Core Viewpoint - Nova LifeStyle, Inc. (NVFY) has experienced significant stock price declines despite some improvements in profitability metrics, indicating challenges in the broader furniture industry and the need for strategic adjustments to meet future demand [1][4][5]. Financial Performance - For Q2 2025, NVFY reported net sales of $2.6 million, a decrease of 4.9% from $2.7 million in Q2 2024, while gross profit increased by 7.5% to $1.3 million from $1.2 million, indicating better cost management [2]. - Year-to-date, NVFY generated net sales of $5.2 million, a 2.5% increase from $5.1 million in the same period of 2024, with gross profit rising 12.5% to $2.5 million from $2.2 million, and net loss reduced to $0.6 million from $2 million [3]. Key Business Metrics - The company shows a mixed performance with declining quarterly sales but improved profitability metrics, suggesting enhanced pricing power or better input cost management [4]. - NVFY has made progress in reducing losses despite subdued demand in the furniture sector, reflecting operational discipline and tighter expense controls [4]. Management Commentary - CEO Xiaohua Lu acknowledged ongoing challenges in the furniture industry but expressed confidence in NVFY's ability to meet customer needs, highlighting encouraging purchase orders and buyer discussions [5]. - Management has increased advances to suppliers to bolster inventory levels in anticipation of demand in the second half of the year, indicating a proactive approach to avoid supply chain constraints [5]. Influencing Factors - NVFY's performance is affected by industry headwinds and internal cost measures, with a modest revenue decline indicating ongoing demand challenges, while the narrower net loss suggests efficiency measures are effective [6]. - The decision to increase supplier advances reflects optimism about future demand and a need to safeguard against potential supply shortages, although it carries risks if expected demand does not materialize [6]. Guidance - Nova LifeStyle did not provide formal forward-looking financial guidance for the remainder of 2025, but management expressed cautious optimism regarding industry volatility and customer activity [7]. Other Developments - During the reported quarter, NVFY did not announce any acquisitions, divestitures, or restructuring measures, continuing to operate its core furniture brands, Nova Brands and Diamond Sofa [8]. - The company focuses on contemporary, mid- to upper-income consumer markets across the United States, China, Southeast Asia, and other regions [9].

Core Viewpoint - Nova Pacific Metals Corp. has reported strong assay results from its Phase 1 exploration drilling campaign at the Lara VMS Project, indicating potential for significant mineralization and supporting the historical drilling data [1][3][6]. Summary by Sections Exploration Results - The company completed 41 drill holes totaling 8,660 meters, with results from 23 holes reported and assays pending from 16 holes [6][19]. - Notable intercepts include: - NP25-029: 10 m grading 2.5 g/t AuEq from 100 m downhole [5]. - NP25-027: 6.05 m grading 4.0 g/t AuEq from 45.45 m downhole [5]. - NP25-022: 12 m grading 1.7 g/t AuEq from 166 m downhole [5]. - The results validate the company's exploration model and provide geological insights for further mineralization opportunities [7][19]. Future Plans - The company anticipates strong news flow as it progresses towards a mineral resource estimate targeted for Q4 2025 [3][19]. - Assays from 16 additional drill holes are pending, including step-out holes designed to test extensions beyond known mineralization [4][16]. Geological Context - The Lara Project is located within a 17-km belt of the McLaughlin Ridge Formation, which is associated with the past-producing Myra Falls VMS Mine [1][20]. - The exploration program aims to verify historical drilling data across 39,092 m of drilling to support a current mineral resource estimate [19][20]. Community Engagement - The company is committed to early and meaningful engagement with Indigenous communities, recognizing their rights and aiming for mutually beneficial partnerships [26][27]. Company Overview - Nova Pacific Metals Corp. is focused on advancing the Lara VMS Project, which hosts a significant historical mineral resource enriched with critical and precious metals [28].

