Good day, everyone. Thank you for joining us to discuss third quarter 2026 results, which we released before the US market opened today.

The release is available on our website as well as from newswire services. There is also a supplemental slide deck posted to the Investor section of our website that we will reference during our prepared remarks.

On the call with me today are our CEO, David Wang; our CFO, Mark McKechnie; and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide 2.

Let me remind you that the remarks made during this call may include predictions, estimates, and other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future.

However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under Risk Factors and elsewhere in ACM's filings with the Securities and Exchange Commission.

Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements.

Certain financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gains and losses on short-term investments, and beginning in the second quarter of 2026, its impact to net income attributable to non-controlling interest. For our GAAP results and reconciliations between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website, and to slide 13.

Also, unless otherwise noted, the following figures refer to third quarter 2026, and comparisons are to the third quarter 2025. I will now turn the call over to David Wang.

David?

Thanks, Steven. Hello, everyone, and welcome to ACM third quarter 2026 earnings conference call.

We delivered strong results for the September quarter, with revenue up 37% and shipment up 31%. We attribute the growth to: 1, market share gain and product cycle; and 2, good execution by our production and supply chain team.

Growth was led by our ECP and advanced packaging categories. I'm especially pleased with a return to growth for our cleaning categories.

1, we are gaining market share with more cleaning steps and technology improvements. 2, our Lingang mini-line has helping our engineer to duplicate our customer production environment and deliver technology improvements to the market much faster.

And 3, broad adoption of our single-wafer SPM solution across multiple customers. We are making good progress with our proprietary panel-level horizontal electroplating technology.

In October, we announced the shipment to a customer in Asia of a 310 by 310 millimeter panel-level horizontal plating tool. We believe this is the world's first shipment of its kind, and it truly marks significant milestone in our commercialization efforts.

This follows earlier shipment of a larger 515 by 510 millimeter system to a mainland China customer. I will provide more detail on this later.

I will now provide update on our backlog. As reported by ACM Shanghai about a month ago, total backlog as of September 29th, 2026, was $2.5 billion, an 88% year-over-year increase.

The backlog include orders across all product category, with a heavier emphasis on our new products. Year-to-date orders through September 30 were up 147%, thanks to good execution by our sales, production, and operation team.

We continue to expect shipment to grow faster than revenue for 2026. We remain confident in our growth profile.

For 2026, we see healthy backdrop for China WFE as our customer continue to scale their production capacity. We expect an extra boost for our business from several product cycle, including SPM and furnace.

Market share gains together with strong execution enable us to outgrow the China WFE market. We are optimistic that our newer platform are providing another source for growing as we expect Track, PECVD, and panel-level horizontal plating to proceed from evaluation phase into commercialization phase beginning next year.

Now on to our third quarter results. Please turn to slide 3.

Revenue was $368 million, up 37%. Shipment were $343 million, up 31%.

Gross margin was 41.6%, and operating margin was 18%. We ordered the quarter with a—we ended the quarter with a gross cash of $1.3 billion and a net cash $0.9 billion.

Now I'll provide detail on product. Please turn to slide 4.

Revenue from single-wafer cleaning, Tahoe, and semi-critical cleaning tool was $211 million, up 16%, and represent 57% of revenue. ACM has developed one of the industry broadest cleaning product portfolio, spanning a full range of critical cleaning and wet process steps.

Our product including SAPS, TEBO, megasonic, Tahoe, backside cleaning, solvent cleaning, bevel cleaning, scrubber, wet etcher, and our proprietary sulfuric peroxide mixing of SPM technology. Semiconductor device are becoming more complex, with additional process step and more demanding cleaning requirements.

We believe our broad portfolio of differentiated technology positions ACM to capture those growing opportunities. We are fully committed to our long-term target for 60% market share in China's cleaning equipment market.

Our SPM product line is a key part of the target. As reminder, we estimate that SPM tool represent about one-third of the two—of total cleaning equipment market, and our product cycle is just now beginning to contribute.

We recently introduced an enhanced version of our 170°C single-wafer hot SPM system, incorporating sulfuric acid recycling. The system achieve a 70% sulfuric acid recycle rate with reasonable particle performance.

