For our GAAP results and reconciliations 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 slides 14 and 15. Revenue grew 9% in the fourth quarter and 15% for the full year. Investment in AI and data center infrastructure is reshaping the global semiconductor demand, shifting capital toward advanced logic, memory, and advanced packaging. Second, we announced that we are receiving multiple orders for our advanced packaging tool from three global customers.

This include the orders for multiple wafer-level advanced packaging system from a leading global OSAT customer based in Singapore, with the delivers scheduled for the first quarter of 2026. For the fourth quarter of 2025, we deliver $244 million in revenue, up 9%. For the year 2025, we deliver $901 million in revenue, up 15%. Top-line growth of 15% was better than growth for the overall China WFE market, which third party estimate as generally flat for 2025.

We consider this good result, especially since our 2025 revenue include very little contribution from our new products. Importantly, we expect the 2026 shipment growth to be higher than our 2026 revenue growth. Growth margin was 41% for the fourth quarter and 44.5% for the full year. Q4 growth margin was slightly below our long-term target range of 42%-48%.

What went well
  • Full-year 2025 revenue grew 15% to $901.3 million (Q4 revenue $244 million, up 9%), in line with the original guidance set a year earlier and ahead of overall China WFE, which third parties estimate was roughly flat for the year.
  • Full-year net income attributable to ACM Research was $110.2 million ($1.61 diluted EPS), with the year including very little contribution from new products - leaving a strong 2026 product cycle ahead.
  • The balance sheet is exceptionally strong: net cash of $845.5 million at year-end (versus $259.1 million a year earlier), including $623 million net raised in ACM Shanghai's 2025 offering.
  • ACM announced multiple marquee global wins outside mainland China - a first single-wafer cleaning install at a Singapore foundry, multiple wafer-level advanced-packaging orders from a Singapore-based global OSAT, a panel-level vacuum-cleaning tool for a global packaging manufacturer outside China, and wafer-level packaging systems for a North American technology customer.
  • Segment mix improved on new products: full-year ECP/front-end/furnace/other grew 32.1% and advanced packaging (ex-ECP) grew 45.3%; ACM now estimates its cleaning portfolio addresses about 95% of application steps, targeting 100% in 2026.
  • Differentiated technology continued to advance - proprietary N2 bubbling wet-etch for advanced 3D NAND (300+ layers), high-temperature SPM and the industry-first horizontal panel-level plating platform.
What went wrong
  • Gross margin fell to 41.0% in Q4 (below the 42%-48% target) and 44.5% for the full year (from 50.4%), hurt by product mix and margin pressure on a few semi-critical products (~5 points) plus higher inventory provisions (~4 points).
  • Q4 operating income dropped to $29.5 million (12.1% margin versus 23.6%) and full-year operating margin fell to 15.9% from 25.6% as full-year operating expenses rose 34% on heavy R&D investment.
  • Full-year net income fell to $110.2 million from $152.2 million and diluted EPS to $1.61 from $2.26; Q4 net income was $17.3 million ($0.25 EPS) versus $37.7 million ($0.56).
  • Full-year shipments declined 12.2% to $854 million (Q4 down 13.5% to $228 million) against a very strong 2024 (shipments had risen 63%), reflecting the tough compare and some new-product shipments pushed into 2026.
  • Management guided 2026 operating margin to remain in the mid-teens (similar to 2025), with gross margin at the lower end of the target range in the first half, as ACM keeps spending into its $4 billion market opportunity.

Guidance Changes

MetricPeriodCurrent guidance
2026 gross marginFY2026Lower end of 42%-48% in the first half, with an anticipated lift in the second half as higher-margin new products contribute
2026 operating expensesFY2026R&D 16%-18% of sales; S&M 7%-8%; G&A ~6%
2026 operating marginFY2026Expected in the mid-teens, similar to 2025, as ACM invests into the $4 billion opportunity
2026 effective tax rateFY20268%-10%
2026 revenue linearityFY2026First half ~42%-43% of revenue, second half ~57%-58%; Q1 about 18%-20% of the full-year mix
2026 shipmentsFY2026Shipment growth expected to outpace revenue growth
Cleaning portfolio coverage2026Targeting 100% coverage in 2026

