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Axcelis Announces Financial Results for Second Quarter 2025

1. ACLS reported Q2 revenues of $194.5 million, down from $256.5 million. 2. GAAP diluted EPS decreased to $0.98 compared to $1.55 last year. 3. Non-GAAP margins suggest strong operational efficiency amid market digestion. 4. Share repurchases increased to $45 million, showcasing confidence in fundamentals. 5. Q3 guidance forecasts revenue of $200 million and EPS of $0.87.

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FAQ

Why Bullish?

Despite revenue decline, margins and profitability remained strong, indicating resilience.

How important is it?

Solid performance amidst challenges and strategic share repurchases may enhance investor confidence.

Why Short Term?

Q3 guidance indicates potential for immediate recovery in revenues and earnings.

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Q2 Highlights: Revenue of $194.5 million GAAP Gross Margin of 44.9%, and Non-GAAP Gross Margin of 45.2% GAAP Operating Margin of 14.9% and Non-GAAP Operating Margin of 17.7% GAAP Diluted earnings per share of $0.98, and Non-GAAP Diluted earnings per share of $1.13 , /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2025. President and CEO Russell Low commented, "Axcelis delivered strong results in the second quarter despite the cyclical digestion period in many of our markets, demonstrating the value we provide our customers and the strength of our team. We are deepening customer engagement, expanding our footprint in high-value applications, and seeing continued momentum in our CS&I business supported by our growing installed base. As we look ahead, we remain focused on innovation, customer collaboration, and disciplined execution to deliver on our strategic initiatives and position Axcelis to drive long term growth and profitability." Executive Vice President and Chief Financial Officer Jamie Coogan said, "We generated strong profitability and cash flow in the second quarter, reflecting disciplined cost control and favorable mix. We increased our share repurchase activity to $45 million during the quarter, reflecting our confidence in the attractive long-term fundamentals of our business. Our strong balance sheet enables us to continue repurchasing shares in a disciplined and opportunistic manner, while also investing in our business." Results Summary(In thousands, except per share amounts and percentages) Three months ended June 30,    2025 2024 Revenue $ 194,544 $ 256,512 Gross margin 44.9 % 43.8 % Operating margin 14.9 % 20.6 % Net income $ 31,376 $ 50,866 Diluted earnings per share      $ 0.98 $ 1.55 Non-GAAP Results Non-GAAP gross margin 45.2 % 44.3 % Non-GAAP operating margin 17.7 % 23.3 % Adjusted EBITDA $ 38,872 $ 63,568 Non-GAAP net income $ 36,013 $ 56,797 Non-GAAP diluted earnings per share       $ 1.13 $ 1.73 Business OutlookFor the third quarter ending September 30, 2025, Axcelis expects revenues of approximately $200 million, GAAP earnings per diluted share of approximately $0.87, and non-GAAP earnings per share of approximately $1.00. Please refer to Third 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. Second Quarter 2025 Conference CallThe 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/BI26107577cb204cb0baebc5afe993b0d1Webcast replays will be available for 30 days following the call. Use of Non-GAAP Financial ResultsThis 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 and certain items related to restructuring and severance charges and any associated adjustments. 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. 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 RyzhikSenior Vice President, Investor Relations and Corporate StrategyTelephone: (978) 787-2352Email: [email protected] Press/Media Relations Contact: Maureen HartSenior Director, Corporate & Marketing CommunicationsTelephone: (978) 787-4266Email: [email protected] Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three months ended  Six months ended June 30, June 30, 2025 2024 2025 2024 Revenue: Product $ 183,402 $ 245,380 $ 366,226 $ 488,798 Services 11,142 11,132 20,881 20,085 Total revenue 194,544 256,512 387,107 508,883 Cost of revenue: Product 95,462 134,759 189,962 262,670 Services 11,739 9,344 21,034 17,753 Total cost of revenue 107,201 144,103 210,996 280,423 Gross profit 87,343 112,409 176,111 228,460 Operating expenses: Research and development 27,064 25,786 54,192 51,448 Sales and marketing 15,003 17,230 30,127 34,675 General and administrative 16,311 16,583 33,668 32,988 Total operating expenses 58,378 59,599 117,987 119,111 Income from operations 28,965 52,810 58,124 109,349 Other income (expense): Interest income 5,481 6,051 11,082 11,566 Interest expense (1,355) (1,339) (2,722) (2,684) Other, net 1,906 (257) 1,597 (1,968) Total other income 6,032 4,455 9,957 6,914 Income before income taxes 34,997 57,265 68,081 116,263 Income tax provision 3,621 6,399 8,126 13,803 Net income $ 31,376 $ 50,866 $ 59,955 $ 102,460 Net income per share: Basic $ 0.99 $ 1.56 $ 1.87 $ 3.14 Diluted $ 0.98 $ 1.55 $ 1.87 $ 3.12 Shares used in computing net income per share: Basic weighted average shares of common stock 31,847 32,598 32,051 32,618 Diluted weighted average shares of common stock 31,882 32,771 32,103 32,848 Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 173,649 $ 123,512 Short-term investments 376,193 447,831 Accounts receivable, net 138,841 203,149 Inventories, net 310,768 282,225 