This innovation is expected to reduce sulfuric acid consumption by approximately 400 tons per tool annually, delivering meaningful environment and operating cost benefits. In October, at China International Industry Fair, ACM Shanghai was presented with China International Industry Fair Innovation Achievements Awards for its single-wafer high-temperature SPM cleaning system.

This is yet another award from prestigious organization, which further highlights the innovation and technology capability of our SPM platform. I'm pleased to repeat today that we are on track to ship more than 20 single-wafer SPM tool across multiple customer for the full year of 2026.

Beyond SPM, we continue to expect—expand the capability and application of other differentiated cleaning technologies. Our Ultra C Tahoe now supporting additional wet etcher and monitor wafer reclaim application, providing customer with greater process flexibility and expanding the range of addressable application, especially in the reduction for fine particle less than 19 nanometer.

We are also getting more traction with our supercritical CO2 cleaning technology. Our differential technology with a much smaller CO2 chamber reduces CO2 usage by 30% as compared with other market solution.

At the same time, we deliver better drying performance. This is a strong combination, and we are confident we can take share with this product line, and expanding application from DRAM to 3D NAND and logic application.

Revenue from ECP, furnace, and other technology grow 83% and represent 30% of total revenue. Growing—growth was driven primarily by strong momentum in both front-end wafer-level and back-end advanced packaging electroplating application, with the furnace contribute to a relatively small portion.

We see increased demand for electroplating for both logic and memory application as semiconductor manufacturing and packaging become more complex. Our proprietary panel-level horizontal plating technology is a game-changer for the industry.

We began development for panel-level plating for more than 5 years ago, and the market is now coming to us. Our patent horizontal design enable highly uniform plating across the panel, including increasingly larger dimension substrate formats.

Our 310 by 310 millimeter system supports copper, nickel, tin-silver, gold plating process, incorporates high-speed plating paddle technology, and supports tall copper pillar exceeding 300 micron with good within-die uniformity. We have engaged with multiple customer across different region and panel size configurations.

We also offer comprehensive set of wet processing tool for panel-level packaging, including Ultra C vacuum-P flux cleaning and Ultra C bevel-P panel bevel etcher and clean tool. We are confident that ACM differentiated technology position us to enable next-generation solution, as driven by increasingly complex 2.5D and 3D packaging roadmap for the global AI.

Turning to our furnace business, we continue to make progress in expanding customer adoption. We are advancing our capability across key application, including silicon nitride LPCVD, polysilicon LPCVD, oxidation, thermal ALD, and plasma-enhanced ALD, addressing opportunity across both memory and logic application.

We also supply high-temperature 1150°C and ultra-high-temperature 1250°C annealing furnace, especially address IGBT application. As this system complete customer acceptance and transition into production, we expect furnace to making more meaningful contribution to our revenue in 2027.

Revenue from advanced packaging, which exclude ECP, but include service and spare parts, was up 71% and represent 13% of the revenue mix. This including coater, developer, etcher, stripper, scrubber, and vacuum cleaning tools, supporting a broader range of advanced packaging application.

We are particularly pleased with our global progress here, with active deployment in Singapore and North America across a range of these tools. We believe our broad product portfolio and expanding global customer relationships position us well to capture additional opportunity as we continue to grow this business.

Turning to our Track and PECVD platform, we have made progress with customer evaluation and the initial deployment of our next-generation system. For Track, our focus remain on delivering industry-leading throughput and competitive process performance, addressing opportunity in KrF lithography, across standalone system and configuration integrated with lithography scanners.

For PECVD, we believe our differentiated chamber architecture, electrostatic chuck design, and RF power source technology provide important advantages in throughput and process performance. We are working closely with key customer to demonstrate the performance and capability of both platforms.

Looking ahead, we expect additional shipment in 2027, with revenue contribution and expected as customer qualification and production adoption progress through 2027 and into 2028. Next, I will provide update on global manufacturing and operation infrastructure.

First, Lingang, please turn to slide 8. Our first Lingang building continue to operate in volume production, and we are currently ramping up our second building.

Together, the two building can support up to $3 billion in annual output, providing significant capacity to scale our business over time. I'm pleased to report that we expect shipment in the fourth quarter of 2026 to increase from third quarter levels.