Core Insights - Nova Ltd. (NVMI) shares increased by 3.7% following the release of its second-quarter 2025 results, driven by better-than-expected performance and strong guidance for Q3 2025 [1] Financial Performance - In Q2 2025, NVMI reported non-GAAP earnings of $2.20 per share, exceeding the Zacks Consensus Estimate by 7.32% and reflecting a year-over-year increase of 36.6% [2][8] - Revenues reached $220 million, marking a 40% year-over-year growth and a 3% sequential increase, surpassing the consensus estimate by 2.08% [2][8] - Product revenues rose by 42.7% year over year to $177.8 million, constituting 80.8% of total revenues, with 75% from logic and foundry and 25% from memory [3] - Service revenues increased by 30.7% year over year to $42.2 million, accounting for 19.2% of total revenues, achieving 10 consecutive quarters of growth [3] Operating Metrics - The non-GAAP gross margin for Q2 2025 contracted by 100 basis points to 60% [4] - Operating margin remained stable year over year at 34%, with reductions in research and development and sales and marketing expenses [4] Balance Sheet Highlights - As of June 30, 2025, NVMI had cash and cash equivalents of $160.56 million, up from $141.05 million as of March 31, 2025 [5] - Cash provided by operating activities was $45.6 million, with free cash flow reaching $43 million [5] Q3 Guidance - NVMI anticipates Q3 2025 revenues between $215 million and $227 million, with non-GAAP earnings projected between $2.02 and $2.22 per share [6][8] Market Position - Year-to-date, NVMI shares have surged by 38.2%, outperforming the Zacks Computer & Technology sector's return of 13.5% [3]

Core Insights - Q Precious & Battery Metals Corp. (QMET) has announced promising initial results from its natural hydrogen exploration in Nova Scotia, particularly in the Apple River, Shulie, and Sandy areas, identifying multiple "hot zones" with elevated hydrogen concentrations [2][3][4] Exploration Results - Over 400 soil-gas samples were collected, revealing widespread hydrogen anomalies consistently measuring between 120 to 450 ppm, with peak readings exceeding 1,000 ppm, including standout readings of 973 ppm, 998 ppm, and 1,033 ppm [4] - The exploration has confirmed a high-quality, predominantly abiotic hydrogen source, similar to successful global hydrogen developments [4] Geological Conditions - The targeted exploration areas are characterized by a series of east-trending faults and a major regional structural zone possibly related to the Cobequid fault, which provides pathways for hydrogen migration [4] - Favorable geological conditions include the presence of granitic-gneisses, potassic granitoid intrusive complexes, and basaltic intrusions, which create optimal conditions for natural hydrogen generation [4] Strategic Advantages - Nova Scotia's supportive regulatory environment, strategic port infrastructure, and emphasis on clean energy align with QMET's objectives for developing commercially viable natural hydrogen resources [5] Management Commentary - The CEO of QMET expressed confidence in the development of the region's natural hydrogen areas, highlighting the exceptional geological attributes of the Apple River-Shulie-Sandy corridor [6] Future Plans - QMET plans to initiate deeper subsurface imaging and continuous hydrogen flux monitoring starting September 2025, along with targeted drilling and installation of monitoring wells scheduled for Q4 2025 [11]

分组1 - Nova Ltd. reported quarterly earnings of $2.2 per share, exceeding the Zacks Consensus Estimate of $2.05 per share, and showing an increase from $1.61 per share a year ago, resulting in an earnings surprise of +7.32% [1] - The company achieved revenues of $219.99 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.08%, and up from $156.86 million year-over-year [2] - Nova Ltd. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 30.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is $2.15 on revenues of $216.9 million, and for the current fiscal year, it is $8.47 on revenues of $863.7 million [7] - The Zacks Industry Rank indicates that the Electronics - Semiconductors sector is currently in the bottom 31% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - Nova achieved record revenue of $220 million in Q2 2025, reflecting a 3% increase quarter-over-quarter and a 40% increase year-over-year [14][4] - Blended gross margins were 58% on a GAAP basis and 60% on a non-GAAP basis, attributed to a favorable product mix [16][14] - Operating margins reached 30% on a GAAP basis and 34% on a non-GAAP basis, surpassing the target model range [17][14] - Earnings per share were $2.14 on a GAAP basis and $2.20 on a non-GAAP basis, marking the seventh consecutive quarter of record performance [17][14] - The company ended the quarter with $856 million in cash and cash equivalents, with free cash flow of $43 million [18][14] Business Line Data and Key Metrics Changes - The chemical metrology division and service business achieved record revenues, contributing significantly to overall performance [5][4] - Service revenue grew 7% sequentially and 31% year-over-year, marking ten consecutive quarters of revenue increase [11][4] - Product revenue distribution was approximately 75% from logic and foundry and 25% from memory, indicating a well-balanced market reach [15][14] Market Data and Key Metrics Changes - Nova is well-positioned in the memory market, particularly in DRAM and high bandwidth memory, with recent wins expanding market share [10][4] - The company noted a growing demand for advanced packaging solutions, which is driving investment in metrology capabilities [8][4] - China is expected to see moderate year-over-year revenue growth, with a slight skew towards the first half of the year [41][40] Company Strategy and Development Direction - Nova's strategy focuses on capitalizing on technological transitions and improving yield and productivity through a diversified business model [5][6] - The company aims to achieve $500 million in cumulative Gate All Around revenue by 2026, with strong demand anticipated in the second half of the year [22][21] - Nova continues to invest in expanding its product portfolio to align with customer needs and market trends [12][4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on emerging opportunities in a rapidly evolving industry [6][5] - The impact of newly implemented tariffs on gross margins is now estimated to be closer to 20 basis points, a more favorable outcome than initially anticipated [19][14] - The company remains committed to executing its strategic plan, which guides long-term priorities and investments [12][4] Other Important Information - Nova's recent performance validates the alignment of its strategic direction with market demands, reinforcing its position as a trusted partner [8][4] - The company is actively participating in industry events, such as SemiCon West, to engage with stakeholders [12][4] Q&A Session Summary Question: How did aggregate all around sales appear in June and what trajectory is expected for the second half? - Management indicated strong positioning across all four Gate All Around customers and expressed excitement about the opportunity, expecting stability in the second half [22][21] Question: What drove the strong gross margins in Q2? - The strong results were attributed to a favorable product mix rather than solely the chemical metrology business, with marginal impact from tariffs [25][24] Question: Can you discuss the momentum in the Centronics business? - Management expressed optimism about the integration of Sintronics and its potential for growth, highlighting encouraging signs of adoption [29][28] Question: What is the outlook for the dimensional metrology business? - Management noted strong momentum and leadership in integrated metrology, with market share gains in standalone OCD [46][45] Question: How is the company positioned in the HBM market? - HBM is expected to grow and is projected to account for a higher percentage of the advanced packaging business, which is a new market for Nova [40][39] Question: What are the dynamics in the China market compared to other regions? - Management noted different dynamics in China, with a forecast for moderate growth year-over-year, while other regions may see varied performance [41][40]

Financial Data and Key Metrics Changes - Nova achieved record revenue of $220 million in Q2 2025, reflecting a 3% increase sequentially and a 40% increase year over year [14][4] - Blended gross margins were 58% on a GAAP basis and 60% on a non-GAAP basis, exceeding the target range of 57% to 60% [15][16] - Earnings per share were $2.14 on a GAAP basis and $2.20 on a non-GAAP basis, marking the seventh consecutive quarter of record performance [16][19] Business Line Data and Key Metrics Changes - The chemical metrology division and service business contributed to record revenue, with service revenue growing 7% sequentially and 31% year over year [11][4] - Product revenue distribution was approximately 75% from logic and foundry and 25% from memory, indicating a well-balanced market reach [15] Market Data and Key Metrics Changes - Nova is well positioned in the memory