ACM Research Beats Estimates, But Insiders Sell $15M
ACM Research reported an 80.2% EPS beat and 36% trailing revenue growth, but free cash flow of negative $187 million on $1.04 billion in revenue raises the question of when earnings will translate int
ACM Research Beats Estimates, But Insiders Sell $15M
NEW YORK, August 26 —
ACM Research, Inc. (ACMR) delivered back-to-back earnings beats of 71.2% and 80.2% over the past two quarters, but the company's largest disclosed insider used those highs to exit $8.84 million in shares at prices now above where the stock trades. Free cash flow of -$187 million on $1.04 billion in trailing revenue makes the 29.1x forward multiple a bet on conversion, not a confirmation of it.
- $0.61 EPS vs. estimate, an 80.2% beat; TTM revenue $1.04B, up 36% year-over-year.
- Free cash flow: -$187M over the trailing twelve months; operating cash flow: -$7M.
- $15.09M in insider sales over 90 days, zero purchases; top insider sold at $83.86, $93.04, stock now at $78.90.
Two Misses, Two Beats, One Contradiction
ACM Research manufactures semiconductor equipment sold under brands including SAPS, TEBO, ULTRA C, and Ultra ECP, serving chipmakers in mainland China and internationally with wet cleaning, electrochemical plating, furnace, and PECVD platforms. After posting EPS misses of -31.9% and -37.5% in consecutive quarters, the company reversed to beats of 71.2% and 80.2%, per its May 7 and August 7 earnings filings. Revenue reached $1.04 billion on a trailing basis, growing 36%, with a gross margin of 43.8%. The pattern shows real execution improvement on the income statement; it does not explain why cash remains deeply negative.
The Cash Flow Statement's Verdict
Free cash flow of -$187 million against that revenue base is the number the income statement cannot hide. Operating cash flow of -$7 million means the core business is not self-funding even as earnings improve, a pattern common in equipment makers expanding into new process nodes. ACM also filed a 424B5 prospectus supplement alongside a Material Definitive Agreement 8-K on May 12, 2026, indicating it accessed capital markets mid-year rather than relying on internal generation. The balance sheet carries $1.44 billion in cash against $0.35 billion in debt, so the company is not distressed; what matters at 29.1x forward earnings is the timeline to FCF breakeven.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| ACMR | $5.5B | 27.3x | +179.1% |
| ACLS | $3.8B | 23.2x | +53.1% |
| AEHR | $3.0B | 66.2x | +293.4% |
| ONTO | $17.8B | 25.0x | +170.0% |
| PLAB | $1.8B | 15.0x | +22.3% |
| UCTT | $3.3B | 12.5x | +205.6% |
What Wang's Exit Price Signals
David H. Wang sold 100,002 shares in early June at $83.86 to $93.04, per Form 4 filings, with the stock now at $78.90, below his entire exit range. Director Mark McKechnie sold $4.26 million in shares on August 20, reportedly under a pre-arranged plan. Analyst consensus at $115.14 implies the market prices in cash conversion that insiders are not waiting to collect. The number to watch is quarterly FCF: at 43.8% gross margins, a DCF calculator applied to ACM's cash flows requires positive free cash generation to support the current multiple. Whether the next two reports show that trajectory determines whether the insider pricing proves prescient or premature. Run the free ACM Research, Inc. deep-dive →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Did ACM Research beat earnings estimates?
ACM Research reported $0.61 EPS against a $0.337 estimate, an 80.2% beat in its most recent quarter filed August 7. The company also posted a 71.2% beat in the prior quarter, reversing two consecutive misses of -31.9% and -37.5%.
Why are ACM Research insiders selling shares?
The filings show $15.09 million in insider sales over 90 days and zero purchases. David H. Wang sold 100,002 shares at $83.86 to $93.04 in early June, and Director Mark McKechnie added $4.26 million in sales on August 20, reportedly under a pre-arranged plan.
What is ACM Research's free cash flow?
ACM Research reported free cash flow of negative $187 million over the trailing twelve months on $1.04 billion in revenue. Operating cash flow was negative $7 million, meaning the core business is not self-funding even as reported earnings improve.
What is the analyst price target for ACM Research?
Analyst consensus stands at $115.14, well above the current stock price of $78.90. That gap implies the market prices in cash conversion that insiders are not waiting to collect.
How does ACM Research's balance sheet look?
The balance sheet carries $1.44 billion in cash against $0.35 billion in debt, so the company is not in financial distress. ACM also filed a 424B5 prospectus supplement on May 12, 2026, indicating it accessed capital markets mid-year rather than relying on internal cash generation.
ACM Research has strung together two consecutive massive earnings beats after two straight misses, with revenue growing 36% to over $1 billion—yet every insider transaction filed over the past 90 days has been a sale, totaling $15.09 million, and free cash flow remains deeply negative at -$187 million.