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Nova Reports Record Second Quarter 2025 Financial Results

By PR Newswire | August 07, 2025, 7:30 AM

REHOVOT, Israel , Aug. 7, 2025 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the second quarter, the three-month period ended June 30, 2025.

Nova Logo

 

 

Second Quarter 2025 Highlights:

  • Record Quarterly revenue of $220 million, a 40% increase YoY.
  • Record GAAP net income of $68.3 million, or $2.14 per diluted share, exceeding the Company guidance, a 52% increase YoY.
  • Record non-GAAP net income of $70.4 million, or $2.20 per diluted share, exceeding the Company guidance, a 37% increase YoY.
  • Record revenue from Foundry/Logic, driven by demand for unique metrology solutions in advanced nodes.
  • Record revenue from chemical metrology sales, driven by HBM demand and expanding adoption of front-end chemical solutions. 

GAAP Results (K)



Q2 2025

Q1 2025

Q2 2024

Revenues

$219,989

$213,356

$156,858

Net Income

$68,291

$64,823

$45,142

Earnings per Diluted Share

$2.14

$2.03

$1.41

 

Non-GAAP Results (K)



Q2 2025

Q1 2025

Q2 2024

Net Income

$70,400

$69,958

$51,956

Earnings per Diluted Share

$2.20

$2.18

$1.61

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.

Management Comments

"We are proud to report another quarter of record revenue, with top-line performance landing at the high end of our guidance range and earnings results that meaningfully outpaced our profit outlook," said Gaby Waisman, President and CEO. "Our most advanced tools have achieved an impressive client adoption and endorsement, driving regional and diverse product segment penetration. Powered by this positive customer-led momentum and our advanced portfolio aligned with market demand, we expect Nova to outperform WFE in 2025."

2025 Third Quarter Financial Outlook

Management provided an outlook for the third quarter, the period ending September 30, 2025. Based on current estimates, management expects:

  • $215 million to $227 million in revenue
  • $1.77 to $1.97 in diluted GAAP EPS
  • $2.02 to $2.22 in diluted non-GAAP EPS

2025 Second Quarter Results

Total revenues for the second quarter of 2025 were $220 million, an increase of 3% compared with the first quarter of 2025 and an increase of 40% compared with the second quarter of 2024.

Gross margin in the second quarter of 2025 was 57.8%, compared with 57.3% in the first quarter of 2025 and 59.0% in the second quarter of 2024.

Operating expenses in the second quarter of 2025 were $61.6 million, compared with $59.1 million in the first quarter of 2025 and $46.9 million in the second quarter of 2024.

On a GAAP basis, the Company reported net income of $68.3 million, or $2.14 per diluted share, in the second quarter of 2025. This is compared with net income of $64.8 million, or $2.03 per diluted share, in the first quarter of 2025, and $45.1 million, or $ 1.41 per diluted share, in the second quarter of 2024.

On a non-GAAP basis, the Company reported net income of $70.4 million, or $2.20 per diluted share, in the second quarter of 2025. This is compared with net income of $70.0 million, or $2.18 per diluted share, in the first quarter of 2025, and $52.0 million, or $1.61 per diluted share, in the second quarter of 2024.

Conference Call Information

Nova will host a conference call today, Aug 7, 2025, at 8:30 a.m. Eastern Time, to discuss the Company's second quarter 2025 financial results and outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. TOLL-FREE Dial-in Number: 1-833-816-1427

ISRAEL TOLL-FREE    Dial-in Number: 1-809-213-284

INTERNATIONAL Dial-in Number: 1-412-317-0519

At:

8:30 a.m. Eastern Time

5:30 a.m. Pacific Time

The conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/.

A replay of the conference call will be available from August 7, 2025, at 11:30 a.m. Eastern Time until August 14, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: 

Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529

Replay Dial-in INTERNATIONAL: 1-412-317-0088

Replay Pin Number: 1180959

A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/

About Nova

Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/

Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.

