Nova's Record Q3 Revenue Highlights Strong Semiconductor Demand and Sets Up Robust 2025 Outlook
Quarterly Results Show Consistent Growth in Memory and Logic Devices
Nova Ltd. (NASDAQ: NVMI) has delivered its highest-ever third quarter revenue, underlining both its strategic position in semiconductor metrology and the resilience of demand in the broader industry. For Q3 2025, Nova reported revenue of $224.6 million, a 25% increase over the prior year and above the company’s guidance midpoint. Both GAAP and non-GAAP net income showed solid year-over-year improvement, with robust contributions from advanced memory (DRAM, HBM) and logic device solutions driven by the shift to Gate-All-Around architectures.
Profitability Remains Strong Despite Rising Costs
Despite increased operating expenses (up to $63.6 million from $52.1 million in Q3 2024), Nova’s margins remained solid. Gross margin was 56.7%, nearly unchanged from the year-ago period, while non-GAAP gross margin reached 59%. GAAP net income for the quarter reached $61.4 million (diluted EPS of $1.90), and non-GAAP net income was $70 million (diluted EPS of $2.16). This strong earnings performance signals disciplined operational execution and healthy end-market demand.
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|---|---|---|---|
| Revenue ($M) | 224.6 | 220.0 | 179.0 |
| GAAP Net Income ($M) | 61.4 | 68.3 | 51.3 |
| GAAP EPS (Diluted) | 1.90 | 2.14 | 1.60 |
| Non-GAAP Net Income ($M) | 70.0 | 70.4 | 56.1 |
| Non-GAAP EPS (Diluted) | 2.16 | 2.20 | 1.74 |
| Gross Margin (%) | 56.7 | 57.8 | 56.6 |
| Operating Expenses ($M) | 63.6 | 61.6 | 52.1 |
Balance Sheet Shows Ample Liquidity
Nova’s financial position has strengthened considerably. Cash and cash equivalents surged to $521.6 million (from $157.8 million at the end of 2024), supporting future investments and providing a buffer against market volatility. The increase was boosted by the issuance of $750 million in convertible senior notes during the year, signaling confidence from institutional investors and Nova’s own commitment to ongoing innovation.
| Balance Sheet Metric | Q3 2025 | 2024 Year-End |
|---|---|---|
| Total Assets ($M) | 2,307.5 | 1,390.4 |
| Total Liabilities ($M) | 1,136.7 | 462.6 |
| Shareholders' Equity ($M) | 1,170.7 | 927.8 |
| Cash & Equivalents ($M) | 521.6 | 157.8 |
Q4 Guidance Anticipates Continued Strength
For the fourth quarter, Nova’s management expects revenue in the range of $215 million to $225 million and non-GAAP diluted EPS between $2.02 and $2.20. The company sees robust industry fundamentals, bolstered by ongoing adoption of AI, rising semiconductor complexity, and increased investment in next-generation memory and logic. CEO Gaby Waisman underscored expectations for a record 2025 and continued growth into 2026, citing both positive sector forecasts and internal momentum.
Investor Takeaway: Operational Execution Supports Upbeat Outlook
Nova’s Q3 2025 performance underscores the company’s operational strength, well-aligned product offerings, and sound capital management. With memory and advanced logic markets in secular growth, Nova is poised to benefit from broader industry trends such as AI adoption and advanced semiconductor packaging. Investors tracking the semiconductor supply chain may want to keep Nova on their radar, particularly with guidance projecting a strong finish to 2025 and signs of continued expansion in 2026.
Nova’s next earnings update will follow the fourth quarter. The replay and details for today’s investor call are available on Nova’s investor relations site.
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