Axcelis | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 194.54 M

Revenue: As of FY2025 Q2, the actual value is USD 194.54 M, beating the estimate of USD 185.15 M.

EPS: As of FY2025 Q2, the actual value is USD 0.98, beating the estimate of USD 0.5833.

EBIT: As of FY2025 Q2, the actual value is USD 35 M, beating the estimate of USD 19.55 M.

Financial Metrics by Segment

Revenue

• Product Revenue: $183.4 million for Q2 2025, down from $245.4 million in Q2 2024. $366.2 million for the first six months of 2025, down from $488.8 million in the same period in 2024.
• Services Revenue: $11.1 million for Q2 2025, flat compared to $11.1 million in Q2 2024. $20.9 million for the first six months of 2025, up from $20.1 million in the same period in 2024.
• Total Revenue: $194.5 million for Q2 2025, down from $256.5 million in Q2 2024. $387.1 million for the first six months of 2025, down from $508.9 million in the same period in 2024.

Gross Profit

• Product Gross Profit: $87.9 million for Q2 2025, down from $110.6 million in Q2 2024. $176.3 million for the first six months of 2025, down from $226.1 million in the same period in 2024.
• Services Gross Profit: -$0.6 million for Q2 2025, down from $1.8 million in Q2 2024. -$0.2 million for the first six months of 2025, down from $2.3 million in the same period in 2024.
• Total Gross Profit: $87.3 million for Q2 2025, down from $112.4 million in Q2 2024. $176.1 million for the first six months of 2025, down from $228.5 million in the same period in 2024.
• Gross Margin: 44.9% for Q2 2025, up from 43.9% in Q2 2024. 45.5% for the first six months of 2025, up from 44.9% in the same period in 2024.

Operating Expenses

• Research and Development: $27.1 million for Q2 2025, up from $25.8 million in Q2 2024. $54.2 million for the first six months of 2025, up from $51.4 million in the same period in 2024.
• Sales and Marketing: $15.0 million for Q2 2025, down from $17.2 million in Q2 2024. $30.1 million for the first six months of 2025, down from $34.7 million in the same period in 2024.
• General and Administrative: $16.3 million for Q2 2025, down from $16.6 million in Q2 2024. $33.7 million for the first six months of 2025, up from $33.0 million in the same period in 2024.
• Total Operating Expenses: $58.4 million for Q2 2025, down from $59.6 million in Q2 2024. $118.0 million for the first six months of 2025, down from $119.1 million in the same period in 2024.

Income from Operations

• Income from Operations: $29.0 million for Q2 2025, down from $52.8 million in Q2 2024. $58.1 million for the first six months of 2025, down from $109.3 million in the same period in 2024.

Other Income (Expense)

• Total Other Income: $6.0 million for Q2 2025, up from $4.5 million in Q2 2024. $10.0 million for the first six months of 2025, up from $6.9 million in the same period in 2024.

Net Income

• Net Income: $31.4 million for Q2 2025, down from $50.9 million in Q2 2024. $60.0 million for the first six months of 2025, down from $102.5 million in the same period in 2024.

Cash Flow

• Operating Cash Flow: $79.5 million for the first six months of 2025, down from $82.3 million in the same period in 2024.
• Investing Cash Flow: $35.9 million generated for the first six months of 2025, compared to $61.3 million used in the same period in 2024.
• Financing Cash Flow: $67.1 million used for the first six months of 2025, compared to $40.7 million used in the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue investing in research and development to maintain its competitive edge in ion implantation technology and to support the development of new products and enhancements to existing products.
• Non-Core Business: The company is considering both organic and inorganic opportunities to drive future growth, which may require significant cash resources.
• Priority: The company aims to maintain a strong cash balance to fund ongoing business operations and potential growth opportunities.