Open the filing on EDGARAxcelis Announces Financial Results for Fourth Quarter and Full Year 2025
Q4 Highlights:
- Revenue of $238 million
- GAAP Gross Margin of 47.0%, and Non-GAAP Gross Margin of 47.3%
- GAAP Operating Margin of 15.2% and Non-GAAP Operating Margin of 21.1%
- GAAP Diluted Earnings Per Share of $1.10, and Non-GAAP Diluted Earnings Per Share of $1.49
BEVERLY, Mass., February 17, 2026 - 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.”
News Release
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.
News Release
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.
News Release
Safe Harbor Statement
Forward-looking statements notice
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.
News Release
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.
News Release
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three months ended | Twelve months ended |
|---|
| December 31, | 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 |
News Release
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
| December 31, | 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 | 31 | 32 |
| 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 |
News Release
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three months ended | Twelve months ended |
|---|
| December 31, | 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 |
News Release
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.
News Release
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 | 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 | (7,541) | - | (16,296) | - |
| Bad debt expense | - | (3) | - | (2,987) |
| Restructuring | (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 | 7,541 | - | 16,296 | - |
| Bad debt expense | - | 3 | - | 2,987 |
| Restructuring | 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 | 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 | 7,541 | - | 16,296 | - |
| Bad debt expense | - | 3 | - | 2,987 |
| Restructuring | 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 | (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 | 0.24 | - | 0.51 | - |
| Bad debt expense | - | - | - | 0.09 |
| Restructuring | 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 | (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.
News Release
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 | 7,541 | - | 16,296 | - |
| Bad debt expense | - | 3 | - | 2,987 |
| Restructuring | 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.
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 Integration2 | 0.22 |
| Restructuring3 | - |
| Stock-based compensation | 0.16 |
| Income tax effect of non-GAAP adjustments1 | (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.
Contacts
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