Axcelis Posts 47.3% Non-GAAP Margin, Guides Q1 $195M Revenue
Axcelis posted Q4 revenue of $238 million with GAAP gross margin of 47% and non-GAAP gross margin of 47.3%, while record CS&I revenue reached $82 million. Management guided Q1 revenue at $195 million with 41% gross margin and $0.71 EPS; expects flat 2026 revenue and H2 Veeco merger close.
1. Q4 Financial Results
Axcelis reported Q4 revenue of $238 million with GAAP gross margin of 47% and non-GAAP gross margin of 47.3%, surpassing prior outlooks. GAAP EPS was $1.10 and non-GAAP EPS was $1.49, driven by stronger CS&I mix and favorable upgrade demand.
2. Segment and Regional Performance
Systems revenue reached $156 million while CS&I hit a quarterly record of $82 million as customers pursued footprint-optimized upgrades. China’s revenue share fell to 32% from 46%, with Europe at 15%, U.S. at 14%, Korea at 13%, Japan at 9%, Taiwan at 3%, and rest of world at 13%.
3. Bookings, Backlog and Outlook
Bookings improved sequentially to $128 million and backlog closed at $457 million. For Q1, Axcelis expects revenue of about $195 million, non-GAAP gross margin near 41% and EPS around $0.71, with full-year 2026 revenue seen flat and weighted to H2 ahead of the Veeco merger close.
4. Cash Flow and Capital Deployment
Full-year 2025 free cash flow reached $107 million despite a Q4 outflow of $9 million due to shipment timing and merger expenses. The company repurchased $25 million in Q4 and $121 million overall, ending with $110 million remaining authorization and $557 million in liquidity.