Veeco Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Veeco Reports Fourth Quarter and Fiscal Year 2025 Financial Results February 25, 2026 Fourth Quarter 2025 Highlights: Revenue of $165.0 million, compared with $182.1 million in the same period last yearGAAP net income of $1.1 million, or $0.02 per diluted share, compared with $15.0 million, or $0.26 per diluted share in the same period last yearNon-GAAP net income of $14.7 million, or $0.24 per diluted share, compared with $24.2 million, or $0.41 per diluted share in the same period last year Fiscal Year 2025 Highlights: Revenue of $664.3 million, compared with $717.3 million in the same period last yearGAAP net income of $35.4 million, or $0.59 per diluted share, compared with $73.7 million, or $1.23 per diluted share in the same period last yearNon-GAAP net income of $80.2 million, or $1.33 per diluted share, compared with $104.3 million, or $1.74 per diluted share in the same period last year PLAINVIEW, N.Y., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its fourth quarter and fiscal year ended December 31, 2025. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release. U.S. Dollars in millions, except per share data 4th Quarter Full Year GAAP Results Q4 '25 Q4 '24 2025 2024 Revenue $165.0 $182.1 $664.3 $717.3 Net income $1.1 $15.0 $35.4 $73.7 Diluted earnings per share $0.02 $0.26 $0.59 $1.23 4th Quarter Full Year Non-GAAP Results Q4 '25 Q4 '24 2025 2024 Operating income $13.8 $27.4 $84.3 $116.1 Net income $14.7 $24.2 $80.2 $104.3 Diluted earnings per share $0.24 $0.41 $1.33 $1.74 “Veeco executed well in 2025, accelerating bookings in the second half for our semiconductor, compound semiconductor and data storage markets, positioning us for robust growth in 2026 driven by AI and High-Performance Computing,” said Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “With expanding backlog, growing customer adoption of our new technologies, and the planned merger with Axcelis, we believe we are well positioned to accelerate growth and create long-term strategic value for all stakeholders.” Guidance and Outlook The following guidance is provided for Veeco’s first quarter 2026: Revenue is expected in the range of $150 million to $170 millionGAAP diluted earnings (loss) per share are expected in the range of ($0.03) to $0.07Non-GAAP diluted earnings per share are expected in the range of $0.14 to $0.24 The following guidance is provided for Veeco’s fiscal year 2026: Revenue is expected in the range of $740 million to $800 millionGAAP diluted earnings per share are expected in the range of $0.83 to $1.17Non-GAAP diluted earnings per share are expected in the range of $1.50 to $1.85 Conference Call Information A conference call reviewing these results has been scheduled for today, February 25, 2026 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call. About Veeco Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com. No Offer or Solicitation This communication is not intended to and shall not constitute an offer to purchase or the solicitation of an offer to buy or sell any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Forward-looking Statements This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, statements regarding the pending merger with Axcelis, statements regarding shipments currently being held by U.S. Customs, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results, the timing, completion and expected benefits of the proposed transaction and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the effects of foreign and domestic tariffs and the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; cybersecurity attacks and our ability to safeguard sensitive information and protect our intellectual property rights in key technologies; the effects of regional or global health epidemics; delays in or failure to complete the proposed transaction, whether due to an inability by either party to satisfy one or more conditions to closing, including an inability to obtain certain regulatory approvals, the occurrence of events or changes in circumstances that give rise to the termination of the applicable merger agreement by either party, or otherwise; risks related to the pendency of the proposed transaction and its effect on our business, financial condition, results of operations, cash flows and stock price; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees, including as a result of the proposed