ACLSMEDIUM SIGNALFINANCIAL10-K

ACLS reported a meaningful revenue decline to $839.0 million in 2025 from $1,017.9 million in 2024, with operating profit falling substantially to $119.3 million from $210.8 million.

The company experienced broad-based financial weakness with systems revenue declining notably while maintaining its core ion implantation focus at 98.2% of total revenue. Despite the revenue pressures, gross margin improved slightly to 44.9% from 44.7%, suggesting some pricing discipline or cost management effectiveness during the downturn.

Comparing 2026-02-26 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

ACLS faced a challenging fiscal 2025 with revenue declining 17.6% to $839.0 million and gross profit falling proportionally to $376.8 million, though gross margins held relatively steady. Operating income and net income both declined meaningfully, reflecting the impact of lower volumes on the company's operating leverage. The balance sheet showed mixed signals with cash increasing to $145.5 million while inventory grew to $329.0 million and accounts receivable declined, suggesting potential demand softness but maintained liquidity.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
-43.4%
$210.8M$119.3M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Net Income
P&L
-40.2%
$201.0M$120.2M

Net income declined 40.2% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+17.8%
$123.5M$145.5M

Cash grew 17.8% — improving liquidity position supports investment and shareholder returns.

Revenue
P&L
-17.6%
$1.0B$839.0M

Revenue softened 17.6% — monitor whether this is cyclical or structural.

Gross Profit
P&L
-17.1%
$454.7M$376.8M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Accounts Receivable
Balance Sheet
-17.1%
$203.1M$168.5M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Inventory
Balance Sheet
+16.6%
$282.2M$329.0M

Inventory built 16.6% — monitor whether demand supports this build or if write-downs may follow.

Current Assets
Balance Sheet
-16.1%
$1.1B$943.2M

Current assets declined 16.1% — monitor working capital adequacy and short-term liquidity.

Operating Cash Flow
Cash Flow
-16%
$140.8M$118.3M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-28
ADDED
The ion implantation business represented 98.2% of our revenue in 2025, with the remaining 1.8% of revenue derived from aftermarket sales associated with other legacy processing systems.
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 2025 was 44.9% compared to 44.7% in 2024.
Operating profit for 2025 was $119.3 million, compared to $210.8 million in 2024.
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REMOVED
The ion implantation business represented 98.3% of our revenue in 2024, with the remaining 1.7% of revenue derived from aftermarket sales associated with other legacy processing systems.
Revenue for 2024 was $1,017.9 million, compared to $1,130.6 million in 2023.
Systems revenue for 2024 was $782.6 million, compared to $883.6 million in 2023.
Gross margin percent for 2024 was 44.7% compared to 43.5% in 2023.
Operating profit for 2024 was $210.8 million, compared to $265.8 million in 2023.
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