Executive Summary

Q3 2025 revenue was $269.16M, up 32% year-over-year and above Wall Street consensus of $251.7M; gross margin fell to 42.0% due to product mix and inventory provisions; non-GAAP diluted EPS was $0.36 versus consensus $0.53, while GAAP diluted EPS was $0.52 . Revenue estimates from S&P Global; EPS estimates from S&P Global.
Management narrowed FY25 revenue guidance to $875M–$925M (prior $850M–$950M), citing trade policy, customer spending scenarios, supply chain constraints, and timing of first-tool acceptances; effective tax rate guide lowered to ~7–8% (from ~10–15% earlier in the year) .
Total shipments were $263.1M (+0.7% YoY); CFO flagged expected Q4 shipments down QoQ and full-year shipments down YoY on customer pushouts and parts shortages; net cash ended at ~$811M, with liquidity (cash, restricted cash, and time deposits) at ~$1.10B .
Strategic catalysts: first Ultra Lith KrF Track shipment, high-temp SPM performance (single-digit particle counts at 19nm), horizontal panel-level plating debut planned for Q4; long-term revenue target reaffirmed at $4B ($2.5B China/$1.5B global) .

What Went Well and What Went Wrong

What Went Well

Record revenue and strong multi-product traction: $269.2M, +32% YoY, with growth across single-wafer cleaning/Tahoe/semi-critical, ECP (front-end and packaging), furnace/other, and advanced packaging (ex-ECP), services & spares .
Technology milestones: “We are seeing broad interest in our proprietary horizontal plating technology for panel-level packaging… first system in the fourth quarter” and “our high-temperature SPM platform… achieves industry-best performance at 19nm particle size and below” (CEO) .
Liquidity strengthened: ACM Shanghai raised ~$623M net on STAR Market; consolidated cash, restricted cash, and time deposits rose to ~$1.10B; net cash ~$811M .

What Went Wrong

Margins compressed: GAAP gross margin 42.0% (vs 51.4% YoY); CFO cited ~200 bps product mix headwind from smaller front-end tools and ~300 bps inventory provisions/COGS adjustments .
Non-GAAP earnings declined: Operating margin 13.6% (vs 27.5% YoY) and non-GAAP diluted EPS $0.36 (vs $0.63 YoY) reflecting higher OpEx and adjustments; Wall Street EPS miss versus consensus .
Shipment outlook softer: Q4 shipments likely down QoQ; full-year shipments expected down YoY amid customer deferrals and parts shortages; some new products shifting revenue contribution to 2026 .

Financial Results

Summary vs Prior Quarters

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$172.347M	$215.372M	$269.160M
GAAP Diluted EPS ($)	$0.30	$0.44	$0.52
Non-GAAP Diluted EPS ($)	$0.46	$0.54	$0.36
Gross Margin (%)	47.9%	48.5%	42.0%
Operating Margin (GAAP, %)	15.0%	14.7%	10.7%
Operating Margin (Non-GAAP, %)	20.7%	19.3%	13.6%

Actual vs Consensus (Q3 2025)

Metric	Consensus	Actual
Revenue ($USD)	$251.7M*	$269.160M
Primary EPS ($)	$0.5325*	$0.36 (Non-GAAP)

Estimates from S&P Global.*

Product Category Revenue

Product Category ($USD ‘000s)	Q1 2025	Q2 2025	Q3 2025
Single-wafer cleaning, Tahoe & semi-critical	$129,569	$154,961	$181,570
ECP (front-end & packaging), furnace & other	$27,630	$48,016	$59,853
Advanced packaging (ex-ECP), services & spares	$15,148	$12,395	$27,737
Total	$172,347	$215,372	$269,160

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Shipments ($USD)	$157.0M	$206.4M	$263.1M
Cash + Restricted + Time Deposits ($USD)	$498.4M	$483.9M	$1,098.3M
Net Cash ($USD)	$271.0M	$205.8M	$811.0M
Inventory, net ($USD)	$609.6M	$648.3M	$676.4M

