A maker of wet-cleaning machines that keep semiconductor chips free of tiny particles during manufacturing, sold largely to chip fabs in mainland China under technologies like SAPS, TEBO, and Tahoe. It also builds electroplating, furnace, and packaging tools. Founded in 1998 in Silicon Valley by Dr. David Wang, it pivoted from stress-free copper polishing to cleaning after early tools struggled commercially. Its name "ACM" originally stood for "Advanced Copper Materials," a nod to its first copper-polishing ambition.
Net income rose 199% to $89.0M, driven by a $69.6M unrealized gain on short-term investments, not operations.
fell to 46.0% as a product mix shift toward lower-margin ECP and furnace tools continued. rose 36.0% to $292.9 million, but of $89.0 million was largely driven by a $69.6 million on short-term investments and $21.1 million from equity method affiliates. The underlying business is growing revenue at the cost of profitability, while one-time investment gains mask the compression.
Key takeaways
rose 36.0% to $292.9 million, driven by a 167.7% increase in ECP, furnace and other technologies and a 153.3% increase in advanced packaging, services and spares, while single wafer cleaning equipment revenue fell 14.2%.
contracted 2.5 percentage points to 46.0%, which management attributed to a shift in product category mix; the margin remains within the company's 42.0% to 48.0% range.
rose 199.0% to $89.0 million, but the increase was driven by a $69.6 million on short-term investments and $21.1 million in income from , not by operating performance.
Section summaries
Management's Discussion and Analysis
Revenue grew 36% YoY to $293M in Q2 2026, driven by ECP and advanced packaging, while gross margin fell to 46.0% on mix shift.
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Total increased 36.0% to $292.9 million in Q2 2026, driven by a 167.7% surge in ECP, furnace and other technologies and a 153.3% increase in advanced packaging, services & spares, partially offset by a 14.2% decline in single wafer cleaning equipment.
rose 56.9% to $49.7 million as growth of 36.0% outpaced a 16.6% increase in operating expenses, with R&D expense rising 24.9% to $42.3 million on higher personnel and component costs.
was negative $71.5 million for the quarter, as $87.3 million in property and equipment purchases and a $69.9 million increase in inventories over the first six months consumed cash.
Cash and equivalents rose 119.2% to $969.2 million, while rose 18.4% to $192.9 million, continuing the shift toward higher .
What changed
The Q1 2026 watch item on whether the 204.9% growth in ECP and furnace tools was sustainable: growth in that category accelerated further to 167.7% in Q2 2026, confirming the mix shift is not a one-time event.
The Q1 2026 watch item on the $9.5 million unrealized foreign exchange loss: the filing does not report a similar loss in Q2 2026, suggesting the currency impact did not repeat at the same scale.
The FY 2025 watch item on whether would stabilize within the 42% to 48% range after Q4 2025 fell to 40.9%: Q2 2026 gross margin was 46.0%, up from 40.9% in Q4 2025 and 46.4% in Q1 2026, indicating a recovery within the guided range.
The FY 2025 watch item on how the $623 million ACM Shanghai private offering proceeds would be deployed: cash and equivalents rose to $969.2 million, and remained elevated at $192.9 million, suggesting the proceeds are being retained rather than used to reduce debt.
What to watch
Whether the $69.6 million on short-term investments reverses in future quarters, which would expose the underlying trend absent investment gains.
Whether can remain within the 42% to 48% range if the product mix continues to shift toward ECP and furnace tools, which appear to carry lower margins than single-wafer cleaning equipment.
Whether the $69.9 million build in the first half of 2026 converts to recognized or adds to the existing stock of first-tools awaiting customer acceptance.
Whether ACM Shanghai and ACM Korea disclose any progress on restructuring their supply chains to reduce dependence on U.S.-jurisdiction components, a risk that remains material but was not updated in this filing.
contracted 255 to 46.0% in Q2 2026, primarily due to a shift in mix between product categories.
Total operating expenses rose 16.6% to $84.9 million in Q2 2026, with R&D expense increasing 24.9% to $42.3 million on higher personnel and component costs, partially offset by lower across all functions.
attributable to ACM Research, Inc. was 30.5% of in Q2 2026, significantly boosted by a $69.6 million on short-term investments and $21.1 million in income from .
was negative $127.9 million for the first six months of 2026, driven by $87.3 million in property and equipment purchases and a $69.9 million increase in inventories.
The company expects to range between 42.0% and 48.0% for the foreseeable future and anticipates continued absolute dollar increases in operating expenses to support growth.
Quantitative and Qualitative Disclosures About Market Risk
Our market risks and the ways we manage them are summarized in the section captioned “Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our 2025 Annual Report. There have been no material changes in the first six months of 2026 to our market risks…
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Our market risks and the ways we manage them are summarized in the section captioned “Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our 2025 Annual Report. There have been no material changes in the first six months of 2026 to our market risks or to our management of such risks.
From time to time, we may become involved in legal proceedings or may be subject to claims arising in the ordinary course of our business. Although the results of these proceedings and claims cannot be predicted with certainty, we currently believe that the final outcome of thes…
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From time to time, we may become involved in legal proceedings or may be subject to claims arising in the ordinary course of our business. Although the results of these proceedings and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
There were no material changes to the risk factors discussed in Item 1A. “Risk Factors” of Part I in our 2025 Annual Report. In addition to the other information set forth in this report, you should carefully consider those risk factors, which could materially affect our busines…
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There were no material changes to the risk factors discussed in Item 1A. “Risk Factors” of Part I in our 2025 Annual Report. In addition to the other information set forth in this report, you should carefully consider those risk factors, which could materially affect our business, financial condition and future operating results. Those risk factors are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may have a material adverse effect on our business, financial condition and operating results.