transaction; diversion of management time and attention from ordinary course business operations to the proposed transaction and other potential disruptions to our business relating thereto; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release. -financial tables attached- Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three months ended December 31, Year ended December 31, 2025 2024 2025 2024 Net sales $165,017 $182,131 $664,294 $717,301 Cost of sales 104,505 108,146 398,885 413,296 Gross profit 60,512 73,985 265,409 304,005 Operating expenses, net: Research and development 30,579 30,953 119,641 124,507 Selling, general, and administrative 25,296 25,077 98,906 99,663 Amortization of intangible assets 723 1,580 3,136 6,983 Merger costs 6,300 — 8,908 — Asset impairment — 28,131 — 28,131 Other operating expense (income), net (1,021) (15,635) (889) (22,260)Total operating expenses, net 61,877 70,106 229,702 237,024 Operating income (loss) (1,365) 3,879 35,707 66,981 Interest income (expense), net 1,271 476 4,333 1,853 Other income (expense), net — — (653) — Income before income taxes (94) 4,355 39,387 68,834 Income tax expense (benefit) (1,208) (10,610) 3,997 (4,880)Net income $1,114 $14,965 $35,390 $73,714 Income per common share: Basic $0.02 $0.26 $0.60 $1.31 Diluted $0.02 $0.26 $0.59 $1.23 Weighted average number of shares: Basic 60,140 56,536 59,299 56,426 Diluted 61,515 60,499 60,594 61,596 Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) December 31, December 31, 2025 2024 (unaudited) Assets Current assets: Cash and cash equivalents $163,466 $145,595 Restricted cash — 224 Short-term investments 226,763 198,719 Accounts receivable, net 110,685 96,834 Contract assets 34,838 37,109 Inventories 275,298 246,735 Prepaid expenses and other current assets 34,286 39,316 Total current assets 845,336 764,532 Property, plant and equipment, net 108,646 113,789 Operating lease right-of-use assets 24,606 26,503 Intangible assets, net 5,696 8,832 Goodwill 214,964 214,964 Deferred income taxes 122,935 120,191 Other assets 3,612 2,766 Total assets $1,325,795 $1,251,577 Liabilities and stockholders’ equity Current liabilities: Accounts payable $55,345 $43,519 Accrued expenses and other current liabilities 45,503 55,195 Contract liabilities 74,161 64,986 Income taxes payable 3,048 2,086 Current portion of long-term debt — 26,496 Total current liabilities 178,057 192,282 Deferred income taxes 532 689 Long-term debt 226,009 249,702 Long-term operating lease liabilities 31,837 34,318 Other liabilities 3,852 3,816 Total liabilities 440,287 480,807 Total stockholders’ equity 885,508 770,770 Total liabilities and stockholders’ equity $1,325,795 $1,251,577 Note on Reconciliation Tables The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs. These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures. Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2025) (in thousands) (unaudited) Non-GAAP Adjustments Three months ended December 31, 2025 GAAP Share-Based Compensation Amortization Other Non-GAAP Net sales $165,017 $165,017 Gross profit 60,512 1,757 62,269 Gross margin 36.7% 37.7%Operating expenses 61,877 (7,286) (723) (5,375) 48,493 Operating income (loss) (1,365) 9,043 723 5,375^ 13,776 Net income 1,114 9,043 723 3,830^ 14,710 ________________________________ ^ – See table below for additional details. Other Non-GAAP Adjustments (Q4 2025) (in thousands) (unaudited)Three months ended December 31, 2025 Merger related expenses $6,300 Changes in contingent consideration (925)Subtotal 5,375 Non-cash interest expense 285 Non-GAAP tax adjustment * (1,830)Total Other $3,830 ________________________________ * – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q4 2025) (in thousands, except per share amounts) (unaudited) Three months ended December 31, 2025 GAAP Non-GAAP Numerator: Net income available to common shareholders $1,114 $14,710 Denominator: Basic weighted average shares outstanding 60,140 60,140 Effect of potentially dilutive share-based awards 1,254 1,254 Dilutive effect of 2029 Convertible Senior Notes 121 121 Diluted weighted average shares outstanding 61,515 61,515 Net income per common share: Basic $0.02 $0.24 Diluted $0.02 $0.24 Reconciliation of GAAP to Non-GAAP Financial Data (Q4 2024) (in thousands) (unaudited) Non-GAAP Adjustments Three months ended December 31, 2024 GAAP Share-based Compensation Amortization Other Non-GAAP Net sales $182,131 $182,131 Gross profit 73,985 1,523 