Axcelis Announces Financial Results for Fourth Quarter and Full Year 2025

Q4 Highlights:

BEVERLY, Mass., Feb. 17, 2026 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2025.

President and CEO Russell Low commented, "Axcelis exited 2025 on a strong note with fourth quarter results that exceeded our outlook. We achieved another record quarter of CS&I revenue, reflecting the strength of our growing installed base and our strategic focus on driving upgrades and service contracts. We continue to execute with discipline, particularly as our customers navigate a mixed demand environment in Power and General Mature markets. At the same time, we are encouraged by the improving demand trends in our Memory market and expect this momentum to continue in 2026."

"We continue working toward closing our pending merger with Veeco and remain confident in the compelling prospects and potential of the combined company. Together, we expect to be even better positioned to capitalize on the secular growth trends driven by AI, electrification, and next generation device architectures — and expect to leverage complementary strengths across our portfolios and teams to deliver greater value for all of our stakeholders".

Executive Vice President and Chief Financial Officer Jamie Coogan stated, "We closed the year with strong financial execution in the fourth quarter, highlighted by record CS&I performance and gross margins above expectations. These results reflect operational discipline, favorable mix, and the strength of our aftermarket strategy. For the full year, we delivered double digit CS&I growth, expanded gross margins, and generated more than $100 million of free cash flow, while continuing to invest in innovation and returning more than $120 million in capital to shareholders."

Results Summary

(In thousands, except per share amounts and percentages)

Three months ended December 31,

Twelve months ended December 31,

2025

2024

2025

2024

Revenue

238,330

252,417

839,048

1,017,865

Gross margin

47.0 %

46.0 %

44.9 %

44.7 %

Operating margin

15.2 %

21.6 %

14.2 %

20.7 %

Net income

34,297

49,956

120,238

200,992

Diluted earnings per share

1.10

1.54

3.80

6.15

Non-GAAP Results

Three months ended December 31,

Twelve months ended December 31,

2025

2024

2025

2024

Non-GAAP gross margin

47.3 %

46.3 %

45.2 %

44.9 %

Non-GAAP operating margin

21.1 %

24.2 %

19.0 %

23.3 %

Adjusted EBITDA

54,650

65,299

176,724

253,088

Non-GAAP net income

46,352

55,547

154,463

223,769

Non-GAAP diluted earnings per share

1.49

1.71

4.88

6.84

Business Outlook

For the first quarter ending March 31, 2026, Axcelis expects revenues of approximately $195 million, GAAP earnings per diluted share of approximately $0.38, and non-GAAP earnings per share of approximately $0.71.

Please refer to First Quarter 2026 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.

Fourth Quarter and Full Year 2025 Conference Call

The Company will host a call to discuss the results for the fourth quarter and full year 2025 today at 5:00 p.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/BIfd551cd8408c4503b0229e94192ef512

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 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: [email protected]

Press/Media Relations Contact:

Maureen Hart

Senior Director, Corporate & Marketing Communications

Telephone: (978) 787-4266

Email: [email protected]

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three months ended

Twelve months ended

December 31,

2025

2024

2025

2024

Revenue:

Product

224,601

241,254

792,045

976,881

Services

13,729

11,163

47,003

40,984

Total revenue

238,330

252,417

839,048

1,017,865

Cost of revenue:

Product

110,745

125,402

412,786

524,451

Services

15,653

10,792

49,414

38,760

Total cost of revenue

126,398

136,194

462,200

563,211

Gross profit

111,932

116,223

376,848

454,654

Operating expenses:

Research and development

30,126

27,654

108,958

105,497

Sales and marketing

19,403

16,563

65,368

68,046

General and administrative

26,231

17,475

83,207

70,317

Total operating expenses

75,760

61,692

257,533

243,860

Income from operations

36,172

54,531

119,315

210,794

Other income (expense):

Interest income

4,936

6,277

21,484

24,403

Interest expense

(1,336)

(1,444)

(5,364)

(5,462)

Other, net

246

(719)

2,814

539

Total other income

3,846

4,114

18,934

19,480

Income before income taxes

40,018

58,645

138,249

230,274

Income tax provision

5,721

8,689

18,011

29,282

Net income

34,297

49,956

120,238

200,992

Net income per share:

Basic

1.11

1.54

3.81

6.17

Diluted

1.10

1.54

3.80

6.15

Shares used in computing net income per share:

Basic weighted average shares of common stock

30,925

32,424

31,574

32,552

Diluted weighted average shares of common

stock

31,123

32,514

31,668

32,704

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

145,451

123,512

Short-term investments

228,802

447,831

Accounts receivable, net

168,479

203,149

Inventories, net

329,010

282,225

Prepaid income taxes

4,658

6,420

Prepaid expenses and other current assets

66,802

60,471

Total current assets

943,202

1,123,608

Property, plant and equipment, net

56,146

53,784

Operating lease assets

28,927

29,621

Finance lease assets, net

14,154

15,346

Long-term restricted cash

10,627

7,552

Deferred income taxes

79,895

68,277

Long-term investments

182,396

—

Other assets

46,004

50,593

Total assets

1,361,351

1,348,781

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

42,309

46,928

Accrued compensation

34,233

25,536

Warranty

9,516

13,022

Income Taxes

11,383

—

Deferred revenue

65,494

94,673

Current portion of finance lease obligation

1,575

1,345

Other current liabilities

33,150

26,018

Total current liabilities

197,660

207,522

Long-term finance lease obligation

40,754

42,329

Long-term deferred revenue

43,445

43,501

Other long-term liabilities

44,815

42,639

Total liabilities

326,674

335,991

Stockholders' equity:

