Company Overview - ACM Research is a leading provider of advanced wafer processing equipment for the semiconductor industry, specializing in single-wafer cleaning and plating technologies [4][8] - The company leverages proprietary innovations such as space alternated phase shift and timely energized bubble oscillation to meet the needs of cutting-edge chip fabrication [4][8] - As of November 14, 2025, ACM Research's market capitalization was $2.12 billion, with a revenue of $880.35 million and a net income of $117.11 million for the trailing twelve months (TTM) [3] Recent Developments - Seldon Capital LP disclosed a new position in ACM Research, adding 193,242 shares valued at approximately $7.56 million as of September 30, 2025 [1] - This new position represents 2.66% of Seldon Capital's total assets under management (AUM) [2] - ACM Research shares were priced at $31.51 on November 14, 2025, with a one-year total return of 68.2%, outperforming the S&P 500 by 57 percentage points [2] Financial Performance - In Q3 2025, ACM Research reported a 32% year-over-year increase in sales, reaching $269.2 million [9] - The company expects full-year revenue to be between $875 million and $925 million, indicating significant growth compared to 2024's revenue of $782.1 million [9] - ACM Research's diluted earnings per share (EPS) increased to $1.26 in the first three quarters of 2025, up from $1.07 in 2024 [10] Market Position - ACM Research positions itself as a key enabler of next-generation semiconductor production, focusing on enhancing manufacturing yields [5] - The company sells proprietary equipment and technology solutions to integrated circuit manufacturers through a direct sales force and third-party representatives [8]

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Core Insights - ACM Research, Inc. (NASDAQ:ACMR) is highlighted as a significant stock in the semiconductor equipment sector, particularly in the context of AI chip packaging opportunities [1][4]. Company Overview - ACM Research, Inc. is a mid-sized firm based in California that specializes in manufacturing and selling packaging equipment for chip manufacturers [2]. - The company's shares have experienced a year-to-date increase of 98.6%, although they have seen a decline of 20.5% since the close on Tuesday [2]. Financial Performance - For the third quarter, ACM Research reported revenues of $269.6 million and earnings per share of $0.36 [3]. - The company adjusted its full-year revenue guidance, lowering the high end from $950 million to $925 million while increasing the low end from $850 million to $875 million [3]. - Analysts had anticipated revenues of $252 million and earnings per share of $0.55, with a midpoint guidance of $916 million prior to the earnings report [3]. Industry Context - The company's packaging tools are positioned to address bottlenecks in the AI chip manufacturing process, particularly in panel packaging technology [4]. - Management emphasized the importance of innovative plating technology in enhancing the efficiency of AI chip packaging, noting their unique horizontal plating approach [4].

