Axcelis Technologies (ACLS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $238 million, with non-GAAP EPS of $1.49 and GAAP EPS of $1.10, both exceeding outlook due to record CS&I revenue and favorable gross margin mix.

• Full-year 2025 revenue was $839 million, with non-GAAP EPS of $4.88 and GAAP EPS of $3.80; CS&I revenue grew 14% year-over-year.

• Bookings improved sequentially, led by power, general mature, and memory (notably DRAM), with a backlog of $457 million at year-end.

• The pending merger with Veeco is progressing, with shareholder approval, regulatory clearance in several jurisdictions, and closing expected in the second half of 2026.

• Mature process technology accounted for 88% of Q4 shipped system revenue, with power segment at 53%.

Financial highlights

• Q4 2025 systems revenue was $156.5 million; CS&I revenue $81.9 million, with full-year CS&I revenue up 14% year-over-year.

• Q4 GAAP gross margin was 47.0%, non-GAAP 47.3%; GAAP operating margin 15.2%, non-GAAP 21.1%.

• Adjusted EBITDA for Q4 2025 was $54.7 million (22.9% margin); full-year Adjusted EBITDA was $176.7 million (21.1% margin).

• Q4 free cash flow was -$9 million due to sales timing and $5 million in merger-related expenses; full-year free cash flow exceeded $100 million.

• Cash, cash equivalents, and marketable securities at year-end ranged from $145.5 million to $557 million, with $374.3 million in cash and short-term investments.

Outlook and guidance

• Q1 2026 revenue expected at $195 million, with non-GAAP gross margin at 41% and non-GAAP EPS at $0.71.

• Full-year 2026 revenue anticipated to be flat versus 2025, with memory growth offsetting declines in power and general mature markets; gross margin expected in low-to-mid 40% range.

• Revenue expected to be second-half weighted, driven by memory market recovery.

• Tax rate for 2026 estimated at 15%.

• Management anticipates continued momentum in the Memory market and ongoing mixed demand in Power and General Mature markets.