Non-GAAP adjustments: Non-GAAP excludes stock-based compensation; non-GAAP net income/EPS also exclude unrealized gains/losses on short-term investments (e.g., Q3 unrealized gain $18.7M) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$850M–$950M	$875M–$925M	Narrowed (midpoint unchanged)
Effective Tax Rate	FY 2025	~10% ; earlier 10–15%	~7–8%	Lowered
R&D (% of sales)	FY 2025	13–14% ; 14–16%	14–16%	Maintained (upper range)
Sales & Marketing (% of sales)	FY 2025	~7% ; ~8%	~8%	Maintained
G&A (% of sales)	FY 2025	5–6%	~6%	Maintained
Capex ($USD)	FY 2025	~$70M	~$60M–$70M	Range refined
Shipments	FY 2025	Growth vs 2024 implied	Down YoY (company commentary)	Lowered (outlook)
Gross Margin Model	LT Model	42–48%	42–48% (unchanged)	Maintained

Additional item: ACM Shanghai paid ~~RMB 264.9M (~~$36.8M) cash dividend to shareholders, including ACM, during Q3; ACM’s stake in ACM Shanghai declined to 74.6% post offering .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI/technology initiatives	N2 bubbling tech for Ultra C wb; high-temp SPM qualified; panel-level plating award; roadmap for Track/PECVD	SPM performance at 19nm to single-digit particles; first KrF Track shipment; first horizontal panel plating tool shipping in Q4	Accelerating productization and customer engagement
Supply chain	Strategic buys to mitigate export control risks; multi-source components	Parts shortages caused shipment timing issues; customer pushouts	Near-term headwind; mitigation underway
Tariffs/macro	Oregon facility investment to reduce tariff uncertainty; multi-region ops	Continued sensitivity to trade policy in guidance narrative	Ongoing risk; footprint expansion as hedge
Product performance	SPM/Tahoe momentum; furnace high-temp anneal >1250°C; beta Track planned	KrF Track shipped; furnace progress; panel plating interest across China/US/Taiwan	Broadening portfolio, initial shipments
Regional trends	China stable; plan to ship several tools to U.S.	U.S. advanced packaging tools shipped to 2 new customers; continued Korea engagement (e.g., Hynix)	Early global traction
Regulatory/legal	China GAAP vs US GAAP revenue timing differences (ACM Shanghai vs ACMR) discussed	Clarified Q3 timing differences persist; non-capitalization of R&D under US GAAP	Continuing disclosure clarity
R&D execution	Raised LT China revenue target; increased R&D intensity	R&D kept at 14–16%; pipeline to drive 2026+	Investment sustained

Management Commentary

“We believe the market is moving toward ACM as AI and global datacenter investments are demanding new innovative technology requirements for next generation semiconductor equipment” (CEO) .
“Our high-temperature SPM platform… achieves industry-best performance at 19nm particle size and below… significantly lower maintenance and no need to clean the outer chamber” (CEO) .
“Gross margin was 42.1%. This was at the low end of our target due in part to product mix… ~200 bps… and… inventory provisions… ~300 bps” (CFO) .
“We have narrowed our 2025 revenue outlook to $875M–$925M… This implies 15% year-over-year growth” (CEO) .
“Net cash… was $811M or about $12 per share… Cash and… time deposits were $1.1B at quarter-end” (CFO) .

Q&A Highlights

Shipments outlook and parts shortages: Customer deferrals into Q1’26 and component shortages pushed shipments; Q4 likely down QoQ; full-year shipments down YoY, with recovery expected in 1H’26 .
Inventory write-down: ~300 bps COGS headwind tied to aging raw materials and some finished goods; primarily internal tools; process-driven valuation .
Panel-level packaging opportunity: Horizontal copper plating approach recognized with industry award; first tool shipping in Q4; active engagements in Taiwan/U.S./China .
Product roadmap: PCVD with three-chuck chambers shipping/commissioning; expected 2026 revenue contribution; continued furnace and Track development .
ACM Shanghai vs ACMR results: Differences driven by China GAAP rev-rec on installation vs US GAAP ASC 606 (acceptance for first-tool); ACMR does not capitalize R&D, bears incremental public company and global sales costs .

Estimates Context

Q3 2025 comparison: Revenue beat and EPS miss. Revenue: $269.16M vs $251.7M consensus; EPS (Primary/Non-GAAP): $0.36 vs $0.53 consensus. GAAP diluted EPS: $0.52 (not the basis for “Primary EPS”). Revenue estimates from S&P Global; EPS estimates from S&P Global.
Implications: Street likely raises revenue estimates for ACM’s multi-product momentum but trims EPS/margin assumptions given mix and inventory provisions; tax-rate guide reduction supports EPS beyond Q3 .