Arcadyan Technology (3596) investor relations material

Executive summary

• Net revenue for 1Q26 was NTD 12,784 million, a 2% decrease sequentially but a 1% increase year-over-year.

• Net income reached NTD 689 million, up 1% both sequentially and year-over-year.

• Basic EPS was NTD 3.12, compared to NTD 3.08 in both 4Q25 and 1Q25.

• Consolidated financial statements for Q1 2026 and 2025 were reviewed, with a qualified conclusion due to certain subsidiaries not reviewed by independent auditors.

• The group operates mainly in networking products, focusing on wireless LAN, digital home, and multimedia.

Financial highlights

• Gross profit for 1Q26 was NTD 1,938 million, down 3% sequentially and 1% year-over-year.

• Operating profit was NTD 822 million, flat sequentially but down 4% year-over-year.

• Pre-tax profit was NTD 889 million, nearly unchanged from both 4Q25 and 1Q25.

• Cash and cash equivalents rose to NTD 10,602 million as of March 31, 2026, up from NTD 4,692 million at year-end 2025 and NTD 8,528 million a year earlier.

• Book value per share increased to NTD 76.90 from NTD 71.38 at year-end 2025.

Key financial ratios and metrics

• Gross margin was 15.1% in 1Q26, compared to 15.3% in 4Q25 and 15.4% in 1Q25.

• Operating margin was 6.4% in 1Q26, versus 6.3% in 4Q25 and 6.8% in 1Q25.

• Net margin was 5.4% in 1Q26, up from 5.2% in 4Q25 and flat year-over-year.

• Current ratio as of March 31, 2026: current assets NTD 46,659,935 thousand vs. current liabilities NTD 35,417,452 thousand.

• Inventory turnover increased, with inventories rising to NTD 19,169 million from NTD 12,655 million a year earlier.