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News Release

 

Axcelis Announces Financial Results for First Quarter 2026

 

Q1 2026 Highlights:

 

·Revenue of $199.0 million

·GAAP Gross Margin of 40.5%, and Non-GAAP Gross Margin of 40.7%

·GAAP Operating Margin of 4.0% and Non-GAAP Operating Margin of 11.7%

·GAAP Diluted Earnings Per Share of $0.30, and Non-GAAP Diluted Earnings Per Share of $0.72

 

BEVERLY, Mass., May 7, 2026—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2026.

 

President and CEO Russell Low commented, “We executed well in the first quarter, delivering results slightly above expectations, reflecting the strength of our CS&I business and meaningful acceleration in Memory. Demand in DRAM and HBM was again a clear highlight, with strong sequential growth building on our momentum exiting 2025. CS&I remains an area of focus for Axcelis and is becoming an increasingly important strategic driver of our business across cycles, particularly as our installed base expands.”

 

Low added, “We continue to anticipate 2026 revenue will be relatively flat compared to 2025, as growth in Memory is offset by a continued digestion of capacity in our Power and General Mature markets. That said, we are encouraged by our bookings activity in the first quarter and the robust customer engagement we are having across a wide array of opportunities, which positions Axcelis for increased momentum exiting 2026 and into 2027. We look forward to completing our merger with Veeco, which we expect to close in the second half of 2026.”

 

Senior Vice President and Interim CFO David Ryzhik stated, “We ended the first quarter with a strong balance sheet, including approximately $570 million of cash, and continued to generate attractive free cash flow, providing ample flexibility to fund our growth objectives and maintain a value-creative capital allocation strategy. As we look to the balance of the year, we are well positioned to execute, supported by firming order trends, an anticipated increase in revenue in the second half, and continued investments in innovation to capture attractive opportunities ahead.”

 

 

 

News Release

 

Results Summary

(In thousands, except per share amounts and percentages)

 

   Three months ended March 31, 
   2026   2025 
Revenue  $198,956   $192,563 
Gross margin   40.5%   46.1%
Operating margin   4.0%   15.1%
Net income  $9,214   $28,579 
Diluted earnings per share  $0.30   $0.88 
Non-GAAP Results          
Non-GAAP gross margin   40.7%   46.4%
Non-GAAP operating margin   11.7%   18.5%
Adjusted EBITDA  $27,748   $40,001 
Non-GAAP net income  $22,425   $34,197 
Non-GAAP diluted earnings per share  $0.72   $1.06 

 

Business Outlook

 

For the second quarter ending June 30, 2026, Axcelis expects revenues of approximately $205 million, GAAP earnings per diluted share of approximately $0.57, and non-GAAP earnings per share of approximately $0.90.

 

Please refer to Second Quarter 2026 Outlook under the “Notes on our Non-GAAP Financial Information” section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

 

First Quarter 2026 Conference Call

 

The Company will host a call to discuss the results for the first quarter 2026 today at 5:00 p.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a participant here:

 

https://register-conf.media-server.com/register/BIabf144ee757c4fccaceea99cf3cea2c9

 

Webcast replays will be available for 30 days following the call.

 

Use of Non-GAAP Financial Results

 

This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense, certain items related to restructuring and severance charges and any associated adjustments and transaction and integration costs associated with the merger agreement with Veeco Instruments announced on October 1, 2025.

 

 

 

News Release

 

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release. For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

 

Safe Harbor Statement

 

This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

 

About Axcelis

 

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

 

 

 

News Release

 

CONTACTS:

 

Investor Relations Contact: 

David Ryzhik 

Senior Vice President and Interim CFO 

Telephone: (978) 787-2352 

Email: David.Ryzhik@axcelis.com

 

Press/Media Relations Contact: 

Maureen Hart 

Senior Director, Corporate & Marketing Communications 

Telephone: (978) 787-4266 

Email: Maureen.Hart@axcelis.com

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Consolidated Statements of Operations 

(In thousands, except per share amounts) 

(Unaudited)

 

