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    ACMR
    Earnings call· Dec 2025(Q4 FY25)

    ACM Research Q4 FY25 earnings call ACMR

    Feb 26, 2026 Source

    Executive summary

    ACM Research Q4 FY25 — Strong Product Cycle and Global Expansion Drive Growth

    ACM Research delivered solid Q4 FY25 results, driven by strong execution in its core business and significant progress in new product platforms. The company is strategically investing in R&D and global expansion, including new facilities in Oregon, to capitalize on AI-driven semiconductor demand and differentiate its technology. While profitability faced temporary pressure from product mix and R&D investments, management remains confident in its long-term growth profile and market share expansion, particularly with new product cycles expected to accelerate in FY26.

    Highlights

    5

    • Revenue grew 9.4% in Q4 FY25 to $244 million and 15.2% for FY25 to $901.3 million, outperforming the flat China WFE market.

    • Net cash increased by $585.4 million to $845.5 million at year-end FY25, supported by a $623 million private offering by ACM Shanghai.

    • Secured first tool installation in Singapore and multiple advanced packaging tool orders from 3 global customers, including a leading OSAT and a North America-based technology customer.

    • Cleaning portfolio addresses 95% of applications, targeting 100% in 2026, with new SPM cleaning technology achieving best-in-class performance (50 nanoparticle size count under 20).

    • New products (SPM cleaning, furnace, supercritical CO2 dry, Track, PECVD, panel-level plating) are expected to drive a strong product cycle in FY26 and beyond.

    Concerns

    4

    • Q4 FY25 gross margin was 41.0%, below the long-term target range of 42% to 48%, due to product mix (semi-critical products with lower margins) and higher seasonal inventory provisions (4 points negative impact).

    • Shipments for FY25 were $854 million, down 12.2% year-over-year, partly due to a tough compare against strong FY24 and some new product shipments pushed into FY26.

    • Operating margin compressed to 12.1% in Q4 FY25 and 15.9% for FY25, down from 23.6% and 25.6% respectively in FY24, primarily due to increased R&D investment.

    • Increased competitive pressure from new local entrants in China, with 5 or more players for single point products.

    Guidance & targets

    12
    CategoryTargetConfidence
    Revenue
    $1.08 billion to $1.175 billion
    high materiality
    High
    R&D as % of sales
    16% to 18% range
    medium materiality
    Medium
    Sales and Marketing as % of sales
    7% to 8% range
    low materiality
    Medium
    G&A as % of sales
    6% range
    low materiality
    Medium
    Effective Tax Rate
    8% to 10% range
    low materiality
    Medium
    Capital Expenditures
    $200 million
    medium materiality
    High
    Gross Margins
    lower end of this longer-term target range [42% to 48%]
    medium materiality
    Medium
    Gross Margins
    anticipated lift
    medium materiality
    Medium
    Revenue
    $4 billion
    high materiality
    High
    Cleaning market share in China
    approximately 60%
    medium materiality
    High
    ECP market share in China
    60% or more
    medium materiality
    High
    Cleaning portfolio application coverage
    100%
    low materiality
    High

