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Novatek Microelectronics (3034) investor relations material

Novatek Microelectronics Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary6 Nov, 2025

Executive summary

  • Q3 2025 revenue was NT$24.57 billion, down 11.8% year-over-year and 6% quarter over quarter, but at the high end of guidance due to FX appreciation and reduced subsidies and tariffs effects.

  • Q3 2025 net income was NT$3.65 billion, down 30.5% year-over-year and 2% sequentially.

  • EPS for Q3 2025 was NT$6.01, down from NT$8.64 a year ago.

  • For the first nine months of 2025, net sales were NT$77.85 billion, flat year-over-year, but net income fell 18.6% to NT$12.66 billion.

  • Consolidated financials were prepared under Taiwan regulations and IAS 34, with a qualified audit opinion due to minor unreviewed subsidiaries.

Financial highlights

  • Q3 2025 gross margin was 36.3%, down from 39.7% a year ago and flattish quarter over quarter.

  • Q3 2025 operating margin was 15.7%, down from 22.4% a year ago.

  • Q3 2025 gross profit was NT$8.9 billion, down quarter over quarter and 19% year over year.

  • Cash and cash equivalents at September 30, 2025, were NT$39.66 billion, down from NT$54.72 billion at June 30, 2025, mainly due to dividend distribution.

  • Operating expense increased 8% quarter over quarter and 5% year over year, mainly due to higher R&D spending.

Outlook and guidance

  • Q4 2025 revenue expected between NT$22–23 billion, with gross margin guidance of 35–38% and operating margin of 14.5–17.5%.

  • Q4 is expected to be a low season, with revenue and demand declining across most segments except for tablets.

  • 2026 revenue projected to grow steadily, driven by new product launches and increasing demand for AI-enabled edge devices.

  • Tax rate guidance for 2025 remains at 16–17%.

  • Management expects no material impact from newly adopted or upcoming accounting standards.

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Frequently asked questions

Novatek Microelectronics Corporation is a fabless chip design company. The company specializes in the design, development, and sales of a broad spectrum of display driver ICs and System-on-Chip (SoC) solutions. These products cater to the needs of sophisticated flat-panel display applications and audio/video applications across all digital devices. Novatek's product offerings include SoC solutions and display driver ICs for various sizes of displays, alongside products like image product line, timing controllers, LCD monitor controllers, TV controllers, power management controllers, digital image controllers, and CMOS image sensors. These solutions find applications in enhancing the performance and utilization of digital devices. The company is headquartered in Hsinchu, Taiwan, and its shares are listed on the Taiwan Stock Exchange.

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