Axcelis Announces Financial Results for Third Quarter 2025

Q3 Highlights:

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,

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

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,

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

Restructuring 1

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 integration 3

(8,274)

Bad debt expense

(3,443)

(2,984)

Restructuring 1

(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 integration 3

8,274

Bad debt expense

3,443

2,984

Restructuring 1

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

adjustments 2

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 integration 3

8,274

Bad debt expense

3,443

2,984

Restructuring 1

236

1,356

1,429

Stock-based compensation

5,344

5,412

15,668

15,571

Income tax effect of Non-GAAP

adjustments 2

(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 integration 3

0.26

Bad debt expense

0.11

0.09

Restructuring 1

0.01

0.04

Stock-based compensation

0.17

0.16

0.49

0.48

Income tax effect of Non-GAAP

adjustments 2

(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 integration 2

8,274

Bad debt expense

3,443

2,984

Restructuring 1

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 Integration 2

0.19

Restructuring 3

0.05

Stock-based compensation

0.18

Income tax effect of non-GAAP adjustments 1

(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.

SOURCE Axcelis Technologies, Inc.