market, particularly in DRAM and high bandwidth memory, with significant market share gains [10][41] - The company expects nominal revenue from China to be moderately higher year over year, despite a forecasted decrease in percentage terms due to higher investments in advanced nodes [42] Company Strategy and Development Direction - Nova's strategy focuses on capitalizing on technological transitions and improvements in yield and productivity, particularly in advanced packaging and metrology [5][6] - The company aims to achieve $500 million in cumulative Gate All Around revenue by 2026, with strong demand and stability anticipated in the second half of the year [23][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges and capitalize on emerging opportunities, supported by a resilient and diversified business model [6][12] - The impact of newly implemented tariffs on gross margins is now estimated to be closer to 20 basis points, a more favorable outcome than initially anticipated [19] Other Important Information - Nova's service business has shown consistent growth, marking ten consecutive quarters of revenue increase [11] - The company continues to invest in expanding its portfolio to align with customer expectations and technology inflections [12] Q&A Session Summary Question: How did aggregate all around sales appear in June and what trajectory is expected for the second half? - Management indicated strong positioning across all four Gate All Around customers and expressed excitement about the opportunity, expecting stability in the second half [23] Question: What drove the strong gross margins in June? - The strong gross margins were attributed to a favorable product mix rather than solely the chemical metrology business, with marginal impact from tariffs [25] Question: Can you discuss the momentum in the Centronics business? - Management is optimistic about the integration of Sintronics and its potential for growth, with encouraging signs of adoption from multiple customers [30] Question: How is the competitive landscape in dimensional metrology? - Management noted strong momentum in integrated metrology and market share gains in standalone OCD, maintaining leadership in the segment [47] Question: What is the outlook for Ellipson and Matrion revenue contribution? - Both systems are on track for adoption by advanced node manufacturers, with expectations for growth as they become process tools of record [50]

Financial Performance & Growth - Nova's revenue has grown significantly from $269 million in 2020 to $672 million in 2024[9], outperforming the industry's growth rate[9] - Q2 2025 saw record revenue with a 40% year-over-year increase, along with record profitability and revenue from Foundry/Logic and chemical metrology[14] - The company has $856 million in cash reserves[14] - Nova is targeting double-digit annual growth[42] Market & Technology - The AI-driven market presents multiple growth engines, with revenue CAGR (2024-2029) of 44% for Advanced Logic, 17% for Advanced Memory, and 32% for Advanced Packaging[16] - Metrology opportunities are increasing due to device inflections in Logic (FinFET, GAA, GAA+BPD) and Memory (2D/3D DRAM, 3D NAND)[18] - Advanced Packaging TAM is projected to grow, with metrology opportunities in dimensional and chemical analysis[30] Strategy & Operations - Nova has a global presence with 4 R&D and Production Centers and 31 sites[31] - The company invests heavily in R&D, targeting 15%-17% of annual revenue[48] - Nova aims for a financial target model with 57%-60% gross margin and 28%-33% operating margin[54] Service Business - Service revenue is growing, with a CAGR of 22% from 2020-2024[43, 46] - The installed base has increased from 3000 in 2020 to 6400 in 2024[43] - Service profitability has improved from 38% in 2020 to 46% in 2024[44]

[FORM 6-K Filing Details](index=1&type=section&id=FORM%206-K%20Filing%20Details) [Report Information](index=1&type=section&id=1.1%20Report%20Information) NOVA LTD. filed Form 6-K for August 2025, incorporating a press release announcing record Q2 2025 financial results and referencing GAAP statements into Form S-8 filings - NOVA LTD. filed a Form 6-K for August 2025, attaching a press release titled 'Nova Reports Record Second Quarter 2025 Financial Results'[1](index=1&type=chunk)[2](index=2&type=chunk) - The GAAP financial statements from the attached press release are incorporated by reference into the Registrant's registration statements on Form S-8[3](index=3&type=chunk) [Signatures](index=2&type=section&id=1.2%20Signatures) The Form 6-K report was signed by