Earnings release
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NOVA Company Contact : PROCESS INSIGHT Guy Kizner , Chief Financial Officer Tel : + 972-73-229-5760 E - mail investors@novami.com Nova website link - https://www.novami.com/ Investor Relations Contact : Miri Segal MS - IR LLC E-mailmsegal@ms-ir.com Nova Reports Record Second Quarter 2026 Financial Results REHOVOT , Israel - August 06 , 2026 - Nova ( Nasdaq : NVMI ) today announced financial results for the second quarter , the three - month period ended June 30 , 2026 . Second Quarter 2026 Highlights : • • • • • Record quarterly revenue of $ 255.0 million , 8 % increase QoQ , and up 16 % YoY . Record GAAP net income of $ 75.0 million , or $ 2.20 per diluted share , 8 % increase QoQ , and up 3 % YoY . Record non - GAAP net income of $ 86.5 million , or $ 2.51 per diluted share , 8 % increase QoQ , and up 14 % YoY . Record revenue from Advanced logic devices , driven by transition to Gate - All - Around and demand for advanced nodes Record revenue of Advanced Packaging solutions , driven by capacity increases across logic and memory manufacturing GAAP Results ( K ) Q2 2026 Q1 2026 Q2 2025 Revenues $ 254,958 $ 235,308 $ 219,989 Net Income $ 75,010 $ 69,259 $ 68,291 Earnings per Diluted Share $ 2.20 $ 2.04 $ 2.14 Non - GAAP Results ( K ) Q2 2026 Net Income Earnings per Diluted Share $ 86,459 $ 2.51 Q1 2026 $ 80,265 $ 2.33 Q2 2025 $ 70,400 $ 2.20 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
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“This quarter marks a significant milestone for Nova, surpassing $250 million in quarterly revenue and $2.50 in quarterly non-GAAP EPS, reflecting the run-rate envisioned in our long-term strategic plan,” said Gaby Waisman, President and CEO. “We delivered record sales across several of our product lines, including our front -end chemical metrology solution and our Sentronics dimensional metrology solutions for advanced packaging. These results were supported by broad- based customer demand, continued market s hare gains, and deeper customer engagement across leading -edge device segments. As a result, we enter the coming quarters with increased visibility, a robust opportunity pipeline, and confidence in our ability to deliver another year of profitable growth”. 2026 Third Quarter Financial Outlook Management provided an outlook for the third quarter, the period ending September 30, 2026. Based on current estimates, management expects: • $277 million to $287 million in revenue • $2.46 to $2.61 in diluted GAAP EPS • $2.70 to $2.85 in diluted non-GAAP EPS 6202 Second Quarter Results Total revenues for the second quarter of 2026 were $255.0 million, an increase of 8% compared with the first quarter of 2026 and an increase of 16% compared with the second quarter of 2025. Gross margin in the second quarter of 6202 was 56.5%, compared with 57.7%, in the first quarter of 2026 and 57.8% in the second quarter of 2025. Operating expenses in the second quarter of 2026 were $68.0 million, compared with $64.9 million in the first quarter of 2026 and $61.6 million in the second quarter of 2025. On a GAAP basis, the Company reported net income of $75.0 million, or $2.20 per diluted share, in the second quarter of 2026. This is compared with net income of $69.3 million, or $2.04 per diluted share, in the first quarter of 2026, and $68.3 million, or 2.14 per diluted share, in the second quarter of 2025. On a non-GAAP basis, the Company reported net income of $86.5 million, or $2.51 per diluted share, in the second quarter of 2026. This is compared with net income of $ 80.3 million, or $2.33 per diluted share, in the first quarter of 2026, and $70.4 million, or $2.20 per diluted share, in the second quarter of 2025. Conference Call Information Nova will host a conference call today, August 06, 2026, at 8:30 a.m. Eastern Time, to discuss the Company’s second quarter of 2026 financial results and outlook. To attend the conference call, please dial one of the following teleconference 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