We also plan for good growth in shipment for 2027 and beyond. Next, our Oregon facility, please turn to slide 9.

We are preparing for the official opening of our Oregon operation very soon. This is an important milestone to support customer outside mainland China.

The facility including Class 100 cleaning room to product demonstration and customer evaluation, along with cleanroom for storage, pre-assembly, manufacturing, and technical support capability. We believe US-based demo lab and production facility will support our effort to scale our global business.

In addition, we continue to strengthen our operation across Asia. In Korea, we are expanding the capability of ACM Korea, including manufacturing, engineering, and technical supporting resource to serve our growing international customer base.

In Singapore, we are adding local resource to support customer installation, service, and ongoing technical engagement. Our global business continue to gain momentum.

As we discussed last quarter, we expect to have more than 20 tools installed at customer site outside mainland China by end the year, by year-end 2026, represent approximately 10 customer across 5 countries. We are particularly encouraged by our progress in North America, Singapore, and other part of Asia, where our global sales and service team expanding customer relationships and supporting deployment across growing range of product and applications.

This engagement are helping us establish stronger foundation for future business, as customer gain experience with our technology and evaluate opportunity for broader adoption. The progress we are making demonstrate the competitiveness of our technology and position ACM for meaningful long-term growth outside mainland China.

Now I'll provide our outlook for the full year 2026. Please turn to slide 10.

As a result of good execution by our sales and operation team, significant backlog, and several major product cycles, we are raising our outlook as follows: We now expect 2026 revenue to be $1.24 billion to $1.28 billion, up 38% to 42% year-over-year. This compares to our previous range of $1.125 billion to $1.175 billion.

We continue to expect full-year shipment growth to outpace revenue growth. We believe our expanding differentiated product portfolio, global infrastructure, and global customer relationships position ACM to capture new market opportunity and advance toward our long-term revenue target of $4 billion.

With that, let me turn the call over to Mark to review our financial results in more detail.

Thank you, David. Good day, everyone.

Please turn to slide 11. Unless I note otherwise, I will refer to non-GAAP financial measures, which exclude stock-based compensation and unrealized gain/loss on short-term investments.

A reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release. Also, unless otherwise noted, the following figures refer to the third quarter of 2026 and comparisons are with the third quarter of 2025.

We'll now provide the financial highlights. Revenue was $367.7 million, up 36.6%.

Revenue for single-wafer cleaning, Tahoe, and semi-critical cleaning was $210.7 million, up 16.1%, and represented 57.3% of sales. Revenue for ECP, front-end packaging, furnace, and other technologies was $109.5 million, up 82.9%, and represented 29.8% of sales.

Revenue for advanced packaging, excluding ECP, services, and spares, was $47.5 million, up 71.2%, and represented 12.9% of sales. Total shipments were $343.5 million, up 30.6%.

For 2026, we continue to expect shipment growth to outpace revenue growth. Gross margin was 41.6% versus 42.1%.

Gross margin was slightly below our long-term target model. This was due in part to product mix, foreign exchange, and the inventory provision for the quarter.

We maintain our 42% to 48% long-term target range, and product mix can cause fluctuations on a quarterly basis. For the fourth quarter, we expect gross margin to improve modestly from the third quarter level.

Operating expenses were $86.7 million, up 12.7%. R&D was 12.8% of sales, sales and marketing was 6.7%, and G&A was 4.0%.

For 2026, we plan for R&D in the 15% to 17% range, sales and marketing in the 7% to 8% range, and G&A in the 5% range. Operating income was $66.2 million versus $36.5 million.

Operating margin was 18.0% as compared to 13.6%. Income tax expense was $1.9 million versus $2.7 million.

For 2026, we expect our effective tax rate in the 10% range. Net income attributable to ACM Research was $40.5 million versus $28.4 million.

Non-GAAP net income excluded $10.7 million in stock-based compensation expense and the unrealized loss on short-term investments, together with its effect on non-controlling interest. Net income per diluted share was 55 cents versus 41 cents.

Now on to the balance sheet and cash flow items. Cash, cash equivalents, restricted cash, and time deposits were $1.28 billion at the end of the third quarter.

Net cash, which excludes short-term and long-term debt, was $0.9 billion. Total inventory net was $851.2 million.

