# AXCELIS TECHNOLOGIES INC (ACLS) Informational only - not investment advice. CIK: 0001113232 SIC: 3559 Special Industry Machinery, NEC SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3559 Special Industry Machinery, NEC](/industry/3559/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1113232 Filing source: https://www.sec.gov/Archives/edgar/data/1113232/000110465926020461/acls-20251231x10k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001104659-26-020461 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001113232.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 839,048,000 USD | 2025 | verified | | Net income | 120,238,000 USD | 2025 | verified | | Assets | 1,361,351,000 USD | 2025 | verified | | Free cash flow | 107,010,000 USD | 2025 | computed | | Net margin | 14.33% | 2025 | computed | | Operating margin | 14.22% | 2025 | computed | | Revenue YoY | -17.57% | 2025 | computed | | ROE | 11.62% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | ACLS | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 14.3% | 7.7% | 78 | 110 | | Operating margin | 14.2% | 13.1% | 59 | 104 | | Revenue growth | -17.6% | 5.8% | 0 | 111 | | FCF margin | 12.8% | 9.6% | 60 | 103 | | ROE | 11.6% | 11.7% | 49 | 108 | | ROA | 8.8% | 5.6% | 76 | 111 | | Liabilities / equity | 0.32 | 1.10 | 7 | 108 | | Current ratio | 4.77 | 2.02 | 93 | 110 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 839048000 | USD | 2025 | 2026-02-26 | | Net income | 120238000 | USD | 2025 | 2026-02-26 | | Assets | 1361351000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001113232.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 266,980,000 | 410,561,000 | 442,575,000 | 342,958,000 | 474,560,000 | 662,428,000 | 919,998,000 | 1,130,604,000 | 1,017,865,000 | 839,048,000 | | Net income | | | | | | | | 246,263,000 | 200,992,000 | 120,238,000 | | Operating income | 16,623,000 | 47,842,000 | 59,959,000 | 24,205,000 | 58,041,000 | 127,325,000 | 212,361,000 | 265,795,000 | 210,794,000 | 119,315,000 | | Gross profit | 99,598,000 | 150,247,000 | 179,636,000 | 144,152,000 | 198,584,000 | 286,445,000 | 401,790,000 | 491,301,000 | 454,654,000 | 376,848,000 | | Diluted EPS | 0.36 | 3.80 | 1.35 | 0.50 | 1.46 | 2.88 | 5.46 | 7.43 | 6.15 | 3.80 | | Operating cash flow | -8,788,000 | 56,284,000 | 46,965,000 | -13,594,000 | 69,703,000 | 150,190,000 | 215,607,000 | 156,869,000 | 140,818,000 | 118,305,000 | | Capital expenditures | 2,506,000 | 7,285,000 | 4,715,000 | 11,969,000 | 7,434,000 | 8,718,000 | 10,683,000 | 20,656,000 | 12,181,000 | 11,295,000 | | Share buybacks | | | | 17,744,000 | 7,501,000 | 49,992,000 | 57,495,000 | 52,499,000 | 60,489,000 | 121,081,000 | | Assets | 302,231,000 | 488,218,000 | 548,441,000 | 548,094,000 | 624,624,000 | 753,240,000 | 1,013,641,000 | 1,281,967,000 | 1,348,781,000 | 1,361,351,000 | | Liabilities | 100,776,000 | 134,608,000 | 140,104,000 | 128,667,000 | 143,022,000 | 214,281,000 | 346,385,000 | 417,085,000 | 335,991,000 | 326,674,000 | | Stockholders' equity | 201,455,000 | 353,610,000 | 408,337,000 | 419,427,000 | 481,602,000 | 538,959,000 | 667,256,000 | 864,882,000 | 1,012,790,000 | 1,034,677,000 | | Cash and cash equivalents | 70,791,000 | 133,407,000 | 177,993,000 | 139,881,000 | 203,479,000 | 294,923,000 | 185,595,000 | 167,297,000 | 123,512,000 | 145,451,000 | | Free cash flow | -11,294,000 | 48,999,000 | 42,250,000 | -25,563,000 | 62,269,000 | 141,472,000 | 204,924,000 | 136,213,000 | 128,637,000 | 107,010,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | | 21.78% | 19.75% | 14.33% | | Operating margin | 6.23% | 11.65% | 13.55% | 7.06% | 12.23% | 19.22% | 23.08% | 23.51% | 20.71% | 14.22% | | Return on equity | | | | | | | | 28.47% | 19.85% | 11.62% | | Return on assets | | | | | | | | 19.21% | 14.90% | 8.83% | | Liabilities / equity | 0.50 | 0.38 | 0.34 | 0.31 | 0.30 | 0.40 | 0.52 | 0.48 | 0.33 | 0.32 | | Current ratio | 5.04 | 4.29 | 4.67 | 5.47 | 5.58 | 4.12 | 3.54 | 3.79 | 5.41 | 4.77 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001113232.