75,508 Gross margin 40.6% 41.5%Operating expenses 70,106 (7,582) (1,580) (12,876) 48,068 Operating income 3,879 9,105 1,580 12,876^ 27,440 Net income 14,965 9,105 1,580 (1,443)^ 24,207 ________________________________ ^ – See table below for additional details. Other Non-GAAP Adjustments (Q4 2024) (in thousands) (unaudited)Three months ended December 31, 2024 Asset impairment $28,131 Change in contingent consideration (16,466)Other 1,211 Subtotal 12,876 Non-cash interest expense 322 Tax benefit associated with asset impairment (12,239)Non-GAAP tax adjustment * (2,402)Total Other $(1,443)________________________________ * – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (Q4 2024) (in thousands, except per share amounts) (unaudited) Three months ended December 31, 2024 GAAP Non-GAAP Numerator: Net income $14,965 $24,207 Interest expense associated with 2025 and 2027 Convertible Senior Notes 513 466 Net income available to common shareholders $15,478 $24,673 Denominator: Basic weighted average shares outstanding 56,536 56,536 Effect of potentially dilutive share-based awards 1,070 1,070 Dilutive effect of 2025 Convertible Senior Notes 1,104 1,104 Dilutive effect of 2027 Convertible Senior Notes(1) 1,789 1,354 Diluted weighted average shares outstanding 60,499 60,064 Net income per common share: Basic $0.26 $0.43 Diluted $0.26 $0.41 ________________________________ (1) The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q4 2025 and 2024) (in thousands) (unaudited) Three months ended Three months ended December 31, 2025 December 31, 2024GAAP Net income (loss) $1,114 $14,965 Share-based compensation 9,043 9,105 Amortization 723 1,580 Asset impairment — 28,131 Changes in contingent consideration (925) (16,466)Merger related expenses 6,300 — Interest (income) expense, net (1,271) (476)Other — 1,211 Income tax expense (benefit) (1,208) (10,610)Non-GAAP Operating income $13,776 $27,440 Reconciliation of GAAP to Non-GAAP Financial Data (FY 2025) (in thousands) (unaudited) Non-GAAP Adjustments For the year ended December 31, 2025 GAAP Share-based Compensation Amortization Other Non-GAAP Net sales $664,294 $664,294 Gross profit 265,409 6,862 272,271 Gross margin 40.0% 41.0%Operating expenses 229,702 (30,185) (3,136) (8,391) 187,990 Operating income 35,707 37,047 3,136 8,391^ 84,281 Net income 35,390 37,047 3,136 4,652^ 80,225 ________________________________ ^ - See table below for additional details. Other Non-GAAP Adjustments (FY 2025) (in thousands) (unaudited)For the year ended December 31, 2025 Merger related expenses $8,908 Changes in contingent consideration (925)Other 408 Subtotal 8,391 Non-cash interest expense 1,118 Other (income) expense, net 653 Non-GAAP tax adjustment * (5,510)Total Other $4,652 ________________________________ * - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (FY 2025) (in thousands, except per share amounts) (unaudited) Year ended December 31, 2025 GAAP Non-GAAP Numerator: Net income $35,390 $80,225 Interest expense associated with convertible notes 378 386 Net income available to common shareholders $35,768 $80,611 Denominator: Basic weighted average shares outstanding 59,299 59,299 Effect of potentially dilutive share-based awards 634 634 Dilutive effect of 2025 Convertible Senior Notes — 45 Dilutive effect of 2027 Convertible Senior Notes(1) 661 501 Diluted weighted average shares outstanding 60,594 60,479 Net income per common share: Basic $0.60 $1.35 Diluted $0.59 $1.33 ________________________________ (1) The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP to Non-GAAP Financial Data (FY 2024) (in thousands) (unaudited) Non-GAAP Adjustments For the year ended December 31, 2024 GAAP Share-based Compensation Amortization Other Non-GAAP Net sales $717,301 $717,301 Gross profit 304,005 6,263 162 310,430 Gross margin 42.4% 43.3%Operating expenses 237,024 (29,616) (6,983) (6,067) 194,358 Operating income 66,981 35,879 6,983 6,229^ 116,072 Net income (loss) 73,714 35,879 6,983 (12,233)^ 104,343 ________________________________ ^ – See table below for additional details. Other Non-GAAP Adjustments (FY 2024) (in thousands) (unaudited)For the year ended December 31, 2024 Asset Impairment $28,131 Changes in contingent consideration (21,242)Sale of productive assets (2,033)Other 1,373 Subtotal 6,229 Non-cash interest expense 1,257 Tax benefits associated with asset impairments (12,239)Non-GAAP tax adjustment * (7,480)Total Other $(12,233)________________________________ * – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments. Net Income per Common Share (FY 2024) (in thousands, except per share amounts) (unaudited) Year ended December 31, 2024 GAAP Non-GAAP Numerator: Net income $73,714 $104,343 Interest expense associated with convertible notes 2,054 1,865 Net income available to common shareholders $75,768 $106,208 Denominator: Basic weighted average shares outstanding 56,426 56,426 Effect of potentially dilutive share-based awards 1,010 1,010 Dilutive effect of 2025 Convertible Senior Notes 1,104 1,104 Dilutive effect of 2027 Convertible Senior Notes(1) 1,788 1,354 Dilutive effect of 2029 Convertible Senior Notes 1,268 1,268 Diluted weighted average shares outstanding 61,596 61,162 Net income per common share: Basic $1.31 $1.85 Diluted $1.23 $1.74 ________________________________ (1) The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count. Reconciliation of GAAP Net Income to Non-GAAP Operating Income (FY 2025 and 2024) (in thousands) (unaudited) Year ended Year ended December 31, 2025 December 31, 2024GAAP Net income $35,390 $73,714 Share-based compensation 37,047 35,879 Amortization 3,136 6,983 Asset impairment — 8,908 Merger related expenses 8,908 — Changes in contingent consideration (925) (21,242)Sales of productive assets — (2,033)Interest (income) expense, net (4,333) (1,853)Other 1,061 1,373 Income tax expense (benefit) 3,997 (4,880)Non-GAAP Operating income $84,281 $96,849 Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2026) (in millions, except per share amounts) (unaudited) Non-GAAP Adjustments Guidance for the three months ending Share-based March 31, 2026 GAAP Compensation Amortization Other Non-GAAPNet sales $150 – $170 $150 – $170 Gross profit 54 – 63 2 — — 56 – 65 Gross margin 36% – 37% 37% – 38%Operating expenses 58 – 60 (7) (1) (2) 48 – 50 Operating income (3) – 4 9 1 2 9 – 16 Net income $(2) – $4 9 1 1 $9 – $15 Income per diluted common share $(0.03) – $0.07 $0.14 – $0.24 Income per Diluted Common Share (Q1 2026) (in millions, except per share amounts) (unaudited)Guidance for the three months ending March 31, 2026 GAAP Non-GAAP Numerator: Net income (loss) available to common shareholders $(2) – $4 $9 – $15 Denominator: Basic weighted average shares outstanding 60 – 60 60 – 60 Effect of potentially dilutive share-based awards — – 1 1 – 1 Dilutive effect of 2029 Convertible Senior Notes — – 1 1 – 1 Diluted weighted average shares outstanding 60 – 62 62 – 62 Net income per common share: Income (loss) per diluted common share $(0.03) – $0.07 $0.14 – $0.24 Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2026) (in millions) (unaudited)Guidance for the three months ending March 31, 2026 GAAP Net income $(2) – $4 Share-based compensation 9 – 9 Amortization 1 – 1 Merger related expense 2 – 2 Interest expense (income) (1) – (1)Income tax expense — – 1 Non-GAAP Operating income $9 – $16 Note: Amounts may not calculate precisely due to rounding.Reconciliation of GAAP to Non-GAAP Financial Data (FY 2026) (in millions, except per share amounts) (unaudited) Non-GAAP Adjustments Guidance for the year ending Share-based December 31, 2026 GAAP Compensation Amortization Other Non-GAAPNet sales $740 – $800 $740 – $800 Gross profit 298 – 338 8 — — 306 – 346 Gross margin 40% – 42% 41% – 43%Operating expenses 244 – 259 (31) (2) (6) 205 – 220 Operating income 54 – 79 39 2 6 101 – 126 Net income $52 – $73 39 2 1 $94 – $115 Income per diluted common share $0.83 – $1.17 $1.50 – $1.85 Income per Diluted Common Share (FY 2026) (in millions, except per share amounts) (unaudited)Guidance for the year ending December 31, 2026 GAAP Non-GAAP Numerator: Net income available to common shareholders $52 – $73 $94 – $115 Denominator: Basic weighted average shares outstanding 61 – 61 61 – 61 Effect of potentially dilutive share-based awards 1 – 1 1 – 1 Dilutive effect of 2029 Convertible Senior Notes 1 – 1 1 – 1 Diluted weighted average shares outstanding 63 – 63 63 – 63 Net income per common share: Income per diluted common share $0.83 – $1.17 $1.50 – $1.85 Reconciliation of GAAP Net Income to Non-GAAP Operating Income (FY 2026) (in millions) (unaudited)Guidance for the year ending December 31, 2026 GAAP Net income $52 – $73 Share-based compensation 39 – 39 Amortization 2 – 2 Merger related expense 6 – 6 Interest expense (income) (4) – (4)Income tax expense 7 – 10 Non-GAAP Operating income $101 – $126 Source: Veeco Instruments Inc.