eMemory Technology (3529) Q1 2026 earnings summary

Executive summary

• Achieved record high operating performance in Q1 2026, with revenue reaching NT$1,093.99 million, up 4.4% QoQ and 20% YoY, driven by 3nm licensing for AI server CPUs and expansion into high-speed interface applications.

• Industry-wide hardware security upgrade cycle underway, fueled by AI, agentic AI, and post-quantum cryptography requirements.

• Transitioning from IP provider to system-level security solution provider, with hardware security modules nearing NIST certification.

• Strategic focus on logic non-volatile memory, leveraging mature logic process capacity to avoid flash supply bottlenecks.

• Licensing and royalty revenues both grew, with licensing up 9.9% QoQ and 58.6% YoY, and royalty up 1.6% QoQ and 6.2% YoY.

Financial highlights

• Q1 2026 revenue: TWD 1.09 billion, up 4.4% QoQ and 20% YoY.

• Operating income: TWD 662 million, up 4.2% QoQ and 26.8% YoY; operating margin 60.5%.

• Net income: TWD 596 million, up 5.9% QoQ and 29.1% YoY; EPS: TWD 7.98.

• Gross margin remained at 100% for Q1 2026.

• ROE was 57.6%, down 3.2ppt QoQ but up 8.9ppt YoY.

Segment performance

• NeoFuse contributed 59.8% of Q1 revenue, NeoBit 20%, PUF-based 12.2%, and MTP 8%.

• PUF-based revenue saw significant YoY growth, with licensing up 606.9% YoY and royalty up 606.9% YoY.

• Royalty revenue by wafer size: 66.3% from 12-inch wafers (up 22.5% YoY), 33.7% from 8-inch wafers (up 5.6% YoY).

• Licensing revenue: 34.8% of total, up 9.9% QoQ and 58.6% YoY; royalty revenue: 65.2% of total, up 1.6% QoQ and 6.2% YoY.

• 139 licensed product tape outs completed in Q1 2026.