MediaTek (2454) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$153.3 billion, up 14.9–15% year-over-year and 11.1% sequentially, driven by AI, Wi-Fi 7, and robust demand.

• Net income was NT$29.5 billion, down 6.7–7% year-over-year but up 23.3% sequentially; EPS was NT$18.43.

• Gross margin was 48.1%, down 0.4pp sequentially and 4.3pp year-over-year.

• Company completed the acquisition of IC PLUS Corp., expanding its Ethernet IC portfolio.

• Focus remains on AI, automotive, and data center growth, leveraging a strong balance sheet.

Financial highlights

• Operating income was NT$30.1 billion, up 40.4% sequentially but down 6.6% year-over-year; operating margin at 19.6–20%.

• Net profit margin was 19.3%, up 2pp sequentially, down 4.4pp year-over-year.

• Non-TIFRS net income was NT$30 billion; non-TIFRS EPS was NT$18.74.

• Cash and cash equivalents stood at NT$195.7 billion as of March 31, 2025.

• Cash flow from operations was NT$13.4 billion, with a net decrease in cash of NT$8.0 billion for the quarter.

Outlook and guidance

• Q2 2025 revenue expected between NT$147.2–159.4 billion, down 4% to up 4% sequentially, up 16–25% year-over-year.

• Gross margin forecasted at 47% ±1.5pp; operating expense ratio at 29% ±2pp.

• Management remains cautious on H2 2025 due to global trade and regulatory uncertainties.