21 unchanged sentences
● 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.
−Removed: ● We continued working to expand our footprint with existing and new customers and currently have two Purion evaluation systems in the field at strategic customer sites in key market segments.
+Added: ● 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.
● We continued our investment in our Customer Solutions & Innovation (“CS&I”) aftermarket business to drive financial growth and increased customer satisfaction levels, including the “Digital Tool Box,” an innovative service offering with online training, remote diagnosis and install, and automated troubleshooting guide.
● We received 16 customer satisfaction awards in 2025.
−Removed: In addition, Axcelis was named to both the 2023 and 2024 editions of Forbes’ List of America’s Best Mid-Cap Companies and to both the Fortune Magazine’s 2023 and 2024 lists of the Top 100 Fastest Growing Companies.
+Added: In addition, Axcelis was named to the 2024 editions of Forbes’ List of America’s Best Mid-Cap Companies and to Fortune Magazine’s 2024 lists of the Top 100 Fastest Growing Companies.
We continue to work diligently to ensure that manufacturing and operating expense levels remain well aligned to business conditions.
2 unchanged sentences
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.
−Removed: For the year ended December 31, 2024, no customers represented ten percent or more of total revenue.
+Added: For the year ended December 31, 2025, one customer represented 11.0% percent of total revenue.
Critical Accounting Estimates
8 unchanged sentences
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.
−Removed: Our revenue recognition policies are set forth in section (j) of Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements for the year ended December 31, 2024 included in this Annual Report on Form 10-K.
+Added: 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.
23 unchanged sentences
The following year-to-year comparative statements include the 2025 and 2024 year periods.
−Removed: For comparative statements for the 2023 and 2022 periods, please refer to our 2023 Annual Report on Form 10-K, filed with the Securities
−Removed: and Exchange Commission on February 23, 2024, as amended by Amendment No.
−Removed: 1 thereto, filed with the Securities and Exchange Commission on February 28, 2024.
+Added: 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:
51 unchanged sentences
Gross margin from product revenue was 47.9% for the twelve months ended December 31, 2025, compared to 46.3% for the twelve months ended December 31, 2024.
−Removed: The increase in gross margin resulted from a favorable mix of system shipments and improved margins on Purion systems .
+Added: The increase in gross margin resulted from an increased mix of higher margin parts and upgrades .
Gross margin from services revenue was (5.1)% for the twelve months ended December 31, 2025, compared to 5.4% for the twelve months ended December 31, 2024.
−Removed: The decrease in gross margin is attributable to changes in the mix of service contracts.
+Added: The decrease in gross margin is attributable to changes in the mix of service contracts and fluctuations of service expenses.
+Added: Occasionally, we experience negative gross margin on service revenue as contract costs can vary significantly from one period to another based on customer demand.
Operating Expenses
17 unchanged sentences
Period-to-Period
−Removed: (dollars in thousands)
Research and development
3 unchanged sentences
Research and development (“R&D”) expense was $109.0 million in 2025, an increase of $3.5 million, or 3.3%, compared with $105.5 million in 2024.
−Removed: The increase was primarily due to increased outside services, materials and supplies expense to support ongoing R&D projects as well as higher personnel expenses associated with an increase in wages and benefits partially offset by a decrease in variable compensation expense and temporary employee expenses.
+Added: The increase was primarily due to higher variable compensation, stock compensation and expense related to early retirement programs and severance costs associated with global cost-saving initiatives.
Sales and Marketing
4 unchanged sentences
Our sales and marketing expenses result primarily from the sale of our equipment and services through our direct sales force.
−Removed: Sales and marketing expense was $68.0 million in 2024, an increase of $5.2 million, or 8.3%, compared with $62.8 million in 2023.
−Removed: The increase was primarily due to higher personnel expenses associated with an increase in wages and stock compensation partially offset by a decrease in variable compensation expense.
+Added: Sales and marketing expense was $65.4 million in 2025, a decrease of $2.7 million, or 3.9%, compared with $68.0 million in 2024.
+Added: The decrease was primarily due to a decrease in the labor expenses related to evaluation systems.
General and Administrative
5 unchanged sentences
General and administrative expense was $83.2 million in 2025, an increase of $12.9 million, or 18.3%, compared with $70.3 million in 2024.
−Removed: The increase was primarily due to higher bad debt expense and higher personnel expenses associated with an increase in wages and benefits partially offset by a decrease in variable compensation expense.
+Added: The increase was primarily due to an increase in merger-related professional and filing fees of $16.3, partially offset by a decrease in bad debt expense $3.0.
Other Income (Expense)
3 unchanged sentences
Period-to-period
−Removed: (dollars in thousands)
Other income (expense):
Percentage of revenue
−Removed: Other income for the year ended December 31, 2024 was $19.5 million, which includes $24.4 million of interest income on our investments, partially offset by $5.5 million of interest expense related to our sale leaseback obligation and $9.1 million of foreign exchange losses, offset by $9.1 million of foreign exchange gains from forward exchange contracts.