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 1.21 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.43 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | 47,697,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 1.86 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 61,579,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 292,326,000 | | 1.99 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 310,288,000 | 71,056,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 252,372,000 | 51,595,000 | 1.57 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 51,595,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 256,512,000 | | 1.55 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 50,866,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 256,564,000 | | 1.49 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 252,417,000 | 49,956,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 192,563,000 | 28,579,000 | 0.88 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 194,544,000 | 31,376,000 | 0.98 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 213,611,000 | 25,986,000 | 0.83 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 238,330,000 | | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 198,956,000 | 9,214,000 | 0.30 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 215,175,000 | 23,291,000 | 0.75 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from ACLS's latest 10-K: [/company/ACLS/business/](/company/ACLS/business/). ## Risk Factors Verbatim Item 1A Risk Factors from ACLS's latest 10-K: [/company/ACLS/risk-factors/](/company/ACLS/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1113232/000110465926091999/acls-20260630x10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations. ​ Certain statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements that involve risks and uncertainties. Words such as may, will, should, would, anticipates, expects, intends, plans, believes, seeks, estimates and similar expressions identify such forward-looking statements. The forward-looking statements contained herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Factors that might cause such a difference include, among other things, those set forth under “Liquidity and Capital Resources” and “Risk Factors” and others discussed elsewhere in this Quarterly Report on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements, except as may be required by law. ​ Overview ​ We are primarily a producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades and maintenance services to the semiconductor industry. Our product development and manufacturing activities currently occur primarily in the United States and South Korea. Our equipment and service products are highly technical and are sold through a direct sales force in the United States, Europe, and Asia. Consolidation and partnering within the semiconductor manufacturing industry has resulted in a small number of customers representing a substantial portion of our business. Our ten largest customers accounted for 68.5% of total revenue for the six months ended June 30, 2026. ​ Sales of our systems in the first half of 2026 were down slightly compared to the same period in the prior year. During the six months ended June 30, 2026, the overall mature process segment represented 77% of our shipped systems revenue, with the remainder represented by 22% of shipments to dynamic random-access memory (“DRAM”) applications and 1% of shipments to advanced logic. Of the mature process segment, power device shipments comprised 38% of total systems revenue with the general mature segment representing 39%, which includes image sensor applications. ​ On September 30, 2025, the Company, Victory Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), and Veeco Instruments Inc., a Delaware corporation (“Veeco”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, and subject to the satisfaction or waiver of the conditions specified therein, Merger Sub shall be merged with and into Veeco (the “Merger”), with Veeco surviving as a wholly-owned subsidiary of the Company. For further information regarding the Merger, see Note 19 to the consolidated financial statements included in this report. On February 6, 2026, Axcelis held a special meeting of stockholders at which the issuance of Company common stock to the Veeco stockholders in the Merger was approved. The completion of the Merger remains subject to other customary closing conditions, including the final pending regulatory approval from the State Administration for Market Regulation of the People’s Republic of China. Axcelis and Veeco continue to expect that the Merger will be completed in the second half of 2026. ​ Critical Accounting Estimates ​ Management’s discussion and analysis of our financial condition and results of operations included herein and in our 2025 Form 10-K are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions. Management’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. ​ 22 Table of Contents Management has not identified any need to make any material change in, and has not changed, any of our critical accounting estimates and judgments as described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2025 Form 10-K. ​ Results of Operations ​ The following table sets