Axcelis | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 213.61 M

Revenue: As of FY2025 Q3, the actual value is USD 213.61 M, beating the estimate of USD 200.06 M.

EPS: As of FY2025 Q3, the actual value is USD 0.83, missing the estimate of USD 0.852.

EBIT: As of FY2025 Q3, the actual value is USD 20.86 M.

Segment Revenue

• Systems Revenue: $143.7 million for the three months ended September 30, 2025, compared to $201.1 million for the same period in 2024. For the nine months ended September 30, 2025, systems revenue was $414.5 million, compared to $595.1 million in 2024.
• Aftermarket Revenue: $69.9 million for the three months ended September 30, 2025, compared to $55.5 million for the same period in 2024. For the nine months ended September 30, 2025, aftermarket revenue was $186.2 million, compared to $170.3 million in 2024.

Operational Metrics

• Net Income: $25.986 million for the three months ended September 30, 2025, compared to $48.576 million for the same period in 2024. For the nine months ended September 30, 2025, net income was $85.941 million, compared to $151.036 million in 2024.
• Gross Margin: 41.5% for the three months ended September 30, 2025, compared to 42.8% for the same period in 2024. For the nine months ended September 30, 2025, gross margin was 44.1%, compared to 44.2% in 2024.
• Operating Expenses: Total operating expenses were $63.786 million for the three months ended September 30, 2025, compared to $63.057 million for the same period in 2024. For the nine months ended September 30, 2025, operating expenses were $181.773 million, compared to $182.168 million in 2024.

Cash Flow

• Operating Cash Flow: $124.872 million for the nine months ended September 30, 2025, compared to $128.038 million for the same period in 2024.
• Free Cash Flow: Not explicitly stated, but net cash provided by operating activities was $124.872 million, and investing activities resulted in cash generated of $37.234 million for the nine months ended September 30, 2025.

Unique Metrics

• Deferred Revenue: $128.920 million as of September 30, 2025, compared to $138.174 million as of December 31, 2024.

Future Outlook and Strategy

• Core Business Focus: The company is focused on maintaining a strong cash balance to fund business growth and is considering both organic and inorganic opportunities to drive future growth.
• Non-Core Business: The company is engaged in a merger with Veeco Instruments Inc., expected to close in the second half of 2026, subject to regulatory approvals and other conditions.