Axcelis Technologies (ACLS) investor relations material

Executive summary

• Q1 2026 revenue reached $199 million, slightly above expectations, with non-GAAP EPS of $0.72, impacted by a $4.9–$5 million customer settlement; Memory and CS&I segments drove growth, while Power and General Mature segments softened.

• Net income declined to $9.2 million (GAAP), reflecting lower gross margins and higher operating expenses, including merger-related costs.

• System shipments to the memory market hit their highest level since Q4 2023, with strong bookings in memory and silicon carbide, offset by softer general mature demand.

• Leadership transition occurred with the departure of the CFO and appointment of an interim CFO.

• The merger with Veeco is expected to close in the second half of 2026, positioning for increased momentum into 2027.

Financial highlights

• Q1 2026 revenue: $199 million; system revenue was $126 million; CS&I/aftermarket revenue was $73 million.

• GAAP gross margin: 40.5%; non-GAAP gross margin: 40.7%; GAAP operating margin: 4.0%; non-GAAP operating margin: 11.7%.

• Adjusted EBITDA was $27.7 million (13.9% margin); free cash flow was $16–$18.1 million, including $12 million in merger-related expenses.

• Ended Q1 with $570 million in cash, equivalents, and marketable securities.

• Backlog stood at $453 million; bookings were $128 million, flat sequentially.

Outlook and guidance

• Q2 2026 revenue expected at $205 million, with non-GAAP gross margin at 43% and non-GAAP EPS of $0.90.

• Full-year 2026 revenue expected to be flat year-over-year, with Memory growth offset by declines in Power and General Mature.

• Full-year non-GAAP gross margin anticipated in the low to mid 40% range; operating expenses around $60 million per quarter.

• Management expects revenue growth in the second half of 2026, supported by firming order trends and continued innovation investments.

• Merger with Veeco expected to close in the second half of 2026, pending regulatory approval in China.