Guy Kizner, Chief Financial Officer of NOVA LTD., on August 7, 2025 - The report was signed by Guy Kizner, Chief Financial Officer of NOVA LTD., on August 7, 2025[5](index=5&type=chunk)[6](index=6&type=chunk) [Second Quarter 2025 Financial Performance Overview](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Performance%20Overview) [Q2 2025 Highlights](index=3&type=section&id=2.1%20Q2%202025%20Highlights) Nova reported record Q2 2025 financial results, exceeding guidance with significant YoY increases in revenue, GAAP, and non-GAAP net income, driven by Foundry/Logic and chemical metrology demand - Nova reported record quarterly revenue of **$220 million**, a **40% increase YoY**[12](index=12&type=chunk) - Record GAAP net income of **$68.3 million** (**$2.14 per diluted share**) and non-GAAP net income of **$70.4 million** (**$2.20 per diluted share**), representing YoY increases of **52%** and **37%** respectively[12](index=12&type=chunk) - Revenue growth was driven by record sales from Foundry/Logic due to demand for unique metrology solutions in advanced nodes, and record chemical metrology sales driven by HBM demand and expanding adoption of front-end chemical solutions[12](index=12&type=chunk) Q2 2025 GAAP Financial Highlights (in thousands) | | Q2 2025 | Q1 2025 | Q2 2024 | |:---|:---|:---|:---| | Revenues | $219,989 | $213,356 | $156,858 | | Net Income | $68,291 | $64,823 | $45,142 | | Earnings per Diluted Share | $2.14 | $2.03 | $1.41 | Q2 2025 Non-GAAP Financial Highlights (in thousands) | | Q2 2025 | Q1 2025 | Q2 2024 | |:---|:---|:---|:---| | Net Income | $70,400 | $69,958 | $51,956 | | Earnings per Diluted Share | $2.20 | $2.18 | $1.61 | [Management Commentary](index=4&type=section&id=2.2%20Management%20Commentary) President and CEO Gaby Waisman highlighted record revenue and earnings, attributing success to strong client adoption of advanced tools and market alignment, anticipating outperformance of the WFE market in 2025 - Gaby Waisman, President and CEO, expressed pride in record revenue and earnings, noting top-line performance at the high end of guidance and earnings outpacing profit outlook[13](index=13&type=chunk) - Advanced tools achieved impressive client adoption and endorsement, driving regional and diverse product segment penetration[13](index=13&type=chunk) - Nova expects to outperform WFE (Wafer Fab Equipment) in 2025, powered by positive customer momentum and an advanced portfolio aligned with market demand[13](index=13&type=chunk) [Detailed Q2 2025 Financial Results](index=4&type=section&id=2.3%20Detailed%20Q2%202025%20Financial%20Results) Nova's Q2 2025 revenues reached **$220 million**, marking a **3% increase QoQ** and a **40% increase YoY**, with a gross margin of **57.8%** and strong growth in both GAAP and non-GAAP net income and diluted EPS - Total revenues for Q2 2025 were **$220 million**, an increase of **3%** compared to Q1 2025 and **40%** compared to Q2 2024[14](index=14&type=chunk) Key Financial Metrics (QoQ & YoY Comparison) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | |:---|:---|:---|:---| | Gross margin | 57.8% | 57.3% | 59.0% | | Operating expenses | $61.6 million | $59.1 million | $46.9 million | | GAAP net income | $68.3 million | $64.8 million | $45.1 million | | GAAP diluted EPS | $2.14 | $2.03 | $1.41 | | Non-GAAP net income | $70.4 million | $70.0 million | $52.0 million | | Non-GAAP diluted EPS | $2.20 | $2.18 | $1.61 | [Third Quarter 2025 Financial Outlook](index=4&type=section&id=Third%20Quarter%202025%20Financial%20Outlook) Management projects Q3 2025 revenues between **$215 million** and **$227 million**, with diluted GAAP EPS expected at **$1.77 to $1.97** and diluted non-GAAP EPS between **$2.02 and $2.22** Q3 2025 Financial Outlook | Metric | Range | |:---|:---|\ | Revenue | $215 million to $227 million | | Diluted GAAP EPS | $1.77 to $1.97 | | Diluted non-GAAP EPS | $2.02 to $2.22 | [Company Information and Disclosures](index=5&type=section&id=Company%20Information%20and%20Disclosures) [About Nova](index=6&type=section&id=4.1%20About%20Nova) Nova is a leading innovator in material, optical, and chemical metrology solutions for advanced process control in semiconductor manufacturing, traded on Nasdaq and TASE under NVMI - Nova is a key provider of material, optical, and chemical metrology solutions for advanced process control in semiconductor manufacturing[22](index=22&type=chunk) - The company's product portfolio combines high-precision hardware and cutting-edge software to provide deep insight into developing and producing advanced semiconductor