Faraday Technology (3035) Q4 2025 earnings summary

Executive summary

• 4Q25 revenue was NT$2,808M, down 13.2% sequentially and 4.9% year-over-year, with net income at NT$222M, up 34.8% QoQ but down 11.0% YoY.

• Full-year 2025 revenue reached NT$17,993M, a 62.6% increase YoY, but net income declined 27.9% to NT$772M.

• Operating revenues for 2025 were NT$15,631,213 thousand, up significantly from NT$8,368,365 thousand in 2024, driven by strong sales of goods, services, and IP licenses.

• Net income for 2025 was NT$731,331 thousand, a decrease from NT$1,041,465 thousand in 2024, reflecting higher operating costs and expenses.

• The audit opinion was unqualified, confirming fair presentation of financial position and performance.

Financial highlights

• 4Q25 gross margin improved to 42.2% from 33.2% in 3Q25, but slightly below 4Q24's 42.8%.

• Full-year 2025 gross margin was 27.0%, down from 45.7% in 2024.

• Gross margin for 2025 was 23.6%, down from 45.1% in 2024.

• Cash and cash equivalents at year-end 2025 were NT$7,266M, down from NT$8,311M a year earlier.

• Basic EPS for 2025 was NT$2.81, down from NT$4.04 in 2024.

Segment performance

• 4Q25 NRE revenue surged 89.2% QoQ and 183.0% YoY, while MP revenue fell 37.1% QoQ and 32.9% YoY.

• Full-year 2025 MP revenue nearly doubled YoY to NT$14,187M, while IP revenue declined 2.7%.

• Sale of goods contributed NT$12,198,684 thousand (78.04% of revenue), services NT$2,113,264 thousand (13.52%), and IP licenses NT$1,319,265 thousand (8.44%) in 2025.

• Sales mix in 4Q25: MP NT$1,465M, NRE NT$931M, IP NT$412M.

• Revenue recognized at a point in time: NT$12,823,174 thousand; over time: NT$2,808,039 thousand.