ACM Research, Inc.

ACM Research develops and sells equipment used to clean semiconductor wafers, add materials during chip production and package chips. The Delaware parent trades on Nasdaq as ACMR. It conducts most manufacturing, development and service work through ACM Research (Shanghai), its separately listed operating subsidiary, and related businesses.

ACM owned 72.8% of ACM Shanghai at September 30, 2026, down from 73.2% in June and 74.6% at the end of 2025. Substantially all reported revenue came from customers in mainland China, while the company is developing customer relationships elsewhere in Asia, North America and Europe.

Sales growth, with different earnings signals

Third quarter ended September 30. Dollars in millions, except per-share amounts and margins. Cash flow covers the quarter alone.

Measure	2025	2026
Revenue	$269.2	$367.7
Gross margin	42.0%	41.5%
Operating profit	$28.9	$55.5
Net income to ACM shareholders	$35.9	$1.5
Diluted EPS	$0.52	$0.02
Adjusted net income	$28.4	$40.5
Adjusted diluted EPS	$0.41	$0.55
Operating cash flow	-$4.6	-$70.4

Second quarter ended June 30. Dollars in millions, except per-share amounts and margins.

Measure	2025	2026
Revenue	$215.4	$292.9
Gross margin	48.5%	46.0%
Operating profit	$31.7	$49.7
Net income to ACM shareholders	$29.8	$89.0
Diluted EPS	$0.44	$1.23
Adjusted net income	$37.3	$44.5
Adjusted diluted EPS	$0.55	$0.61

Operating profit, net income and diluted EPS use U.S. accounting rules. Adjusted net income removes stock-based compensation and unrealized changes in short-term listed investments, including the associated effect on minority shareholders.

Listed investments produced a $39.1 million unrealized loss in the third quarter, compared with a $69.6 million gain in the second quarter. This helps explain the sharp swing in reported net income despite higher operating profit. The third quarter also included a $7.1 million loss from equity-method investments, which remains in adjusted net income.

Growth broadened across the product range. Third-quarter cleaning-equipment revenue rose to $210.7 million from $181.6 million a year earlier. Electroplating, furnace and other technologies reached $109.5 million from $59.9 million, while advanced packaging, services and spares reached $47.5 million from $27.7 million. The latter category excludes electroplating equipment.

Cash collection and financing

Research by Ticker Byline shows that operations used $70.4 million in the third quarter, versus $4.6 million a year earlier, based on a comparison of the nine-month and six-month reports. Receivables absorbed $157.2 million and inventory $65.3 million during the latest quarter, partly offset by supplier credit and other accrued expenses. Our analysis of sales growth and cash collection explains the quarterly change.

For the first nine months of 2026, operations used $106.3 million and property and equipment spending was $112.5 million. Net receivables rose to $704.7 million at September 30 from $538.4 million in June; inventory rose to $851.2 million from $783.1 million.

September cash was $884.9 million, versus $969.2 million in June. Separate restricted cash was $21.5 million, and fixed-term deposits were $370.3 million. Those deposits mature between November 2026 and June 2027 and cannot be withdrawn early. The balances span the group, including subsidiaries with outside shareholders.

Total borrowings were $343.1 million, compared with $340.9 million in June. Operating lease liabilities were a separate $7.6 million. Short-term listed investments of $66.9 million and long-term investments of $81.4 million are additional portfolio assets.

Earlier in 2026, ACM raised $148.4 million after issuance costs by selling about 2.9 million new parent-company shares. It also sold some of its existing ACM Shanghai shares for $110.2 million before taxes. Employee option exercises raised another $51.4 million across the group during the first nine months.

Earlier expectations and expansion plans

In August, ACM raised its full-year revenue range to $1.125 billion to $1.175 billion. The November outlook raised it again, to $1.24 billion to $1.28 billion. Third-quarter revenue of $367.7 million exceeded the $360 million to $365 million preliminary estimate published October 28; shipments of $343.5 million also exceeded the preliminary $335 million to $340 million range.

Shipments include first tools awaiting customer acceptance, so their value differs from recognized revenue. At September 29, ACM Shanghai reported about $2.5 billion of backlog, including both unshipped orders and tools shipped but not yet recognized as revenue under Chinese accounting rules.

Management expects the second Lingang building to come online in the fourth quarter of 2026, doubling manufacturing floor space. ACM shipped its first 310-by-310-millimeter horizontal panel-level electroplating production tool in October. A separate larger production-tool delivery remains scheduled for 2027.

ACM Shanghai's proposed Hong Kong listing has board and shareholder approval but still requires regulatory clearance and suitable market conditions. The plan allows new H shares representing up to 7% of the subsidiary's post-offering share capital before any overallotment. Selling new shares to outside investors would reduce the parent's stake.

ACM Shanghai and ACM Korea have been on the U.S. export-control Entity List since December 2024, restricting access to controlled U.S. goods and technology without authorization. New-tool acceptance, cash collection and production expansion remain concrete developments to check in the next results.