ArcSoft (688088) Q3 2026 earnings summary

Executive summary

• Q3 revenue was RMB 211.6m, down 2.56% YoY; net income attributable to shareholders fell 65.93% to RMB 18.1m. 9M revenue rose 3.81%, while attributable net income declined 32.78%.

• Higher employee and social security costs amid investment in mobile intelligent terminals, automotive AI and emerging areas weighed on earnings; 9M R&D expense rose 16.83% YoY.

Financial highlights

• 9M revenue was RMB 651.5m; total profit was RMB 104.3m, down 29.99% YoY, and net income attributable to shareholders was RMB 95.3m, down 32.78%.

• 9M adjusted net income, excluding non-recurring items, was RMB 64.4m, down 42.79%; Q3 adjusted net income was RMB 8.2m, down 79.80%.

• 9M operating profit was RMB 104.5m versus RMB 149.0m in the prior-year period; net profit was RMB 95.2m versus RMB 141.7m.

• 9M operating cash flow was RMB 92.6m, down 38.46% YoY; cash and cash equivalents were RMB 720.8m at Sept. 30, versus RMB 961.5m at year-end 2025.

Segment performance

• 9M mobile intelligent terminal vision solutions revenue was RMB 512.5m, up 0.14% YoY.

• 9M automotive AI vision solutions revenue was RMB 123.8m, up 18.23% YoY.