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 /PRNewswire/ -- 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." 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. 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. CONTACTS: Investor Relations Contact: David Ryzhik Senior Vice President and Interim CFO Telephone: (978) 787-2352 Email: [email protected] Press/Media Relations Contact: Maureen Hart Senior Director, Corporate & Marketing Communications Telephone: (978) 787-4266 Email: [email protected] 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 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 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 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. 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. 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 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. 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. 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