forth our results of operations as a percentage of total revenue: ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Three months ended","\u200b","\u200b","Six months ended","\u200b","\u200b"],["\u200b","\u200b","June 30,","\u200b","\u200b","June 30,","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","\u200b \u200b \u200b","2026","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","\u200b \u200b \u200b"],["Revenue:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Product","\u200b","93.2","%","94.3","%","\u200b","93.8","%","94.6","%","\u200b"],["Services","","6.8","","5.7","","","6.2","","5.4"],["Total revenue","","100.0","","100.0","","","100.0","","100.0"],["Cost of revenue:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Product","","49.7","","49.1","","","51.4","","49.1"],["Services","","7.9","","6.0","","","7.2","","5.4"],["Total cost of revenue","","57.6","","55.1","","","58.6","","54.5"],["Gross profit","","42.4","","44.9","","","41.4","","45.5"],["Operating expenses:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Research and development","","13.5","","13.9","","","13.9","","14.0"],["Sales and marketing","","9.1","","7.7","","","8.9","","7.8"],["General and administrative","","10.4","","8.4","","","11.9","","8.7"],["Total operating expenses","","33.0","","30.0","","","34.7","","30.5"],["Income from operations","","9.4","","14.9","","","6.7","","15.0"],["Other income (expense):","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Interest income","","2.1","","2.8","","","2.2","","2.9"],["Interest expense","","(0.6)","","(0.7)","","","(0.6)","","(0.7)"],["Other, net","","0.8","","1.0","","","0.3","","0.4"],["Total other income","","2.3","","3.1","","","1.9","","2.6"],["Income before income taxes","","11.7","","18.0","","","8.6","","17.6"],["Income tax provision","","1.0","","1.9","","","0.8","","2.1"],["Net income","\u200b","10.7","%","16.1","%","\u200b","7.8","%","15.5","%","\u200b"]] [[/GREPCENT_TABLE]] ​ Revenue ​ The following table sets forth our product and services revenue: ​ [[GREPCENT_TABLE]] 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\u200b","\u200b","\u200b \u200b \u200b","\u200b","\u200b \u200b \u200b","\u200b","\u200b \u200b \u200b"],["Product","\u200b","$","200,488","\u200b","$","183,402","\u200b","$","17,086","\u200b","9.3","%","$","388,497","\u200b","$","366,226","\u200b","$","22,271","\u200b","6.1","%","\u200b"],["Percentage of revenue","\u200b","\u200b","93.2","%","\u200b","94.3","%","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","93.8","%","\u200b","94.6","%","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Services","\u200b","","14,687","\u200b","","11,142","\u200b","\u200b","3,545","\u200b","31.8","%","","25,634","\u200b","","20,881","\u200b","\u200b","4,753","\u200b","22.8","%","\u200b"],["Percentage of revenue","\u200b","\u200b","6.8","%","\u200b","5.7","%","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","6.2","%","\u200b","5.4","%","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Total revenue","\u200b","$","215,175","\u200b","$","194,544","\u200b","$","20,631","\u200b","10.6","%","$","414,131","\u200b","$","387,107","\u200b","$","27,024","\u200b","7.0","%","\u200b"]] [[/GREPCENT_TABLE]] ​ 23 Table of Contents Three months ended June 30, 2026 Compared with Three months ended June 30, 2025 ​ Product ​ Product revenue, which includes systems sales, sales of spare parts, product upgrades and used systems, was $200.5 million, or 93.2% of revenue, during the three months ended June 30, 2026, compared with $183.4 million, or 94.3% of revenue, for the three months ended June 30, 2025. The $17.1 million increase in product revenue for the three-month period ended June 30, 2026, in comparison to the same period in 2025, was primarily driven by an increase in Aftermarket sales. ​ Deferred revenue includes payments received in advance of system sales as well as deferral of revenue from systems sales for installation and other future performance obligations. The total amount of deferred revenue at June 30, 2026 and December 31, 2025 was $118.5 million and $108.9 million, respectively. ​ Services ​ Services revenue, which includes the labor component of maintenance and service contracts and fees for service hours provided by on-site service personnel, was $14.7 million, or 6.8% of revenue, for the three months ended June 30, 2026, compared with $11.1 million, or 5.7% of revenue, for the three months ended June 30, 2025. 