    Segment performance

    13
    SegmentRevenueYoYQoQMargin
    Single-wafer cleaning, Tahoe and semi-critical cleaning
    Included very little contribution from newer cleaning lines in FY25. Expects new products (SPM, Tahoe, N2 bubbling wet etch) to contribute meaningfully in FY26.
    69% of total revenue (FY25)95% application coverage (FY25)100% application coverage target (2026)
    		$626 million8%——
    Single-wafer cleaning, Tahoe and semi-critical cleaning
    Q4 FY25 revenue.
    		$159.9 million3%——
    ECP, Frontend Packaging, Furnace and other technologies
    Q4 FY25 revenue.
    		$64.1 million23.9%——
    ECP, Frontend Packaging, Furnace and other technologies
    FY25 growth.
    		—32.1%——
    Advanced Packaging (excluding ECP, services and spares)
    Includes coater, developer, etchers, stripper, scrubber, and vacuum cleaning tools. ACM is the only company to offer a full portfolio of wet process tools and world-class plating for advanced packaging.
    8% of total revenue (FY25)
    		$76 million45%——
    Advanced Packaging (excluding ECP, services and spares)
    Q4 FY25 revenue.
    		$20.5 million23.8%——
    Foundry, Logic and Other
    Customer type revenue mix for FY25.
    59% of total revenue (FY25)
    		————
    Memory
    Customer type revenue mix for FY25.
    27% of total revenue (FY25)
    		————
    Packaging and Wafer Processing
    Customer type revenue mix for FY25.
    14% of total revenue (FY25)
    		————
    Top Customer
    One of four 10%+ customers in FY25, representing 52.2% of total sales collectively.
    16.9% of total sales (FY25)
    		————
    Second Customer
    One of four 10%+ customers in FY25, representing 52.2% of total sales collectively.
    13.5% of total sales (FY25)
    		————
    Third Customer
    One of four 10%+ customers in FY25, representing 52.2% of total sales collectively.
    11.6% of total sales (FY25)
    		————
    Fourth Customer
    One of four 10%+ customers in FY25, representing 52.2% of total sales collectively.
    10.2% of total sales (FY25)
    		————

    Operational metrics

    39
    Revenue
    $244 millionup 9.4%
    Q4 FY25

    Total revenue for the fourth quarter.

    Revenue
    $901.3 millionup 15.2%
    FY25

    Total revenue for the full fiscal year. In line with original guidance and slightly above updated range.

    Non-GAAP Gross Margin
    41.0%down 8.8 percentage points YoY
    Q4 FY25

    Slightly below long-term target range of 42% to 48%. The transcript states 'Gross margin was 41.0% for the fourth quarter and 49.8%. For the full year, gross margin was 44.5% versus 50.4% in 2024.' The 49.8% is unclear in its reference, but 41.0% is explicitly for Q4 FY25.

    Non-GAAP Gross Margin
    44.5%vs 50.4% in FY24
    FY25

    Full year gross margin.

    Non-GAAP Operating Expenses
    $70.6 millionup 21%
    Q4 FY25

    Operating expenses for the fourth quarter.

    Non-GAAP Operating Expenses
    $258.4 millionup 34%
    FY25

    Operating expenses for the full fiscal year.

    Non-GAAP R&D as % of Sales
    15.1%
    FY25

    R&D spending as a percentage of sales for the full fiscal year.

    Non-GAAP Sales and Marketing as % of Sales
    7.8%
    FY25

    Sales and marketing spending as a percentage of sales for the full fiscal year.

    Non-GAAP G&A as % of Sales
    5.8%
    FY25

    G&A spending as a percentage of sales for the full fiscal year.

    Non-GAAP Operating Income
    $29.5 millionvs $52.8 million
    Q4 FY25

    Operating income for the fourth quarter.

    Non-GAAP Operating Margin
    12.1%as compared to 23.6%
    Q4 FY25

    Operating margin for the fourth quarter.

    Non-GAAP Operating Margin
    15.9%as compared to 25.6%
    FY25

    Operating margin for the full fiscal year.

    Income Tax Expense
    $6.6 millionversus $17.3 million
    Q4 FY25

    Income tax expense for the fourth quarter.

    Income Tax Expense
    $13.3 millionversus $35 million in 2024
    FY25

    Income tax expense for the full fiscal year.

    Net Income Attributable to ACM Research
    $17.3 millionversus $37.7 million
    Q4 FY25

    Net income attributable to ACM Research for the fourth quarter.

    Net Income Attributable to ACM Research
    $110.2 millionversus $152.2 million
    FY25

    Net income attributable to ACM Research for the full fiscal year.

    Non-GAAP Net Income per Diluted Share
    $0.25versus $0.56
    Q4 FY25

    Non-GAAP net income per diluted share for the fourth quarter.

    Non-GAAP Net Income per Diluted Share
    $1.61versus $2.26
    FY25

    Non-GAAP net income per diluted share for the full fiscal year.

