ACM Research's sales jump. Why is cash flowing out?
The chip-equipment maker raised its sales outlook, but customer receivables and inventory are absorbing more cash. Two quarterly reports reveal the size of the gap.
ACM Research raised its 2026 sales forecast after a quarter in which revenue grew 37% and operating profit nearly doubled. Funding that growth is taking more cash.
Research by Ticker Byline shows that ACM's operations used $70.4 million in the third quarter, compared with $4.6 million a year earlier. The finding comes from comparing the company's nine-month cash-flow statement with its six-month report.
More money waiting on customers
The biggest uses included customer receivables, which are sales awaiting payment, and inventory. Inventory includes parts, unfinished machines and finished tools awaiting delivery or customer acceptance.
| Cash movement | 2025 | 2026 |
|---|---|---|
| Cash used in operations | $4.6 | $70.4 |
| Cash absorbed by receivables | $46.8 | $157.2 |
| Cash absorbed by inventory | $27.7 | $65.3 |
Money owed to suppliers and other unpaid expenses offset part of those cash needs. Separately, spending on property and equipment took another $25.2 million. Combined with operations, that spending used $95.6 million.
ACM sells machines used to clean and process semiconductor wafers and package chips. It can recognize sales of repeat tools when they are delivered. First tools sent to customers for evaluation can remain in inventory until the customer accepts or agrees to buy them. More shipments therefore bring different timetables for sales and cash collection.
A stock-market hit to reported profit
Net income attributable to ACM shareholders fell to $1.5 million from $35.9 million. A $39.1 million unrealized loss on listed investments, following a gain a year earlier, was a major reason. That noncash markdown is added back in the cash-flow statement.
The equipment business still generated $55.5 million of operating profit, up from $28.9 million. Revenue reached $367.7 million, above the $360 million to $365 million preliminary range published October 28. Gross margin slipped to 41.5% from 42%, which ACM attributed to product mix, currency effects and a higher inventory provision.
A bigger sales target
ACM now expects 2026 revenue of $1.24 billion to $1.28 billion, up from $1.125 billion to $1.175 billion. It is also expanding production: management expects the second building at its Lingang facility to come online in the fourth quarter, doubling manufacturing floor space.
The group held $884.9 million of cash and $370.3 million in fixed-term deposits at September 30. Earlier fundraising helped build that cushion, including a $148.4 million share sale in May. The next results will show whether customer collections catch up with the sales growth.
Our ACM Research company profile follows the cash position, product expansion and earlier forecasts.