Nova Reports Record Third Quarter 2025 Financial Results
REHOVOT, Israel, Nov. 6, 2025 /PRNewswire/ -- Nova (NASDAQ: NVMI) today announced financial results for the third quarter, the three-month period ended September 30, 2025.
Third Quarter 2025 Highlights:
GAAP Results (K)
Q 3 2025
Q 2 2025
Q3 2024
Revenues
$224,608
$219,989
$178,974
Net Income
$61,421
$68,291
$51,279
Earnings per Diluted Share
$1.90
$2.14
$1.60
Non-GAAP Results (K)
Q 3 2025
Q 2 2025
Q3 2024
Net Income
$69,991
$70,400
$56,056
Earnings per Diluted Share
$2.16
$2.20
$1.74
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.
Management Comments
"Nova achieved record third-quarter results, with the highest ever sales in memory and advanced logic, driven by strong demand for our advanced metrology solutions in leading nodes and advanced packaging," said Gaby Waisman, President and CEO. "With fourth-quarter guidance on track, we expect 2025 to be a record year for Nova and anticipate growth to continue in 2026, supported by positive semiconductor market forecasts and increased AI-driven demand."
2025 Fourth Quarter Financial Outlook
Management provided an outlook for the fourth quarter, the period ending December 31, 2025. Based on current estimates, management expects:
2025 Third Quarter Results
Total revenues for the third quarter of 2025 were $224.6 million, an increase of 2% compared with the second quarter of 2025 and an increase of 25% compared with the third quarter of 2024.
Gross margin in the third quarter of 2025 was 56.7%, compared with 57.8% in the second quarter of 2025 and 56.6% in the third quarter of 2024.
Operating expenses in the third quarter of 2025 were $63.6 million, compared with $61.6 million in the second quarter of 2025 and $52.1 million in the third quarter of 2024.
On a GAAP basis, the Company reported net income of $61.4 million, or $1.90 per diluted share, in the third quarter of 2025. This is compared with net income of $68.3 million, or $2.14 per diluted share, in the second quarter of 2025, and $51.3 million, or $1.60 per diluted share, in the third quarter of 2024.
On a non-GAAP basis, the Company reported net income of $70.0 million, or $2.16 per diluted share, in the third quarter of 2025. This is compared with net income of $70.4 million, or $2.20 per diluted share, in the second quarter of 2025, and $56.1 million, or $1.74 per diluted share, in the third quarter of 2024.
Conference Call Information
Nova will host a conference call today, November 6, 2025, at 8:30 a.m. Eastern Time, to discuss the Company's third quarter of 2025 financial results and outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
U.S. TOLL-FREE Dial-in Number: 1-833-816-1427
ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284
INTERNATIONAL Dial-in Number: 1-412-317-0519
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
The conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/.
A replay of the conference call will be available from November 8, 2025, at 11:30 a.m. Eastern Time until November 15, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529
Replay Dial-in INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 2479711
A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/.
About Nova
Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/.
Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.
Use of Non-GAAP Adjusted Financial Measures
This press release provides financial measures that exclude amortization of acquired intangible assets, inventory step-up, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of issuance costs and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: increased information technology security threats and sophisticated computer crime; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies; indirect effects of the Russia – Ukraine conflict; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure, including risks related to artificial intelligence; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including related to the war against Hamas and other terrorist organizations; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 20, 2025. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.