devices[22](index=22&type=chunk) - Nova's solutions enable customers to improve performance, enhance product yields, and accelerate time to market[22](index=22&type=chunk) - Nova is traded on the Nasdaq and TASE, with Nasdaq ticker symbol NVMI[22](index=22&type=chunk) [Use of Non-GAAP Adjusted Financial Measures](index=6&type=section&id=4.2%20Use%20of%20Non-GAAP%20Adjusted%20Financial%20Measures) Nova uses non-GAAP financial measures, excluding items like amortization of acquired intangible assets and stock-based compensation, to provide supplemental operational insights, though these are not a substitute for GAAP - Non-GAAP financial measures exclude items such as amortization of acquired intangible assets, inventory step-up, stock-based compensation expenses, and acquisition-related expenses[23](index=23&type=chunk) - Management believes these non-GAAP measures provide meaningful supplemental information by reflecting operational results and enhancing the evaluation of Nova's performance before charges or benefits considered outside ongoing operating results[23](index=23&type=chunk) - The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for GAAP financial information[23](index=23&type=chunk) [Forward-Looking Statements](index=6&type=section&id=4.3%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding future events and performance, subject to known and unknown risks and uncertainties that could cause actual results to differ materially, with no obligation for Nova to update this information - The press release contains forward-looking statements relating to future events or performance, such as anticipated growth opportunities and projections about business, revenues, expenses, and profitability[24](index=24&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially, including increased IT security threats, foreign political and economic risks, market instability, and risks related to doing business with China[24](index=24&type=chunk) - Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release[24](index=24&type=chunk) [Conference Call Information](index=5&type=section&id=4.4%20Conference%20Call%20Information) Nova hosted a conference call on August 7, 2025, to discuss its second quarter 2025 financial results and outlook, with details provided for live attendance and replay options - Nova hosted a conference call on August 7, 2025, at 8:30 a.m. Eastern Time, to discuss Q2 2025 financial results and outlook[19](index=19&type=chunk)[20](index=20&type=chunk) - The conference call was accessible via U.S. toll-free, Israel toll-free, and international dial-in numbers, and a live webcast on Nova's website[20](index=20&type=chunk) - A replay of the conference call was available from August 7, 2025, until August 14, 2025, via dial-in, and for 90 days on Nova's website[21](index=21&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) [Balance Sheets](index=7&type=section&id=5.1%20Balance%20Sheets) As of June 30, 2025, Nova's total assets increased to **$1,533,626 thousand** from **$1,390,422 thousand** at December 31, 2024, driven by non-current assets and a substantial increase in shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | |:---|:---|:---|:---| | Total assets | $1,533,626 | $1,390,422 | +$143,204 | | Total current assets | $901,357 | $901,949 | -$592 | | Total non-current assets | $632,269 | $488,473 | +$143,796 | | Total current liabilities | $350,953 | $388,230 | -$37,277 | | Total non-current liabilities | $86,263 | $74,397 | +$11,866 | | Shareholders' equity | $1,096,410 | $927,795 | +$168,615 | - Significant increases in non-current assets were observed, including marketable securities (+$61,707k), intangible assets (+$18,953k), and goodwill (+$42,419k)[27](index=27&type=chunk) [Statements of Operations](index=8&type=section&id=5.2%20Statements%20of%20Operations) For the three months ended June 30, 2025, Nova reported total revenues of **$219,989 thousand**, a **40.2% increase YoY**, with net income growing **51.3% YoY** to **$68,291 thousand** and diluted EPS reaching **$2.14** Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | YoY Change | |:---|:---|:---|:---| | Products revenues | $177,829 | $124,596 | +42.7% | | Services revenues | $42,160 | $32,262 | +30.7% | | Total revenues | $219,989 | $156,858 | +40.2% | | Gross profit | $127,246 | $92,561 | +37.5% | | Total operating expenses | $61,603 | $46,943 | +31.2% | | Operating income | $65,643 | $45,618 | +43.9% | | Net income for the period | $68,291 | $45,142 | +51.3% | | Diluted EPS | $2.14 | $1.41 | +51.8% | [Statements of Cash