eMemory Technology (3529) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached NT$1,048 million, up 10.1% sequentially and 3.7% year-over-year, with full-year 2025 revenue at NT$3,849 million, a 6.7% increase from 2024.

• Operating income for Q4 2025 was NT$635.7 million, up 15.9% quarter-over-quarter and 12.3% year-over-year; full-year operating income rose 13.4% to NT$2,252 million.

• Net income for Q4 2025 was NT$563 million, up 15.6% sequentially and 9.4% year-over-year; full-year net income increased 4.2% to NT$1,911 million.

• Royalty revenue accounted for 66.9% of Q4 revenue, with licensing at 33.1%.

• Achieved 18 licensing wins in 3 nm defense applications in Q4 2025, with further 3 nm AI data center processor license expected in Q1 2026.

Financial highlights

• Gross margin remained at 100% for Q4 and full-year 2025.

• Operating margin improved to 60.6% in Q4 2025, up 3.0 percentage points sequentially and 4.6 points year-over-year.

• EPS for Q4 2025 was NT$7.54, up 15.6% quarter-over-quarter and 9.4% year-over-year; full-year EPS reached NT$25.60.

• Net margin for Q4 2025 was 55.2%, up 3.9 points sequentially and 4.1 points year-over-year.

• Cash at year-end 2025 was NT$3,532,058 thousand, up from NT$3,307,749 thousand at year-end 2024.

Outlook and guidance

• Licensing revenue is expected to grow strongly, driven by more licenses and higher average prices.

• Royalty growth to accelerate with mass production ramp-up, higher ASPs at advanced nodes, and increased PUF and MTP-related royalties.

• New application ramp-ups in mobile, automotive, cloud AI, and edge devices.

• Security IPs to expand with PQC certifications and integration into major CPU platforms and automotive/healthcare applications.

• Technology development focuses on advanced OTP, RRAM, NeoFlash, and PUF-based security platforms, with NIST certifications achieved.