WIN Semiconductors (3105) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was TWD 3.78 billion, up 5.7% QoQ but down 23.8% YoY, mainly due to NT dollar appreciation and FX headwinds.

• Net loss attributable to the parent company was TWD 421 million, with EPS at -TWD 0.99 for Q2, reversing from a profit in Q1 due to FX losses and non-operating items.

• Product mix is shifting, with infrastructure revenue now comparable to cellular, and Wi-Fi benefiting from Wi-Fi 7 adoption.

• Positive operating cash flow maintained, with disciplined capex and stable opex; over 50% of opex allocated to R&D.

• All product segments are expected to see positive growth in Q3, led by optical due to new smartphone launches and AI-related projects.

Financial highlights

• Q2 2025 revenue: TWD 3.78 billion, up 5.7% QoQ, down 23.8% YoY.

• Gross margin: 18.5%, up 1.8 percentage points QoQ, but down from 27.2% YoY.

• Operating margin: -3.1%, improved by 3 percentage points QoQ.

• Net loss: TWD 421 million; net margin: -13%; EPS: -TWD 0.99.

• Utilization rate improved to 45% from 35% QoQ, but below last year's 65%.

Outlook and guidance

• Q3 2025 revenue expected to increase by mid-teens percentage QoQ.

• Gross margin for Q3 projected to reach low 20% range, with recovery anticipated as utilization and product mix improve.

• All segments (cellular, Wi-Fi, infrastructure, optical) forecasted to grow, with optical showing the strongest momentum.