A maker of precision measurement systems for the semiconductor industry, Nova Ltd. builds optical and X-ray tools that chip manufacturers use to inspect and measure wafers during production, ensuring chips are built to exact specifications. Founded in 1993 in Israel by Giora Dishon and Moshe Finarov, the company pioneered "integrated metrology"—embedding measurement directly into chip-making equipment so wafers no longer need to be moved to a separate machine for inspection. The name "Nova" comes from the Latin for "new," a nod to the sudden bright star of astronomy, and the company dropped "Measuring Instruments" from its name in 2021 as its work expanded beyond instruments alone.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Nova revenue rose 31% to $880.6M in FY2025, operating margin widened to 28.8%, and the company issued $750M in convertible notes.
Nova crossed $880 million in , putting its $1 billion target within reach. Revenue rose 31% to $880.6 million and climbed 38% to $7.96, driven by broad product demand and the Sentronics acquisition, while widened to 28.8%. The company added $750 million in through a convertible note offering, leaving it with $1.6 billion in cash and equivalents plus marketable securities.
Key takeaways
rose 31% to $880.6 million, driven by higher demand across all main product lines and the January 2025 acquisition of Sentronics Metrology GmbH.
Product declined to 60% from 61% on a shift in product and customer volume mix, while service gross margin improved to 47% from 44% as the business gained economies of scale.
widened 0.9 points to 28.8% as total operating expenses fell to 29% of revenues from 30%, with sales, marketing, and G&A costs growing more slowly than .
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
The company is exposed to foreign exchange risk, mainly from NIS and Euro, and uses currency forwards and options to hedge.
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Market risk is limited to foreign exchange rates; the company holds no trading or derivative instruments for significant market risk.
In 2025, the U.S. dollar weakened 12.5% against the NIS and strengthened 11.3% against the Euro, affecting non-dollar net monetary assets.
A NIS and Israel CPI-linked lease liability of $39 million (including $2.9 million in exchange rate differences) was recorded under ASC 842.
rose 41% to $259.2 million, helped by a $21.1 million increase in net financial income to $49.8 million, reflecting higher interest income and favorable exchange rate movements.
Cash, equivalents, and marketable securities rose to $1,646 million from $820 million, largely from a $750 million offering and $245.6 million in .
Customer concentration remained high: the five largest customers accounted for 51% of total in 2025, down slightly from 53% in 2024.
What changed
The $1 billion target flagged in 2022 moved closer: revenue reached $880.6 million in 2025, up from $672.4 million in 2024, with management still targeting $1 billion by 2027.
The Sentronics acquisition, flagged as a 2025 event in the prior filing, closed in January 2025 and contributed to the 31% increase, though its specific contribution was not broken out.
Service , which fell to 44% in 2024 on infrastructure investment, recovered to 47% in 2025 as those investments translated into economies of scale.
The capital structure shifted: after holding zero through 2024, the company issued $750 million in 0% due 2030, introducing risk and potential cash settlement obligations.
from China under U.S. export controls remained a risk, with the September 2025 'Affiliates Rule' adding new licensing requirements for key customers, though the region's revenue contribution was not quantified.
What to watch
Whether product stabilizes at 60% or declines further as the lower-margin Sentronics business is integrated and product mix continues to shift.
Progress toward the $1 billion target by 2027, and whether the 31% growth rate in 2025 can be sustained as the base grows larger.
The impact of the September 2025 U.S. 'Affiliates Rule' export control on from China, a region that has faced escalating restrictions since 2022.
How the company deploys its $1.6 billion in cash, equivalents, and marketable securities — whether toward further acquisitions, share buybacks, or debt management ahead of the 2030 note maturity.
The company entered into $123 million in NIS/dollar currency-forward and put-option contracts to hedge , with settlements through 2026.
A $3 million decrease in on these hedges was recorded in in 2025.
A hypothetical instantaneous 10% of the NIS against the dollar would decrease the of net NIS liabilities by approximately $16.1 million.
Geopolitical tensions, export controls, and cybersecurity threats pose material risks to Nova's global semiconductor metrology business.
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Escalating U.S. export controls on advanced semiconductor technology to China, including the September 2025 'Affiliates Rule', directly restrict sales and service capabilities, requiring licenses for key customers.
The October 2023 Israel-Hamas war and regional instability heighten risks of cyberattacks, employee reserve duty absences, and broader economic disruption to the company's primary operations in Israel.
A new 0% due 2030 offering for $750 million introduces risk, potential cash settlement obligations, and complex tax withholding uncertainties.
Customer concentration is high, with a small number of large customers accounting for a substantial portion of , making the business vulnerable to order reductions or losses.
The company's reliance on single manufacturing facilities for key product lines in Israel, the U.S., and Germany magnifies the risk of production interruptions from regional conflicts or disasters.
Rapid technological change and intense competition from larger firms like KLA and Onto Innovation, plus emerging Chinese competitors, pressure Nova to continuously innovate and protect its intellectual property.
Nova Ltd. provides advanced metrology and process control solutions for semiconductor manufacturing, spanning dimensional, materials, and chemical analysis.
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The company operates through four major metrology categories: Integrated, Standalone (dimensional and materials), Chemical, and Software.
Nova's product portfolio includes optical, X-ray, , and chemical analysis platforms used across front-end and back-end semiconductor fabrication steps.
In January 2025, Nova acquired Sentronics Metrology GmbH to expand its dimensional metrology portfolio into advanced wafer-level packaging and specialty devices.
Customer concentration is significant, with the five largest customers accounting for 51% of total revenues in 2025.
The company maintains manufacturing facilities in Israel, the U.S., and Germany, and is expanding cleanroom capacity in Fremont, California.
Nova's 2025 revenue rose 31% to $880.6M on broad product demand and Sentronics, with operating margin expanding to 29%.
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Total revenues increased 31% to $880.6 million, driven by higher demand across all main product lines and the acquisition of Sentronics.
Product declined to 60% from 61% due to a shift in product and customer volume mix, while service gross margin improved to 47% from 44% on .
expanded to 29% from 28% as total operating expenses fell to 29% of revenues from 30%, aided by in sales, marketing, and G&A.
Net financial income rose to $49.8 million from $28.7 million, primarily from higher interest income and favorable exchange rate impacts.
Cash and equivalents plus deposits and marketable securities surged to $1,646 million from $820 million, largely due to a $750 million convertible notes offering and strong of $245 million.
The company targets $1 billion in revenues by 2027 and plans to continue investing in R&D, expand its advanced packaging portfolio, and integrate Sentronics for combined offerings.