Axcelis Technologies (ACLS) investor relations material

Executive summary

• Q3 2025 revenue reached $214 million, with non-GAAP EPS of $1.21, both exceeding expectations due to record CS&I revenue, strong system sales, and disciplined cost controls, despite a year-over-year decline and lower bookings.

• Announced a pending all-stock merger with Veeco Instruments, aiming to create a leading semiconductor equipment company with expanded capabilities and market reach, targeting growth in AI, electrification, and compound semiconductors.

• Net income for the nine months ended September 30, 2025, was $85.9 million, a 43% decrease from the prior year, reflecting softer demand in mature process node technologies.

• Bookings declined sequentially, mainly from softer power and general mature segments, but are expected to improve in Q4.

• The company continued significant share repurchases and maintained a strong cash position.

Financial highlights

• Q3 2025 revenue was $213.6 million, down from $256.5 million in Q3 2024; GAAP diluted EPS was $0.83, non-GAAP diluted EPS $1.21.

• Q3 systems revenue was $144 million; CS&I revenue hit a record $70 million, up 9% year-over-year for the first nine months.

• Adjusted EBITDA for Q3 2025 was $43.2 million (20.2% margin); free cash flow for Q3 was $43 million, with $116 million year-to-date.

• Ended Q3 with over $590 million in cash, cash equivalents, and marketable securities.

• Share repurchases totaled $32.3 million in Q3 2025; $95.9 million repurchased year-to-date.

Outlook and guidance

• Q4 2025 revenue expected at $215 million; Q1 2026 revenue anticipated to be similar.

• Q4 non-GAAP gross margin expected at 43%; non-GAAP operating expenses at $56 million; non-GAAP diluted EPS at $1.12.

• Bookings expected to improve in Q4, with memory segment showing optimism for 2026.

• Management expects the Veeco merger to close in the second half of 2026, with anticipated synergies and growth, but notes risks related to regulatory approvals and integration.