ACM Research(ACMR) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results This section details ACM Research's financial performance for Q2 and H1 2025, including management commentary, key financial metrics, and the fiscal year 2025 outlook Management Commentary and Highlights Management expressed confidence in the company's performance, citing strong execution in the first half of 2025, continued momentum in China, and progress in global expansion - CEO Dr. David Wang highlighted good execution, strengthening confidence in the long-term growth opportunity in China, and progress in global expansion with tool deliveries planned to the U.S. in Q3[3] - The company announced major upgrades to its Ultra C wb Wet Bench cleaning tool, integrating patent-pending nitrogen bubbling technology, and has already received repeat orders for shipment this year and next[3] - ACM remains confident in its ability to drive long-term growth and increase market share in both China and global markets, positioning itself as a multi-product company with proprietary world-class technology to meet challenges from the AI transformation[3] Financial Performance Summary ACM Research reported revenue of $215.4 million for Q2 2025, a 6.4% increase year-over-year, with H1 revenue reaching $387.7 million, up 9.3% Q2 Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 (GAAP) (in millions) | Q2 2024 (GAAP) (in millions) | Q2 2025 (Non-GAAP) (in millions) | Q2 2024 (Non-GAAP) (in millions) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $215.4 | $202.5 | $215.4 | $202.5 | | Gross Margin | 48.5% | 47.8% | 48.7% | 48.2% | | Income from Operations | $31.7 | $37.6 | $41.5 | $51.9 | | Net Income | $29.8 | $24.2 | $36.8 | $37.5 | | Diluted EPS | $0.44 | $0.35 | $0.54 | $0.55 | H1 Financial Performance (Six Months Ended June 30) | Metric | H1 2025 (GAAP) (in millions) | H1 2024 (GAAP) (in millions) | H1 2025 (Non-GAAP) (in millions) | H1 2024 (Non-GAAP) (in millions) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $387.7 | $354.7 | $387.7 | $354.7 | | Gross Margin | 48.2% | 49.6% | 48.5% | 50.0% | | Income from Operations | $57.5 | $62.8 | $77.1 | $91.7 | | Net Income | $50.1 | $41.6 | $68.1 | $72.1 | | Diluted EPS | $0.74 | $0.61 | $1.01 | $1.07 | Fiscal Year 2025 Outlook The company has reaffirmed its full-year revenue guidance for fiscal year 2025, maintaining the previously stated range - ACM is maintaining its revenue guidance range of $850 million to $950 million for fiscal year 2025[4] Operating Highlights and Detailed Financials (Q2 2025) In Q2 2025, total shipments grew 1.9% to $206.4 million, and the company achieved a milestone by delivering its 1,500th ECP chamber - Total shipments in Q2 2025 were $206.4 million, an increase of 1.9% from Q2 2024[7] - The company delivered its 1,500th electroplating (ECP) chamber, marking a significant milestone in its plating technology adoption[7] Q2 2025 vs Q2 2024 Financial Breakdown | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | $215.4 | $202.5 | +6.4% | | GAAP Gross Margin | 48.5% | 47.8% | +0.7 p.p. | | GAAP Operating Expenses | $72.8 | $59.2 | +22.9% | | GAAP Operating Income | $31.7 | $37.6 | -15.7% | | GAAP Net Income | $29.8 | $24.2 | +23.1% | | GAAP Diluted EPS | $0.44 | $0.35 | +25.7% | - Cash and cash equivalents, plus restricted cash and time deposits, totaled $483.9 million at the end of Q2 2025, down from $498.4 million at the end of Q1 2025[13] Financial Statements This section presents the detailed consolidated balance sheets, statements of operations, and revenue breakdown by product category for ACM Research Condensed Consolidated Balance Sheets As of June 30, 2025, ACM's total assets grew to $2.04 billion from $1.86 billion at the end of 2024, driven by increases in cash, accounts receivable, and inventories Balance Sheet Summary (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $1,645,653 | $1,483,379 | | Total Assets | $2,039,715 | $1,855,721 | | Total Current Liabilities | $671,012 | $641,233 | | Total Liabilities | $848,026 | $759,815 | | Total Equity | $1,191,689 | $1,095,906 | Condensed Consolidated Statements of Operations The statement of operations shows a 6.4% revenue increase for Q2 2025 year-over-year, reaching $215.4 million, with gross profit growing to $104.5 million Q2 Statement of Operations Summary (in thousands) | Account | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $215,372 | $202,480 | | Gross Profit | $104,461 | $96,784 | | Total Operating Expenses | $72,767 | $59,191 | | Income from Operations | $31,694 | $37,593 | | Net Income Attributable to ACM | $29,760 | $24,210 | H1 Statement of Operations Summary (in thousands) | Account | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $387,719 | $354,671 | | Gross Profit | $187,011 | $175,905 | | Total Operating Expenses | $129,540 | $113,080 | | Income from Operations | $57,471 | $62,825 | | Net Income Attributable to ACM | $50,140 | $41,643 | Total Revenue by Product Category For Q2 2025, revenue from 'Single wafer cleaning, Tahoe and semi-critical cleaning equipment' remained relatively flat but continues to be the largest contributor at $155.0 million Revenue by Product Category (in thousands) | Product Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical cleaning | $154,961 | $153,221 | $284,530 | $262,691 | | ECP, furnace and other technologies | $48,016 | $38,962 | $75,646 | $64,762 | | Advanced packaging (ex-ECP), services & spares | $12,395 | $10,297 | $27,543 | $27,218 | | Total Revenue | $215,372 | $202,480 | $387,719 | $354,671 | Supplemental Information This section provides reconciliation of GAAP to non-GAAP financial measures and other important disclosures regarding the company's operations and future outlook Reconciliation of GAAP to Non-GAAP Financial Measures This section provides a detailed reconciliation of GAAP to non-GAAP financial results for the three and six months ended June 30, 2025 - Non-GAAP measures exclude stock-based compensation (SBC) and, for net income and EPS, also exclude unrealized gains/losses on short-term investments[11][25] Q2 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP (in thousands) | SBC Adjustment (in thousands) | Other Adjustments (in thousands) | Non-GAAP (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $104,461 | $(356) | - | $104,817 | | Income from Operations | $31,694 | $(9,770) | - | $41,464 | | Net Income Attributable to ACM | $29,760 | $(9,770) | $2,730 | $36,800 | H1 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands) | Metric | GAAP (in thousands) | SBC Adjustment (in thousands) | Other Adjustments (in thousands) | Non-GAAP (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $187,011 | $(885) | - | $187,896 | | Income from Operations | $57,471 | $(19,587) | - | $77,058 | | Net Income Attributable to ACM | $50,140 | $(19,587) | $1,648 | $68,079 | Other Information This section includes logistical details for the upcoming investor conference call, standard forward-looking statement disclaimers, and a brief overview of ACM Research's business operations - A conference call to discuss the results is scheduled for August 6, 2025, at 8:00 a.m. Eastern Time[8] - The report contains forward-looking statements that involve risks and uncertainties, and readers are cautioned not to place undue reliance on them[14] - ACM develops, manufactures, and sells semiconductor process equipment for wet cleaning, electroplating, polishing, and other critical processes for advanced semiconductor manufacturing and wafer-level packaging[15]