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. ​ Six months ended June 30, 2026 Compared with Six months ended June 30, 2025 ​ Product ​ Product revenue was $388.5 million, or 93.8% of revenue, during the six months ended June 30, 2026, compared with $366.2 million, or 94.6% of revenue, for the six months ended June 30, 2025. The $22.3 million increase in product revenue for the six-month period ended June 30, 2026, in comparison to the same period in 2025, was primarily driven by an increase in Aftermarket sales, partially offset by a customer settlement of $4.9 million. ​ Services ​ Services revenue was $25.6 million, or 6.2% of revenue, for the six months ended June 30, 2026, compared with $20.9 million, or 5.4% of revenue, for the six month [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1113232/000110465926020461/acls-20251231x10k.htm Complete FY 2025 MD&A: /company/ACLS/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. ​ Certain statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements that involve risks and uncertainties. Words such as may, will, should, would, anticipates, expects, intends, plans, believes, seeks, estimates and similar expressions identify such forward-looking statements. The forward-looking statements contained herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Factors that might cause such a difference include, among other things, those set forth under “Liquidity and Capital Resources” and “Risk Factors” and others discussed elsewhere in this Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements, except as may be required by law. ​ Overview ​ The semiconductor capital equipment industry is subject to cyclical swings in capital spending by semiconductor chip manufacturers. Capital spending is influenced by demand for semiconductors and the products using them, the utilization rate and capacity of existing semiconductor chip manufacturing facilities and changes in semiconductor technology, all of which are outside of our control. As a result, our revenue may fluctuate from year to year and period to period. Our established cost structure does not vary significantly with changes in volume. We may also experience fluctuations in operating results and cash flows depending on our revenue level. ​ 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. ​ The Company is in a strong competitive position. A focused strategy on ion implant, combined with the hard work and dedication of our employees and the encouragement and support of our customers and suppliers, enabled us to achieve numerous critical milestones in our drive to market leadership. Important accomplishments in 2025 included: ​ [[GREPCENT_TABLE]] [["","\u25cf","We delivered revenue of $839.0 million in 2025 and earnings per share of $3.80."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","We remained a technology leader and supplier of choice in the implant-intensive power device segment, which accounted for 55% of the value of our 2025 system shipments."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","We continued working to expand our footprint with existing and new customers and currently have four Purion evaluation systems in the field at strategic customer sites in key market segments."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","We continued our investment in our Customer Solutions & Innovation (\u201cCS&I\u201d) aftermarket business to drive financial growth and increased customer satisfaction levels, including the \u201cDigital Tool Box,\u201d an innovative service offering with online training, remote diagnosis and install, and automated troubleshooting guide."]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","We received 16 customer satisfaction awards in 2025. In addition, Axcelis was named to the 2024 editions of Forbes\u2019 List of America\u2019s Best Mid-Cap Companies and to Fortune Magazine\u2019s 2024 lists of the Top 100 Fastest Growing Companies."]] [[/GREPCENT_TABLE]] ​ We continue to work diligently to ensure that manufacturing and operating expense levels remain well aligned to business conditions. ​ 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. ​ 28 Table of Contents Critical Accounting Estimates ​ Management’s discussion and analysis of our financial condition and results of operations are based upon Axcelis’ consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates and assumptions. Management’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. ​ We believe the following accounting policies are critical in the portrayal of our financial condition and results of operations and require management’s most significant judgments and estimates in the preparation of our consolidated financial statements. For additional accounting policies, see Note 2 to the consolidated financial statements for the year ended December 31, 2025 included in this