For our GAAP results and reconciliation between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slide 13. Hello, everyone, and welcome to ACM Research Second Quarter Earnings Conference Call. We delivered another quarter of good results with strong sequential growth in both revenue and achievement, reflecting continued progress across our expanding product portfolio. We also continue to make progress with new platforms, including Track, PECVD, and panel-level packaging tools, which represent important long-term growth drivers.
I'm happy to announce that we have received repeat orders for the new Ultra C wb wet bench tool with our proprietary N2 bubbling technology. We believe this new technology is another example of ACM's leadership in cleaning tools that will be good for our customers and support our growth initiatives. Together, these developments reinforce ACM's differentiated leadership in wafer cleaning and give us confidence that we will continue to gain share in a critical segment. For the second quarter of 2025, we delivered revenue of $215 million, up 25% sequential and 6% year-over-year.
Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tools grew 1% and represents 74.2% of total revenue. Revenue from ECP, furnace, and other technologies grew 23% and represents 22% of total revenue. We are seeing a strong momentum for our ECP tool in advanced packaging, driven by demand for both front and back-end plating systems. We are also seeing growth interest in our new Ultra ECP APP panel-level horizontal plating system, as the industry shifts from wafer to panel-level packaging.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year 2025 revenue | FY2025 | Maintained $850M-$950M (implies ~15% year-over-year growth at the midpoint) |
| Gross margin | FY2025 | 42%-48% long-term target range reaffirmed (Q2 came in above range at 48.7%) |
| R&D expense | FY2025 | Raised to 14%-16% of sales on continued proprietary R&D investment |
| Sales & marketing / G&A | FY2025 | S&M ~8% of sales; G&A 5%-6% of sales |
| Effective tax rate | FY2025 | ~10% |
| Capital expenditures | FY2025 | About $70 million |
| Long-term revenue target | Long term | Raised to $4 billion ($2.5B China + $1.5B rest of world) |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +6% to $215.4M | Up 25% sequentially; growth led by single-wafer/Tahoe/semi-critical cleaning (74% of revenue) and ECP/furnace, though below the full-year growth rate on shipment timing. |
| Total shipments | +2% to $206M | Strong sequential rebound from $157M in Q1; positive year-over-year again after a very strong 2024 comparison. |
| Gross margin | +50 bps to 48.7% | Above the 42%-48% target range on product mix; management cautions margin varies with volume, mix and currency. |
| Operating income | -20% to $41.5M | Operating expenses up 38.8% on higher R&D and sales/marketing spend; operating margin fell to 19.3% from 25.6%. |
| Net income attributable to ACM Research | -2% to $36.8M | Diluted EPS $0.54 versus $0.55; income tax expense fell to $1.9M from $9.3M. |
| Cleaning (single-wafer, Tahoe, semi-critical) | +1% | 74.2% of revenue; steady traction for SPM and Tahoe as ACM gains cleaning share. |
| ECP, furnace and other | +23% | 22% of revenue; strong ECP momentum in advanced packaging and building furnace pipeline. |
| Advanced packaging (ex-ECP) | +20% | 6% of revenue; progress on Track and PECVD platforms and panel-level packaging. |
| Net cash | - | $205.8M at quarter end versus $271.0M at end of Q1, ahead of the ACM Shanghai capital raise. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Raised long-term targets and China WFE view | $3B total, $30B China WFE, 55% cleaning/plating share | $4B total ($2.5B China + $1.5B ROW), $40B China WFE assumption, 60% cleaning and plating share targets; furnace/PECVD/Track share targets held at 15%/15%/10%. | — |
| ACM Shanghai capital raise | - | CSRC approved a follow-on to raise up to ~$620 million (selling <10% of shares) to accelerate R&D and capacity as majority shareholder. | — |
| Differentiated technology and IP | - | Management stressed customers choose ACM for performance not price, citing N2 bubbling, high-temperature SPM nozzle design, Tahoe/SAPS/TEBO/Maxonic and horizontal panel plating, and strong IP protection in China with no observed local infringement. | — |
| Panel-level packaging | - | ACM positions its horizontal plating (vs vertical) as a unique enabler for large-area AI-chip panel packaging (310x310 and larger), with <5% uniformity targeting <3%, and won a 3D InCites technology award. | — |
| Global expansion (Korea, U.S., Taiwan) | - | Engaging key U.S. and Korean customers on cleaning and copper plating; building an Oregon R&D/demo lab and planning U.S. production by mid-2026 to serve global customers and mitigate tariffs. | — |
| Supply-chain and export controls | - | Made strategic component purchases and is qualifying multi-source and China-domestic suppliers to mitigate risk that U.S.-sourced parts are unavailable. | — |