eMemory Technology (3529) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached NT$952.4M (TWD 952 million), up 1.7% sequentially and 5.9% year-over-year, with net income of NT$488,442K, up 21.8% sequentially and 17.7% year-over-year, driven by breakthroughs in security and memory applications, including a 10-year U.S. defense contract for PUF technology and commercial adoption of embedded ReRAM and NeoFlash.

• Royalty contributed 63.6% and licensing 36.4% of Q3 revenue; licensing grew 9.1% sequentially and 19.4% year-over-year.

• Gross margin remained at 100%, with operating margin at 57.6% and net margin at 51.3%.

• Strategic collaborations with major foundries, ARM, and leading cloud service providers are expanding the technology's reach in advanced nodes and security solutions.

• Cash dividends of NT$1,642,608K were distributed during the nine months ended September 30, 2025.

Financial highlights

• Q3 2025 revenue was TWD 952 million (USD $32 million), up 8.2% sequentially and 15.9% year-over-year in USD terms.

• Operating income reached TWD 548 million, up 0.5% sequentially and 8.6% year-over-year; net income was TWD 487 million, up 21.8% sequentially and 17.7% year-over-year.

• EPS for Q3 was TWD 6.52, up 21.6% sequentially and 17.7% year-over-year.

• ROE improved to 57.0% from 50.4% in the previous quarter.

• Cash at period end was NT$2,746,424K, down from NT$3,307,749K at the start of the year.

Outlook and guidance

• Business momentum expected to accelerate, with licensing growth from U.S. defense contracts and AI server applications, and royalty growth from mass production in RF, DDR5, AI, automotive, and PC markets.

• Advanced process nodes (7 nm and below) are expected to contribute significantly to future royalties, with over 60 design wins and more than 20 tapeouts at 3 nm in Q4.

• New IP development includes OTP for 2nm with TSMC, ReRAM with Korea's largest company, and NeoFlash for smart power.

• Security business expanding with chiplet security, Arm collaboration, and automotive/hospital platforms.

• No explicit forward-looking guidance provided, but continued revenue and profit growth year-over-year suggest positive momentum.