   Three months ended March 31, 
   2026   2025 
Revenue:          
Product  $188,008   $182,824 
Services   10,948    9,739 
Total revenue   198,956    192,563 
Cost of revenue:          
Product   105,735    94,500 
Services   12,640    9,295 
Total cost of revenue   118,375    103,795 
Gross profit   80,581    88,768 
Operating expenses:          
Research and development   28,516    27,128 
Sales and marketing   17,354    15,124 
General and administrative   26,761    17,357 
Total operating expenses   72,631    59,609 
Income from operations   7,950    29,159 
Other income (expense):          
Interest income   4,462    5,601 
Interest expense   (1,292)   (1,367)
Other, net   (495)   (309)
Total other income   2,675    3,925 
Income before income taxes   10,625    33,084 
Income tax provision   1,411    4,505 
Net income  $9,214   $28,579 
Net income per share:          
Basic  $0.30   $0.89 
Diluted  $0.30   $0.88 
Shares used in computing net income per share:          
Basic weighted average shares of common stock   30,723    32,258 
Diluted weighted average shares of common stock   30,980    32,335 

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Consolidated Balance Sheets 

(In thousands, except per share amounts) 

(Unaudited)

 

   March 31,   December 31, 
   2026   2025 
ASSETS          
Current assets:          
Cash and cash equivalents  $150,829   $145,451 
Short-term investments   215,771    228,802 
Accounts receivable, net   161,814    168,479 
Inventories, net   326,052    329,010 
Prepaid income taxes   4,609    4,658 
Prepaid expenses and other current assets   76,607    66,802 
Total current assets   935,682    943,202 
Property, plant and equipment, net   57,729    56,146 
Operating lease assets   27,943    28,927 
Finance lease assets, net   13,835    14,154 
Long-term restricted cash   10,628    10,627 
Deferred income taxes   80,514    79,895 
Long-term investments   203,339    182,396 
Other assets   44,874    46,004 
Total assets  $1,374,544   $1,361,351 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $51,558   $42,309 
Accrued compensation   16,663    34,233 
Warranty   9,314    9,516 
Income taxes   14,026    11,383 
Deferred revenue   68,352    65,494 
Current portion of finance lease obligation   1,648    1,575 
Other current liabilities   42,353    33,150 
Total current liabilities   203,914    197,660 
Long-term finance lease obligation   40,310    40,754 
Long-term deferred revenue   41,214    43,445 
Other long-term liabilities   44,463    44,815 
Total liabilities   329,901    326,674 
           
Stockholders’ equity:          
Common stock, $0.001 par value, 75,000 shares authorized; 30,733 shares issued and outstanding at March 31, 2026; 30,717 shares issued and outstanding at December 31, 2025   31    31 
Additional paid-in capital   537,185    533,309 
Retained earnings   512,753    503,539 
Accumulated other comprehensive loss   (5,326)   (2,202)
Total stockholders’ equity   1,044,643    1,034,677 
Total liabilities and stockholders’ equity  $1,374,544   $1,361,351 

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Condensed Consolidated Statements of Cash Flows 

(In thousands) 

(Unaudited)

 

     Three months ended March 31,  
    2026     2025  
Cash flows from operating activities                
Net income   $ 9,214     $ 28,579  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     4,436       4,309  
Stock-based compensation expense     4,899       4,903  
Other     3,805       (1,682 )
Change in operating assets and liabilities, net     (4,215 )     3,686  
Net cash provided by operating activities     18,139       39,795  
                 
Cash flows from investing activities                
Expenditures for property, plant and equipment and capitalized software     (1,839 )     (4,960 )
Other changes in investing activities, net     (8,800 )     45,429  
Net cash (used in) provided by investing activities     (10,639 )     40,469  
                 
Cash flows from financing activities                
Repurchase of common stock     —       (18,178 )
Other changes from financing activities, net     (1,397 )     (1,932 )
Net cash used in financing activities     (1,397 )     (20,110 )
                 
Effect of exchange rate changes on cash and cash equivalents     (724 )     292  
Net increase in cash, cash equivalents and restricted cash     5,379       60,446  
                 
Cash, cash equivalents and restricted cash at beginning of period     156,078       131,064  
Cash, cash equivalents and restricted cash at end of period   $ 161,457     $ 191,510  

 

 

 

News Release

 

Notes on Our Non-GAAP Financial Information

 

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company’s operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors’ ability to review the Company’s business from the same perspective as the Company’s management.

