Axcelis Technologies, Inc. has announced financial results for the third quarter ended September 30, 2025, reporting better-than-expected sales and earnings, along with record revenue in its Customer Support and Innovation (CS&I) segment.

Third quarter revenue was $213.6 million. GAAP gross margin was 41.6 percent, while non-GAAP gross margin came in at 41.8 percent. GAAP operating margin was 11.7 percent and non-GAAP operating margin reached 18.2 percent. GAAP diluted earnings per share were $0.83, and non-GAAP diluted earnings per share were $1.21.

President and CEO Russell Low stated, “We delivered another solid quarter, with sales and earnings both exceeding our expectations. We are also pleased to report record CS&I revenue in the quarter, reflecting the success of our aftermarket strategy and the continued expansion of our installed base. We are executing on our product development roadmap and customer engagement initiatives with focus and urgency, while maintaining disciplined cost controls. These actions have enabled us to successfully navigate the anticipated cyclical digestion period across our markets in 2025.”

Low continued, “We entered the fourth quarter with a solid financial foundation and are well poised to execute on our strategy as we enter into our next chapter of growth and innovation. Our recently announced merger with Veeco Instruments marks a critical milestone that we believe will position the combined company to capitalize on powerful secular tailwinds including AI and electrification. By bringing our two companies together, we believe we are building a leading semiconductor equipment company with the capabilities, resources, and financial foundation to drive sustainable growth and value creation for shareholders and deliver meaningful benefits to all stakeholders.”

Executive Vice President and Chief Financial Officer Jamie Coogan added, “We generated robust operating leverage through higher volume and disciplined cost management, translating into strong free cash flow. With over $590 million in cash and investments on the balance sheet, Axcelis has ample flexibility to capitalize on our value-enhancing strategic initiatives and long-term growth priorities.”

Key Q3 2025 Financial Highlights:

  • Revenue: $213.6 million (compared to $256.6 million in Q3 2024)
  • GAAP gross margin: 41.6% (vs. 42.9% in Q3 2024)
  • GAAP operating margin: 11.7% (vs. 18.3%)
  • GAAP net income: $26.0 million (vs. $48.6 million)
  • GAAP diluted EPS: $0.83 (vs. $1.49)
  • Non-GAAP gross margin: 41.8% (vs. 43.0%)
  • Non-GAAP operating margin: 18.2% (vs. 21.7%)
  • Adjusted EBITDA: $43.2 million (vs. $59.7 million)
  • Non-GAAP net income: $37.9 million (vs. $56.2 million)
  • Non-GAAP diluted EPS: $1.21 (vs. $1.72)

For the fourth quarter ending December 31, 2025, Axcelis expects revenue of approximately $215 million. GAAP diluted earnings per share are projected at approximately $0.76, with non-GAAP earnings per share expected to be approximately $1.12.

Original – Axcelis Technologies