Axcelis Technologies (ACLS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $195M, with non-GAAP EPS of $1.13 and GAAP diluted EPS of $0.98, both exceeding expectations; strong gross margins and disciplined cost control supported profitability.

• Bookings were $96M, down sequentially, with a book-to-bill of 0.8x; first half bookings improved over 2H 2024.

• China accounted for 65% of shipped system sales, with power segment, especially SiC, showing resilience and strong demand.

• CSNI/aftermarket revenue comprised ~30% of total revenue in 1H 2025, up year-over-year, supporting profitability.

• Focus on innovation, customer engagement, and prudent cost management amid end-market softness.

Financial highlights

• Q2 2025 revenue: $195M; system revenue: $134M; CSNI/aftermarket revenue: $61M.

• GAAP gross margin: 44.9% (up from 43.8% YoY); non-GAAP gross margin: 45.2%.

• GAAP operating margin: 14.9%; non-GAAP operating margin: 17.7%; adjusted EBITDA: $38.9M (20% margin).

• GAAP diluted EPS: $0.98; non-GAAP diluted EPS: $1.13.

• Free cash flow: $38M; cash, equivalents, and marketable securities: $581M.

• Share repurchases: $45M in Q2; $168M remaining authorization.

Outlook and guidance

• Q3 2025 revenue expected at ~$200M; Q4 expected to be similar.

• Q3 non-GAAP gross margin expected at ~43%; non-GAAP operating expenses: ~$53M; adjusted EBITDA: ~$39M; non-GAAP EPS: ~$1.00.

• Non-GAAP tax rate for balance of year estimated at ~15%.

• Management expects continued moderation in customer investments for mature process node technologies.