 

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

 

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

 

 

 

News Release

 

Axcelis Technologies, Inc. 

Schedule Reconciling Selected Non-GAAP Financial Measures 

(In thousands, except per share amounts and percentages)

 

   Three months ended March 31, 
   2026   2025 
GAAP gross profit  $80,581   $88,768 
Restructuring1   —    226 
Stock-based compensation   442    353 
Non-GAAP gross profit  $81,023   $89,347 
Non-GAAP gross margin   40.7%   46.4%
           
Operating expenses  $72,631   $59,609 
Transaction and integration3,4   (10,398)   (481)
Bad debt expense   (65)   — 
Restructuring1   —    (923)
Stock-based compensation   (4,457)   (4,550)
Non-GAAP operating expenses  $57,711   $53,655 
           
GAAP operating income  $7,950   $29,159 
Transaction and integration3,4   10,398    481 
Bad debt expense   65    — 
Restructuring1   —    1,149 
Stock-based compensation   4,899    4,903 
Non-GAAP operating income  $23,312   $35,692 
Non-GAAP operating margin   11.7%   18.5%
           
GAAP income tax provision  $1,411   $4,505 
Income tax effect of non-GAAP adjustments2   2,151    915 
Non-GAAP income tax provision  $3,562   $5,420 
           
GAAP net income  $9,214   $28,579 
Transaction and integration3,4   10,398    481 
Bad debt expense   65    — 
Restructuring1   —    1,149 
Stock-based compensation   4,899    4,903 
Income tax effect of non-GAAP adjustments2   (2,151)   (915)
Non-GAAP net income  $22,425   $34,197 
           
GAAP diluted EPS  $0.30   $0.88 
Transaction and integration3,4   0.34    0.01 
Bad debt expense   —    — 
Restructuring1   —    0.04 
Stock-based compensation   0.16    0.15 
Income tax effect of non-GAAP adjustments2   (0.07)   (0.03)
Non-GAAP diluted EPS  $0.72   $1.06 

 

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives. 

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%. 

Note 3: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments. 

Note 4: First quarter 2025 transaction and integration costs includes $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported first quarter 2025 results, given that this occurred prior to the transaction announcement on October 1, 2025.

 

 

 

News Release

 

Axcelis Technologies, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)

 

   Three months ended March 31, 
   2026   2025 
Net income  $9,214   $28,579 
Other (income)/expense   (2,675)   (3,925)
Income tax provision   1,411    4,505 
Depreciation & amortization   4,436    4,309 
Subtotal   12,386    33,468 
Transaction and integration2,3   10,398    481 
Bad debt expense   65    — 
Restructuring1   —    1,149 
Stock-based compensation   4,899    4,903 
Adjusted EBITDA  $27,748   $40,001 
Adjusted EBITDA margin   13.9%   20.8%

 

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments.

Note 3: First quarter 2025 transaction and integration costs include $481,000 of expenses that were not reflected as a GAAP to Non-GAAP reconciliation line item when the Company reported first quarter 2025 results, given that this occurred prior to the transaction announcement on October 1, 2025.

 

Axcelis Technologies, Inc. 

Second Quarter Outlook 

GAAP to Non-GAAP Diluted Earnings Per Share

 

   Three months ended
June 30, 2026		 
GAAP diluted EPS  $0.57 
Transaction and integration1   0.18 
Stock-based compensation   0.21 
Income tax effect of non-GAAP adjustments2   (0.06)
Non-GAAP diluted EPS  $0.90 

 

Note 1: Transaction and integration costs include expenses associated with the merger agreement with Veeco Instruments. 

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%. 

Figures may not sum due to rounding.