−Removed: Other expense for the year ended December 31, 2023 was $12.8 million, which includes $18.2 million of interest income on our investments, partially offset by $5.3 million of interest expense related to our sale leaseback obligation.
+Added: Other income for the year ended December 31, 2025 was $18.9 million, which includes $21.5 million of interest income on our investments, partially offset by $5.4 million of interest expense related to our sale leaseback obligation and $4.5 million of foreign exchange gains, partially offset by $2.1 million of foreign exchange losses from forward exchange contracts.
+Added: Other expense for the year ended December 31, 2024 was $19.5 million, which includes $24.4 million of interest income on our investments, partially offset by $5.5 million of interest expense related to our sale leaseback obligation and $9.1 million of foreign exchange losses, offset by $9.1 million of foreign exchange gains from forward exchange contracts.
Period-to-period
−Removed: (dollars in thousands)
Income tax provision
2 unchanged sentences
The effective tax rate for the year ended December 31, 2025 was 13.0% compared to 12.7% for year the ended December 31, 2024.
−Removed: The increase in the effective tax rate in 2024 is primarily due to a decrease in the benefit associated with stock-based compensation.
+Added: The increase in the effective tax rate in 2025 is primarily due to a decrease in the deduction related to stock-based compensation.
Liquidity and Capital Resources
12 unchanged sentences
In 2025, $29.9 million of cash was used in investing activities, $11.3 million of which was used for capital expenditures.
−Removed: We used $539.1 million of cash for purchases of short-term investments in 2024, partially offset by maturities of short-term investment of $442.6 million.
−Removed: We held $447.8 million of short-term investments at December 31, 2024.
−Removed: These short-term investments consist of U.S.
+Added: We used $646.0 million of cash for purchases of short-term and long-term investments, offset by maturities of short-term investment of $687.2 million.
+Added: We held $228.8 million of short-term investments and $182.4 million of long-term investments at December 31, 2025.
+Added: These short-term and long-term investments consist of U.S.
Government securities and agency investments.
In 2024, $108.7 million of cash was used in investing activities, $12.2 million of which was used for capital expenditures.
−Removed: We used $388.8 million of cash for purchases of short-term investments in 2023, partially offset by maturities of short-term investments of $308.6 million.
−Removed: Total capital expenditures for 2025 are projected to be approximately $20 million.
−Removed: Future capital expenditures beyond 2025
−Removed: will depend on a number of factors, including the timing and rate of expansion of our business and our ability to generate cash to fund them.
+Added: We used $539.1 million of cash for purchases of short-term investments, partially offset by maturities of short-term investments of $442.6 million.
+Added: Total capital expenditures for 2026 are projected to be
+Added: approximately $18 million.
+Added: Future capital expenditures beyond 2026 will depend on a number of factors, including the timing and rate of expansion of our business and our ability to generate cash to fund them.
Cash used in financing activities for the year ended December 31, 2025 was $124.5 million, which consisted of $121.1 million related to our stock repurchase program, $4.5 million related to net settlement of restricted stock issuances and $1.4 million related to principal reduction on our finance lease.
14 unchanged sentences
We have no off-balance sheet arrangements as of December 31, 2025.
−Removed: See Note 18 – Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized tax benefits.
+Added: See Note 18 – Income Taxes in the Notes to the Consolidated Financial Statements for information related to our unrecognized tax benefits and Note 19 – Merger for contractual termination fees associated with our pending acquisition.
We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2025 to be indefinitely reinvested and, accordingly, no U.S.
3 unchanged sentences
Upon repatriation of those earnings, in the form of dividends or otherwise, we could be subject to withholding taxes payable to the various foreign tax jurisdictions.
−Removed: Under the rules of the U.S.
−Removed: Securities and Exchange Commission (the “SEC”), we qualify as a “well-known seasoned issuer,” which allows us to file shelf registration statements to register an unspecified amount of securities that are effective upon filing.
+Added: Under the rules of the SEC, we qualify as a “well-known seasoned issuer,” which allows us to file shelf registration statements to register an unspecified amount of securities that are effective upon filing.
On August 3, 2023, we filed such a shelf registration statement with the SEC for the issuance of an unspecified amount of common stock, preferred stock, various series of debt securities and/or warrants to purchase any of such securities, either individually or in units, from time to time at prices and on terms to be determined at the time of any such offering.
2 unchanged sentences
We have a cash collateralized letter of credit of $5.9 million, which is classified as long-term restricted cash on our balance sheet at December 31, 2025.
−Removed: We believe that based on our current market, revenue, expense and cash flow forecasts, our existing cash, cash equivalents and short-term investments will be sufficient to satisfy our anticipated cash requirements for the short and long-term.
+Added: We believe that based on our current market, revenue, expense and cash flow forecasts, our existing cash, cash equivalents, short-term and long-term investments will be sufficient to satisfy our anticipated cash requirements for the short and long-term.
Related-Party Transactions
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.