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 on slide 13. Revenue grew 32% year-over-year to a new quarterly record, reflecting broader demand across our innovation product portfolio. In September, our ACM Shanghai subsidiary completed its second capital raising on stock market raising net proceed approximately $623 million. ACM has the technology, the customers, the capacity and global reach and now additional capital to pursue our mission to become a key supplier to major global semiconductor producers.
We believe this is the right combination to grow our business and maintain our gross margin targets. For the third quarter of 2025 we delivered revenue of $269 million, up 32% year-over-year. Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tool grew 13% and represent 68% of total revenue. We expect this new platform, especially SPM, to contribute more revenue in 2026 and beyond.
We remain confident in our target for 60% market share in China market and we expect higher growth rates for cleaning next year and beyond. Revenue for ECP, furnace, and other technology grew 73% and represent 22% of total revenue. We had a record revenue quarter for ECP Front End tool, which represent about 60% of the mix for this group. This group, including our MAPP ECP3D and ECP G3 production, all of which grew from last year.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year 2025 revenue | FY2025 | Narrowed to $875M-$925M (implies ~15% year-over-year growth at the midpoint) |
| Gross margin | Ongoing | 42%-48% target model reaffirmed despite the Q3 dip to 42.1% |
| Operating expenses | FY2025 | R&D 14%-16% of sales; S&M ~8%; G&A ~6% |
| Effective tax rate | FY2025 | Lowered to 7%-8% |
| Capital expenditures | FY2025 | About $60M-$70M |
| New-product revenue | 2026 | SPM, furnace, panel-level packaging and PECVD expected to begin contributing more meaningfully in 2026 |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +32% to $269.2M | Record quarter on broad demand; led by ECP/front-end and advanced packaging, with traditional cleaning up 13%. |
| Gross margin | -950 bps to 42.1% | ~200 bps from a mix of smaller low-margin front-end tools and ~300 bps from higher inventory provisions/adjustments; low end of the target model. |
| Operating income | -35% to $36.5M | Operating expenses up 56.3%; operating margin fell to 13.6% from 27.5%. |
| Net income attributable to ACM Research | -42% to $24.8M | Diluted EPS $0.36 versus $0.63; lower gross margin and higher opex, partly offset by a lower tax rate. |
| Shipments | +0.7% to $263.1M | Up 28% sequentially but flat year over year against a strong 2024; some deliveries pushed to Q1 2026 and parts shortages. |
| Cleaning (single-wafer, Tahoe, semi-critical) | +13% | 68% of revenue; growth mainly from traditional cleaning, with newer lines still small. |
| ECP, furnace and other | +73% | 22% of revenue; record ECP front-end quarter (~60% of the group mix), furnace still small. |
| Advanced packaging (ex-ECP) | +231% | 10% of revenue; small advanced-packaging tools (~$0.5-1.0M each) shipped to several customers, including two new U.S. customers. |
| Net cash | - | $811M (~$12/share) versus $205.8M in Q2, boosted by the ~$623M net ACM Shanghai capital raise. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| ACM Shanghai second capital raise | CSRC approval in Q2 | Completed, raising ~$623 million net; proceeds to fund the Lingang mini-line, global capacity and accelerated R&D across cleaning, plating, furnace, PECVD, Track and panel-level packaging. | — |
| Gross-margin pressure | Above target range in Q2 | Fell to 42.1% on low-margin front-end tool mix and higher inventory provisions (mostly raw-material aging plus some finished-goods write-downs); management calls it temporary and holds the 42%-48% target. | — |
| Shipment inflection | Growth expected | Q4 shipments to be down sequentially and full-year shipments down year over year for the first time in years, on a tough 2024 compare, Q1-2026 customer push-outs and parts shortages; new products expected to drive a 2026 rebound. | — |
| Panel-level packaging | Award-winning horizontal plating | First panel-level plating tool to ship in Q4; strong global engagement (Taiwan, U.S., China) as horizontal plating enables large-area AI-chip packaging (310x310 and 515x510). | — |
| Innovation vs. price in China | Differentiated strategy | Management argued Chinese customers still demand best performance (e.g., 19 nm SPM particle control) and that ACM's strong China/global IP prevents copying, supporting share gains and margins despite many new local entrants. | — |
| SK Hynix and global customers | - | Hynix is a long-run customer engaged across multiple cleaning, plating and new products; ACM's Korea and Shanghai teams co-develop tools, and two new U.S. advanced-packaging customers received tools in Q3. | — |