(Tables to Follow)
(U.S. dollars in thousands) - (Unaudited)
As of
September 30,
December 31,
ASSETS
2025
2024
Current assets
Cash and cash equivalents
521,633
157,779
Short-term interest-bearing bank deposits
179,835
211,877
Marketable securities
386,555
216,910
Trade accounts receivable, net
144,885
139,318
Inventories
183,099
156,599
Other current assets
29,487
19,466
Total current assets
1,445,494
901,949
Non-current assets
Marketable securities
509,969
225,818
Interest-bearing bank deposits and restricted deposits
12,096
7,847
Deferred tax assets
38,103
31,639
Operating lease right-of-use assets
54,459
51,193
Property plant and equipment, net
95,585
81,746
Intangible assets, net
48,127
31,458
Goodwill
90,789
48,317
Other long-term assets
12,869
10,455
Total non-current assets
861,997
488,473
Total assets
2,307,491
1,390,422
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Convertible senior notes, net
90,843
180,564
Trade accounts payable
54,995
59,578
Deferred revenues
72,013
72,886
Operating lease current liabilities
7,274
7,169
Other current liabilities
90,413
68,033
Total current liabilities
315,538
388,230
Non-current liabilities
Convertible senior notes, net
730,663
-
Operating lease long-term liabilities
54,924
48,363
Long-term deferred tax liability
13,277
8,495
Other long-term liabilities
22,347
17,539
Total non-current liabilities
821,211
74,397
Shareholders' equity
1,170,742
927,795
Total liabilities and shareholders' equity
2,307,491
1,390,422
NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data) - (Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Revenues:
Products
178,873
143,638
530,644
379,804
Services
45,735
35,336
127,309
97,826
Total revenues
224,608
178,974
657,953
477,630
Total cost of revenues
97,190
77,641
280,986
200,475
Gross profit
127,418
101,333
376,967
277,155
Operating expenses:
Research and development, net
36,740
29,083
105,420
79,348
Sales and marketing
20,243
16,594
59,892
49,110
General and administrative
6,575
6,425
18,920
16,628
Total operating expenses
63,558
52,102
184,232
145,086
Operating income
63,860
49,231
192,735
132,069
Financing income, net
9,540
11,030
37,654
24,991
Income before taxes on income
73,400
60,261
230,389
157,060
Income tax expenses
11,979
8,982
35,854
23,779
Net income for the period
61,421
51,279
194,535
133,281
Earnings per share:
Basic
2.05
1.76
6.57
4.58
Diluted
1.90
1.60
6.10
4.15
Shares used in calculation of earnings per share
(in thousands):
Basic
29,936
29,099
29,602
29,078
Diluted
32,470
32,238
32,028
32,303
NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2025
2024
2025
2024
Cash flows from operating activities:
Net income
61,421
51,279
194,535
133,281
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation of property and equipment
3,374
2,886
9,702
8,707
Amortization of intangible assets
2,309
1,467
6,353
4,376
Amortization of premium and accretion of discount on
marketable securities, net
(1,305)
(1,933)
(4,193)
(5,358)
Amortization of debt discount and issuance costs
448
326
1,016
970
Share-based compensation
6,681
6,194
19,314
18,860
Net effect of exchange rate fluctuation
(2,329)
(3,019)
(17,385)
(1,084)
Changes in assets and liabilities:
Trade accounts receivable, net
(6,498)
(19,859)
(18)
(2,855)
Inventories
(2,699)
(4,495)
(18,093)
(24,773)
Other current and long-term assets
(8,603)
(5,007)
(14,533)
(5,574)
Deferred tax, net
(3,483)
(2,524)
(9,627)
(4,873)
Operating lease right-of-use assets
4,122
964
2,241
3,109
Trade accounts payable
(2,882)
5,573
(4,599)
11,197
Deferred revenues
8,018
2,780
(4,413)
15,059
Operating lease liabilities
(3,208)
(536)
1,160
(4,035)
Other current and long-term liabilities
15,844
12,758
23,605
19,613
Accrued severance pay, net
65
123
420
124
Net cash provided by operating activities
