Realtek Semiconductor (2379) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached TWD 31.91 billion, down 8.87% QoQ but up 4.04% YoY in NT dollars; in USD, revenue fell 3.3% QoQ and rose 8.5% YoY.

• Consolidated revenue for the six months ended June 30, 2025 was NT$66,936,759 thousand, up 19% year-over-year from NT$56,296,624 thousand.

• Net income for the six-month period was NT$8,670,623 thousand, a 15% increase from NT$7,516,289 thousand year-over-year.

• Basic earnings per share for the six months was NT$16.91, compared to NT$14.66 for the same period last year.

• Inventory turnover days increased to 92 from 75 in Q1, reflecting anticipated market uncertainty.

Financial highlights

• Gross margin was 50.23% in Q2, down 1.33 percentage points QoQ; gross margin for the six months was 51%, unchanged YoY.

• Operating profit was TWD 4.01 billion (12.6% margin) in Q2; operating income for the six months was NT$8,911,728 thousand, up 33% YoY.

• Non-operating income was TWD 616 million in Q2, down from TWD 702 million in Q1.

• Cash and cash equivalents at June 30, 2025 were NT$10,547,038 thousand, down from NT$16,362,954 thousand a year earlier.

• Cash dividends of NT$13,078,023 thousand were declared for 2024 earnings.

Outlook and guidance

• Q3 and H2 2025 outlook is cautious due to macroeconomic, FX, and tariff uncertainties.

• Significant demand was front-loaded in H1 2025; H2 revenue may be over 8% lower than original projections due to NT dollar appreciation.

• Core product lines in automotive Ethernet and consumer AIoT expected to outperform.

• Gross margin is expected to remain stable even if new semiconductor tariffs are imposed.

• Management expects continued growth in IC product demand and is focused on R&D and expanding market share.