			39,316
Total current assets			791,892			764,532
Property, plant and equipment, net			111,098			113,789
Operating lease right-of-use assets			25,877			26,503
Intangible assets, net			7,189			8,832
Goodwill			214,964			214,964
Deferred income taxes			119,936			120,191
Other assets			3,749			2,766
Total assets		$	1,274,705		$	1,251,577
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	49,529		$	43,519
Accrued expenses and other current liabilities			47,412			55,195
Contract liabilities			57,675			64,986
Income taxes payable			622			2,086
Current portion of long-term debt			—			26,496
Total current liabilities			155,238			192,282
Deferred income taxes			646			689
Long-term debt			225,441			249,702
Long-term operating lease liabilities			33,413			34,318
Other liabilities			3,771			3,816
Total liabilities			418,509			480,807
Total stockholders’ equity			856,196			770,770
Total liabilities and stockholders’ equity		$	1,274,705		$	1,251,577

Note on Reconciliation Tables

The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025) (in thousands) (unaudited)
					Non-GAAP Adjustments
					Share-Based
Three months ended June 30, 2025		GAAP			Compensation			Amortization			Other			Non-GAAP
Net sales		$	166,104											$	166,104
Gross profit			68,727		1,991										70,718
Gross margin			41.4	%											42.6	%
Operating expenses			56,357		(7,660	)		(821	)		(255	)			47,621
Operating income			12,370		9,651			821			255		^		23,097
Net income			11,733		9,651			821			(670	)	^		21,535

_____________________________
^   - See table below for additional details.

Other Non-GAAP Adjustments (Q2 2025) (in thousands) (unaudited)
Three months ended June 30, 2025
Other	$	255
Subtotal		255
Non-cash interest expense		292
Other (income) expense, net		653
Non-GAAP tax adjustment *		(1,870	)
Total Other	$	(670	)

_____________________________
*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q2 2025) (in thousands, except per share amounts) (unaudited)
		Three months ended June 30, 2025
		GAAP			Non-GAAP
Numerator:
Net income		$	11,733		$	21,535
Interest expense associated with 2027 Convertible Senior Notes			125			113
Net income available to common shareholders		$	11,858		$	21,648
Denominator:
Basic weighted average shares outstanding			59,076			59,076
Effect of potentially dilutive share-based awards			257			257
Dilutive effect of 2027 Convertible Senior Notes (1)			904			685
Diluted weighted average shares outstanding			60,237			60,018
Net income per common share:
Basic		$	0.20		$	0.36
Diluted		$	0.20		$	0.36

^{_____________________________
(1)} - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2024) (in thousands) (unaudited)
					Non-GAAP Adjustments
					Share-based
Three months ended June 30, 2024			GAAP		Compensation			Amortization			Other			Non-GAAP
Net sales		$	175,879											$	175,879
Gross profit			75,390		1,445										76,835
Gross margin			42.9	%											43.7	%
Operating expenses			58,668		(7,788	)		(1,825	)		(494	)			48,561
Operating income			16,722		9,233			1,825			494		^		28,274
Net income			14,944		9,233			1,825			(570	)	^		25,432

_____________________________
^   - See table below for additional details.

Other Non-GAAP Adjustments (Q2 2024) (in thousands) (unaudited)
Three months ended June 30, 2024
Changes in contingent consideration	$	494
Subtotal		494
Non-cash interest expense		316
Non-GAAP tax adjustment *		(1,380	)
Total Other	$	(570	)

_____________________________
*   - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q2 2024) (in thousands, except per share amounts) (unaudited)
		Three months ended June 30, 2024
		GAAP			Non-GAAP
Numerator:
Net income		$	14,944		$	25,432
Interest expense associated with 2025 and 2027 Convertible Senior Notes			512			466
Net income available to common shareholders		$	15,456		$	25,898
Denominator:
Basic weighted average shares outstanding			56,277			56,277
Effect of potentially dilutive share-based awards			1,316			1,316
Dilutive effect of 2025 Convertible Senior Notes			1,104			1,104
Dilutive effect of 2027 Convertible Senior Notes (1)			1,788			1,354
Dilutive effect of 2029 Convertible Senior Notes			2,050			2,050
Diluted weighted average shares outstanding			62,535			62,101
Net income per common share:
Basic		$	0.27		$	0.45
Diluted		$	0.25		$	0.42

_____________________________
(1)   - The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025 and 2024) (in thousands) (unaudited)
		Three months ended				Three months ended
		June 30, 2025				June 30, 2024
GAAP Net income		$	11,733			$	14,944
Share-based compensation			9,651				9,233
Amortization			821				1,825
Changes in contingent consideration			—				494
Interest (income) expense, net			(905	)			(349	)
Other			908				—
Income tax expense (benefit)			889				2,127
Non-GAAP Operating income		$	23,097			$	28,274

Reconciliation of GAAP to Non-GAAP Financial Data (Q3 2025) (in millions, except per share amounts) (unaudited)
												Non-GAAP Adjustments
Guidance for the three months ending												Share-based
September 30, 2025		GAAP										Compensation			Amortization			Other			Non-GAAP
Net sales		$	150			-		$	170												$	150			-		$	170
Gross profit			59			-			70			2			—			—				61			-			72
Gross margin			39	%		-			41	%												40	%		-			42	%
Operating expenses			57			-			58			(8	)		(1	)		—				48			-			49
Operating income			2			-			12			10			1			—				13			-			24
Net income		$	3			-		$	13			10			1			(2	)		$	12			-		$	21
Income per diluted common share		$	0.04			-		$	0.22												$	0.20			-		$	0.35
Weighted average number of shares			60						60													60						60

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q3 2025) (in millions) (unaudited)
Guidance for the three months ending September 30, 2025
GAAP Net income		$	3			-		$	13
Share-based compensation			10			-			10
Amortization			1			-			1
Income tax expense (benefit)			(1	)		-			1
Non-GAAP Operating income		$	13			-		$	24

Note: Amounts may not calculate precisely due to rounding.

FAQ

What were Veeco's (VECO) key financial results for Q2 2025?

Veeco reported revenue of $166.1 million, GAAP net income of $11.7 million ($0.20 per share), and non-GAAP net income of $21.5 million ($0.36 per share).

How did Veeco's Q2 2025 results compare to Q2 2024?

Results declined year-over-year, with revenue down from $175.9 million, GAAP net income down from $14.9 million, and non-GAAP net income down from $25.4 million.

What is Veeco's revenue guidance for Q3 2025?

Veeco expects Q3 2025 revenue between $150 million to $170 million with non-GAAP diluted EPS of $0.20 to $0.35.

Which market segments drove Veeco's performance in Q2 2025?

Performance was driven by High-Performance Computing and AI technologies, specifically wet processing and lithography systems for Advanced Packaging and Ion Beam Deposition systems for EUV mask blanks.

What is Veeco's current cash position as of Q2 2025?

Veeco reported $188.9 million in cash and cash equivalents plus $165.9 million in short-term investments, totaling approximately $354.8 million in liquid assets.