This consisted of raw materials net at $465.5 million, work-in-progress net at $122.7 million, finished goods inventory net at $263.1 million. This primarily consists of first tools under evaluation at customer sites, along with finished goods located at ACM's facilities.

Cash used by operations was $70.4 million. Capital expenditures were $25.2 million.

For the full year 2026, we continue to expect capital expenditures of about $175 million. That concludes our prepared remarks.

Now let's open the call for any questions that you may have. Operator, please go ahead.

Hi David, hi Mark, Lisa, congratulations on the progress here. Very strong,

good

job.

Thanks, Suji.

The new products seem to be growing nicely here. What do you think the mix of those will be a year or two out versus where they are now?

Because I think that'll help drive some of the growth in the margin opportunity for you guys. Oh

David, you're muted. Hey David, I think you're muted.

Yeah.

One second, let me get it.

Here we go. We can hear you now, David.

We can hear you, David.

Sure. Okay.

Actually, you mean the new product, right?

Our

Track, PECVD, right, and horizontal electroplating. Yes, I think the, well again, right, this new product will be also, will real emphasize differential technology.

When they come out, and will be also, we're thinking, will be the good margin for our product. Especially this horizontal electroplating, right, got a good, good, good recognition from customer.

Also our Track system start getting to their pre-production in together with scanner. Also PECVD made a progress, too.

As this new product join, all including furnace, too, right, joining to our revenue stream, and we think we're still give us maintain and even some product increase our gross margin.

Hey Suji, maybe I'll answer to that. The mix for the new products next year, one thing is in the backlog, I think David mentioned that the mix was skewed a bit towards some of our newer products.

Right.

We've got a lot teed up for new products next year that they'll contribute, some with shipments first, then to revenue. Our SPM product cycle is just starting to kick in pretty nicely.

I think furnace, we've got a lot of tools under evaluation, and so that's really small, and we expect that to kick in pretty nice next year. Then of course, Track, PECVD, and these panel level plating tools are really early stage, so, a lot of growth potential from all those starting next year.

No, that sounds great. Then on the, same question in terms of mix and how that trends next year too for the global customers versus the China customers, because it seems both are growing, but it seems like you're landing in more region and geographies globally, curious how the global customer mix increases over the next year too.

Actually, we see the more of international customer interest into our technology, right? This year we have more of advanced packaging tool in their installed in Singapore region.

Also we do have other customer interest to our technology in the US, in Korea, and also in Taiwan region. Right, we see that there also customer even in the Europe.

This year, by end of this year, we'll have a 20 tools being installed in the region outside mainland China. I should see next year would be have a much better our outcome, right, for the global customer.

Hey Suji, the one thing I'd add, we'll of course give our guidance like we always do in January of next year. For the global customers to hit 10% of our revenue at these levels, it's $120 million plus.

We're not really ready to talk about the mix that'll hit. I guess the challenge is our business in China with our product cycles is growing at a pretty good clip, but we expect the global customers to really grow in terms of revenue this year, of course next year, and for many years to come as we scale that up.

I understand China's growing strong as well. Last quick question, supply chain, are you guys seeing any constraints?

Then what's the timing to Lingang's second building being up and running? How long do you think that will take?

I think the second building already finished decoration, and we start moving in the people and started using that right now. With that, the second building being put into the manufacturing, our space almost double, right?

Of course, we're going to hire more people, train the technician and workers, and to real get double of the capacity. Next one is really, I want to say this supply chain constraint, right?

Probably everybody the same problem, and since this increase in the tool too fast. We're still doing very well, and to working with our vendor supplier.

Basically, we give them 6 months, and even longer, 1 year forecast. That will give those primary, I want to say, their supplier forecast, we want them increase the capacity.

Some people, some can do, maybe some not, some cannot meeting our requirement. Therefore, have looking for second source, third source, and to meet those our requirements.

Our team, with this, working very well, and again, it's a lot of challenging, and our team made a lot of progress for this supply chain management and control.

Suji, David, if you don't mind, I'll just add a few things. Our supply chain team is really critical, right?

They've helped us drive the growth over the past years. We've been through some interesting market conditions.

In this case, ACM is not going to be the one to hold up our customers, right? David was pretty clear.