Revenue and Profitability - Revenue for Q3 2025 reached $269.16 million, a 32% increase from $203.98 million in Q3 2024[22] - Gross profit for Q3 2025 was $113.15 million, compared to $104.83 million in Q3 2024, reflecting a gross margin improvement[22] - Net income attributable to ACM Research, Inc. for Q3 2025 was $35.89 million, up from $30.90 million in Q3 2024, representing a 16% increase[22] - The company reported a comprehensive income of $58.69 million for Q3 2025, compared to $55.76 million in Q3 2024[22] - Basic net income per share for Q3 2025 was $0.56, up from $0.49 in Q3 2024, a 14% increase[22] - For the nine months ended September 30, 2025, net income available to common stockholders was $86,029 thousand, compared to $72,547 thousand in 2024, marking a rise of 18.5%[66] - For the three months ended September 30, 2025, net income was $46,398 thousand, up from $38,672 thousand in 2024, representing a growth of 20.6%[66] - The net income for the nine months ended September 30, 2025, was $86,029, compared to $30,904 for the same period in 2024, representing an increase of 178.5%[26] Assets and Liabilities - Total current assets increased to $2.36 billion as of September 30, 2025, compared to $1.48 billion at the end of 2024, marking a 59% growth[19] - Total assets reached $2.77 billion as of September 30, 2025, up from $1.86 billion at the end of 2024, indicating a 49% increase[19] - Total liabilities increased to $885.43 million as of September 30, 2025, compared to $759.82 million at the end of 2024, a rise of 16%[19] - As of September 30, 2025, the total equity of ACM Research, Inc. reached $1,885,214, an increase from $1,069,083 as of September 30, 2024, reflecting a growth of approximately 76.2%[27] - Cash and cash equivalents increased to $1.06 billion as of September 30, 2025, compared to $407.45 million at the end of 2024, a growth of 160%[19] - The total paid-in capital increased to $1,105,129 as of September 30, 2025, up from $669,540 a year earlier, marking a growth of approximately 65.5%[27] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of $44.244 million for the nine months ended September 30, 2025, compared to a net cash inflow of $63.855 million in 2024[30] - The company reported a net cash outflow from investing activities of $42.784 million for the nine months ended September 30, 2025, compared to a net cash inflow of $8.572 million in 2024[31] - Cash and cash equivalents at the end of the period reached $1.067 billion, significantly up from $335.254 million at the end of 2024[31] - The company raised $622.964 million from the issuance of shares by ACM Shanghai during the financing activities[31] Stock and Equity - The company issued 390,170 shares by ACM Shanghai, contributing an additional $622,964 to the equity[27] - The total number of Class A common stock shares increased to 59,854,640 as of September 30, 2025, from 57,524,519 a year earlier[27] - ACM Research's equity interest in ACM Shanghai decreased from 81.1% to 74.6% following a private offering of 38.6 million ordinary shares in September 2025[33] Expenses - Operating expenses for Q3 2025 were $84.23 million, compared to $60.65 million in Q3 2024, reflecting a 39% increase[22] - Stock-based compensation for the nine months ended September 30, 2025, amounted to $27,149, compared to $11,881 for the same period in 2024, indicating an increase of 128.5%[26] - Research and development expenses for the nine months ended September 30, 2025, were $7,270, down 39.5% from $12,082 in 2024[122] - Total stock-based compensation expense for the three months ended September 30, 2025, was $7,562, a decrease of 36.5% compared to $11,881 for the same period in 2024[122] Customer Concentration - Revenue concentration showed that two customers accounted for 38.9% of revenue for the three months ended September 30, 2025, compared to four customers accounting for 62.3% in 2024[71] - As of September 30, 2025, five customers represented 66.8% of accounts receivable, up from four customers accounting for 57.1% as of December 31, 2024[72] Tax and Compliance - The effective income tax expense for the nine months ended September 30, 2025, was $6,733, a decrease of 62.0% compared to $17,712 in 2024[130] - The Company had total unrecognized tax benefits of $16,774 as of September 30, 2025, with no expected reversal in the next 12 months[127] - Interest and penalties related to uncertain tax provisions recognized for the nine months ended September 30, 2025, amounted to $3,379, compared to $677 in 2024[127] Long-term Investments and Loans - ACM Shanghai acquired 20% equity interests in Ninebell for a total consideration of $16,737, increasing its ownership to 36.2% after the transaction[101] - ACM Research entered into a long-term loan facility of $281,400 from China CITIC Bank, with principal repayments starting in January 2025 and final maturity in January 2028[94] - As of September 30, 2025, the total carrying amount of long-term loans was $241,993, compared to $149,997 as of December 31, 2024, reflecting a significant increase[99] Inventory and Receivables - Accounts receivable increased to $504,824 as of September 30, 2025, compared to $405,392 at December 31, 2024, reflecting a 24.5% growth[79] - Total inventory, net, rose to $676,409 as of September 30, 2025, compared to $597,984 at December 31, 2024, marking a 13.1% increase[81] - The allowance for credit losses increased to $27,828 at September 30, 2025, from $18,347 at December 31, 2024, reflecting a 51.5% rise[80] Other Financial Metrics - The total fair value of cash equivalents and short-term investments as of September 30, 2025, was $139,636 thousand, compared to $70,340 thousand as of December 31, 2024, reflecting a significant increase[63] - The diluted net income per share for the nine months ended September 30, 2025, was $1.26, compared to $1.07 for the same period in 2024, an increase of 17.76%[66] - The market value of short-term investments listed in the Shanghai Stock Exchange increased to $39,976 as of September 30, 2025, from $19,373 as of December 31, 2024[107]