    Stock-based Compensation Expense
    $6.4 million
    Q4 FY25

    Excluded from non-GAAP net income.

    Stock-based Compensation Expense
    $33.6 million
    FY25

    Excluded from non-GAAP net income for the full fiscal year.

    Cash and investments balance
    $1.13 billionversus $441 million at year-end 2024
    FY25

    Cash, cash equivalents, restricted cash and time deposits.

    Net Cash
    $845.5 millionversus $259.1 million at year-end 2024
    FY25

    Excludes short-term and long-term debt.

    Total Inventory
    $702.6 millionversus $676.4 million at the end of the third quarter
    FY25

    Total inventory at year-end.

    Raw Materials Inventory
    $349.7 millionup $23.5 million quarter-over-quarter
    FY25

    Additional strategic purchases to support production plans and mitigate potential supply chain risk.

    Work in Process Inventory
    $61.4 millionup $1.9 million quarter-over-quarter
    FY25

    Work in process inventory at year-end.

    Finished Goods Inventory
    $291.6 millionup $0.9 million quarter-over-quarter
    FY25

    Primarily consists of first tools under evaluation at customer sites along with finished goods located at ACM's facilities.

    Capex
    $58 million
    FY25

    Capital expenditures for the full fiscal year.

    ACM Shanghai Private Offering
    $623 million
    FY25

    Net proceeds generated from the private offering of ordinary shares by ACM Shanghai in September 2025.

    ACM Shanghai Share Sale
    $111 million
    FY26

    Gross proceeds generated from the sale of ACM Shanghai shares in February 2026.

    Dividends from ACM Shanghai
    $29 million
    FY25

    Dividends received net of tax from ACM Shanghai.

    Dividends from ACM Shanghai
    $28.5 million
    FY24

    Dividends received net of tax from ACM Shanghai.

    Dividends from ACM Shanghai
    $19.2 million
    FY23

    Dividends received net of tax from ACM Shanghai.

    Cleaning market share in China
    about 35%
    current

    Current estimated market share.

    Copper plating market share in China
    40%
    current

    Current estimated market share.

    Shipments
    $228 milliondown 13.5%
    Q4 FY25

    Shipments for the fourth quarter. Tough compare versus strong FY24 when shipments increased 63% YoY. Some new product shipments pushed into FY26.

    Shipments
    $854 milliondown 12.2%
    FY25

    Shipments for the full fiscal year. Tough compare versus strong FY24 when shipments increased 63% YoY. Some new product shipments pushed into FY26.

    Q1 FY26 Revenue Mix
    18% to 20%
    Q1 FY26

    Anticipated revenue mix for Q1 FY26 relative to the full year.

    H1 FY26 Revenue Mix
    42% to 43%
    H1 FY26

    Anticipated revenue mix for H1 FY26 relative to the full year.

    H2 FY26 Revenue Mix
    57% to 58%
    H2 FY26

    Anticipated revenue mix for H2 FY26 relative to the full year.

    Industry KPIs

    4
    MetricValueDetails
    Wfe industry spend outlookgenerally flat
    Design wins socket pipelineStrong repeat order for SPM cleaning tools; Demo PO for evaluation tools for Supercritical CO2 Dry from 2 customers
    Inventory channel inventoryTotal inventory: $702.6 million; Raw materials: $349.7 million; Work in process: $61.4 million; Finished goods: $291.6 millionUSD
    End market segment revenue mixFoundry, Logic and Other: 59%; Memory: 27%; Packaging and Wafer Processing: 14%%

    Orderbook & backlog

    2
    Total Shipments$228 millionQ4 FY25

    down 13.5% YoY

    Tough compare versus strong FY24 (shipments increased 63% YoY). Some new product shipments pushed into FY26. Expected 2026 shipment growth rate to be higher than 2026 revenue growth rate.