Prepaid income taxes 5,505 6,420 Prepaid expenses and other current assets 59,519 60,471 Total current assets 1,064,475 1,123,608 Property, plant and equipment, net 57,377 53,784 Operating lease assets 28,561 29,621 Finance lease assets, net 14,704 15,346 Long-term restricted cash 7,631 7,552 Deferred income taxes 72,432 68,277 Long-term investments 31,114 - Other assets 47,192 50,593 Total assets $ 1,323,486 $ 1,348,781 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 37,111 $ 46,928 Accrued compensation 16,631 25,536 Warranty 10,903 13,022 Deferred revenue 89,827 94,673 Current portion of finance lease obligation 1,437 1,345 Other current liabilities 21,198 26,018 Total current liabilities 177,107 207,522 Long-term finance lease obligation 41,567 42,329 Long-term deferred revenue 39,915 43,501 Other long-term liabilities 42,514 42,639 Total liabilities 301,103 335,991 Stockholders' equity: Common stock, $0.001 par value, 75,000 shares authorized; 31,418 shares issued and outstanding at June 30, 2025; 32,365 shares issued and outstanding at December 31, 2024 31 32 Additional paid-in capital 535,667 548,654 Retained earnings 487,164 470,318 Accumulated other comprehensive loss (479) (6,214) Total stockholders' equity 1,022,383 1,012,790 Total liabilities and stockholders' equity $ 1,323,486 $ 1,348,781 Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Cash flows from operating activities Net income $ 31,376 $ 50,866 $ 59,955 $ 102,460 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,515 3,861 8,824 7,636 Stock-based compensation expense 5,421 5,469 10,324 10,159 Other (9,335) 2,113 (11,017) 5,256 Change in other assets and liabilities, net 7,750 (22,242) 11,436 (43,221) Net cash provided by operating activities 39,727 40,067 79,522 82,290 Cash flows from investing activities Expenditures for property, plant and equipment and capitalized software (1,985) (2,004) (6,945) (3,624) Other changes in investing activities, net (2,628) (3,599) 42,801 (57,670) Net cash (used in) provided by investing activities (4,613) (5,603) 35,856 (61,294) Cash flows from financing activities Repurchase of common stock (45,337) (14,996) (63,515) (29,995) Other changes from financing activities, net (1,650) (7,605) (3,582) (10,661) Net cash used in financing activities (46,987) (22,601) (67,097) (40,656) Effect of exchange rate changes on cash and cash equivalents 1,643 (661) 1,935 (2,474) Net (decrease) increase in cash, cash equivalents and restricted cash (10,230) 11,202 50,216 (22,134) Cash, cash equivalents and restricted cash at beginning of period 191,510 140,615 131,064 173,951 Cash, cash equivalents and restricted cash at end of period $ 181,280 $ 151,817 $ 181,280 $ 151,817 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 June 30, Six months ended June 30, 2025 2024 2025 2024 GAAP gross Profit $ 87,343 $ 112,409 $ 176,111 $ 228,460 Restructuring1 - 876 226 876 Stock-based compensation 569 462 922 752 Non-GAAP gross profit $ 87,912 $ 113,747 $ 177,259 $ 230,088 Non-GAAP gross margin 45.2 % 44.3 % 45.8 % 45.2 % GAAP operating expense $ 58,378 $ 59,599 $ 117,987 $ 119,111 Bad debt expense - - - 459 Restructuring1 29 (552) (894) (552) Stock-based compensation (4,852) (5,007) (9,402) (9,407) Non-GAAP operating expense $ 53,555 $ 54,040 $ 107,691 $ 109,611 GAAP operating income $ 28,965 $ 52,810 $ 58,124 $ 109,349 Bad debt expense - - - (459) Restructuring1 (29) 1,428 1,120 1,428 Stock-based compensation 5,421 5,469 10,324 10.159 Non-GAAP operating income $ 34,357 $ 59,707 $ 69,568 $ 120,477 Non-GAAP operating margin 17.7 % 23.3 % 18.0 % 23.7 % GAAP income tax provision $ 3,621 $ 6,399 $ 8,126 $ 13,803 Income tax effect of Non-GAAP adjustments2 755 966 1,602 1,558 Non-GAAP income tax provision $ 4,376 $ 7,365 $ 9,728 $ 15,361 GAAP net income $ 31,376 $ 50,866 $ 59,955 $ 102,460 Bad debt expense - - - (459) Restructuring1 (29) 1,428 1,120 1,428 Stock-based compensation 5,421 5,469 10,324 10,159 Income tax effect of Non-GAAP adjustments2 (755) (966) (1,602) (1,558) Non-GAAP net income $ 36,013 $ 56,797 $ 69,797 $ 112,030 GAAP diluted EPS $ 0.98 $ 1.55 $ 1.87 $ 3.12 Bad debt expense - - - (0.01) Restructuring1 - 0.04 0.03 0.04 Stock-based compensation 0.17 0.17 0.32 0.31 Income tax effect of Non-GAAP adjustments2 (0.02) (0.03) (0.05) (0.05) Non-GAAP diluted EPS $ 1.13 $ 1.73 $ 2.17 $ 3.41 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%. Axcelis Technologies, Inc. Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net Income $ 31,376 $ 50,866 $ 59,955 $ 102,460 Other (income)/expense (6,032) (4,455) (9,957) (6,915) Income tax provision 3,621 6,399 8,126 13,803 Depreciation & amortization 4,515 3,861 8,824 7,636 Subtotal 33,480 56,671 66,948 116,984 Bad debt expense - - - (459) Restructuring1 (29) 1,428 1,120 1,428 Stock-based compensation 5,421 5,469 10,324 10,159 Adjusted EBITDA $ 38,872 $ 63,568 $ 78,392 $ 128,112 Adjusted EBITDA margin 20.0 % 24.8 % 20.3 % 25.2 % Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives. Axcelis Technologies, Inc. Third Quarter Outlook GAAP to Non-GAAP Diluted Earnings Per Share  Three months ended September 30, 2025 GAAP diluted EPS $ 0.87 Stock-based compensation 0.17 Income tax effect of non-GAAP adjustments1    (0.03) Non-GAAP diluted EPS $ 1.00  Note 1: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%  Figures may not sum due to rounding SOURCE Axcelis Technologies, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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