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $269 million, representing a 32% year-over-year growth and setting a new quarterly record [10][19] - Gross margin was reported at 42.1%, which is at the low end of the target range due to product mix and inventory provisions [10][20] - Net cash increased to $811 million from $206 million in the previous quarter [11][22] Business Line Data and Key Metrics Changes - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tools grew 13%, accounting for 68% of total revenue [11] - Revenue for ECP, furnace, and other technologies surged 73%, representing 22% of total revenue, with ECP Front End tools contributing significantly [12] - Advanced packaging revenue increased by 231%, making up 10% of total revenue, driven by strong customer engagement [13] Market Data and Key Metrics Changes - The global wafer fab equipment (WFE) demand is being driven by investments in AI and data center infrastructure, particularly in advanced logic and memory [15] - The company has increased its long-term revenue target to $4 billion, with $2.5 billion expected from the China market and $1.5 billion from global markets [15] Company Strategy and Development Direction - The company aims to build a multi-product portfolio of world-class tools to support the next generation of chipmaking [5] - Plans include expanding global production capacity and accelerating R&D investment to enhance existing tools and develop new product categories [9] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are customer delays and parts shortages, they expect shipments to continue growing next year [25][36] - The company remains confident in its ability to gain market share in China and globally, driven by innovation and technology superiority [45] Other Important Information - ACM Shanghai completed a capital raising of approximately $623 million, which will be used to expand production capacity and R&D efforts [8][9] - The new Lingang Production and R&D center is fully operational and can support up to $3 billion in annual output [16] Q&A Session Summary Question: Can you talk about the shipments and the growth? - Management indicated that some customers are requesting shipment delays and that parts shortages are affecting order completion, but they expect continued growth in shipments next year [25][36] Question: How long do you expect parts shortages to persist? - Management mentioned that they are working on qualifying new suppliers for certain parts, which should alleviate shortages in the near term [26] Question: Can you quantify the expectation for Q4 shipment and full year basis? - Management expects Q4 shipments to be down from Q3, and the full year may see a decline compared to last year, but they anticipate a recovery in the first half of next year [34][36] Question: What is the reason for the inventory write-down? - The write-down was primarily due to the aging of raw materials and some finished goods at internal facilities [39][41] Question: Do you think you may be missing out on near-term opportunities due to your focus on innovation? - Management believes that customers still desire high-performance tools and that their innovations will help gain market share despite some domestic competition [45]

Financial Performance - ACM Research announced preliminary unaudited revenue for Q3 2025, details to be provided in the press release[4] Company Information - The company is listed on The Nasdaq Stock Market under the trading symbol ACMR[2] - The report was signed by Mark McKechnie, Chief Financial Officer and Treasurer, on October 29, 2025[11]

Q3 2025 Financial Performance - Revenue reached $269.2 million, a 32.0% year-over-year increase[9] - Total shipments amounted to $263.1 million, up 1% year-over-year[9] - GAAP gross margin was 42.0%, compared to 51.4% in Q3 2024[9] - Non-GAAP gross margin was 42.1%, versus 51.6% in Q3 2024[9] - GAAP operating income was $28.9 million, down 34.5% year-over-year, representing 10.7% of revenue[9] - Non-GAAP operating income was $36.5 million, a 34.9% decrease year-over-year, accounting for 13.6% of revenue[9] - Diluted GAAP earnings per share were $0.52, compared to $0.45 in Q3 2024[9] - Diluted non-GAAP earnings per share were $0.36, down from $0.63 in Q3 2024[9] Revenue Breakdown by Category - Cleaning revenue was $181.6 million, up 12.8%, representing 67% of total revenue[12] - ECP, Furnace & Other revenue was $59.9 million, a 73.0% increase, accounting for 22% of total revenue[12] - Advanced Packaging & Other revenue was $27.7 million, up 230.6%, making up 10% of total revenue[12] Future Outlook and Targets - The company updated its 2025 revenue guidance range to $875 million - $925 million[32] - The long-term revenue target is greater than $4 billion[16] - Estimated 2025 Serviceable Available Market (SAM) of $20 billion is addressed by the company's current product portfolio[14]

Core Viewpoint - ACM Research, Inc. reported a strong financial performance for Q3 2025, with a revenue growth of 32% year-over-year, driven by innovations in semiconductor processing solutions and increased demand from AI and global datacenter investments [2][3]. Financial Performance - Revenue for Q3 2025 was $269.2 million, up from $204.0 million in Q3 2024, reflecting a 32% increase [6][19]. - Gross margin decreased to 42.0% from 51.4% year-over-year, with non-GAAP gross margin at 42.1% compared to 51.6% [6][19]. - Operating income was $28.9 million, down from $44.2 million in the same quarter last year, resulting in an operating margin of 10.7% compared to 21.7% [6][19]. - Net income attributable to ACM Research, Inc. was $35.9 million, an increase from $30.9 million in Q3 2024, with diluted EPS rising to $0.52 from $0.45 [6][19]. Recent Developments - ACM Shanghai raised approximately $623 million in net proceeds from a private offering, which will be used to accelerate the development of next-generation tools and expand production capacity [2][5]. - The company is set to deliver its first system utilizing proprietary horizontal plating technology for panel-level packaging in Q4 2025 [2]. - ACM launched its first Ultra Lith KrF track system for front-end semiconductor manufacturing, expanding its lithography product line [4]. Outlook - ACM has narrowed its revenue guidance for fiscal year 2025 to a range of $875 million to $925 million, reflecting ongoing assessments of international trade policies and customer spending scenarios [3].

Core Insights - ACM Research (ACMR) is currently undervalued in the market despite its recent strong performance, indicating significant potential for growth that is not yet reflected in its stock price [1] Company Analysis - The company has over 15 years of market experience and is focused on delivering a clear and disciplined analysis of its operations, emphasizing the importance of understanding the underlying business rather than following market narratives [1]