    Total Shipments$854 millionFY25

    down 12.2% YoY

    Tough compare versus strong FY24 (shipments increased 63% YoY). Some new product shipments pushed into FY26. Expected 2026 shipment growth rate to be higher than 2026 revenue growth rate.

    Product announcements

    8
    ProductTypeDetails
    Single-wafer cleaning tools (Singapore)milestone
    Advanced packaging tools (Global customers)launch
    SPM Cleaning (New Nozzle Design)update
    Supercritical CO2 Dry Toollaunch
    Ultra ECP ap-p horizontal panel-level electroplating toollaunch
    High-throughput 300 WPH KrF track toolmilestone
    Ultra Lith BK systemlaunch
    PECVD platformroadmap

    Deals & partnerships

    5
    Asia-based foundry customerDelivery of multiple single-wafer cleaning tools

    First tool installation in Singapore.

    Leading global OSAT customerOrders for multiple wafer-level advanced packaging systems

    Part of multiple orders for advanced packaging tools from 3 global customers.

    Leading global semiconductor packaging manufacturerOrder for a panel-level advanced packaging vacuum cleaning tool

    Part of multiple orders for advanced packaging tools from 3 global customers.

    Leading North America-based technology customerOrders for multiple wafer-level packaging systems

    Part of multiple orders for advanced packaging tools from 3 global customers.

    Two customersDemo PO for evaluation tools for Supercritical CO2 Dry Tool

    Follows successful in-house demo. Expect additional tools to multiple customers later this year.

    Capital programs

    3
    Lingang Production and R&D Centerfirst building in volume production, second building provides capacity for future expansion
    Funding: proceeds from ACM Shanghai private offering

    Benefit: can support up to $3 billion in annual output

    Our Lingang production and R&D center is now our primary production center. The first building is in volume production and the second provides capacity for the future expansion. Together, the 2 facilities can support up to $3 billion in annual output.

    Lingang Mini-lineunderway
    Funding: proceeds from ACM Shanghai private offering
    Start: Q3 FY25

    Benefit: enhanced process development capability, support on-site customer evaluation in fab-like conditions, accelerate internal product validation, shorten R&D and qualification cycle

    During 2025, we made a good progress on our mini line and Lingang. We have enhanced our process development capability and now support the on-site customer evaluation in fab-like conditions. Our mini line, including ACM tools and tools from other players and metrology tools. We believe the mini line will accelerate our internal product validation, shorten R&D and qualification cycle and strengthen collaboration with key customers as we introduce next-generation platforms.

    Oregon Facilityaccelerating investment
    Funding: proceeds from ACM Shanghai share sale

    Benefit: allow customers to evaluate technology and test wafers locally, serve as initial base for production in the United States

    We are accelerating investment in Oregon with the operation expected beginning in the second half of 2026. This facility will allow customers to evaluate our technology and to test their wafer locally, and it will serve as our initial base for production in the United States.

    Risks & headwinds

    5
    Competitive Pressure in Chinarecent

    5 or more players

    Mitigation: Differentiated technology (many products almost best in the world), deep IP portfolio with strong protection in China, local customer demand for best technology to compete globally.

    Gross Margin PressureQ4 FY25, temporary

    41% in Q4 FY25 (below 42-48% target range), 8.8 percentage points YoY decline, 5 points from product mix, 4 points from inventory provisions.

    Mitigation: New product ramp, product design and supply chain initiatives to deliver best product at lower cost. Expect lower end of target range in H1 FY26 with anticipated lift in H2 FY26.

    Operating Margin CompressionFY25, expected to continue in FY26

    12.1% in Q4 FY25 (vs 23.6% in Q4 FY24), 15.9% in FY25 (vs 25.6% in FY24), R&D at 15.1% of sales in FY25 (guided 16-18% for FY26).

    Mitigation: Strategic investment to capture AI-driven opportunities and long-term growth, expecting operating leverage in out-years as top-line grows faster than OpEx.

    Shipment DeclineFY25

    $854 million in FY25 (down 12.2% YoY), $228 million in Q4 FY25 (down 13.5% YoY).

