Axcelis(ACLS) - 2025 Q2 - Quarterly Results

Axcelis Q2 2025 Financial Results Q2 2025 Financial Highlights Axcelis reported strong Q2 2025 results with $194.5 million in revenue and a non-GAAP diluted EPS of $1.13, reflecting disciplined cost control and profitability - Management highlighted strong performance driven by customer engagement, expansion in high-value applications, and momentum in the CS&I business[2] - The company's strong balance sheet enabled continued investment and an increased share repurchase of $45 million[2] Q2 2025 vs. Q2 2024 Performance Summary | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $194.5M | $256.5M | | GAAP Gross Margin | 44.9% | 43.8% | | Non-GAAP Gross Margin | 45.2% | 44.3% | | GAAP Operating Margin | 14.9% | 20.6% | | Non-GAAP Operating Margin | 17.7% | 23.3% | | GAAP Diluted EPS | $0.98 | $1.55 | | Non-GAAP Diluted EPS | $1.13 | $1.73 | | Adjusted EBITDA | $38.9M | $63.6M | Q3 2025 Business Outlook For Q3 2025, Axcelis anticipates revenues of approximately $200 million, with a projected non-GAAP earnings per share of approximately $1.00 Q3 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenues | ~$200 million | | GAAP Diluted EPS | ~$0.87 | | Non-GAAP Diluted EPS | ~$1.00 | Consolidated Financial Statements This section presents detailed unaudited financial statements for the three and six months ended June 30, 2025, compared to the same periods in 2024 Consolidated Statements of Operations Q2 2025 revenue decreased to $194.5 million from $256.5 million year-over-year, leading to a decline in net income to $31.4 million Q2 2025 vs. Q2 2024 Income Statement (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $194,544 | $256,512 | | Gross Profit | $87,343 | $112,409 | | Income from Operations | $28,965 | $52,810 | | Net Income | $31,376 | $50,866 | | Diluted EPS | $0.98 | $1.55 | Consolidated Balance Sheets Total assets were $1.32 billion as of June 30, 2025, with increased cash and cash equivalents and a stronger stockholders' equity of $1.02 billion Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $173,649 | $123,512 | | Total Current Assets | $1,064,475 | $1,123,608 | | Total Assets | $1,323,486 | $1,348,781 | | Total Liabilities | $301,103 | $335,991 | | Total Stockholders' Equity | $1,022,383 | $1,012,790 | Condensed Consolidated Statements of Cash Flows The company generated $39.7 million in net operating cash flow and used $47.0 million in financing activities, driven by a $45.3 million stock repurchase Q2 2025 vs. Q2 2024 Cash Flow Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,727 | $40,067 | | Net cash used in investing activities | $(4,613) | $(5,603) | | Net cash used in financing activities | $(46,987) | $(22,601) | | Repurchase of common stock | $(45,337) | $(14,996) | Non-GAAP Financial Measures and Reconciliations This section provides detailed reconciliations of GAAP to non-GAAP financial measures used by management to evaluate operational performance - The company uses non-GAAP measures to provide a perspective consistent with management's evaluation of the business, primarily by adjusting for stock-based compensation and restructuring costs[8][20] Reconciliation of GAAP to Non-GAAP Measures Q2 2025 GAAP net income of $31.4 million was adjusted to a non-GAAP net income of $36.0 million, primarily due to stock-based compensation add-backs Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands, except EPS) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $87,343 | $569 | $87,912 | | Operating Income | $28,965 | $5,392 | $34,357 | | Net Income | $31,376 | $4,637 | $36,013 | | Diluted EPS | $0.98 | $0.15 | $1.13 | Reconciliation of Net Income to Adjusted EBITDA Adjusted EBITDA for Q2 2025 was $38.9 million, reconciled from a net income of $31.4 million by adding back taxes, D&A, and stock-based compensation Q2 2025 vs. Q2 2024 Net Income to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $31,376 | $50,866 | | Adjustments (Taxes, D&A, etc.) | $2,104 | $5,805 | | Stock-based compensation | $5,421 | $5,469 | | Adjusted EBITDA | $38,872 | $63,568 | | Adjusted EBITDA Margin | 20.0% | 24.8% |