Faraday Technology (3035) Q2 2025 earnings summary

Executive summary

• Revenue for 2Q25 was NT$4,512 million, down 39.3% sequentially but up 70.3% year-over-year.

• Net income dropped sharply to NT$36 million, a 90% decrease from 1Q25 and 86.9% lower year-over-year.

• Operating revenue for the six months ended June 30, 2025 was NT$11,949 million, up from NT$5,228 million year-over-year, with net income at NT$386.8 million, down from NT$546.6 million in the prior year period.

• Gross margin improved to 24.2% from 20.3% in 1Q25, but remains below 2Q24's 47.1%.

• A major acquisition of Solid Silicon Technology Corporation (Aragio) was completed in February 2024, contributing to revenue but also to net loss for the acquired entity.

Financial highlights

• MP (mass production) revenue was NT$3,811 million, down 42.1% sequentially but up 129.7% year-over-year.

• Operating income for the six months was NT$432.5 million, down from NT$573.4 million year-over-year.

• Cash and cash equivalents increased to NT$8,372 million as of June 30, 2025.

• Total assets were NT$18,978 million and total equity NT$13,473 million as of June 30, 2025.

• Dividend per share for 2024 was NT$3, down from NT$4.3 in 2023.

Segment performance

• MP segment contributed the majority of revenue, despite a significant sequential decline.

• IP and NRE segments saw both sequential and year-over-year decreases in revenue.

• Sales breakdown shows MP accounted for 85% of 2Q25 revenue, with NRE at 9% and IP at 6%.

• The company operates as a single segment focused on integrated circuit design products.