    Mitigation: Expect 2026 shipment growth rate to be higher than 2026 revenue growth rate, driven by new product ramp.

    Geographic Tariffsongoing

    null

    Mitigation: Started assembly tool in the U.S. (Oregon facility) to minimize tariff impact and dynamic changes.

    What to watch in Q1 FY26

    5

    Gross Margin Trajectory

    H2 FY26
    Current41.0% in Q4 FY25, lower end of 42-48% target for H1 FY26
    TargetAnticipated lift in H2 FY26

    Why it matters

    Indicates success of new product ramps and supply chain initiatives in restoring profitability to target range.

    For modeling purposes, we expect gross margins to be at the lower end of this longer-term target range for the first half of 2026 with an anticipated lift in the second half due in part to contribution from newer products, which generally have higher gross margins.

    Q&A highlights

    7

    Analyst asked for color on growth excluding new products and how existing product lines (cleans, plating) will contribute to growth, given the new products are expected to be bigger drivers.

    David Wang highlighted the significant progress in SPM cleaning (25-30% of cleaning market, high-margin, outperforming competitors), N2 bubbling wet etch for 3D NAND (critical for 300+ layers), and supercritical CO2 Dry (40% CO2 reduction, demo POs from 2 customers). He also emphasized the horizontal panel plating as a unique technology. These existing and new products are expected to drive substantial revenue growth in China and globally, with cleaning market share targeting 50-60% and copper plating 60%+.

    “So with all this cleaning I call it add together, we believe also expansion in the future. This will probably represent even China, over $1 billion market potential for us to get in.”

    asked by Charles Shi · answered by David Wang

    2 min read6 chapters

    Detailed Narrative

    01

    Global Expansion and Customer Wins

    ACM Research achieved its first tool installation in Singapore for an Asia-based foundry customer and secured multiple advanced packaging tool orders from three global customers, including a leading OSAT in Singapore and a North America-based technology customer. These milestones underscore the company's expanding global footprint and the increasing adoption of its differentiated technology outside Mainland China.

    02

    New Product Momentum

    The company is entering a new phase of product cycles with significant progress across SPM cleaning, furnace, supercritical CO2 dry, Track, PECVD, and panel-level plating. These new products are expected to contribute meaningfully to revenue in 2026 and beyond, with SPM cleaning achieving best-in-class performance (50 nanoparticle size count under 20) and supercritical CO2 dry tools reducing CO2 consumption by 40%.

    03

    Manufacturing and R&D Infrastructure

    The Lingang production and R&D center is now the primary production hub, with two facilities capable of supporting up to $3 billion in annual output. The Lingang mini-line has enhanced process development and accelerated R&D cycles. Additionally, ACM is accelerating investment in its Oregon facility, expected to begin operations in H2 2026, to support U.S. production and customer evaluations.

    04

    Capital Position and Flexibility

    ACM ended FY25 with $845.5 million in net cash, a $585.4 million increase from FY24, largely due to a $623 million private offering by ACM Shanghai. The sale of ACM Shanghai shares in February 2026 generated an additional $111 million. This strong capital position provides financial flexibility to fund global expansion and R&D investments, with management open to further share sales depending on market conditions and funding needs.

    05

    Competitive Dynamics in China

    Despite a flood of new local entrants in the China capital equipment industry, ACM believes it will compete and win due to its differentiated technology, deep IP portfolio, and local customers' demand for best-in-class solutions to compete globally. The company's cleaning portfolio is estimated to address 95% of applications, targeting 100% coverage in 2026.

    06

    Advanced Packaging and Panel-Level Solutions

    ACM is making significant strides in advanced packaging, including the delivery of its first Ultra ECP ap-p horizontal panel-level electroplating tool. This horizontal plating approach is preferred by customers for superior film uniformity and reduced cross-contamination, positioning ACM favorably as the industry shifts towards higher throughput and lower cost solutions for large die size and HBM AI chips.

    AI-generated summary of the company’s earnings call. Not investment advice.