Use of Non-GAAP Adjusted Financial Measures

This press release provides financial measures that exclude amortization of acquired intangible assets, inventory step-up, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of issuance costs and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following:  increased information technology security threats and sophisticated computer crime; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies; indirect effects of the RussiaUkraine conflict; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure, including risks related to artificial intelligence; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including related to the war against Hamas and other terrorist organizations; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 20, 2025. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

 

(Tables to Follow)

 

 

NOVA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands) - (Unaudited)









As of



June 30,

December 31,

ASSETS

2025

2024

Current assets





Cash and cash equivalents

160,563

157,779

Short-term interest-bearing bank deposits

208,385

211,877

Marketable securities

187,837

216,910

Trade accounts receivable, net

138,407

139,318

Inventories

182,020

156,599

Other current assets

24,145

19,466

Total current assets

901,357

901,949

Non-current assets





Marketable securities

287,525

225,818

Interest-bearing bank deposits and restricted deposits

11,897

7,847

Deferred tax assets

35,357

31,639

Operating lease right-of-use assets

52,440

51,193

Property plant and equipment, net

92,019

81,746

Intangible assets, net

50,411

31,458

Goodwill

90,736

48,317

Other long-term assets

11,884

10,455

Total non-current assets

632,269

488,473

Total assets

1,533,626

1,390,422

LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities





   Convertible senior notes, net

149,967

180,564

Trade accounts payable

53,594

59,578

Deferred revenues

64,518

72,886

Operating lease current liabilities

6,972

7,169

Other current liabilities

75,902

68,033

Total current liabilities

350,953

388,230

Non-current liabilities





Operating lease long-term liabilities

52,294

48,363

Long-term deferred tax liability

13,971

8,495

Other long-term liabilities

19,998

17,539

Total non-current liabilities

86,263

74,397

Shareholders' equity

1,096,410

927,795

Total liabilities and shareholders' equity 

1,533,626

1,390,422

 

 

 

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data) - (Unaudited)

























Three months ended

June 30, 

Six months ended

June 30,



2025

2024

2025

2024

Revenues:









Products

177,829

124,596

351,771

236,166

Services

42,160

32,262

81,574

62,490

Total revenues

219,989

156,858

433,345

298,656

Total cost of revenues

92,743

64,297

183,796

122,834

Gross profit

127,246

92,561

249,549

175,822

Operating expenses:









Research and development, net

35,446

25,513

68,680

50,265

Sales and marketing

19,861

16,023

39,649

32,516

General and administrative

6,296

5,407

12,345

10,203

Total operating expenses

61,603

46,943

120,674

92,984

Operating income

65,643

45,618

128,875

82,838

Financing income, net

15,177

7,961

28,114

13,961

Income before taxes on income

80,820

53,579

156,989

96,799

Income tax expenses

12,529

8,437

23,875

14,797

Net income for the period

68,291

45,142

133,114

82,002











Earnings per share:









Basic

2.32

1.55

4.54

2.83

Diluted

2.14

1.41

4.17

2.56











Shares used in calculation of earnings per share

 (in thousands):









Basic

29,422

29,048

29,315

29,018

Diluted

32,053

32,239

32,030

32,221

 

 

 

 

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands) - (Unaudited)

























Three months

ended June 30,

Six months

ended June 30,





2025

2024

2025

2024

Cash flows from operating activities:









Net income

68,291

45,142

133,114

82,002

Adjustments to reconcile net income to net cash provided by

operating activities:









     Depreciation of property and equipment

3,242

2,918

6,328

5,821

     Amortization of intangible assets

2,228

1,441

4,044

2,909

     Amortization of premium and accretion of discount on

    marketable securities, net

(1,345)

(1,777)

(2,888)

(3,425)

     Amortization of debt discount and issuance costs

278

322

568

644

     Share-based compensation

6,257

6,294

12,633

12,666

     Net effect of exchange rate fluctuation

(11,179)

678

(15,056)

1,935

Changes in assets and liabilities:









     Trade accounts receivable, net

(8,995)

5,602

6,480

17,004

     Inventories

(6,295)

(8,760)

(15,394)

(20,278)

     Other current and long-term assets

7,158

2,915

(5,930)

(567)

     Deferred tax, net

(3,508)

(1,583)

(6,144)

(2,349)

     Operating lease right-of-use assets

(2,359)

1,101

(1,881)

2,145

     Trade accounts payable

(1,674)

1,649

(1,717)

5,624

     Deferred revenues

(4,992)

7,395

(12,431)

12,279

     Operating lease liabilities

5,230

(1,933)

4,368

(3,499)

     Other current and long-term liabilities

(7,054)

(1,038)

