AXCELIS TECHNOLOGIES INC
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 26, 2026
ACLS$99.24+10.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-28.
0001558370-25-001855
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-26.
0001104659-26-020461
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 80 previous paragraphs and 79 current paragraphs.
56 unchanged; 21 reworded; 2 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Research and development (“R&D”) expense was $109.0 million in 2025, an increase of $3.5 million, or 3.3%, compared with $105.5 million in 2024. The increase was primarily due to higher variable compensation, stock compensation and expense related to early retirement programs and severance costs associated with global cost-saving initiatives.
Current report
Sales and marketing expense was $65.4 million in 2025, a decrease of $2.7 million, or 3.9%, compared with $68.0 million in 2024. The decrease was primarily due to a decrease in the labor expenses related to evaluation systems.
Removed paragraphs (3)
Previous report
and Exchange Commission on February 23, 2024, as amended by Amendment No. 1 thereto, filed with the Securities and Exchange Commission on February 28, 2024.
Previous report
Research and development (“R&D”) expense was $105.5 million in 2024, an increase of $8.6 million, or 8.9%, compared with $96.9 million in 2023. The increase was primarily due to increased outside services, materials and supplies expense to support ongoing R&D projects as well as higher personnel expenses associated with an increase in wages and benefits partially offset by a decrease in variable compensation expense and temporary employee expenses.
Previous report
Sales and marketing expense was $68.0 million in 2024, an increase of $5.2 million, or 8.3%, compared with $62.8 million in 2023. The increase was primarily due to higher personnel expenses associated with an increase in wages and stock compensation partially offset by a decrease in variable compensation expense.
Reworded paragraphs (21)
Previous wording
Revenue for 2024 was $1,017.9 million, compared to $1,130.6 million in 2023. Systems revenue for 2024 was $782.6 million, compared to $883.6 million in 2023. Gross margin percent for the year was 44.7% compared to 43.5% in 2023. Operating profit was $210.8 million in 2024, compared to $265.8 million in 2023. Net income for the year was $201.0 million, compared to $246.3 million in 2023.
Current wording
Revenue for 2025 was $839.0 million, compared to $1,017.9 million in 2024. Systems revenue for 2025 was $571.0 million, compared to $782.6 million in 2024. Gross margin percent for the year was 44.9% compared to 44.7% in 2024. Operating profit was $119.3 million in 2025, compared to $210.8 million in 2024. Net income for the year was $120.2 million, compared to $201.0 million in 2024.
Previous wording
The market for our systems and aftermarket products and services is represented by a relatively small number of companies. In 2024, the top 20 semiconductor chip manufacturers accounted for approximately 87.6% of total semiconductor capital equipment spending, down from 92.0% in 2023. Our net revenue from our ten largest customers accounted for 45.9% of total revenue for the year ended December 31, 2024 compared to 51.7% and 59.4% of revenue for the years ended December 31, 2023 and 2022, respectively. For the year ended December 31, 2024, no customers represented ten percent or more of total revenue.
Current wording
The market for our systems and aftermarket products and services is represented by a relatively small number of companies. In 2025, the top 20 semiconductor chip manufacturers accounted for approximately 86.4% of total semiconductor capital equipment spending, down from 87.6% in 2024. Our net revenue from our ten largest customers accounted for 55.2% of total revenue for the year ended December 31, 2025 compared to 45.9% and 51.7% of revenue for the years ended December 31, 2024 and 2023, respectively. For the year ended December 31, 2025, one customer represented 11.0% percent of total revenue.
Previous wording
The following year-to-year comparative statements include the 2024 and 2023 year periods. For comparative statements for the 2023 and 2022 periods, please refer to our 2023 Annual Report on Form 10-K, filed with the Securities
Current wording
The following year-to-year comparative statements include the 2025 and 2024 year periods. For comparative statements for the 2024 and 2023 periods, please refer to our 2024 Annual Report on Form 10-K, filed with the SEC on February 28, 2025.
Previous wording
Product revenue, which includes new system sales, sales of spare parts, product upgrades and used system sales was $976.9 million or 96.0% of revenue in 2024, compared with $1,095.7 million or 96.9% of revenue in 2023. The decrease in product revenue in 2024 was primarily driven by a decrease in the number of Purion systems sold.
