Axcelis Announces Financial Results for First Quarter 2026

Published: 2026-05-07 16:02:14 ET ACLS

Published on 05/07/2026 at 04:02 pm EDT

Q1 2026 Highlights:

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 OutlookFor 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 CallThe 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/BIabf144ee757c4fccaceea99cf3cea2c9Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial ResultsThis 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 StatementThis 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 AxcelisAxcelis (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 RyzhikSenior Vice President and Interim CFOTelephone: (978) 787-2352Email: [email protected]

Press/Media Relations Contact:Maureen HartSenior Director, Corporate & Marketing CommunicationsTelephone: (978) 787-4266Email: [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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SOURCE Axcelis Technologies, Inc.