Assets

3 Months Ended

Mar. 31, 2026

Note 3 — Assets

Investments

Short-term investments are generally classified as available-for-sale and reported at fair value, with unrealized gains and losses, net of tax, presented as a separate component of stockholders’ equity under the caption “Accumulated other comprehensive income” in the Consolidated Balance Sheets. These securities may include U.S. treasuries, government agency securities, corporate debt, and commercial paper, all with maturities of greater than three months when purchased. All realized gains and losses and unrealized losses resulting from declines in fair value that are other than temporary are included in “Other operating expense (income), net” in the Consolidated Statements of Operations.

Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. Veeco classifies certain assets based on the following fair value hierarchy:

Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and

Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Veeco has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions or estimation methodologies could have a significant effect on the estimated fair value amounts.

The following table presents the portion of Veeco’s assets that were measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025:


		Level 1			Level 2			Level 3			Total

		(in thousands)
March 31, 2026
Cash equivalents
Certificate of deposits and time deposits		$	76,124		$	—		$	—		$	76,124
Money market cash			20,174			—			—			20,174
Total		$	96,298		$	—		$	—		$	96,298
Short-term investments
U.S. treasuries		$	65,522		$	—		$	—		$	65,522
Government agency securities			—			52,653			—			52,653
Corporate debt			—			85,621			—			85,621
Total		$	65,522		$	138,274		$	—		$	203,796

December 31, 2025
Cash equivalents
Certificate of deposits and time deposits		$	63,893		$	—		$	—		$	63,893
Money market cash			15,327			—			—			15,327
Total		$	79,220		$	—		$	—		$	79,220
Short-term investments
U.S. treasuries		$	77,110		$	—		$	—		$	77,110
Government agency securities			—			53,488			—			53,488
Corporate debt			—			96,165			—			96,165
Total		$	77,110		$	149,653		$	—		$	226,763

There were no transfers between fair value measurement levels during the three months ended March 31, 2026.

At March 31, 2026 and December 31, 2025, the amortized cost and fair value of available-for-sale securities consist of:


					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value

		(in thousands)
March 31, 2026
U.S. treasuries		$	65,743		$	11		$	(232)		$	65,522
Government agency securities			52,784			15			(146)			52,653
Corporate debt			85,839			9			(227)			85,621
Total		$	204,366		$	35		$	(605)		$	203,796

December 31, 2025
U.S. treasuries		$	77,106		$	52		$	(48)		$	77,110
Government agency securities			53,473			50			(35)			53,488
Corporate debt			96,144			86			(65)			96,165
Total		$	226,723		$	188		$	(148)		$	226,763

Available-for-sale securities in a loss position at March 31, 2026 and December 31, 2025 consist of:


		Continuous Loss Position
		for Less than 12 Months
					Gross
		Estimated			Unrealized
		Fair Value			Losses

			(in thousands)
March 31, 2026
U.S. treasuries		$	44,358		$	(232)
Government agency securities			42,772			(146)
Corporate debt			70,790			(227)
Total		$	157,920		$	(605)

December 31, 2025
U.S. treasuries		$	37,609		$	(48)
Government agency securities			24,028			(35)
Corporate debt			45,675			(65)
Total		$	107,312		$	(148)

The contractual maturities of securities classified as available-for-sale at March 31, 2026 were as follows:


	March 31, 2026
	Amortized		Estimated
	Cost		Fair Value

		(in thousands)
Due in one year or less	$	131,982	$	131,876
Due after one year through two years		70,488		70,051
Due after two years through three years		1,896		1,869
Total	$	204,366	$	203,796

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. There were no realized gains or losses, or unrealized losses from declines in fair value that are other than temporary, for the three months ended March 31, 2026 and 2025.

Accounts Receivable

Accounts receivable is presented net of an allowance for doubtful accounts of $1.0 million at March 31, 2026 and December 31, 2025. The Company considers its current expectations of future economic conditions when estimating its allowance for doubtful accounts.

Inventories

Inventories at March 31, 2026 and December 31, 2025 consist of the following:


		March 31,			December 31,
		2026			2025

		(in thousands)
Materials		$	158,494		$	156,385
Work-in-process			87,244			80,947
Finished goods			7,976			7,017
Evaluation inventory			28,517			30,949
Total		$	282,231		$	275,298

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets primarily consist of supplier deposits, prepaid value-added tax, lease deposits, prepaid insurance, prepaid software and maintenance, and other receivables. The Company had deposits with its suppliers of $9.8 million for both March 31, 2026 and December 31, 2025, respectively.

Property, Plant, and Equipment

Property, plant, and equipment at March 31, 2026 and December 31, 2025 consist of the following:


		March 31,			December 31,
		2026			2025

		(in thousands)
Land		$	5,061		$	5,061
Building and improvements			61,776			61,749
Machinery and equipment ⁽¹⁾			202,303			198,898
Leasehold improvements			55,246			55,210
Gross property, plant, and equipment			324,386			320,918
Less: accumulated depreciation and amortization			216,569			212,272
Property, plant, and equipment, net		$	107,817		$	108,646

(1)	Machinery and equipment also includes software, furniture, and fixtures

For the three months ended March 31, 2026 and 2025, depreciation expense was $4.3 million and $4.2 million, respectively.

Goodwill

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. There were no changes to goodwill during the three months ended March 31, 2026.

Intangible Assets

Intangible assets consist of purchased technology, customer relationships, patents, trademarks and tradenames, licenses, and backlog, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined.

The components of purchased intangible assets were as follows:


		March 31, 2026									December 31, 2025
					Accumulated									Accumulated
		Gross			Amortization						Gross			Amortization
		Carrying			and			Net			Carrying			and			Net
		Amount			Impairment			Amount			Amount			Impairment			Amount

		(in thousands)
Technology		$	355,928		$	355,731		$	197		$	355,928		$	355,437		$	491
Customer relationships			146,925			142,131			4,794			146,925			141,720			5,205
Trademarks and tradenames			30,910			30,910			—			30,910			30,910			—
Other			3,746			3,746			—			3,746			3,746			—
Total		$	537,509		$	532,518		$	4,991		$	537,509		$	531,813		$	5,696

Other intangible assets primarily consist of patents, licenses, and backlog.