7,761

6,855

     Accrued severance pay, net

378

(37)

355

1

Net cash provided by operating activities

45,661

60,329

114,210

119,767

Cash flows from investment activities:









Acquisition of subsidiary, net of acquired cash

(4,658)

-

(56,355)

-

Change in short-term and long-term interest-bearing bank deposits

2,157

(43,757)

(129)

(82,016)

Investment in marketable securities

(74,529)

(81,393)

(156,799)

(146,548)

Proceeds from maturity of marketable securities

51,092

79,503

130,160

136,752

Purchase of property and equipment

(2,738)

(2,412)

(11,595)

(5,180)

Net cash used in investing activities

(28,676)

(48,059)

(94,718)

(96,992)

Cash flows from financing activities:









Purchases of treasury shares

-

-

(20,002)

-

Net cash provided by financing activities

-

-

(20,002)

-

Effect of exchange rate fluctuations on cash and cash equivalents

and restricted cash

2,841

(23)

3,612

4

Changes in cash and cash equivalents and restricted cash 

19,826

12,247

3,102

22,779

Cash and cash equivalents - beginning of period

141,055

118,106

157,779

107,574

Cash and cash equivalents and restricted cash  - end of period

160,881

130,353

160,881

130,353















 

 

 

NOVA LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)

 



















Three months ended





June 30, 

2025

March 31,

 2025

June 30, 

2024

GAAP gross profit

127,246

122,303

92,561

Stock-based compensation*

1,769

1,847

1,723

Amortization of acquired intangible assets

2,039

1,670

1,356

Acquisition related inventory step-up

910

1,348

-

Non-GAAP gross profit

131,964

127,168

95,640

GAAP gross margin as a percentage of revenues

58 %

57 %

59 %

Non-GAAP gross margin as a percentage of revenues

60 %

60 %

61 %









GAAP operating income

65,643

63,232

45,618

Stock-based compensation*

6,257

6,376

6,294

Acquisition related inventory step-up

910

1,348

-

Acquisition related expenses

-

859

-

Amortization of acquired intangible assets

2,228

1,816

1,441

Non-GAAP operating income

75,038

73,631

53,353

GAAP operating margin as a percentage of revenues

30 %

30 %

29 %

Non-GAAP operating margin as a percentage of revenues

34 %

35 %

34 %









GAAP net income

68,291

64,823

45,142

Stock-based compensation*

6,257

6,376

6,294

Acquisition related inventory step-up

910

1,348

-

Acquisition related expenses

-

859

-

Amortization of acquired intangible assets

2,228

1,816

1,441

Amortization of debt issuance costs

278

290

322

Revaluation of operating lease and intercompany loans

(6,955)

(4,796)

(69)

Tax effect of non-GAAP adjustments

(609)

(758)

(1,174)

Non-GAAP net income

70,400

69,958

51,956









GAAP basic earnings per share

2.32

2.22

1.55

Non-GAAP basic earnings per share

2.39

2.39

1.79









GAAP diluted earnings per share

2.14

2.03

1.41

Non-GAAP diluted earnings per share

2.20

2.18

1.61









Shares used for calculation of earnings per share

(in thousands):







Basic

29,422

29,262

29,048

Diluted

32,053

32,062

32,239











 

 

* Stock-based compensation for the three months ended June 30, 2025 included in – Cost of revenues - 1,769; Research and development, net – 2,753; Sales and marketing – 1,209; General and administrative – 526.

 

 

 

NOVA LTD.

SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2025

GAAP TO NON-GAAP GUIDANCE

(U.S. dollars) (Unaudited)



















Low

High

Estimated GAAP net income per diluted share

1.77

1.97

Estimated non-GAAP items:





Stock-based compensation

0.20

0.20

Amortization of acquired intangible assets

0.09

0.09

Amortization of issuance costs

0.01

0.01

Tax effect of non-GAAP adjustments

(0.05)

(0.05)

Estimated non-GAAP net income per diluted share

2.02

2.22

 

 

Company Contact:

Guy Kizner, Chief Financial Officer

Tel: +972-73-229-5760

E-mail - [email protected]

Nova website link - https://www.novami.com/ 

Investor Relations Contact:

Miri Segal MS-IR LLC

Tel: +917-607-8654

E-mail - [email protected] 

Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg

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SOURCE Nova

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