Current wording
Product revenue, which includes new system sales, sales of spare parts, product upgrades and used system sales was $792.0 million or 94.4% of revenue in 2025, compared with $976.9 million or 96.0% of revenue in 2024. The decrease in product revenue in 2025 was primarily driven by a decrease in the number of Purion systems sold.
Previous wording
A portion of our revenue from system sales is deferred until installation and other services related to future deliverables are performed. The total amount of deferred revenue at December 31, 2024 and 2023 was $138.2 million and $210.9 million, respectively. The decrease was primarily due to a decrease in system prepayments.
Current wording
A portion of our revenue from system sales is deferred until installation and other services related to future deliverables are performed. The total amount of deferred revenue at December 31, 2025 and 2024 was $108.9 million and $138.2 million, respectively. The decrease was primarily due to a decrease in system prepayments.
Previous wording
Services revenue, which includes the labor component of maintenance and service contracts and fees for service hours provided by on-site service personnel, was $41.0 million, or 4.0% of revenue for 2024, compared with $35.0 million, or 3.1% of revenue for 2023. Although services revenue typically increases with the expansion of the installed base of systems, it can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities, which affects the need for equipment service.
Current wording
Services revenue, which includes the labor component of maintenance and service contracts and fees for service hours provided by on-site service personnel, was $47.0 million, or 5.6% of revenue for 2025, compared with $41.0 million, or 4.0% of revenue for 2024. Although services revenue typically increases with the expansion of the installed base of systems, it can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities, which affects the need for equipment service.
Previous wording
Revenue from our aftermarket business was $235.3 million in 2024, compared to $247.0 million for 2023. Aftermarket revenue generally increases with the expansion of the installed base of systems but can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities which affects the sale of spare parts and demand for equipment service.
Current wording
Revenue from our aftermarket business was $268.0 million in 2025, compared to $235.3 million for 2024. Aftermarket revenue generally increases with the expansion of the installed base of systems but can fluctuate from period to period based on capacity utilization at customers’ manufacturing facilities which affects the sale of spare parts and demand for equipment service.
Previous wording
Gross margin from product revenue was 46.3% for the twelve months ended December 31, 2024, compared to 44.5% for the twelve months ended December 31, 2023. The increase in gross margin resulted from a favorable mix of system shipments and improved margins on Purion systems.
Current wording
Gross margin from product revenue was 47.9% for the twelve months ended December 31, 2025, compared to 46.3% for the twelve months ended December 31, 2024. The increase in gross margin resulted from an increased mix of higher margin parts and upgrades.
Previous wording
Gross margin from services revenue was 5.4% for the twelve months ended December 31, 2024, compared to 10.7% for the twelve months ended December 31, 2023. The decrease in gross margin is attributable to changes in the mix of service contracts.
Current wording
Gross margin from services revenue was (5.1)% for the twelve months ended December 31, 2025, compared to 5.4% for the twelve months ended December 31, 2024. The decrease in gross margin is attributable to changes in the mix of service contracts and fluctuations of service expenses. Occasionally, we experience negative gross margin on service revenue as contract costs can vary significantly from one period to another based on customer demand.
Previous wording
Our operating expenses consist primarily of personnel costs, including salaries, commissions, bonuses, stock-based compensation and related benefits and taxes; project material costs related to the design and development of new products and enhancement of existing products; and professional fees, facilities and amortization and depreciation expenses. Personnel costs are our largest expense, representing $144.2 million, or 59.1% of our total operating expenses, for the year ended December 31, 2024; and $135.1 million, or 59.9% of our total operating expenses for the year ended December 31, 2023.
Current wording
Our operating expenses consist primarily of personnel costs, including salaries, commissions, bonuses, stock-based compensation and related benefits and taxes; project material costs related to the design and development of new products and enhancement of existing products; and professional fees, facilities and amortization and depreciation expenses. Personnel costs are our largest expense, representing $146.1 million, or 56.7% of our total operating expenses, for the year ended December 31, 2025; and $144.2 million, or 59.1% of our total operating expenses for the year ended December 31, 2024.
Previous wording
General and administrative expense was $70.3 million in 2024, an increase of $4.5 million, or 6.9%, compared with $65.8 million in 2023. The increase was primarily due to higher bad debt expense and higher personnel expenses associated with an increase in wages and benefits partially offset by a decrease in variable compensation expense.