Performance Breakdown

MetricYoYNote
Q4 revenue +9.4% to $244M Growth across ECP/front-end and advanced packaging; full-year revenue $901.3M, up 15.2%.
Full-year revenue +15.2% to $901.3M Better than roughly flat China WFE; included very little new-product contribution.
Q4 gross margin -8.8 pts to 41.0% Product mix and margin pressure on a few semi-critical products (~5 pts) plus higher inventory provisions (~4 pts); full-year 44.5% versus 50.4%.
Q4 operating income -44% to $29.5M Operating margin 12.1% versus 23.6%; full-year operating margin 15.9% versus 25.6% on 34% opex growth.
Full-year net income attributable to ACM Research -28% to $110.2M Diluted EPS $1.61 versus $2.26; Q4 net income $17.3M ($0.25) versus $37.7M ($0.56).
Full-year shipments -12.2% to $854M Tough compare against 2024 (+63%) plus new-product shipments pushed into 2026; Q4 shipments $228M, down 13.5%.
Cleaning (single-wafer, Tahoe, semi-critical) +8.1% full year $626M, ~69% of revenue; Q4 $159.9M, up 3%; little contribution yet from newer cleaning lines.
ECP, front-end packaging, furnace and other +32.1% full year Q4 $64.1M, up 23.9%; strong ECP demand.
Advanced packaging (ex-ECP) +45.3% full year Q4 $20.5M, up 23.8%; broadening wafer-level and panel-level packaging.
Net cash - $845.5M at year-end versus $259.1M, a $585.4M increase including $623M net from the ACM Shanghai offering.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
New-product cycle in 2026Minimal new-product revenue in 2025Strong 2026 cycle expected from single-wafer SPM cleaning and furnace, with supercritical CO2 dry, panel-level plating, Track and PECVD contributing more in 2027 and beyond.
Gross-margin pressureDipped in Q3Q4 gross margin 41.0% on a few low-margin semi-critical products under competitive pressure and higher inventory provisions; management calls it temporary, expects a second-half-2026 lift from higher-margin new products, and holds the 42%-48% target.
China competitive dynamicsDifferentiated, IP-protected strategyManagement flagged a flood of new local entrants (often 5+ chasing a single point product with similar designs) but argued ACM wins on best-in-world differentiated technology, a deep China IP portfolio, and local customers' demand for the best technology to compete globally.
Global expansion outside ChinaEarly global engagementAnnounced first Singapore foundry install, Singapore OSAT wafer-level packaging orders, a panel-level vacuum-cleaning tool for a global packaging manufacturer, and North American wafer-level packaging orders; building U.S. (Oregon) assembly to mitigate tariffs.
Disclosure change and customer mixNamed-customer disclosureStarting 2025 ACM discloses revenue by customer type annually - foundry/logic/other 59%, memory 27%, packaging/wafer processing 14% - with four 10%+ customers again totaling 52.2% of sales (top four at 16.9%, 13.5%, 11.6%, 10.2%).
Capital deploymentACM Shanghai raiseProceeds fund R&D, a second Lingang building (toward ~$3 billion annual capacity) and the Lingang mini-line, plus global sales/marketing and U.S. assembly; ACM has flexibility to raise further capital in the U.S. or via additional ACM Shanghai stock sales.

Q&A Summary

Charles Shi (Needham) asked what growth looks like for existing product lines excluding new products.
David Wang pointed to major progress in high-temperature SPM (25%-30% of the cleaning market, high margin) and proprietary N2 bubbling wet-etch for 3D NAND (300+ layers), plus supercritical CO2 dry (40% smaller chamber, ~40% consumable cost reduction) and horizontal panel plating - together a potential ~$1 billion China opportunity - driving growth on top of existing cleaning and copper plating even with flat China WFE.
Charles Shi (Needham) asked why operating margin has been under pressure for almost two years and how ACM will expand it.
David Wang and Mark McKechnie said gross margin should recover as higher-margin new products ramp and inventory provisions decline, but R&D will stay elevated (~16%+) to capture AI-driven demand for not-yet-invented technology; 2026 operating margin will be mid-teens like 2025, with leverage expected in later years as revenue outgrows opex.
Edison Lee (Jefferies) asked about the low Q4 margin/slow revenue and the use of the ~$111 million from selling down ACM Shanghai.
McKechnie attributed Q4 to a couple of low-margin semi-critical products and a larger back-half inventory provision (expected smaller and more balanced in 2026), with 2026 linearity of ~42%-43% first half and ~57%-58% second half; David Wang said proceeds fund China R&D and manufacturing (a second Lingang building toward ~$3 billion capacity, plus the mini-line) and global sales/marketing and U.S. assembly to mitigate tariffs.
Edison Lee (Jefferies) asked about the pricing pressure behind the lower Q4 margin.
McKechnie said a couple of semi-critical products had particularly low margins in Q3 and Q4 amid China competition, plus a bigger back-half provision; the 2026 provision should be smaller and more balanced through the year.
Jun Hong (JPMorgan) asked about the potential size of the Singapore single-wafer cleaning win and expansion in Asia.
David Wang said a few tools are in installation and will qualify and go to production this year, opening the door to more cleaning and copper-plating tools and building confidence with other Asian players, with additional opportunities in Korea, Taiwan and the U.S.
Jun Hong (JPMorgan) asked about panel-level packaging progress with Taiwanese players and order timing.
David Wang said ACM is engaging key customers on 515x510 and 310x310 panels and will keynote a Taiwan panel conference; since plating is the production bottleneck and ACM is the only supplier of horizontal panel plating, he expects additional POs this year for vacuum cleaning and horizontal copper plating, including in Korea and Singapore.
Jun Hong (JPMorgan) asked whether ACM will sell more ACM Shanghai stock in the future.
David Wang said ACM sold about 1.3% for roughly $111 million, views the Shanghai stock as still undervalued, and has flexibility to raise capital either in the U.S. or via additional ACM Shanghai sales depending on cash needs, timing and price.

More on ACM Research, Inc.

Reported 2026-02-26 · figures from the ACM Research, Inc. Q4 2025 earnings call.

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