10-Q · May 8, 2026
ACM Research reported a robust Q1 2026 with revenues of $231 million, exceeding estimates by 7.2%. EPS surged to $0.34, doubling expectations, driven by strong demand in ECP and advanced packaging technologies, despite…
Earnings analysis · 10-Q
ACMR earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
ACM Research delivered strong second-quarter operating growth, with revenue up 36.0% year over year to $292.919 million and operating margin expanding to 17.1% from 14.7%. Product growth was led by ECP, furnace and…
Read full summary
ACM Research delivered strong second-quarter operating growth, with revenue up 36.0% year over year to $292.919 million and operating margin expanding to 17.1% from 14.7%. Product growth was led by ECP, furnace and other technologies, while single-wafer cleaning declined; diluted EPS of $1.23 was substantially boosted by a $69.592 million unrealized investment gain. Liquidity improved through equity and subsidiary-share offerings, but free cash flow deteriorated to negative $127.905 million as capex reached $87.311 million and inventories rose to $783.119 million. The filing reports no material risk-factor changes, while China, export controls, inventory execution and earnings-quality risks remain material.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.23
What stood out
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Strong Revenue and Operating Profit Growth
Revenue was $292.919 million, up 36.0% from $215.372 million a year ago and approximately 26.8% from $231 million in Q1 2026. Income from operations increased to $49.743 million from $31.694 million year over year, lifting operating margin to 17.1% from 14.7%.
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EPS Surged, Led by Investment Gain
Diluted EPS was $1.23 versus $0.44 in the prior-year quarter and $0.24 in Q1 2026. However, the quarter included a $69.592 million unrealized gain on short-term investments, compared with $2.730 million a year ago.
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Diversification Drove Product Growth
ECP, front-end and packaging, furnace and other technologies revenue rose 167.7% to $128.546 million, while advanced packaging excluding ECP, services and spares rose 153.3% to $31.395 million. These gains more than offset a 14.2% decline in single-wafer cleaning, Tahoe and semi-critical cleaning revenue to $132.978 million.
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Liquidity Strengthened Materially
Cash, cash equivalents and restricted cash increased to $990.587 million from $765.962 million at December 31, 2025, while total cash, restricted cash and time deposits reached $1.356 billion versus $1.133 billion. The increase was supported by $332.598 million of financing cash flow, including $148.389 million from ACMR share issuance and $110.243 million of gross proceeds from ACM Shanghai share sales.
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Expansion Spending Kept FCF Negative
Operating cash flow was negative $35.896 million versus negative $39.619 million in the first half of 2025. Free cash flow declined to negative $127.905 million from negative $71.077 million, primarily because property and equipment purchases increased to $87.311 million from $31.458 million.
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Shipments Signal Continued Demand
Six-month shipments increased to $522.2 million from $363.1 million, including repeat-tool shipments of $266.2 million versus $167.9 million and first-tool shipments of $256.0 million versus $195.1 million.
What to watch
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Product Mix Pressures Gross Margin
Gross margin declined to 46.0% from 48.5% year over year, or 255 basis points, primarily because of product mix. Management expects gross margin of 42.0% to 48.0% for the foreseeable future, leaving potential for further volatility.
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Inventory Build and Cash Consumption
Inventory increased to $783.119 million from $702.631 million at December 31, 2025, and inventory provisions rose to $12.019 million from $5.625 million in the first six months. Inventory growth consumed $69.882 million of operating cash flow.
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Negative FCF Amid Heavy Capex
Free cash flow was negative $127.905 million in the first six months, compared with negative $71.077 million a year earlier, while capital expenditure rose to $87.311 million from $31.458 million. The higher investment pace increases execution and funding risk despite reported cash of $990.587 million.
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Earnings Quality and FX Volatility
The quarter's net income included a $69.592 million unrealized gain on short-term investments and $21.097 million of equity-method investment income, while the company recorded a $9.793 million net other expense, including a $10.9 million foreign-exchange loss. This makes EPS less representative of recurring operating performance.
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Higher Debt and Covenant Exposure
Total borrowings increased to $340.909 million from approximately $288.053 million at December 31, 2025. The Bank of China loan requires year-end interest-bearing debt not to exceed five times annual EBITDA and permits acceleration or credit enhancement if covenants are not met.
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China and Export-Control Exposure
The filing states that there were no material changes to the risk factors in the 2025 Annual Report. Existing exposure remains significant: ACM Research held 73.2% of ACM Shanghai, substantially all revenue was derived from mainland China, and ACM Shanghai and ACM Korea remain subject to BIS Entity List restrictions.
Management's outlook
No explicit numeric revenue or EPS guidance was provided in the filing. Management expects gross margin to be between 42.0% and 48.0% for the foreseeable future; sales and marketing, R&D, and G&A expenses are each expected to increase in absolute dollars.
Earlier filings 4
10-K · March 2, 2026
ACM Research grew revenue to $901.3M in 2025 from $782.1M in 2024, driven by core single-wafer cleaning tools ($626.0M, 69.5% of 2025 revenue) and expansion in ECP/furnace lines. Profitability and cash conversion…
10-Q · August 7, 2024
ACM Research reported a strong top‑line quarter: revenue of $202,480 (as presented in the filing) for the three months ended June 30, 2024, up from $144,577 in Q2 2023. Gross profit rose to $96,784 with a gross margin…
10-Q · May 8, 2024
ACM Research reported strong top- and bottom-line year-over-year growth for the quarter ended March 31, 2024: revenue rose to $152,191,000 and diluted EPS increased to $0.26. Gross margin expanded to 52.0% and operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.