ACM Research, Inc. (ACMR) Balance Sheet

The balance sheet is expanding rapidly, with total assets rising from $2.0B in 2025Q2 to $3.4B in 2026Q2, a 70% increase. This growth is fueled by a surge in cash (up 119% YoY) and a 25% increase in net PPE, indicating heavy investment in manufacturing and R&D infrastructure. The equity base also expanded by 93% over the same period, reflecting strong retained earnings and possibly equity raises, which supports the company's ability to fund its growth trajectory without excessive leverage.

While total debt has grown from $121M in 2024Q1 to $349M in 2026Q2, the debt-to-equity ratio has remained remarkably stable, hovering around 0.15-0.16 over the past year. This suggests that the company is using debt opportunistically, likely to fund working capital needs or capital expenditures, but not to the point of straining its balance sheet. The low leverage provides a significant buffer against cyclical downturns and gives management flexibility to navigate geopolitical uncertainties.

The asset mix is becoming more tangible, with net PPE increasing from $308M in 2025Q2 to $385M in 2026Q2, reflecting investments in facilities and equipment to support growth. Goodwill is negligible at $2.5M, suggesting that growth is organic rather than acquisition-driven, which reduces the risk of impairment charges. The rising PPE intensity aligns with the company's expansion into new product lines like ECP and furnaces, which require significant capital investment.

The equity base has expanded dramatically, driven by retained earnings which grew from $310M in 2025Q2 to $457M in 2026Q2, a 47% increase. This indicates that the company is reinvesting its profits to fuel growth rather than distributing them via dividends or buybacks. The lack of significant share repurchases or dilution suggests that equity growth is primarily organic, which is a positive signal for existing shareholders.

Liquidity is robust, with the current ratio rising from 2.45 in 2025Q2 to 3.66 in 2026Q2, indicating a strong ability to meet short-term liabilities. Cash and equivalents have more than doubled to $990.6M, providing a substantial cushion against operational volatility and enabling continued investment in R&D and capacity. This liquidity position is particularly important given the lumpy cash flows associated with capital equipment sales and the potential for geopolitical disruptions.