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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 6, 2026, at 11:30 a.m. Eastern Time until August 13, 2026. To access the replay, please dial one of the following numbers: Replay Dial-in U.S. TOLL-FREE: 1-855-669-9658 Replay Dial-in INTERNATIONAL: 1-412-317-0088 Replay Pin Number: 2662167 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 debt issuance costs, discrete tax reserve release, net 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 inten ded 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, level s 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, circumstanc es or achievements include, but are not limited to, the following: risks related to information technology security threats, sophisticated computer crime, and data privacy; foreign political and economic risks including supply- chain difficulties; regulations that could restrict our operations
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such as economic sanctions and export restrictions; changes in U.S. trade policies and taxation; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our in tellectual property; open source technology exposure; risks related to the use of artificial intelligence technologies; challenges related to implementing our new ERP system; 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; risk s related to conditions in Israel, including Israel’s conflicts with certain parties in the region; risks related to our convertible senior notes and capped call transactions; currency fluctuations and quarterly fluctuations in our operating results; and risks related to additional costs and expenses if there is a change in our status as a foreign private issuer. 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, 2025, filed with the Securities and Exchange Commission on February 17, 2026. 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)
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NOVA LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) - (Unaudited) As of June 30, December 31, ASSETS 2026 2025 Current assets Cash and cash equivalents 124,846 214,462 Short-term interest-bearing bank deposits 397,082 512,250 Marketable securities 499,071 321,798 Trade accounts receivable, net 210,279 151,929 Inventories 185,273 183,671 Other current assets 36,309 26,692 Total current assets 1,452,860 1,410,802 Non-current assets Marketable securities 685,471 584,731 Interest-bearing bank deposits and restricted deposits 11,747 12,508 Deferred tax assets 36,775 38,819 Operating lease right-of-use assets 56,706 57,731 Property plant and equipment, net 98,753 102,625 Intangible assets, net 39,974 45,819 Goodwill 88,743 90,807 Other long-term assets 18,350 16,704 Total non-current assets 1,036,519 949,744 Total assets 2,489,379 2,360,546 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Convertible senior notes, net 733,588 - Trade accounts payable 66,782 46,982 Deferred revenues 45,945 67,163 Operating lease current liabilities 10,067 8,204 Other current liabilities 80,183 102,186 Total current liabilities 936,565 224,535 Non-current liabilities Convertible senior notes, net - 731,680 Operating lease long-term liabilities 59,843 59,271 Long-term deferred tax liability 8,678 10,221 Other long-term liabilities 19,074 16,591 Total non-current liabilities 87,595 817,763 Shareholders' equity 1,465,219 1,318,248 Total liabilities and shareholders' equity 2,489,379 2,360,546
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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, 2026 2025 2026 2025 Revenues: Products 201,472 177,829 387,735 351,771 Services 53,486 42,160 102,531 81,574 Total revenues 254,958 219,989 490,266 433,345 Total cost of revenues 110,797 92,743 210,417 183,796 Gross profit 144,161 127,246 279,849 249,549 Operating expenses: Research and development, net 39,257 35,446 76,340 68,680 Sales and marketing 21,333 19,861 41,597 39,649 General and administrative 7,386 6,296 14,891 12,345 Total operating expenses 67,976 61,603 132,828 120,674 Operating income 76,185 65,643 147,021 128,875 Financing income, net 12,920 15,177 25,968 28,114 Income before taxes on income 89,105 80,820 172,989 156,989 Income tax expenses 14,095 12,529 28,720 23,875 Net income for the period 75,010 68,291 144,269 133,114 Earnings per share: Basic 2.36 2.32 4.54 4.54 Diluted 2.20 2.14 4.24 4.17 Shares used in calculation of earnings per share (in thousands): Basic 31,800 29,422 31,810 29,315 Diluted 34,450 32,053 34,460 32,030