Current wording
General and administrative expense was $83.2 million in 2025, an increase of $12.9 million, or 18.3%, compared with $70.3 million in 2024. The increase was primarily due to an increase in merger-related professional and filing fees of $16.3, partially offset by a decrease in bad debt expense $3.0.
Previous wording
Other income for the year ended December 31, 2024 was $19.5 million, which includes $24.4 million of interest income on our investments, partially offset by $5.5 million of interest expense related to our sale leaseback obligation and $9.1 million of foreign exchange losses, offset by $9.1 million of foreign exchange gains from forward exchange contracts. Other expense for the year ended December 31, 2023 was $12.8 million, which includes $18.2 million of interest income on our investments, partially offset by $5.3 million of interest expense related to our sale leaseback obligation.
Current wording
Other income for the year ended December 31, 2025 was $18.9 million, which includes $21.5 million of interest income on our investments, partially offset by $5.4 million of interest expense related to our sale leaseback obligation and $4.5 million of foreign exchange gains, partially offset by $2.1 million of foreign exchange losses from forward exchange contracts. Other expense for the year ended December 31, 2024 was $19.5 million, which includes $24.4 million of interest income on our investments, partially offset by $5.5 million of interest expense related to our sale leaseback obligation and $9.1 million of foreign exchange losses, offset by $9.1 million of foreign exchange gains from forward exchange contracts.
Previous wording
Income tax expense was $29.3 million for the year ended December 31, 2024, compared to $32.3 million in 2023. The effective tax rate for the year ended December 31, 2024 was 12.7% compared to 11.6% for year the ended December 31, 2023. The increase in the effective tax rate in 2024 is primarily due to a decrease in the benefit associated with stock-based compensation.
Current wording
Income tax expense was $18.0 million for the year ended December 31, 2025, compared to $29.3 million in 2024. The effective tax rate for the year ended December 31, 2025 was 13.0% compared to 12.7% for year the ended December 31, 2024. The increase in the effective tax rate in 2025 is primarily due to a decrease in the deduction related to stock-based compensation.
Previous wording
In 2024, $140.8 million of cash was provided by operating activities. This compares to $156.9 million of cash provided by operations in 2023. Cash and cash equivalents at December 31, 2024 was $123.5 million, compared to $167.3 million at December 31, 2023. Approximately $41.8 million of cash was located in foreign jurisdictions as of December 31, 2024. In addition to the cash and cash equivalent balance at December 31, 2024, we had $7.6 million in restricted cash which relates to a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, a $0.9 million letter of credit for customs purposes, a $0.7 million letter of credit relating to workers’ compensation insurance and a $0.1 million deposit relating to customs activity. Working capital at December 31, 2024 was $916.1 million. At December 31, 2024, we had no bank debt.
Current wording
In 2025, $118.3 million of cash was provided by operating activities. This compares to $140.8 million of cash provided by operations in 2024. Cash and cash equivalents at December 31, 2025 was $145.5 million, compared to $123.5 million at December 31, 2024. Approximately $51.8 million of cash was located in foreign jurisdictions as of December 31, 2025. In addition to the cash and cash equivalent balance at December 31, 2025, we had $10.6 million in restricted cash which relates to a $5.9 million cash collateral relating to our lease for our headquarters in Beverly, Massachusetts, a $3.9 million letter of credit for customs purposes, a $0.7 million letter of credit relating to workers’ compensation insurance and a $0.1 million deposit relating to customs activity. Working capital at December 31, 2025 was $745.5 million. At December 31, 2025, we had no bank debt.
Previous wording
In 2024, $108.7 million of cash was used in investing activities, $12.2 million of which was used for capital expenditures. We used $539.1 million of cash for purchases of short-term investments in 2024, partially offset by maturities of short-term investment of $442.6 million. We held $447.8 million of short-term investments at December 31, 2024. These short-term investments consist of U.S. Government securities and agency investments. In 2023, $100.9 million of cash was used in investing activities, $20.7 million of which was used for capital expenditures. We used $388.8 million of cash for purchases of short-term investments in 2023, partially offset by maturities of short-term investments of $308.6 million. Total capital expenditures for 2025 are projected to be approximately $20 million. Future capital expenditures beyond 2025
Current wording
In 2025, $29.9 million of cash was used in investing activities, $11.3 million of which was used for capital expenditures. We used $646.0 million of cash for purchases of short-term and long-term investments, offset by maturities of short-term investment of $687.2 million. We held $228.8 million of short-term investments and $182.4 million of long-term investments at December 31, 2025. These short-term and long-term investments consist of U.S. Government securities and agency investments. In 2024, $108.7 million of cash was used in investing activities, $12.2 million of which was used for capital expenditures. We used $539.1 million of cash for purchases of short-term investments, partially offset by maturities of short-term investments of $442.6 million. Total capital expenditures for 2026 are projected to be
Previous wording
will depend on a number of factors, including the timing and rate of expansion of our business and our ability to generate cash to fund them.
