Short answer
AXCELIS TECHNOLOGIES INC (ACLS) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $839M (−17.6% year over year) and net income of $120M.
- Top risk flagged: U.S. export controls tightening since 2020 on shipments to Chinese chipmakers, including SMIC on the Entity List, threaten 76.0% of system revenue from Asia
FY2025 key financial metrics · XBRL
- Revenue
- $839M
- −17.6% YoY
- Net income
- $120M
- −40.2% YoY
- Operating margin
- 14.2%
- −6.5 pp YoY
- Gross margin
- 44.9%
- +0.2 pp YoY
- EPS (diluted)
- $3.80
- −38.2% YoY
- ROE
- 11.6%
- −8.2 pp YoY
- Operating cash flow
- $118M
- −16.0% YoY
Source: XBRL data from the AXCELIS TECHNOLOGIES INC (ACLS) FY2025 10-K on SEC EDGAR. USD.
AXCELIS TECHNOLOGIES INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: manufacturer of ion implantation and processing equipment for semiconductor chip fabrication plus aftermarket services
- No new products or segments introduced; emphasis on systems revenue of $571M in 2025, comprising major portion of total $839M revenue
- Strategic shift: reclassification of holdings, selling $199.5M of securities from held-to-maturity to available-for-sale, impacting short-term investments
- Key metric: net income declined to $120.2M in 2025 from $201.0M in 2024; employee share count down to 30,717K from 32,365K
- Noteworthy fact: sale and reclassification of investment securities in 2025 caused related adjustments to accumulated other comprehensive loss
Management Discussion & Analysis
- Revenue $839.0M in 2025, down 17.6% YoY from $1,017.9M; product revenue $792.0M (-18.9%), services $47.0M (+14.7%)
- Gross margin slightly up at 44.9% vs 44.7% in 2024; product gross margin 47.9% vs 46.3%, services margin -5.1% vs 5.4%
- Best segment: product revenue $792.0M with 47.9% margin; worst segment: services revenue $47.0M with negative margin -5.1%
- Operating expenses rose to 30.7% of revenue vs 24.0% due to R&D (13.0% vs 10.4%), G&A (9.9% vs 6.9%); operating income down to 14.2% from 20.7%
- Cash from operations $118.3M; capex $11.3M; stock repurchase $121.1M; cash and equivalents $145.5M; forecasted 2026 capex ~$18M
- Management cautious due to semiconductor capital spending cyclicality; continuing investment in innovation and aftermarket growth; no significant liquidity concerns
Risk Factors
- U.S. export controls tightening since 2020 on shipments to Chinese chipmakers, including SMIC on the Entity List, threaten 76.0% of system revenue from Asia
- Geopolitical risk from China-U.S. trade tensions with Chinese customers representing significant revenue, exposing 83.7% of total revenue to potential restrictions
- Supply chain dependence on limited vendors risks delays, cost increases, and potential lost sales due to component shortages or inability to adjust inventory promptly
- Competition threat from non-U.S. vendors like Advanced Ion Beam Technology and emerging Chinese entities Kingstone Semiconductor and CETC Electronics Equipment Group
- Customer concentration risk with top 10 customers accounting for 55.2% of net sales in 2025, none under long-term purchase agreements
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