Common stock, $0.001 par value, 75,000 shares authorized; 30,717 shares issued and

outstanding at December 31, 2025; 32,365 shares issued and outstanding at December 31,

2024

Additional paid-in capital

533,309

548,654

Retained earnings

503,539

470,318

Accumulated other comprehensive loss

(2,202)

(6,214)

Total stockholders' equity

1,034,677

1,012,790

Total liabilities and stockholders' equity

1,361,351

1,348,781

Axcelis Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended

Twelve months ended

December 31,

2025

2024

2025

2024

Cash flows from operating activities

Net income

34,297

49,956

120,238

200,992

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation and amortization

4,461

4,267

17,613

15,809

Stock-based compensation expense

5,105

5,380

20,773

20,951

Other

(5,351)

(442)

(9,461)

(11,532)

Change in other assets and liabilities, net

(45,079)

(46,381)

(30,858)

(85,402)

Net cash (used in) provided by operating activities

(6,567)

12,780

118,305

140,818

Cash flows from investing activities

Expenditures for property, plant and equipment and capitalized

software

(2,335)

(4,658)

(11,295)

(12,181)

Other changes in investing activities, net

(4,972)

13,779

41,222

(96,545)

Net cash (used in) provided by investing activities

(7,307)

9,121

29,927

(108,726)

Cash flows from financing activities

Repurchase of common stock

(25,231)

(15,131)

(121,081)

(60,489)

Other changes from financing activities, net

610

588

(3,412)

(10,703)

Net cash used in financing activities

(24,621)

(14,543)

(124,493)

(71,192)

Effect of exchange rate changes on cash and cash equivalents

(554)

(3,013)

1,275

(3,787)

Net (decrease) increase in cash, cash equivalents and restricted cash

(39,049)

4,345

25,014

(42,887)

Cash, cash equivalents and restricted cash at beginning of period

195,127

126,719

131,064

173,951

Cash, cash equivalents and restricted cash at end of period

156,078

131,064

156,078

131,064

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 December 31,

Twelve months ended December 31,

2025

2024

2025

2024

GAAP gross Profit

111,932

116,223

376,848

454,654

Restructuring 1

293

256

519

1,132

Stock-based compensation

443

399

1,864

1,505

Non-GAAP gross profit

112,668

116,878

379,231

457,291

Non-GAAP gross margin

47.3 %

46.3 %

45.2 %

44.9 %

GAAP operating expense

75,760

61,692

257,533

243,860

Transaction and integration 3

(7,541)

(16,296)

Bad debt expense

(3)

(2,987)

Restructuring 1

(1,078)

(862)

(2,208)

(1,414)

Stock-based compensation

(4,662)

(4,981)

(18,909)

(19,446)

Non-GAAP operating expense

62,479

55,846

220,120

220,013

GAAP operating income

36,172

54,531

119,315

210,794

Transaction and integration 3

7,541

16,296

Bad debt expense

2,987

Restructuring 1

1,371

1,118

2,727

2,546

Stock-based compensation

5,105

5,380

20,773

20,951

Non-GAAP operating income

50,189

61,032

159,111

237,278

Non-GAAP operating margin

21.1 %

24.2 %

19.0 %

23.3 %

GAAP income tax provision

5,721

8,689

18,011

29,282

Income tax effect of non-GAAP

adjustments 2

1,962

910

5,571

3,708

Non-GAAP income tax provision

7,683

9,599

23,582

32,990

GAAP net income

34,297

49,956

120,238

200,992

Transaction and integration 3

7,541

16,296

Bad debt expense

2,987

Restructuring 1

1,371

1,118

2,727

2,547

Stock-based compensation

5,105

5,380

20,773

20,951

Income tax effect of non-GAAP

adjustments 2

(1,962)

(910)

(5,571)

(3,708)

Non-GAAP net income

46,352

55,547

154,463

223,769

GAAP diluted EPS

1.10

1.54

3.80

6.15

Transaction and integration 3

0.24

0.51

Bad debt expense

0.09

Restructuring 1

0.05

0.03

0.09

0.07

Stock-based compensation

0.16

0.17

0.66

0.64

Income tax effect of non-GAAP

adjustments 2

(0.06)

(0.03)

(0.18)

(0.11)

Non-GAAP diluted EPS

1.49

1.71

4.88

6.84

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 December 31,

Twelve months ended December 31,

2025

2024

2025

2024

Net Income

34,297

49,956

120,238

200,992

Other (income)/expense

(3,846)

(4,114)

(18,934)

(19,480)

Income tax provision

5,721

8,689

18,011

29,282

Depreciation & amortization

4,461

4,267

17,613

15,809

Subtotal

40,633

58,798

136,928

226,603

Transaction and integration 2

7,541

16,296

Bad debt expense

2,987

Restructuring 1

1,371

1,118

2,727

2,547

Stock-based compensation

5,105

5,380

20,773

20,951

Adjusted EBITDA

54,650

65,299

176,724

253,088

Adjusted EBITDA margin

22.9 %

25.9 %

21.1 %

24.9 %

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.

First Quarter 2026 Outlook

GAAP to Non-GAAP Diluted Earnings Per Share

Three months ended

March 31, 2026

GAAP diluted EPS

0.38

Transaction and Integration 2

0.22

Restructuring 3

Stock-based compensation

0.16

Income tax effect of non-GAAP adjustments 1

(0.05)

Non-GAAP diluted EPS

0.71

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.

SOURCE Axcelis Technologies, Inc.