ACM Research (ACMR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $172.3 million, up 13.2% year-over-year, driven by strong single wafer cleaning and ECP equipment sales, with advanced packaging revenue declining.

• Net income attributable to shareholders was $20.4 million (GAAP), up 16.9% year-over-year, with diluted EPS of $0.30 (GAAP) and $0.46 (Non-GAAP).

• Gross margin declined to 47.9% (GAAP) and 48.2% (Non-GAAP), mainly due to product mix and higher inventory provisions.

• Maintained a robust cash position, with cash and equivalents totaling $498.4 million at quarter-end, and continued investments in global production capacity, including a new Oregon facility.

• Achieved key operational milestones, including product qualifications, innovation awards, and facility expansions.

Financial highlights

• Revenue: $172.3 million, up 13.2% year-over-year; gross margin: 47.9% (GAAP), 48.2% (Non-GAAP).

• Operating income: $25.8 million (GAAP), $35.6 million (Non-GAAP); operating margin: 15.0% (GAAP), 20.7% (Non-GAAP).

• Net income attributable to shareholders: $20.4 million (GAAP), $31.3 million (Non-GAAP); diluted EPS: $0.30 (GAAP), $0.46 (Non-GAAP).

• Cash, equivalents, and time deposits totaled $498.4 million at quarter-end; net cash was $271 million.

• Positive operating cash flow of $5.3 million; capital expenditures were $17.1 million in Q1.

Outlook and guidance

• Maintains 2025 revenue outlook of $850 million–$950 million, implying 15% year-over-year growth at the midpoint.

• Expects shipment growth for 2025, though at a lower rate than revenue growth.

• Anticipates strong product cycles in cleaning and advanced packaging, with new products contributing to future growth.

• Gross margin expected to remain between 42.0% and 48.0% for the foreseeable future.

• Outlook considers ongoing international trade policy impacts, customer spending scenarios, supply chain constraints, and timing of tool acceptances.