71,275
46,977
185,485
166,744
Cash flows from investment activities:
Acquisition of subsidiary, net of acquired cash
-
-
(56,355)
-
Change in short-term and long-term interest-bearing bank
deposits
29,057
(7,240)
28,928
(89,256)
Investment in marketable securities
(509,522)
(65,264)
(666,321)
(211,812)
Proceeds from maturity of marketable securities
92,032
52,224
222,192
188,976
Proceed from sales of marketable securities
494
-
494
-
Purchase of property and equipment
(4,333)
(3,914)
(15,928)
(9,094)
Net cash used in investing activities
(392,272)
(24,194)
(486,990)
(121,186)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes
750,000
-
750,000
-
Issuance costs of convertible senior notes
(17,738)
-
(17,738)
-
Purchase of capped calls
(51,826)
-
(51,826)
-
Purchases of treasury shares
-
-
(20,002)
-
Proceeds from exercise of options
-
70
-
70
Net cash provided by financing activities
680,436
70
660,434
70
Effect of exchange rate fluctuations on cash and cash
equivalents and restricted cash
1,631
757
5,243
761
Changes in cash and cash equivalents and restricted cash
361,070
23,610
364,172
46,389
Cash and cash equivalents - beginning of period
160,881
130,353
157,779
107,574
Cash and cash equivalents and restricted cash - end of
period
521,951
153,963
521,951
153,963
NOVA LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
Three months ended
September 30,
2025
J une 30,
2025
September 30,
2024
GAAP gross profit
127,418
127,246
101,333
Stock-based compensation*
1,901
1,769
1,722
Amortization of acquired intangible assets
2,113
2,039
1,380
Acquisition related inventory step-up
-
910
-
Non-GAAP gross profit
131,432
131,964
104,435
GAAP gross margin as a percentage of revenues
57 %
58 %
57 %
Non-GAAP gross margin as a percentage of revenues
59 %
60 %
58 %
GAAP operating income
63,860
65,643
49,231
Stock-based compensation*
6,681
6,257
6,194
Acquisition related inventory step-up
-
910
-
Amortization of acquired intangible assets
2,309
2,228
1,467
Non-GAAP operating income
72,850
75,038
56,892
GAAP operating margin as a percentage of revenues
28 %
30 %
28 %
Non-GAAP operating margin as a percentage of revenues
32 %
34 %
32 %
GAAP net income
61,421
68,291
51,279
Stock-based compensation*
6,681
6,257
6,194
Acquisition related inventory step-up
-
910
-
Amortization of acquired intangible assets
2,309
2,228
1,467
Amortization of debt issuance costs
448
278
326
Revaluation of operating lease and intercompany loans
762
(6,955)
(2,309)
Tax effect of non-GAAP adjustments
(1,630)
(609)
(901)
Non-GAAP net income
69,991
70,400
56,056
GAAP basic earnings per share
2.05
2.32
1.76
Non-GAAP basic earnings per share
2.34
2.39
1.93
GAAP diluted earnings per share
1.90
2.14
1.60
Non-GAAP diluted earnings per share
2.16
2.20
1.74
Shares used for calculation of earnings per share
(in thousands):
Basic
29,936
29,422
29,099
Diluted
32,470
32,053
32,238
* Stock-based compensation for the three months ended September 30, 2025 included in – Cost of revenues - 1,901; Research and development, net – 2,797; Sales and marketing – 1,333; General and administrative – 650.
(U.S. dollars) (Unaudited)
Low
High
Estimated GAAP net income per diluted share
1.77
1.95
Estimated non-GAAP items:
Stock-based compensation
0.20
0.20
Amortization of acquired intangible assets
0.06
0.06
Amortization of issuance costs
0.03
0.03
Tax effect of non-GAAP adjustments
(0.04)
(0.04)
Estimated non-GAAP net income per diluted share
2.02
2.20
Company Contact:
Guy Kizner, Chief Financial Officer
Tel: +972-73-229-5760
E-mail - investors@novami.com
Nova website link - https://www.novami.com/
Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail - msegal@ms-ir.com
Logo: https://mma.prnewswire.com/media/1446151/5604217/Nova_Logo.jpg
SOURCE Nova