ArcSoft (688088) H2 2025 earnings summary

Executive summary

• Achieved revenue of ¥922.97 million in 2025, up 13.22% year-over-year; net profit attributable to shareholders was ¥258.41 million, up 46.25% year-over-year; adjusted net profit (excluding non-recurring items) rose 37.51% year-over-year to ¥214.28 million.

• Maintained high R&D investment at ¥429.91 million, representing 46.58% of revenue; R&D staff accounted for 61.71% of total employees.

• Mobile intelligent terminal visual solutions revenue grew 5.90% year-over-year to ¥715.07 million; automotive AI visual solutions surged 50.94% to ¥191.98 million.

• Cash dividend payout for 2025 (including interim) totaled ¥128.23 million, 49.62% of attributable net profit.

Financial highlights

• Operating income: ¥922.97 million (+13.22% YoY); net profit: ¥258.41 million (+46.25% YoY); adjusted net profit: ¥214.28 million (+37.51% YoY).

• Basic and diluted EPS: ¥0.64 (+45.45% YoY); adjusted EPS: ¥0.53 (+35.90% YoY).

• Gross margin: 89.35%; net margin: 28.00%.

• Operating cash flow: ¥207.94 million (+1,809.92% YoY).

• Net assets: ¥2.74 billion; total assets: ¥3.03 billion.

Outlook and guidance

• 2026 strategy focuses on strengthening core capabilities, scaling up, and cultivating new growth drivers in AI vision for mobile, automotive, and commercial imaging.

• Plans to deepen market leadership in mobile imaging, expand AI glasses and smart camera applications, and accelerate automotive AI solution deployment, especially in overseas markets.

• Continued high R&D investment and optimization of financial management and risk controls.