Current wording
approximately $18 million. Future capital expenditures beyond 2026 will depend on a number of factors, including the timing and rate of expansion of our business and our ability to generate cash to fund them.
Previous wording
Cash used in financing activities for the year ended December 31, 2024 was $71.2 million, which consisted of $60.5 million related to our stock repurchase program, $11.6 million related to net settlement of restricted stock issuances and $1.5 million related to principal reduction on our finance lease. These amounts were partially offset by $2.4 million in proceeds from our employee stock purchase plan. Cash used in financing activities was $68.3 million for the year ended December 31, 2023, which consisted of $52.5 million related to our stock repurchase program, $16.6 million related to net settlement of restricted stock issuances, and $1.2 million of principal reduction on our finance lease. These amounts were partially offset by $2.1 million in proceeds from our employee stock purchase plan.
Current wording
Cash used in financing activities for the year ended December 31, 2025 was $124.5 million, which consisted of $121.1 million related to our stock repurchase program, $4.5 million related to net settlement of restricted stock issuances and $1.4 million related to principal reduction on our finance lease. These amounts were partially offset by $2.5 million in proceeds from our employee stock purchase plan. Cash used in financing activities was $71.2 million for the year ended December 31, 2024, which consisted of $60.5 million related to our stock repurchase program, $11.6 million related to net settlement of restricted stock issuances, and $1.5 million of principal reduction on our finance lease. These amounts were partially offset by $2.4 million in proceeds from our employee stock purchase plan.
Previous wording
We have outstanding letters of credit, surety bonds and deposits in the amount of $17.5 million to cover the security deposit under the lease of our headquarters, our workers’ compensation insurance program, customs and bank deposits and certain value added tax claims in Europe.
Current wording
We have outstanding letters of credit, surety bonds and deposits in the amount of $25.3 million to cover the security deposit under the lease of our headquarters, our workers’ compensation insurance program, customs and bank deposits and certain value added tax claims in Europe.
Previous wording
We have no off-balance sheet arrangements as of December 31, 2024. See Note 18 – Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized tax benefits.
Current wording
We have no off-balance sheet arrangements as of December 31, 2025. See Note 18 – Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized tax benefits and Note 19 – Merger for contractual termination fees associated with our pending acquisition.
Previous wording
Under the rules of the U.S. Securities and Exchange Commission (the “SEC”), we qualify as a “well-known seasoned issuer,” which allows us to file shelf registration statements to register an unspecified amount of securities that are effective upon filing. On August 3, 2023, we filed such a shelf registration statement with the SEC for the issuance of an unspecified amount of common stock, preferred stock, various series of debt securities and/or warrants to purchase any of such securities, either individually or in units, from time to time at prices and on terms to be determined at the time of any such offering. This registration statement was effective upon filing and will expire in August 2026. We may file another shelf registration statement to maintain the availability of this financing option.
Current wording
Under the rules of the SEC, we qualify as a “well-known seasoned issuer,” which allows us to file shelf registration statements to register an unspecified amount of securities that are effective upon filing. On August 3, 2023, we filed such a shelf registration statement with the SEC for the issuance of an unspecified amount of common stock, preferred stock, various series of debt securities and/or warrants to purchase any of such securities, either individually or in units, from time to time at prices and on terms to be determined at the time of any such offering. This registration statement was effective upon filing and will expire in August 2026. We may file another shelf registration statement to maintain the availability of this financing option.
Previous wording
We believe that based on our current market, revenue, expense and cash flow forecasts, our existing cash, cash equivalents and short-term investments will be sufficient to satisfy our anticipated cash requirements for the short and long-term.
Current wording
We believe that based on our current market, revenue, expense and cash flow forecasts, our existing cash, cash equivalents, short-term and long-term investments will be sufficient to satisfy our anticipated cash requirements for the short and long-term.