ACM Research, Inc. (ACMR) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. ACM Research, Inc. is a Delaware corporation supplying capital equipment for the global semiconductor industry. Operations are conducted principally through its subsidiary, ACM Research (Shanghai), Inc. (ACM Shanghai), which holds a listing on the Shanghai STAR Market. As of June 30, 2026, ACM Research held a 73.2% ownership interest in ACM Shanghai.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Revenue | $292.9 million | $524.2 million | $387.7 million |
| Gross Profit | $134.6 million | $241.9 million | $187.0 million |
| Gross Margin | 46.0% | 46.1% | 48.2% |
| Net Income (Total) | $122.3 million | $148.5 million | $61.3 million |
| Net Income (Attributable to ACMR) | $89.0 million | $106.3 million | $50.1 million |
| Diluted EPS (ACMR) | $1.23 | $1.49 | $0.74 |
| Cash & Equivalents | $969.2 million | $969.2 million | $757.4 million (Dec 31, 2025) |
| Total Debt (Short + Long Term) | $340.9 million | $340.9 million | $288.1 million (Dec 31, 2025) |
Non-GAAP Metrics (YTD 2026): Adjusted EBITDA was $113.6 million. Free Cash Flow was negative $127.9 million, driven by significant capital expenditures.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 36.0% QoQ and 35.2% YoY. Growth was driven by a 167.7% increase in ECP (front-end and packaging) and furnace sales, and a 153.3% increase in advanced packaging services. This offset a 14.2% decline in single wafer cleaning equipment sales.
- Profitability: Net income attributable to ACMR more than doubled YoY ($106.3M vs $50.1M). This surge was significantly aided by a $68.2 million unrealized gain on short-term investments and a $22.8 million increase in income from equity method investments.
- Operating Expenses: R&D expenses rose 28.5% YoY due to increased personnel costs and component costs for tool development. Sales and marketing expenses increased 15.7% YoY.
- Currency Impact: A strengthening RMB resulted in a $57.9 million foreign currency translation gain for the six months ended June 30, 2026, compared to $5.7 million in the prior year period.
Guidance, Outlook, and Risks
- Capital Raising: In May 2026, the company completed a registered direct offering of 2.9 million shares, raising approximately $148.4 million. Additionally, ACM Shanghai sold 4.8 million shares in February 2026, generating $110.2 million in gross proceeds.
- Strategic Initiatives: ACM Shanghai proposed an H-share listing on the Hong Kong Stock Exchange (subject to approvals). The company purchased a new facility in Shanghai Pudong New Area for $45.9 million, partially financed by a $34.0 million loan.
- Regulatory Risks: ACM Shanghai and ACM Korea remain on the U.S. BIS Entity List, restricting access to U.S. technology. The company faces potential risks regarding the HFCA Act and audit inspections of mainland China-based auditors.
- Outlook: Management expects gross margins to remain between 42.0% and 48.0% in the foreseeable future. Operating expenses are expected to increase in absolute dollars to support R&D and global market expansion.
Investor Verification Checklist
- Investment Gains: Verify the sustainability of net income, which was heavily influenced by a $68.2 million unrealized gain on short-term investments and equity method income.
- Cash Flow: Note that operating cash flow was negative ($35.9M used) and free cash flow was significantly negative ($127.9M used) due to high inventory buildup ($69.9M increase) and capital expenditures ($87.3M).
- Customer Concentration: Confirm the stability of top customers, as four customers accounted for 52.4% of accounts receivable and three customers accounted for 43.5% of Q2 revenue.
- Regulatory Status: Monitor the status of the proposed Hong Kong listing and any updates regarding the BIS Entity List restrictions on ACM Shanghai and ACM Korea.
- Debt Covenants: Review compliance with loan covenants, specifically the Bank of China facility requiring debt not to exceed five times annual EBITDA.