Annual Report on Form 10-K. ​ Revenue Recognition ​ Our accounting policies relating to the recognition of revenue require management to make estimates, determinations and judgments based on historical experience and on various other assumptions, which include (i) the existence of a contract with the customer, (ii) the identification of the performance obligations in the contract, (iii) the value of any variable consideration in the contract, (iv) the standalone selling price of multiple obligations in the contract, for the purpose of allocating the consideration in the contract, and (v) determining when a performance obligation has been met. Our revenue recognition policies are set forth in section (k) of Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements for the year ended December 31, 2025 included in this Annual Report on Form 10-K. Recognition of revenue based on incorrect judgments, including an erroneous allocation of the estimated sales price between the units of accounting, could result in inappropriate recognition of revenue, or incorrect timing of revenue recognition, which could have a material effect on our financial condition and results of operations. ​ Inventory—Provision for Excess and Obsolescence and Lower of Cost or Net Realizable Value ​ We record a provision for estimated excess and obsolete inventory and lower of cost or net realizable value. The provision is determined using management’s assumptions of materials usage, based on estimates of forecasted and historical demand and market conditions. Specifically, our assumptions of forecasted system sales and the size and utilization of the installed base of systems may have a significant effect on estimated materials usage. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required. ​ Although we make every effort to ensure the accuracy of our forecasts or product demand and pricing assumptions, any significant unanticipated changes in demand, pricing, or technical developments would significantly impact the value of our inventory and our reported operating results. In the future, if we determine that inventory needs to be written down, we will recognize such costs in our cost of revenue at the time of such determination. If we subsequently sell product that has previously been written down, our gross margin in that period will be favorably impacted. ​ Product Warranty ​ We generally offer a one-year warranty for all of our systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer the portion of systems revenue attributable to the relative fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary. ​ 29 Table of Contents Income Taxes ​ We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and net operating loss and tax credit carryforwards. ​ We establish a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant management judgment is required in determining our provision for income taxes, the deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. ​ We evaluate the weight of all available evidence such as historical losses, the expected timing of the reversals of existing temporary differences and projected future taxable income to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. ​ Our income tax expense includes the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense. ​ 30 Table of Contents Results of Operations ​ 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. ​ The following table sets forth our results of operations as a percentage of total revenue: ​ [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/ACLS/mda/fy2025/ All MD&A years: /company/ACLS/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/ACLS/mda/fy2024/): filed 2025-02-28; accession 0001558370-25-001855 (https://www.sec.gov/Archives/edgar/data/1113232/000155837025001855/acls-20241231x10k.htm) - [FY 2023 MD&A](/company/ACLS/mda/fy2023/): filed 2024-02-23; accession 0001558370-24-001628 (https://www.sec.gov/Archives/edgar/data/1113232/000155837024001628/acls-20231231x10k.htm) - [FY 2022 MD&A](/company/ACLS/mda/fy2022/): filed 2023-02-24; accession 0001558370-23-002006 (https://www.sec.gov/Archives/edgar/data/1113232/000155837023002006/acls-20221231x10k.htm) - [FY 2021 MD&A](/company/ACLS/mda/fy2021/): filed 2022-02-25; accession 0001558370-22-002096 (https://www.sec.gov/Archives/edgar/data/1113232/000155837022002096/acls-20211231x10k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 3559 Special Industry Machinery, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/ACLS.md · JSON record: /company/ACLS.json · verified financials: /company/ACLS/financials.json / /company/ACLS/financials.csv · machine TOC for the whole site: /llms.txt