Axcelis Technologies Reports Decline in Q3 2025 Financials

By Ahmed Jameison • Tuesday, November 04 10:28 • Permanent Link

Axcelis Technologies, Inc. (NASDAQ: ACLS) has released its financial results for the third quarter ending September 30, 2025. The company reported revenue of $213.6 million, a decrease from the $256.6 million reported in the same period last year. The GAAP gross margin was 41.6%, down from 42.9% in the third quarter of 2024, and the GAAP operating margin was 11.7%, down from 18.3% in the prior year.

In terms of net income, Axcelis reported $25.9 million for the third quarter of 2025, a decrease from $48.6 million in the same period in 2024. The diluted earnings per share on a GAAP basis were $0.83, down from $1.49 in the third quarter of the previous year.

On a non-GAAP basis, the gross margin was 41.8%, a decrease from 43.0% in the third quarter of 2024. The non-GAAP operating margin was 18.2%, down from 21.7% in the same period last year. The non-GAAP net income was $37.9 million, a decrease from $56.2 million in the third quarter of 2024. The non-GAAP diluted earnings per share were $1.21, down from $1.72 in the same period last year.

Looking ahead, Axcelis expects revenues of approximately $215 million for the fourth quarter ending December 31, 2025. The company anticipates GAAP earnings per diluted share of approximately $0.76 and non-GAAP earnings per share of approximately $1.12 for the fourth quarter.

The company's president and CEO, Russell Low, highlighted the success of the aftermarket strategy and the expansion of the installed base, despite the anticipated cyclical digestion period across the markets in 2025. Axcelis also announced a merger with Veeco Instruments, aiming to capitalize on AI and electrification trends and create a leading semiconductor equipment company.

Axcelis generated robust operating leverage through higher volume and disciplined cost management, resulting in strong free cash flow and over $590 million in cash and investments on the balance sheet.

The company will host a conference call to discuss the results at 8:30 a.m. ET. This news release includes non-GAAP financial measures, and reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in the release. The market has reacted to these announcements by moving the company's shares 4.0% to a price of $82.74. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.