Q3 shipments were pretty strong. We expect Q4 shipments to be even higher, right?

You go back and look at some of our past years, a lot of times you have kind of a flat to down Q4. I think the execution from the team, this Lingang facility comes on at exactly the right time.

We used our cash, our balance sheet to grow our raw materials this quarter, we used a little bit of cash, but I think that was the right thing to do to scale up for our production.

Understood. Thanks, I'll pass it along, guys.

Congrats again. Yep,

thanks, Suji. Yeah.

Thank you, Suji.

Great. Thank you, David and Mark.

Thanks for having me. First question is that we had a pretty volatile gross margin.

Now it's back to 41% in the quarter. You mentioned product mix, also the inventory provisions.

Can I hear more about the inventory provisions, and also is it also happening in fourth quarter as well?

Let me hit on that and then I'll kind of hit that one and then I'll let David talk a little bit about our strategies here. The inventory provision, it wasn't particularly high here in the third quarter.

In second half of last year, we had some challenges there, but this time it was kind of within a normal range. We feel like we've got that managed, and so it'll be in kind of similar levels next quarter and even quarterly for next year, the provision.

The bigger impact was really, I think, on the product mix and even the foreign exchange on the quarter. David, you might want to say something about, how we focus on world-class products, right?

Kind of the longer-term strategy for our gross margins.

Yeah. I would say that the real gross margin long run, and it's really we rely on our differential product, right?

With all our cleaning, copper plating, even also furnace, we're developing, PECVD, also Track, we all rely on our differential technology. Our product, and in the market, even in China, sell a lot, we cannot see anybody can copy our differential technology, with all well patent and also trade secret protection.

With our product, if we're succeeding, become the number one performance, succeed in the top tier of the global player, and that product would be really have a good margin in China market. If anybody, as I said, cannot copy ACM tool, right, even some of similar to come out with top tier's guys tool, their performance is still below us.

That's our confidence we can maintain long-term and gross margin in the market in China. Of course, those differentiated patent-protected technology also can sell outside mainland China, and also outside mainland China pricing also good, too.

For that's long run consideration, we have confidence we can maintain our gross margin in the 42% to 48%.

That's great. Thank you.

My second question is about the orders. If I hear correctly, you had a 147% order growth in 9 month '26.

I think your first half order growth was 100%, third quarter was very strong. How much is driven by volume, and how much is driven by share gains?

Thank you.

Mark, you want to touch that?

Let me hit on that, and then I think David, I'll help you with that. It's all the market in China has been pretty solid, right?

We think it's still pretty kind of early in the investment days in China. Growing our shipments 30%, and the orders at the level we're growing, we think we're growing a lot faster than the market, both in terms of orders, revenue, and shipments.

I don't know how to break it out between the market, the China WFE market, but it's always our goal to grow faster than the China WFE market.

Yeah. I want to say that is, China market still in the, I want to say, growing stage.

A lot of logic fab and also the memory fab continue and increase their capacity. Also, I want to say that demand and also the orders, the data center, and automobile, and also robotics will continue driving China market growth.

Also, I want to say that probably you want to say the building's pace and also space is a probably about 2 year, a few year, compared with outside growth, right, in terms also technology. We see that even peak, reach so far people talk about global 2028 maybe is peak, or 2029 peak.

We think China peak will be behind that, year over or 2 year. That's we have a real strong confidence, to the revenue long run, your next 5 year, for China WFE market.

Great. Thank you very much, and congratulations on the good development lately.

Thanks all.

Great. Thank you, sir.

Yeah. Thank you.

Thanks, everyone. Before we conclude, I do want to give everyone a quick reminder of our upcoming investor conferences.

On November 18th, we will participate in the 15th Annual Roth Technology Conference at the Hard Rock Hotel in New York City. On November 19th, we'll participate with the Daiwa Miami Corporate Day at the Mondrian South Beach in Miami.

December 2nd and 3rd, we will present at the UBS Global Technology and AI Conference in Scottsdale, Arizona. On December 15th, we'll present at the 15th Annual New York City Summit at Mastro's in New York City.

Attendance at the conference is by invitation only. For interested investors, please contact your respective sales representatives to register and to schedule one-on-one meetings with the management team.

This concludes our call, and you may now disconnect. Take care.