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NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) - (Unaudited) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Cash flows from operating activities: Net income 75,010 68,291 144,269 133,114 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 3,688 3,242 7,184 6,328 Amortization of intangible assets 2,299 2,228 4,614 4,044 Amortization of premium and accretion of discount on marketable securities, net (1,410) (1,345) (2,667) (2,888) Amortization of debt issuance costs 958 278 1,908 568 Share-based compensation 6,764 6,257 14,069 12,633 Net effect of exchange rate fluctuation (807) (11,179) (752) (15,056) Changes in assets and liabilities: Trade accounts receivable, net (33,760) (8,995) (59,373) 6,480 Inventories (7,159) (6,295) (3,073) (15,394) Other current and long-term assets (5,291) 7,158 (14,784) (5,930) Deferred tax, net 1,575 (3,508) 954 (6,144) Operating lease right-of-use assets 53 (2,359) 1,009 (1,881) Trade accounts payable 12,048 (1,674) 19,356 (1,717) Deferred revenues (3,811) (4,992) (23,484) (12,431) Operating lease liabilities 2,374 5,230 2,451 4,368 Other current and long-term liabilities (11,878) (7,054) (10,960) 7,761 Accrued severance pay, net 265 378 274 355 Net cash provided by operating activities 40,918 45,661 80,995 114,210 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 (63,987) 2,157 116,228 (129) Investment in marketable securities (364,260) (74,529) (494,583) (156,799) Proceeds from maturity of marketable securities 92,735 51,092 214,616 130,160 Purchase of property and equipment (2,494) (2,738) (6,543) (11,595) Net cash provided by (used in) investing activities (338,006) (28,676) (170,282) (94,718) Cash flows from financing activities: Purchases of treasury shares - - - )20,002 ( Net cash used in financing activities - - - )20,002 ( Effect of exchange rate fluctuations on cash and cash equivalents 118 2,841 (647) 3,612 Changes in cash and cash equivalents and restricted cash (296,970) 19,826 (89,934) 3,102 Cash and cash equivalents and restricted cash -beginning of period 421,816 141,055 214,780 157,779 Cash and cash equivalents and restricted cash - end of period 124,846 160,881 124,846 160,881
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NOVA LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (U.S. dollars in thousands, except percentage and per share data) - (Unaudited) * Stock-based compensation for the three months ended June 30, 2026, included in - Cost of revenues – 1,923; Research and development, net – 2,770; Sales and marketing - 1,525; General and administrative - 546. Three months ended June 30, 2026 March 31, 2026 June 30, 2025 GAAP gross profit 144,161 135,688 127,246 Stock-based compensation* 1,923 2,072 1,769 Amortization of acquired intangible assets 2,105 2,119 2,039 Acquisition related inventory step-up - - 910 Non-GAAP gross profit 148,189 139,879 131,964 GAAP gross margin as a percentage of revenues 57% 58% 58% Non-GAAP gross margin as a percentage of revenues 58% 59% 60% GAAP operating income 76,185 70,836 65,643 Stock-based compensation* 6,764 7,305 6,257 Acquisition related inventory step-up - - 910 Amortization of acquired intangible assets 2,299 2,315 2,228 Non-GAAP operating income 85,248 80,456 75,038 GAAP operating margin as a percentage of revenues 30% 30% 30% Non-GAAP operating margin as a percentage of revenues 33% 34% 34% GAAP net income 75,010 69,259 68,291 Stock-based compensation* 6,764 7,305 6,257 Acquisition related inventory step-up - - 910 Amortization of acquired intangible assets 2,299 2,315 2,228 Amortization of debt issuance costs 958 950 278 Revaluation of operating lease and intercompany loans 3,398 2,540 (6,955) Tax effect of non-GAAP adjustments (1,970) (2,104) (609) Non-GAAP net income 86,459 80,265 70,400 GAAP basic earnings per share 2.36 2.18 2.32 Non-GAAP basic earnings per share 2.72 2.52 2.39 GAAP diluted earnings per share 2.20 2.04 2.14 Non-GAAP diluted earnings per share 2.51 2.33 2.20 Shares used for calculation of earnings per share (in thousands): Basic 31,800 31,790 29,422 Diluted 34,450 34,439 32,053
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NOVA LTD. SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2026 GAAP TO NON-GAAP GUIDANCE (U.S. dollars) (Unaudited) Low High Estimated GAAP net income per diluted share 2.46 2.61 Estimated non-GAAP items: Stock-based compensation 0.19 0.19 Amortization of acquired intangible assets 0.07 0.07 Amortization of debt issuance costs 0.03 0.03 Tax effect of non-GAAP adjustments (0.05) (0.05) Estimated non-GAAP net income per diluted share 2.70 2.85