Flows](index=9&type=section&id=5.3%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$114,210 thousand**, with significant investing activities including a **$56,355 thousand** acquisition and **$20,002 thousand** used for treasury share purchases Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | |:---|:---|:---|:---| | Net cash provided by operating activities | $114,210 | $119,767 | -$5,557 | | Net cash used in investing activities | $(94,718) | $(96,992) | +$2,274 | | Net cash provided by financing activities | $(20,002) | - | N/A | | Cash and cash equivalents and restricted cash - end of period | $160,881 | $130,353 | +$30,528 | - Investing activities included a **$56,355 thousand** acquisition of a subsidiary, net of acquired cash, and significant investments in marketable securities[31](index=31&type=chunk) - Financing activities included **$20,002 thousand** for purchases of treasury shares[31](index=31&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Historical GAAP to Non-GAAP Reconciliation](index=10&type=section&id=6.1%20Historical%20GAAP%20to%20Non-GAAP%20Reconciliation) Nova provides a detailed reconciliation of GAAP to non-GAAP financial results for Q2 2025, Q1 2025, and Q2 2024, showing higher non-GAAP gross profit, operating income, and net income due to adjustments like stock-based compensation and amortization of acquired intangible assets GAAP to Non-GAAP Reconciliation Highlights (in thousands, except percentage and per share data) | Metric | Q2 2025 (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (GAAP) | Q2 2024 (Non-GAAP) | |:---|:---|:---|:---|:---|\ | Gross profit | $127,246 | $131,964 | $92,561 | $95,640 | | Gross margin % | 58% | 60% | 59% | 61% | | Operating income | $65,643 | $75,038 | $45,618 | $53,353 | | Operating margin % | 30% | 34% | 29% | 34% | | Net income | $68,291 | $70,400 | $45,142 | $51,956 | | Diluted EPS | $2.14 | $2.20 | $1.41 | $1.61 | - Key non-GAAP adjustments for Q2 2025 included **$6,257 thousand** for stock-based compensation, **$2,228 thousand** for amortization of acquired intangible assets, and **$910 thousand** for acquisition-related inventory step-up[33](index=33&type=chunk) [Q3 2025 GAAP to Non-GAAP Guidance Reconciliation](index=11&type=section&id=6.2%20Q3%202025%20GAAP%20to%20Non-GAAP%20Guidance%20Reconciliation) Nova provided a reconciliation for its Q3 2025 diluted EPS guidance, outlining non-GAAP adjustments such as stock-based compensation, amortization of acquired intangible assets, and their tax effects Q3 2025 GAAP to Non-GAAP Diluted EPS Guidance Reconciliation (in U.S. dollars) | Metric | Low | High | |:---|:---|:---|\ | Estimated GAAP net income per diluted share | $1.77 | $1.97 | | Estimated non-GAAP items: | | | | Stock-based compensation | $0.20 | $0.20 | | Amortization of acquired intangible assets | $0.09 | $0.09 | | Amortization of issuance costs | $0.01 | $0.01 | | Tax effect of non-GAAP adjustments | $(0.05) | $(0.05) | | Estimated non-GAAP net income per diluted share | $2.02 | $2.22 |

Core Insights - Nova reported record financial results for Q2 2025, with revenues reaching $220 million, a 40% increase year-over-year [5][6] - The company achieved a GAAP net income of $68.3 million, or $2.14 per diluted share, representing a 52% increase compared to Q2 2024 [6][9] - Non-GAAP net income was reported at $70.4 million, or $2.20 per diluted share, a 37% increase year-over-year [6][10] Financial Performance - Total revenues for Q2 2025 were $220 million, up 3% from Q1 2025 and up 40% from Q2 2024 [5] - GAAP net income for Q2 2025 was $68.3 million, compared to $64.8 million in Q1 2025 and $45.1 million in Q2 2024 [9] - Non-GAAP net income for Q2 2025 was $70.4 million, compared to $69.9 million in Q1 2025 and $52.0 million in Q2 2024 [10] Earnings Per Share - Earnings per diluted share on a GAAP basis were $2.14 for Q2 2025, compared to $2.03 in Q1 2025 and $1.41 in Q2 2024 [9] - Non-GAAP earnings per diluted share were $2.20 for Q2 2025, compared to $2.18 in Q1 2025 and $1.61 in Q2 2024 [10] Management Commentary - The CEO highlighted strong client adoption of advanced tools and expects Nova to outperform the wafer fabrication equipment (WFE) market in 2025 [4] Gross Margin and Operating Expenses - Gross margin for Q2 2025 was 57.8%, slightly up from 57.3% in Q1 2025 but down from 59.0% in Q2 2024 [8] - Operating expenses for Q2 2025 were $61.6 million, compared to $59.1 million in Q1 2025 and $46.9 million in Q2 2024 [8] Future Outlook - Management provided guidance for Q3 2025, expecting revenues between $215 million and $227 million and diluted GAAP EPS between $1.77 and $1.97 [7][26]